Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Columbus Equipment Company. The Ohio Enterprise Zone law O.R.C. Section 5709.62 (C) requires the City to enter into a Council-approved agreement between the City and participating companies.
The family-owned Columbus Equipment Company is one of the leading heavy equipment distributors in the United States. Willis "Bill" Early purchased the firm of Carroll & Edwards in 1952, incorporating and renaming the firm Columbus Equipment Company which 60 years later continues to supply some of the best known brands in the industry: Komatsu, Takeuchi, Link-Belt, Dynapac and Morbark. In addition to being an equipment distributor, Columbus Equipment sells used equipment as well as rents and leases heavy equipment to a variety of industry sectors including construction, mining, paving, lifting (cranes) and environmental. The company is currently headquartered in Columbus with operations located around the state in Cadiz, Canton, Cincinnati, Dayton, Painesville, Piketon, Richfield, Toledo and Zanesville.
Columbus Equipment Company is proposing to purchase a vacant commercial office building consisting of approximately 13,500 square feet and invest $500,000 in new improvements to expand and relocate their corporate headquarters. Additionally, the company is proposing to construct a new 16,000 square foot building with shop bays, a parts department, and office spaces to serve as their local operation facility at a cost of $1,500,000. Columbus Equipment Company will retain 74 full-time employees with an estimated annual payroll of $3,650,000 and create 2 new full-time permanent positions with an estimated annual payroll of approximately $80,000.
The Department of Development recommends 75%/10-year Enterprise Zone tax abatement on real property improvements.
The Columbus City School District has been advised of this project.
FISCAL IMPACT: No funding is required for this project.
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