Explanation
BACKGROUND: Columbus City Council (Council), by Ordinance 2237-03, passed October 6, 2003, authorized the City of Columbus (City) to enter into an Enterprise Zone Agreement (Agreement) with Value City Department Stores, Inc. and Northland Associates LLC for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a proposed total investment of approximately $19,100,000 comprised of $2,000,000 in land acquisition, $14,600,000 in real property improvements, $2,000,000 in machinery and equipment and $500,000 in new furniture and fixtures; the retention of 548 full-time jobs and the creation of 110 new full-time positions with an associated annual payroll of approximately $6,080,000 related to the renovation of the 300,000 square foot former Northland Mall Lazarus Store, the parcel number at that time being 010-103735 (subsequently renumbered to 010-270389) with an address of 1649 Morse Road, Columbus, Ohio 43229, within the City of Columbus Enterprise Zone (Zone #023) and within the Columbus City School District. This authorizing ordinance was subsequently amended to instead authorize an Enterprise Zone Agreement with Retail Ventures, Inc. and three of its subsidiaries including Value City Department Stores, Inc., Shonac Corporation and Retail Ventures Services, Inc. (Collectively the “Retail Ventures Entities”) and Northland Associates LLC by Ordinance 0053-2004, passed January 12, 2004. The Agreement was made and entered into to be effective February 4, 2004 (EZA #023-04-01).
Due to economic conditions there was no investment in personal property nor were 548 full-time jobs retained nor were 110 new full-time positions created; however 2 (two) new jobs were created by Retail Ventures Entities, more than the $14.6 million in real property investment called for in the Agreement was made and the renovated 300,000 square foot facility was sublet to the State of Ohio to which the State of Ohio subsequently relocated...
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