Explanation
BACKGROUND: The City of Columbus (“City”) entered into a Job Creation Tax Credit Agreement (hereinafter “Agreement”) with Hirschvogel Incorporated, (also referred to as the “Grantee”) effective August 24, 2015. Columbus City Council approved the Agreement by Ordinance Number 0831-2015, adopted April 20, 2015, and granted a non-refundable tax credit allowed against the tax imposed under Section 361.09, “Net Profits” of the Columbus City Codes (the “City Tax Credit”) of sixty percent (60%) of the new income tax revenue received by the City for a calendar year from New Employees, as defined in Section 4 of the Agreement, commencing January 1, 2018 and for six (6) consecutive years thereafter (January 1, 2018 through December 31, 2023), based on capital expenditures of approximately $50.35 million, with approximately $14.7 million toward new construction and real property improvements, and approximately $35 million in acquisition of machinery and equipment to expand its existing manufacturing facility and machining space by an estimated 65,000 square feet, retain 322 full-time jobs and create 37 new full-time permanent positions with an estimated annual payroll of approximately $1.3 million at 2230 S. 3rd Street, Columbus, OH 43207, (the “Project Site”), the Grantee’s North America headquarters.
In a letter from the Grantee received by the City in July 2016, the Grantee indicated that the aforementioned expansion project was changed, restructured and realigned with the company’s new strategic growth plan. The Grantee is now proposing to invest approximately $28.88 million, with approximately $3.97 million in real property improvements and approximately $24.91 million in acquisition costs, machinery and equipment to reconfigure its manufacturing facility and to expand its machining space by an additional 30,000 square feet. In addition, the Grantee proposes to purchase a 50,000 square-foot facility at 2222 S. 3rd Street, Columbus, Ohio 43207 that is lo...
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