Explanation
BACKGROUND: Columbus City Council (COUNCIL), by Ordinance No. 2188-2014, passed October 20, 2014, authorized the City of Columbus (CITY) to enter into an Enterprise Zone Agreement (the AGREEMENT) with McDaniel’s Construction Corp., Inc. (hereinafter “ENTERPRISE”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a proposed investment of approximately $1 million in real property improvements (the “PROJECT”), the retention of 15 existing full-time jobs and the creation of 2 new permanent full-time positions with an annual payroll of approximately $90,000 related to the construction of a new headquarters totaling approximately 10,000 square feet on Parcel Number 010-019804 at 1069 Woodland Avenue, Columbus, OH 43219 (the Project Site), in Columbus, Ohio, within the City of Columbus Enterprise Zone (Zone #023) and within the Columbus City School District. The AGREEMENT was made and entered into to be effective January 14, 2015; the PROJECT was expected to begin December 2014, all real property improvements were expected to be completed by July 2015 with the term of the abatement not to commence after 2016 nor extend beyond 2025.
For Report Year 2015, ENTERPRISE missed both the CITY and State of Ohio reporting deadlines which placed the project in a state on non-compliance as per the terms of the AGREEMENT. The ENTERPRISE submitted a partially complete annual report following the deadline. This information was presented at the 2016 Columbus Tax Incentive Review Council (the TIRC) held on August 17, 2016. The recommendation of the TIRC was to continue the AGREEMENT and meet with ENTERPRISE to (A) determine revised construction, abatement and job creation windows for the project and amend the AGREEMENT accordingly, or (B) if those parameters cannot be determined, dissolve the AGREEMENT. ENTERPRISE was non-responsive for requests to meet.
For Report Year 2016 ENTERPRISE did not provide an annual report ...
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