Explanation
BACKGROUND: The need exists to enter a Job Creation Tax Credit Agreement with Nuvo Packaging, LLC (“Nuvo Packaging”). The Ohio Tax Credit Legislation (Section 718.15 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter a Council-approved agreement between the City and a participating company.
Nuvo Packaging is a plastic thermoforming company with a niche in the recyclable food-packaging sector. Nuvo Packaging serves the bakery, deli, confectionary, and food service industries. The company was established to serve as a contract manufacturer for Pinnpack Capital Holdings, a plastic thermoforming company based out of California. The new Ohio manufacturing facility will serve customers on the East Coast, while growing the company’s customer base.
Nuvo Packaging is proposing to invest a total capital expenditure of approximately $10,000,000.00 in machinery and equipment to establish a new manufacturing operation in the City of Columbus. With this investment, the company proposes to enter into a lease agreement on a vacant industrial facility consisting of approximately 96,000 square feet at 845 Kaderly Drive, Columbus, Ohio, parcel number 010-110865 (the “Project Site”). The proposed project will allow Nuvo Packaging to expand into the Columbus region by creating one-hundred (100) net new full-time permanent positions with a cumulative associated estimated annual payroll of approximately $5,872,653.00 at the proposed Project Site.
Nuvo Packaging, LLC is requesting a Job Creation Tax Credit from the City of Columbus to assist in the development of the aforementioned project.
This legislation is presented as 30-day legislation.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Job Creation Tax Credit Agreement of forty-five percent (45%) for a term of up to six (6) consecutive years with...
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