Columbus Development Strategy Brings 2,656 New Jobs to City
The
Columbus Tax Incentive Review Council’s Annual Review Provides Critical Insight
into Several of the City’s Incentive Programs
[COLUMBUS, OH] The City
of Columbus’ dual commitment to jobs and community brought $188 million in net
new payroll revenue and $978 million in real property investments to Columbus
in 2018. A team of economic development experts scrutinized the data
and supported the department’s recommendations. On Monday, September 23,
2019, Columbus City Council accepted the Tax Incentive Review Council’s (TIRC)
performance audit of the Department of Development's incentive strategies.
After a review, Council will vote on the proposed recommendations at a later meeting, then forward to the Department of Development for further
action.
“We are working to provide access to good-paying jobs and
capital investments within the city limits,” said Columbus City Councilmember
Emmanuel V. Remy. “This verifies our unwavering commitment to be accountable
and transparent with residents.”
Every year, the TIRC committee submits its findings to Council.
This year, it reviewed 67 Enterprise Zone and Community Reinvestment Area
agreements. It recommended that 44 agreements continue. Twenty (20) agreements
were allowed to proceed with either amendments or staff follow-up. Three (3)
agreements are set to expire in good standing on December 31, 2019.
The companies created:
- $188
million in new annual payroll (143% of goal);
- Invested
over $978 million in real property improvements (138% of goal);
- Created
and retained a total of 10,564 jobs;
Enterprise Zones are designated areas where businesses can
receive tax incentives for eligible projects. Community Reinvestment Areas are
areas of land in which property owners can receive tax incentives for investing
in real property improvements.
The entire portfolio of Enterprise Zone (EZ), Community
Reinvestment Area (CRA) and Tax Increment Financing (TIF) projects are
performing above agreed-upon commitments as many of the companies participating
in these programs met or exceeded job, payroll and capital investment
commitments:
- NetJets, LLC
received a 75%/10-year Enterprise Zone agreement to invest $15 million
near the airport. To date, the company has invested $21 million on Fifth
Avenue ($6.042 million
more invested than committed) and created a total of 208
full-time jobs (189 more
net new jobs than committed).
- Huntington National Bank also received a 75%/10-year Enterprise Zone agreement
to invest $18 million on the north-side. To date, the company has invested
$29.4 million ($11.4
million more invested than committed) to revitalize ”The
Huntington Gateway” off Cleveland Avenue and added 102 new jobs (95 more net new jobs than committed)
in 2018.
Council is set to vote on the TIRC recommendations during the
Monday, October 7, 2019, Council meeting.
WHEN ABATEMENTS EXPIRE
The full property tax schedule goes into effect once the
abatement period ends. Projects expiring December, 31, 2020, are as follows:
- Gowdy Partners III, LLC received a 75%/10-year Enterprise Zone agreement that
resulted in 113 new jobs in 2018 and $28 million investment in real
property improvements.
- Menard Inc.
received a 75%/10-year Enterprise Zone agreement that produced 70 new jobs
in 2018 and $8.2 million investment in real property improvements.
“Incentives are only one tool in Columbus’ kit, but it is
critical that we have the means to compete regionally and nationally,” said
Council President Shannon G. Hardin. “We are focused on providing safe
neighborhoods, infrastructure, and high quality of life for workers and residents.
The companies are asked to create and retain jobs while investing in their
property.”
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