TITLE
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A COMMUNITY REINVESTMENT AREA INCENTIVE AGREEMENT WITH BURNS AND SCALO OHIO LLC TO FACILITATE RELOCATION OF ITS CORPORATE HEADQUARTERS TO A NEW FACILITY ON TECH CENTER DRIVE, PART OF COMMUNITY REINVESTMENT AREA #3
BODY
WHEREAS, the Department of Economic Development requests that this Council authorize the Mayor to enter into a Community Reinvestment Area (CRA) Agreement with Burns and Scalo Ohio LLC to facilitate the planned relocation of its corporate headquarters presently located in Delaware, Ohio, to a new facility contemplated for development on an 8.48-acre parcel (025-013634) on Tech Center Drive, part of Community Reinvestment Area #3; and
WHEREAS, the Burns and Scalo company plans to invest $8.8 million in the purchase and development of the above-referenced parcel to include construction of a 34,500 sq. ft. building comprising 10,000 sq. ft. of office space; and
WHEREAS, the Burns and Scalo company would, as a result of the approval of a 12-year, 80 percent tax abatement on the improvements, and subsequent relocation, bring 34 employees to the City, consisting of an anticipated $2.228 million in annual payroll and nearly $56,000 in annual payroll taxes; and
WHEREAS, the Burns and Scalo company expects to grow to 52 employees within the first six years after relocation to Gahanna, generating an anticipated $85,000 or more in annual income taxes; and
WHEREAS, the incentive is anticipated to result in a net of $477,000 in new payroll taxes to the City over 12 years, and with the increase in land taxes and new building taxes, the City would receive about $41,000 in revenues per year, as compared to about $664 collected annually on only land taxes currently.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF GAHANNA, COUNTY OF FRANKLIN, STATE OF OHIO:
Section 1. That the Mayor is authorized to execute a Community Reinvestment Area Agreement with Burns and Scalo Ohio LLC, for its facility to be located on parcel 025-013634 on Tech Center Drive, Gahanna, OH 43230; said Agreement attached hereto as EXHIBIT A and made a part herein.
Section 2. That this Ordinance shall be in full force and effect after passage by this Council and 30 days after date of signature of approval by the Mayor.