}
Columbus Consolidated Government
Council Meeting
11/26/2013
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To
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Mayor and Council
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Subject
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Enterprise Zone Application: Hill Three, LLC, d.b.a. Bojangles of Columbus
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Initiator
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Planning Department
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Recommendation
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Approve application for ad valorem tax abatements as outlined in the Enterprise \n \n Zone Employment Act
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Approval
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Pending
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Background
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Applicant is locating within the existing boundaries of the Columbus Business
Development Center (a.k.a. Enterprise Zone). Applicant proposes to combine 4
previously separate lots (now vacant) into one lot for commercial use, demolish
an existing dilapidated structure thereon and constructing a new retail
establishment - Bojangles Famous Chicken 'n Biscuits.
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Analysis
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Applicant proposes to make a 1.435 million dollar investment in land, buildings
and equipment, landscape enhancement and paving. The business plan calls for
the creation of 50 jobs. The Enterprise Zone legislation stipulates that 5 new
jobs be created and maintained throughout the 10-year tax abatement period.
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Financial Considerations
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This request is for abatement of ad valorem taxes only, and building permit
fees.
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Projected Annual Fiscal Impact Statement
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Applicant proposes to begin construction in January 2014 and complete
construction in mid-May 2014. Based on a planned investment of $1,435,000.00
in buildings, land and machinery and equipment, the ad valorem tax levied would
increase from the 41.40 mil rate in 2013 of $6,587.74 ($5,663.52 in land and
$924.22 in building structures) to approximately $23,763.60 (with a slight
adjustment to the state mil rate). Of that $23,763.60 of ad valorem taxes due,
the abatement would not cover school district taxes (23.37 mils) or state taxes
(.15 or .10 mils), nor would it abate Bond debt service (.79 mils) but would
only be an abatement for the city portion of ad valorem taxes collected (17.09
mils). The abatement, which is distributed over 10 years, 100% of the city's
portion for the first five years, then 80% in the sixth and seventh years, 60%
in the eighth year, 40% in the ninth year and 20% in the 10th year. Based on
this declining schedule, and using as value the applicant's stated investment
(actual appraisals are performed by the Tax Assessor's office), the
approximate tax abatement would be: Years 1-5 $9,809.66 each year, Years 6-7
$7,847.73 each year, Year 8 $5,885.80, Year 9 $3,923.86 & Year 10 $1,961.93 for
a total of $74,553.42 over ten years - an average annual abatement of
$7,455.34.
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Legal Considerations
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See letters of legal opinion provided by Robert Lomax regarding applicant
eligibility
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Recommendations/ Actions
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The Planning Department recommends approval of the application