Agenda Report - Enterprise Zone - Columbus Tire Co.
Initiator
Will Johnson, Planning Department
Recommendation
Approval is requested for Columbus Tire Company to receive ad valorem tax \n \n abatements (with the exclusion of school and general obligation debt levies) as \n \n specified under the Enterprise Zone Employment Act. The proposed expansion \n \n project meets the minimum requirements as established under the Georgia \n \n Enterprise Zone Employment Act of 1997.
Approval
Approved
Background
The expansion of Columbus Tire Company is located at 3109 Victory Drive within
the boundaries of the Columbus Business Development Center (Enterprise Zone).
The applicant has requested to receive tax abatements on all ad valorem taxes
(with the exclusion of school and general obligation debt levies) for a
$2,375,000.00 investment in land, buildings, machinery and equipment.
Analysis
Columbus Tire Company will hire employees and maintain at least five new jobs,
(estimated total of 6) as required by the Enterprise Zone Employment Act, prior
to the tax abatement period. They plan to maintain 6 jobs overall, with hiring
to be based on qualifications and a target of approximately 10% of those hired
being qualified as low to moderate income residents.
This project has been approved for financing by Southern States Bank and/or
Renassant Bank.
Financial Considerations
Tax abatements under the State of Georgia Enterprise Zone Act will be made
available to this project. Ad valorem taxes will be abated based upon the
following schedule:
One hundred percent (100%) of the property taxes shall be exempt for the first
five years; and
Eighty percent (80%) of the property taxes shall be exempt for the next two
years; and
Sixty percent (60%) of the property taxes shall be exempt for the next year; and
Forty percent (40%) of the property taxes shall be exempt for the next year;
and Twenty percent (20%) of the property taxes shall be exempt for the last
year.
The Board of Tax Assessors will provide the estimate of taxes abated for the
ten-year period beginning with Tax Year 2019.
Projected Annual Fiscal Impact Statement
At a stated value of $2,375,000 investment in real property, (Land: $475,000,
Buildings: $1,650,000, Equipment: $250,000) the 10-year abatement would be
based on an annual valuation of the asset, the type of asset (percentages set
by the state) and the annual mileage rate.
Legal Considerations
The Board of Tax Assessors also requires to be notified of the status of the
project as of January 1 of each year in order to grant the abatement. This
information enables the Board to value the property at the stage of completion
as of the January 1 valuation date as
set by Georgia code. The Board would need to know when the project is
considered completed. The only personal property types, which have been
approved for recognition within the Enterprise Zone, are machinery and
equipment that is permanently located within the EZ.
Recommendations/ Actions
Approve the resolution authorizing the City Manager to extend ad valorem tax
abatements to Columbus Tire Co for the investment in an expansion valued at
$1,910,000 at their 3109 Victory Drive location, with consideration of the CCG