Agenda Item #
Columbus Consolidated Government
Council Meeting
11/26/2013
Agenda Report #
TO: Mayor and Council
SUBJECT: Hill Three, LLC, d.b.a. Bojangles of Columbus Enterprise Zone
Application
INITIATED BY: Rick Jones, Director of Planning
Recommendation: Approval is requested to approve the application for ad
valorem tax abatements and waiver of building permit fees as outlined in the
Enterprise Zone Employment Act.
Background: 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.
Analysis: 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.
Financial Considerations: This request is for abatement of ad valorem taxes
only, and building permit fees.
Projected Annual Fiscal Impact Statement: 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.
Legal Considerations: See letters of legal opinion provided by Robert Lomax
regarding applicant eligibility
Recommendations/ Actions: The Planning Department recommends approval of the
application.
A RESOLUTION
NO. _____
A RESOLUTION AUTHORIZING APPROVAL OF THE REQUEST FOR HILL THREE, LLC, D.B.A.
BOJANGLES OF COLUMBUS, LOCATED AT 3260-3268 VICTORY DRIVE, TAX MAP PARCEL ID
#044-001-001, TO RECEIVE TAX ABATEMENTS UNDER THE STATE OF GEORGIA ENTERPRISE
ZONE ACT.
WHEREAS, Hill Three, LLC, d.b.a. Bojangles of Columbus, (Tax Map Parcel ID
#044-001-001) is located within the boundaries of the Columbus Business
Development Center (Enterprise Zone); and,
WHEREAS, Hill Three, LLC, d.b.a. Bojangles of Columbus proposes to make an
additional investment in personal property at their 3260-3268 Victory Drive
location in the amount of $1,435,000.00; and,
WHEREAS, the project meets the Enterprise Zone business type criteria as
retail; and,
WHEREAS, Hill Three, LLC, d.b.a. Bojangles of Columbus, will create at least 5
jobs (approximately 50 jobs) at this particular location prior to the tax
abatement period, and maintain the 5 jobs (net) during the full length of the
tax abatement period in order to provide additional economic stimulus to the
area; and,
WHEREAS, Hill Three, LLC, d.b.a. Bojangles of Columbus, will provide operating
statements, income and expense information, as well as before and after
photographs to the Board of Tax Assessors at the stage of completion as of the
January 1 valuation date as set by Georgia code; and,
WHEREAS, the project will incorporate and maintain the facade requirement for
the duration of the tax exemption period, as established by local Ordinance
#98-30.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the Council of the Consolidated Government of Columbus hereby authorizes
and approves Hill Three, LLC, d.b.a. Bojangles of Columbus, located at
3260-3268 Victory Drive, Tax Map Parcel ID #044-001-001, to receive abatement
of taxes as allowed by law under the Enterprise Zone Employment Act of the
State of Georgia. Hill Three, LLC, d.b.a. Bojangles of Columbus, shall comply
with the listed requirements in order to receive those tax abatements:
1.
Hill Three, LLC, d.b.a. Bojangles of Columbus, will show proof to The Board of
Tax Assessors every year that they are maintaining those five (5) new jobs
required under the Enterprise Zone Employment Act. Failure to maintain those
new jobs will result in the termination of the tax abatements.
2.
The Board of Tax Assessors also requires recipients to provide notice 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.
3.
The project will incorporate and maintain the landscape requirement, for the
duration of the tax exemption period, as established by local ordinance# 98-30.
The applicant shall also be required to follow any additional requirements as
determined by the City.
4.
Facade enhancement shall be in place and approved by the City official prior to
the granting of the tax abatements.
___________
Introduced at a regular meeting of the Council of Columbus, Georgia, held
the _________ day of _____________ 2013, and adopted at said meeting by the
affirmative vote of
_____________ members of said Council.
Councilor Allen voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
_____________________________ ________________________
Tiny B. Washington, Clerk of Council , Mayor
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