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RESOLUTION RECOMMENDING THAT THE MARION COUNTY BOARD OF COMMISSIONERS ENTER INTO AN AGREEMENT WITH U.S. YACHIYO INC. 1177 KELLOGG PARKWAY IN THE CITY OF MARION FOR THE PURPOSE OF ABATEMENT OF REAL PROPERTY TAX ON A BUILDING ADDITION AT ITS MANUFACTURING FACILITY, AT THE SAME LOCATION, TO ENCOURAGE THEM TO EXPAND AND CREATE JOBS, AND DECLARING AN EMERGENCY
WHEREAS, By Ordinance No. 1985-70, adopted by the Council of the City of Marion on September 23, 1985 and by Resolution No. 85-909 adopted by Marion County on October 1, 1985, the County designated an area as an “Urban Jobs and Enterprise Zone” pursuant to Chapter 5709 of the Ohio Revised Code, and that the boundaries of the Enterprise Zone were amended by the Council of the City of Marion by Ordinance No. 1997-117 on August 28, 1997 and by Marion County by Resolution No. 97-0935 on August 28, 1997, and that the boundaries of this Enterprise Zone were further amended by the Council of the City of Marion by Ordinance No. 2003-76 on July 28,2003 and by Marion County by Resolution No. 2003-0843 on October 9, 2003, which area is shown in Exhibit A, which is attached and incorporated, and both Marion City and Marion County have declared that incentives to business offered by this zone will enhance efforts to promote the viable and diverse economic activities necessary for rejuvenation of the zone; and
WHEREAS, effective November 4, 1985, as amended September 3, 1997, and as further amended November 12, 2003, the Director of Development of the State of Ohio determined that the aforementioned area, as amended, contains the characteristics set forth in R.C. 5709.61(A) and certified said area as an “Urban Jobs and Enterprise Zone” under R.C. Chapter 5709; and
WHEREAS, US YACHIYO INC. (the “Company”), is desirous of expanding its current manufacturing facility by constructing an approximately 51,000 square foot addition at a cost of approximately $7.000,000 and installing new machinery and equipment at a cost of approximately $11,820,000 provided that the appropriate development incentives are available to support the support the economic viability of the Project; and,
WHEREAS, The Enterprise Zone Director and City Council of Marion, Ohio finds that THE COMPANY is qualified by financial responsibility and business experience to create and preserve employment opportunities in Marion City Enterprise Zone and to improve the economic climate of the City of Marion; and
WHEREAS, The Project Site as proposed by the Company is located in the Ridgedale Local School District (the “School District”) and they and the Tri- Rivers Career Center have been notified in accordance with R.C. Section 5709.83 and have been given a copy of the application; and
WHEREAS, pursuant to Ordinance No. 1999-90 passed on June 28, 1999 (TIF #3) the City, with approval of Ridgedale Local Schools, declared 100% of the increase in the assessed value of certain parcels of real property in the City, basically all land in the Ridgedale District portion of the Dual Rail Industrial Park, including all of the Company land at that time in Ridgedale School District, to be a public purpose and exempt from real property taxation for a period of 20 years; and
WHEREAS, pursuant to R.C. Section 5709.911(B)(2), the City may consent to a subsequent exemption within the area covered by the TIF Ordinance, which consent would allow the subsequent exemption to take priority over the exemption granted pursuant to the TIF Ordinance; and
WHEREAS, the School District has both adopted policies (Ridgedale March 9, 1999) allowing the City of Marion to grant up to and including a 50% abatement with the remaining taxes going into a TIF and waiving the 45 day review period and full School Board approval; and
WHEREAS, on or before December 31, 2012, the number of full-time jobs to be created from this expansion is estimated to be 40 with an annual payroll estimated to be $1,710,000 from these additional positions, then
BE IT RESOLVED by the Council of the City of Marion, Marion County, Ohio:
Section 1. That Council hereby recommends that the Marion County Board of Commissioners enter into an agreement with the Company pursuant to Section 5709.63 (A) ORC, for the abatement of tax on the increased real estate value due to property improvements in their project at a rate of 50% for a period of ten (10) years. . Said exemption shall be effective the first year for which the real property tax on the improvements would first be taxable were that property not exempted from taxation. The abatement shall be on the amount invested in the three (3) year project term starting with the date of the agreement with the County, but the total abatement shall not be effective for more than a total of ten (10) years.
Section 2. Pursuant to R.C. Section 5709.911(B)(2), City Council hereby consents that the Enterprise Zone exemptions to be granted pursuant to the Agreement shall take priority over any exemptions granted pursuant to the TIF Ordinances for the Company Project Site.
Section 3. That Council further recommends that the agreement include Company promise to maintain at the manufacturing plant during the period of the agreement a permanent workforce. If the workforce due to this expansion drops below 40 employees after December 31, 2014, but subject to considering cyclical variations in the industry resulting in temporary nonpermanent layoff, the County Board of Commissioners may proportionately reduce the exemption or terminate the agreement. Further, if the facility ceases operations during the period of the abatement, the Company or its successors, shall not only forfeit additional tax abatement, but shall repay to Marion County all taxes previously forgiven in the previous years under this agreement.
Section 4. That the Clerk of this Council is hereby directed to deliver a copy of this resolution to the Marion County Commissioners.
Section 5. This Resolution is hereby declared to be an emergency measure necessary for the immediate preservation of the public peace, welfare and safety of the City of Marion and the inhabitants thereof, and for the further reason that it is necessary for the daily operation of the City; and as such, shall take effect and be in force immediately upon its passage and approval by the Mayor, provided it receives the affirmative vote of two-thirds of all members elected to council, otherwise, it shall become effective from and after the earliest period allowed by law.
Approved: President of Council
Mayor Scott Schertzer
Clerk of Council