Agenda Item #

Columbus Consolidated Government

Council Meeting

12/11/2018

Agenda Report #


TO: Mayor and Council

SUBJECT: Agenda Report - Enterprise Zone - Columbus Tire Co.

INITIATED BY: Will Johnson, Planning Department



Recommendation: Approval is requested for Columbus Tire Company to receive ad valorem tax abatements (with the exclusion of school and general obligation debt levies) as specified under the Enterprise Zone Employment Act. The proposed expansion project meets the minimum requirements as established under the Georgia Enterprise Zone Employment Act of 1997.

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 Board of Tax Assessors' recommendation.

ApplicationUpdated.pdfApplicationUpdated.pdfColumbusTireCoSiteFinancials.pdfColumbusTireCoSiteFinancials.pdfColumbusTireCoSiteLandscaping.pdfColumbusTireCoSiteLandscaping.pdfColumbusTireCoSiteMap.pdfColumbusTireCoSiteMap.pdfNotarizedStatement.pdfNotarizedStatement.pdfSnavely-Deed 2-Bergquist.pdfSnavely-Deed 2-Bergquist.pdfSnavely-Deed-B. Buck-Green Century.pdfSnavely-Deed-B. Buck-Green Century.pdfSnavely-Deed-Bergquist.pdfSnavely-Deed-Bergquist.pdfSnavely-Deed-T. Buck Trusts.pdfSnavely-Deed-T. Buck Trusts.pdfSnavely-Deed-T. Buck.pdfSnavely-Deed-T. Buck.pdfSnavely-Plat-T. Buck tract.pdfSnavely-Plat-T. Buck tract.pdf