By LORI WINCE, This Week Community News
Many of New Albany’s businesses exceeded their requirements for creation of new jobs in 2012, according to Jennifer Chrysler, the city’s community development director.
“Our businesses in the Oak Grove and Central College business campuses have exceeded their projections in every case except for TJX and Motorists (Insurance), which are still in compliance,” Chrysler told New Albany City Council on July 2.
“The actual jobs created are far above (projections),” said City Councilman Stephen Pleasnick.
Chrysler said the Franklin County Tax Incentive Review Council annually reviews revenue and employment projects for companies that receive tax incentives. Tax abatements allow businesses to pay a portion of their real estate taxes for a period of time in exchange for increased revenues and job creation.
The council’s chairman is Franklin County Auditor Clarence Mingo. Members include New Albany city officials and representatives of New Albany boards and commissions, Plain Township and the New Albany-Plain Local School District.
The review council reviewed tax abatement agreements last month and New Albany City Council on July 2 accepted the findings in a 5-0 vote, with Chip Fellows and Chris Wolfe absent.
Chrysler’s report said Abercrombie and Fitch and Discover Financial Services greatly exceeded the projected job creation.
The Abercrombie and Fitch site off Smith’s Mill Road has a 15-year, 100 percent tax abatement. The company was expected to create 1,200 jobs and now has 2,766 employees.
Discover Financial Services on Central College Road receives a 15-year, 100 percent tax abatement. It has created 1,809 jobs — 309 more than expected — and exceeded its annual payroll by $37 million.
Chrysler said tax-abatement agreements use different benchmarks, including job creation, income taxes generated or annual payroll figures.
Many of the other businesses in New Albany have exceeded income-tax predictions or estimated annual payroll, Chrysler’s report said.
The Smith’s Mill office park on Smith’s Mill Road contains five, 8,000-square-foot buildings which receive a 10-year, 100 percent tax abatement. It has exceeded annual income-tax generation by $20,667.
The two medical office buildings on Smith’s Mill Road receive different abatements. The Mount Carmel New Albany Surgical Hospital receives a 10-year, 100 percent tax abatement and the second building receives a 12-year, 100 percent tax abatement. Together, the two buildings have created 273 new jobs and exceeded target revenue for income tax by $192,654.
Commercial Vehicle Group on Walton Parkway receives a 12-year, 100 percent tax abatement. It has exceeded the estimated annual payroll by $11.15 million.
The Water’s Edge office building on Walton Parkway receives a 15-year, 100 percent tax abatement. Businesses within the building have created 253 jobs and exceeded the estimated payroll by $9 million.
Motorists Insurance on New Albany Road East receives a 10-year, 75 percent tax abatement and TJX on New Albany Road East receives a 15-year, 65 percent tax abatement. Chrysler said both are within guidelines for the abatements though neither has reached total job creation or payroll projections. The city allows a three-year period for new companies to meet the benchmarks in the abatement agreement.
Smith’s Mill ventures, which includes the Tutor Time Learning Center, was expected to generate $18,557 in income taxes. Because the company did not meet that target and created only $4,633 in income taxes, it had to make a payment to meet the benchmark, according to Chrysler’s report.
Chrysler said the businesses in the Licking County portion of the city’s business parks, most of which are new, also are meeting abatement benchmarks.
American Electric Power on Smith’s Mill Road is the only established business in the Licking County portion of New Albany. It receives a 15-year, 75 percent tax abatement and has exceeded annual income tax revenues by $100,082.
The multitenant building built by the Pizzuti Cos., Axium Plastics and Accel, all on Smith’s Mill Road, receive 15-year, 100 percent tax abatements.
The Anomatic Corp. and Vee Pak on Smith’s Mill Road receive 10-year, 100 percent tax abatements.
Together, all five buildings are contributing $357,041 in income taxes and all are within the three-year period of meeting abatement benchmarks, Chrysler’s report said.