Despite a global pandemic, Columbus tax incentives are succeeding in encouraging real estate investment and job creation in our city.
The 2021 Tax Incentive Review Council report found that the 93 companies earning city tax abatements in 2021 together invested $1.9 billion in real property improvements – 110% of goal. Seventy-one of the 93 agreements were inked before the pandemic, when the financial and workforce climate was very different than it was in 2021.
Despite unprecedented market, labor and supply chain challenges, companies in the City of Columbus’ incentive portfolio were at 119% of goal for employee retention in 2021.
Job creation in the portfolio also saw a rebound; in 2020, job creation expectations were 58% of original goals; in 2021, they were 89% of goal.
More:Failure to hit job-creation goals no problem for developers with city tax abatements
Recently, The Dispatch cited the Pointe at Polaris project as a situation in which city incentives are not succeeding.
The story neglected to mention that the owner has invested $69.6 million — four times its incented commitment – in property improvements, and that the project’s job goal will decrease because a tenant declined their incentive and thus will pay all payroll and real property taxes pertaining to their portion of the development.
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In other instances where 2021 job creation lagged behind pre-pandemic expectations, companies are actively recruiting, but — like many businesses today — are struggling to hire all the talent they need. Others have lost customers and aren’t yet able to hire new staff.
In these instances, it is not Columbus policy to punish businesses that are making good faith efforts to succeed and create jobs.
Letter:City is going overboard in granting tax abatements
Nevertheless, Columbus does hold incentive recipients accountable to their commitments. In the last 10 years, 10 city agreements have been dissolved and 14 have been amended due to failure to meet commitments.
Developers that fail to stay in compliance with the terms of their agreements face reductions in rate or term, or recension of their incentive.
More:New tool is tracking Columbus-area tax breaks, development: Here’s what it says
Mayor Andrew J. Ginther wants Columbus to emerge from the pandemic stronger than when it began.
This won’t be achieved by ignoring the economic challenges we face today, but by making strategic use of our economic tools to overcome them.
