Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE THE SECOND AMENDMENT TO THE COMMUNITY REINVESTMENT AREA AGREEMENT WITH MANNESCHI & BENEDETTI, LLC AND CEIA USA, LTD TO INCORPORATE THE HEADQUARTERS EXPANSION INTO THE ABATED PARCEL; AND DECLARING AN EMERGENCY.
Brief Description: This Resolution will authorize the second amendment to the Community Reinvestment Area Agreement with Manneschi & Benedetti, LLC and CEIA USA, Ltd. for the headquarters building at 6336 Hudson Crossing Parkway, Hudson, Ohio 44236 to incorporate the proposed building expansion to be added to the abated parcel.
Body
Legislative History
Resolution No. 18-133, authorizing a CRA Agreement with Manneschi & Benedetti, LLC and CEIA USA, Ltd., located at parcel #6 of Hudson Industrial Parkway; adopted September 18, 2018.
Resolution No. 18-134, authorizing a Tax Sharing Agreement between the City and the Hudson City School District related to CRA Agreement with Manneschi & Benedetti, LLC and CEIA USA, Ltd.; adopted September 18, 2018. The Hudson Board of Education authorized the tax sharing agreement at their board meeting on September 10, 2018.
Resolution No. 21-112, authorizing the City Manager to amend the term of the Community Reinvestment Areas Agreement with Manneschi & Benedetti, LLC and CEIA USA, Ltd; adopted October 5, 2021. The Hudson Board of Education approved this amendment on October 25, 2021.
Purpose & Explanation
In 2018, Manneschi & Benedetti, LLC and CEIA USA, Ltd. was awarded a Community Reinvestment Area 50% property tax abatement for fifteen (15) years for the construction of a new headquarters facility at 6336 Hudson Crossing Parkway, Hudson, Ohio 44236. In conjunction, the City and the Hudson City School District entered into a Tax Sharing Agreement for the property whereby the City of Hudson and the School District share equally all new revenue generated by the project for incentive agreement years two through fifteen. New revenue is defined as: (1) the taxes levied and collected by Hudson on the income of employees of CEIA at the Project; (2) the property taxes generated from the Project that are payable to the School District that are not subject to the Tax Abatement; and (3) the property taxes generated from the Project that are payable to Hudson that are not subject to the Tax Abatement.
After executing the agreement, Major Site Plans were submitted for permitting in June 2019 in Case No. 2019-550. The initial site plans, as approved by Planning Commission on July 8, 2019, included a three-phase building approach for the headquarters. Construction on Phase One commenced shortly after permit approval however construction delays related to the COVID-19 pandemic necessitated the First Amendment to the Community Reinvestment Area Agreement to adjust the term to account for the delayed occupancy date. This amendment was approved by Hudson City Council on October 5, 2021 and the Hudson Board of Education on October 25, 2021.
Presently, the company desires to construct Phase Two and Phase Three of building expansion under the same property tax abatement structure as Phase One.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contracts & Purchasing:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
X Other [provide explanation]
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required
Does this legislation require use of an emergency clause?
X Yes, to allow the company to move forward with the expansion.
No
Recommendation
Suggested Action
Staff recommends that City Council approve this Resolution, allowing the City Manager to execute the second amendment to the Community Reinvestment Area Agreement with Manneschi & Benedetti, LLC and CEIA, USA, Ltd.
Submitted by,
Thomas J. Sheridan, City Manager
Brian Griffith, Assistant City Manager
Greg Hannan, Community Development Director
Katie Behnke, Economic Development Manager