Columbus has offered Amazon a package of incentives that includes property-tax abatements, income-tax refunds and a transportation plan if the online retail giant locates its second headquarters in Ohio’s capital city.

The incentive package is outlined in a five-page letter that Columbus Economic Development Director Steve Schoeny sent the company as part of the region’s pitch, which was assembled by Columbus 2020.

The Dispatch obtained that letter, along with one written by Mayor Andrew J. Ginther, in response to a public-records request. Neither letter outlines specifically where in Columbus or central Ohio would be the ideal location for Amazon's second headquarters, but they make mention of several neighborhoods: Franklinton, the Ohio State University area and Easton.

Ginther highlighted both past and future investments in the Scioto Peninsula in his pitch to Amazon.

“The city has a vision for Amazon of a unified corporate campus at the heart of an evolving urban corridor,” Schoeny wrote.

Amazon would receive a 15-year, 100 percent property-tax abatement at all sites associated with its new headquarters. That would save Amazon $456,750 per $1 million of investment in property over the life of the abatement.

The online retail giant also would receive a 15-year, 35 percent income-tax refund on withholdings from new full-time employees working at Amazon’s headquarters. That would be up to $50 million annually and up to $400 million over 15 years.

The city plans to use at least 60 percent of new income-tax withholding revenue generated by the company to support the development, including income-tax refunds and the establishment of a new transit fund.

Local leaders thought that the city’s transit system was its biggest wart in trying to attract Amazon, but Schoeny outlined a plan to address transportation in his letter.

“The city envisions improved state and municipal road access to the proposed project sites, which will require significant capital investments,” he wrote. “The city hereby commits to take the lead on creating a Transit & Mobility fund to support both transit and infrastructure investments to better connect the project sites ..."

About 25 percent of new income tax withheld on payroll for new Amazon workers would be used for 15 years to establish that Transit & Moblity fund.

Among the transit solutions Schoeny suggests: “mass transit” in rights of way that can “accommodate a variety of transit and complete streets solutions,” self-driving shuttles and “smart mobility hubs” where different forms of transportation converge.

Columbus offered to reimburse Amazon for land acquisition, demolition and site preparation up to $5 million annually and up to a total of $75 million using a 25 percent portion of the city's income-tax revenue generated by Amazon employees. However, that incentive would not begin until the 16th year of operation (projected to be 2034) and continue up to 15 years, or until the agreed-upon total is expended.

Amazon could be the first company to receive a new incentive that the Columbus City Council approved this year for mega projects that promise at least 1,000 new full-time jobs. The economic-development net profit tax incentive can be awarded to companies that generate $1 million in net profits tax to the city annually by the end of the third year of operations after its headquarters is established.

To receive the incentive, the company would be required to:

• Agree to create at least 1,000 new full-time jobs paying at least $15 an hour for 35 hours weekly by the end of the third year.

• Create at least $45 million in new payroll by the end of the third year.

• Invest at least $50 million in combined property investments within the city by the end of the third year.

• Prove it has annual revenue of $7 billion for the year immediately prior to applying for the incentive.

Columbus’ offer expires at the end of 2018, according to Schoeny’s letter. Columbus City Council and Columbus City Schools or any other school district involved would have to approve the incentives package.

Schoeny and the mayor's office did not immediately return phone calls Thursday night seeking comment.

“We have only presented a vision, not the vision,” Ginther wrote. “The ultimate vision that we will realize together requires collaboration. It requires linking Amazon with Columbus business leaders, university leaders, community leaders, schools and the best planners and architects in the world to develop the shared vision of our future.”

In a news release, Ginther said the incentives offer from the city "would provide substantial new funding to Columbus City Schools and new educational opportunities for our children.”

The city's offer to Amazon



Letter from Mayor Ginther

