Columbus City Council took steps to ensure the continued success of the city’s tax abatement programs at Monday’s meeting.

Of the 69 companies that have received abatements, all but five are meeting or exceeding the requirements imposed on them by the city and have created jobs and revenue for the city. Four of the five that have not met their goals are close.

To get the five back on track, council-approved recommendations by the Tax Incentive Review Council that would amend the agreements to bring the company into compliance, dropped the job requirement for one company and gave another 60 days to meet reporting requirements.

“Our situation this year is very positive,” said Development Subcommittee chairwoman Maryellen O’Shaughnessy as she presented legislation implementing the annual TIRC recommendations.

Columbus Economic Development Administrator William Webster, a TIRC member, said his council reviewed all 69 tax incentive agreements currently in effect in the city and found that they have retained a total of 8,312 jobs and created 5,726, which is 156 percent of the goals set out in all the agreements combined. These jobs represent $241 million in payroll and $4.8 million in tax revenue for the city.

The city of Columbus gives companies tax abatements to encourage them to create jobs in the area. When these agreements work, the companies bring new capital investment and good jobs to the city, expanding the tax base and providing opportunities for city residents. When they do not work, it is TIRC’s job to study why and make recommendations for correcting or revoking them.

TIRC is chaired by Franklin County Auditor Joseph W. Testa, and has members from the staff of the Columbus City Council, the mayor’s office, the city auditor’s office, two community members and representatives of the school districts whose taxes are affected by the agreements.

Though they meet once a year to review all of the agreements for compliance, Webster said there is year-round business outreach to foster compliance.

AmerisourceBergen, a pharmaceutical distribution company that signed an agreement in 2003 to retain 200 jobs and add 64 more will see the new-job goal drop to 19 and will lose one year of its personal property tax abatement. The real property tax abatement granted through 2013 in the original agreement will remain.

Webster said TIRC discussed the agreement with AmerisourceBergen and found that the company is trying to increase productivity in the face of tough competition and narrow profit margins in their industry. In light of that, they recommended the lower new-job number, even though it reflects no further growth in the company over the life of the agreement.

“This process is not designed to penalize the companies,” Councilman Kevin Boyce said. “But part of the concern I have with this recommendation is that … we’re adjusting the agreements to the point where we know they are going to accomplish (them).”

“Councilman Boyce said that we want to make sure we’re keeping the bar high, and Councilman Boyce was right,” Webster said.

Another amendment imposes punitive measures on Schmidt Development, LLC, if it does not report that 75 percent of the job creation goal set in its 2000 agreement for the Market Exchange District site on East Main Street.

Webster said there is reason to believe Schmidt Development is in compliance with this goal, but there has been an ongoing problem with the required reporting to substantiate that. If they do not do that reporting by the end of 2007, they will lose one year of their tax abatements, cutting the end of the agreement to 2010.

Three recommendations were characterized by O’Shaughnessy as housekeeping matters because they were older agreements that needed to be brought up to modern standards.

Another was an amendment to count employees hired by a company contracted by another to perform on-site services such as food service, security and childcare.

While the city council considered the recommendations, council members Boyce and Charleta Tavares raised concerns regarding the enforcement of first source agreements in tax abatement deals. Under these agreements, companies agree to work with the Central Ohio Workforce Investment Corporation to fill positions with Columbus residents. While Webster assured the council that this is an important component of these agreements and TIRC’s review process, Development Director Boyce Safford III agreed a policy discussion will take place “in the coming weeks.”

Michael Paull can be reached at [email protected].