New Albany City Council approves 30-year, 100% tax abatement for Intel plant
Intel Corp.'s planned semiconductor complex in New Albany promises big economic returns for central Ohio and the entire state, New Albany City Council was told June 21, when it voted 5-0 to approve two resolutions related to the planned project.
Council member Chip Fellows and Mayor Sloan Spalding were absent.
Intel investment largest in Ohio history
"This project represents the single-largest private-sector investment in Ohio's history," Jennifer Chrysler, the city’s community-development director, told council. "It is expected to ultimately generate more than 20,000 jobs in the state, including 3,000 direct Intel jobs earning an average of $135,000 per year plus benefits, for an estimated annual payroll of $405 million and 7,000 construction jobs over the course of the build-out, with thousands of indirect and support jobs, as well."
The project is expected to generate $2.8 billion to Ohio's annual gross state product, she said.
Intel plans to invest $20 billion to build two semiconductor facilities and related buildings on about 848 acres in an area south of Green Chapel Road and west of Mink Street on land annexed from Jersey Township in Licking County.
Chrysler said construction is expected to begin this year, with the facility operational by the end of 2025.
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The resolutions authorize a community-reinvestment-area agreement with Intel and negotiation of a new economic-development agreement and water- and sewer-disposal contracts with Columbus to accommodate the Intel plan.
The reinvestment agreement includes 100% property-tax abatements for 30 years on each new building or structure, contingent upon minimum qualified annual payments to New Albany, Chrysler said.
Income-tax collected from those working at Intel are to be shared with the Johnstown-Monroe Local Schools, in which the facility will be built, and to the Career and Technology Education Centers of Licking County, according to the resolution.
Such 30-year tax abatements, Chrysler said, are authorized by state legislation passed in 2017, allowing such abatements for what are classified as mega projects. Previously, 15-year abatements were most common.
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Intel touts New Albany site as ideal
Ohio is the right place for the Intel facility, Emily Smith, the company’s public-affairs director for Ohio, told council.
"This will be Intel's first U.S. site in 40 years," Smith said. "Ohio is an ideal location for this because of our access to top talent and because of our robust existing infrastructure and because of our proud long history as a manufacturing powerhouse. …
""We're committed to being a good neighbor and working together with the city and the community in the months and years to come."
Chrysler told council that teams from New Albany and Columbus are negotiating provisions of the water and sewer contracts and are expected to be finished in about two weeks.
She said Columbus has provided water and sewer service to New Albany since the 1980s and routinely has updated the agreements since then – most recently in 2015 – to accommodate New Albany's growth.
If necessary, Chrysler said, New Albany could explore other options. The contracts with Columbus contain what she called "triggers," which could give New Albany time to consider future steps if needed.
George Zonders, public-relations specialist with Columbus, confirmed the water and sewer talks are underway.
“The city of Columbus Department of Public Utilities continues to negotiate with the city of New Albany regarding public-utility service needs at the future site of Intel,” he said.
The House and Senate each have passed legislation that would provide aid to the industry, dubbed the CHIPS Act, but have been slow to resolve differences as Intel and President Joe Biden's administration repeatedly have pushed Congress to finish its work.
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This article originally appeared on ThisWeek: New Albany council OKs 30-year, 100% tax abatements for Intel
