All but one of the New Albany companies that receive tax incentives are exceeding expectations, community development director Jennifer Chrysler told city council last week.

All but one of the New Albany companies that receive tax incentives are exceeding expectations, community development director Jennifer Chrysler told city council last week.

Only Tutor Time of New Albany, a day-care facility on Woodcrest Way, has not met its revenue projections, though the company has three years to reach the projected revenue of $18,557, Chrysler said.

"Technically, they are in compliance," she said.

The actual revenue reported in 2010 was $5,090, Chrysler told council May 17. The company was not required to create a certain number of jobs as part of the agreements with council, she said. The company received a 10-year, 100-percent property-tax abatement that requires a certain percentage of income tax to be generated per square foot.

Council member Glyde Marsh asked why the company was not meeting expected payroll projections.

Chrysler said the payroll benchmark was created before the recession and Tutor Time is the first business to open in that area. Other businesses were expected to follow but none did when the recession occurred.

"Without other businesses, they couldn't attract the students to hire the staff needed to meet their benchmark," Chrysler said.

Marsh suggested renegotiating the agreements with Tutor Time to make the projections more realistic. Chrysler said the agreement could be suspended until more businesses open in the area and the company then could meet its projections.

Though Tutor Time is a company that does not typically receive abatements, according to Chrysler's report to council, "the use was a needed amenity in the business park and could potentially serve as a catalyst for future developments."

The companies receiving tax incentives are required to report annually to the tax incentive review council (TIRC). According to the Ohio Revised Code, the TIRC reviews and makes "recommendations regarding the annual compliance of companies with active economic incentive development agreements."

County auditors chair the TIRC in each county. Representatives from cities and school districts affected by the agreements also serve on the council.

Because New Albany has land in Franklin and Licking counties, both county TIRCs review projects for the city.

Most of the other companies are meeting or exceeding benchmarks, Chrysler said in her May 17 report to council. Many of the companies are expected to create a certain amount of income-tax revenue for the city. The amounts are based on type of business and size of the area occupied.

Tween Brands and the Signature office building, south of Central College Road and west of U.S. Route 62, both exceeded their income-tax revenue benchmarks: Tween Brands' actual revenue was $1.17 million, nearly twice the target amount of $571,860, and the office building's revenue was $91,500, almost double its target of $55,440.

The Commercial Vehicle Group on Walton Parkway has a 12-year, 100-percent tax abatement and was expected to create 115 jobs with a total payroll of $5.85 million. The company actually created 142 jobs and has a payroll of $16.6 million.

The Smith's Mill Road office park, which includes five buildings south of Central College Road and east of Route 62, has a 10-year, 100-percent property-tax abatement with the agreement that the buildings would generate $59,400 in income-tax revenue. The actual revenue is $78,000.

The medical office building south of Central College Road and east of Route 62 has a 10-year, 100-percent abatement and was expected to generate income-tax revenue of $83,160. The city is receiving $317,000 in income taxes from the business, Chrysler said.

The Water's Edge building on Walton Parkway south of state Route 605 has a 15-year, 100-percent property-tax abatement and was expected to create 400 jobs and a payroll of $14 million. The building has only 267 employees but the payroll of $23.9 million exceeded projections. Chrysler said several new tenants plan to move into the building, including Bluemile, which will put the building over the job benchmark.

Discover Financial Services has a 15-year, 100-percent property-tax abatement and was expected to create 1,800 jobs with a payroll of $65 million. Like the Water's Edge building, Discover has less employees than expected - 1,439 - but the payroll is $68.4 million.

Chrysler also reported on several companies in the Central College community-reinvestment area (CRA) north of West Campus Oval and east of New Albany-Condit Road. They include Aetna, All-Pak, Liberty Mutual, HerbalScience, The Bank of New York Mellon, Andreas Business and Tax Solutions and ACA Medical Management Solutions. Chrysler said tax abatements have expired for these businesses but they still must meet benchmarks.

The companies exceeded their income-tax revenue benchmark of $584,329, generating $840,000. Chrysler said these companies employ 1,012, though there were no job-creation benchmarks associated with their incentives.

The two Abercrombie & Fitch buildings on Smith's Mill Road have 15-year, 100-percent property-tax abatements. Together, the buildings were expected to employ 1,200 people with a target payroll of $1.16 million. They currently have 2, 292 employees and $5.1 million payroll.

The Licking County TIRC reviewed American Electric Power on Smith's Mill Road. It was anticipated to generate $115,636 in income-tax revenue for the city and it actually generates $125,000. The company had no job-creation benchmark, Chrysler said, but it employs 105 people.

lwince@thisweeknews.com

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