Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 1613-2020, passed July 27, 2020, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Pinchal & Company LLC (“ENTERPRISE”), for a real property tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of a proposed total capital investment of approximately $29,680,750, which included $26 million in real property improvements, and the creation of 20 net new full-time permanent positions with an associated annual payroll of approximately $624,000 related to the construction of a new approximately 583,740 square-foot speculative industrial distribution and warehouse facility (the “PROJECT”) on approximately 87.230 acres +/- of undeveloped land located at 1594 London Groveport Road, parcel number 495-232641 within the City of Columbus and within the City of Columbus Enterprise Zone (the “PROJECT SITE”). The AGREEMENT was made and entered into effective November 10, 2020 with the PROJECT expected to begin approximately November 2020, with all real property improvements expected to be completed by approximately December 2021 and with the abatement to commence no later than 2022 nor extend beyond 2031 (Agreement No. 023-20-06).
As of this date there has not been a filing of the DTE-24 with the Franklin County Auditor, no Final Determination from the Ohio Department of Taxation, and so no forgone tax benefit has yet been received.
Paragraph fourteen within Section 6 (Program Compliance) of the AGREEMENT states that the “AGREEMENT is not transferable or assignable without the express, written, approval of the CITY” and paragraph fifteen of that same section states that “any requested amendment…to any of the terms of the AGREEMENT…shall require the payment to the CITY by the ENTERPRISE of an AMENDMENT FEE in the amount of five-hundred dollars ($500.00).”
In a letter from London Groveport STS, LL...
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