Explanation
BACKGROUND: The need exists to amend Ordinance No. 0390-2023 (the “Ordinance”), approved by Columbus City Council on March 6, 2023. The Ordinance authorized the Director of the Department of Development to enter into a City of Columbus Enterprise Zone Agreement (“the Agreement”) with CL Stelzer, LLC (the “Enterprise”). An amendment is now required to revise the 180-day window needed to execute the City of Columbus Enterprise Zone Agreement and to revise the name of the entity receiving the tax abatement.
The Ordinance authorized the Director of the Department of Development ("Director") of the City of Columbus (“CITY”) to enter into a City of Columbus Enterprise Zone Agreement (the “AGREEMENT”) with CL Stelzer, LLC (the “ENTERPRISE”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of the ENTERPRISE'S proposed investment of approximately $17,146,315.00 in real property improvements and the creation of thirty (30) net new full-time permanent positions with an estimated associated annual payroll of approximately $1,134,000.00 related to the construction of a Class A proactive industrial development of approximately 270,000 square-feet on a vacant land parcel consisting of approximately 13.6 +/- acres at 885 Stelzer Road, Columbus, Ohio 43219, parcel number 010-146738), within the City of Columbus and within the City of Columbus Enterprise Zone (the “Project Site”).
Prior to the execution of the AGREEMENT, in a written communication received by the CITY from the ENTERPRISE dated May 16, 2023, and through ensuing correspondence, it was confirmed that Stelzer Industrial LLC has acquired ownership of the Project Site from CL Stelzer, LLC with the transfer having been recorded at the County Auditor’s Office on April 3, 2023. The initial applicant, CL Stelzer, LLC is a partner in Stelzer Industrial LLC. The managing partner of Stelzer Industrial LLC is Weston, Inc., a developer of industrial properties based in Cleveland, Ohio with a presence in 8 different states. Due diligence has been undertaken by the CITY in that Stelzer Industrial LLC has agreed to fully assume the terms and commitments of the ENTERPRISE pursuant to the AGREEMENT, and has submitted an updated Economic Development Incentive Application. This change will not impact the scope of the project as authorized by Columbus City Council. All job retention, job creation, and investment commitments remain unchanged.
This legislation is presented as 30-day legislation.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To amend Ordinance No. 0390-2023, approved by Columbus City Council on March 6, 2023, for the purposes of (1) revising the 180-day period needed to execute the City of Columbus Enterprise Zone Agreement to 180 days after passage of this ordinance, and (2) to remove CL Stelzer, LLC as the ENTERPRISE and replaced by Stelzer Industrial LLC as the ENTERPRISE, by which Stelzer Industrial LLC will assume the terms and commitments of the AGREEMENT. ($0.00)
Body
WHEREAS, the need exists to amend Ordinance No. 0390-2023, which was approved by Columbus City Council on March 6, 2023; and
WHEREAS, the Ordinance authorized the Director of the Department of Development of the City of Columbus (“CITY”) to enter into a City of Columbus Enterprise Zone Agreement (the “AGREEMENT”) with CL Stelzer, LLC (the “ENTERPRISE”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of the company’s proposed investment of approximately $17,146,315.00 in real property improvements and the creation of thirty (30) net new full-time permanent positions with an estimated associated annual payroll of approximately $1,134,000.00 related to the construction of a Class A proactive industrial development of approximately 270,000 square-feet on a vacant land parcel consisting of approximately 13.6 +/- acres at 885 Stelzer Road, Columbus, Ohio 43219, parcel number 010-146738, within the City of Columbus and within the City of Columbus Enterprise Zone (the “Project Site”); and
WHEREAS, prior to the execution of the AGREEMENT, in a written communication received by the CITY from the ENTERPRISE dated May 16, 2023, and through ensuing correspondence, it was confirmed that Stelzer Industrial LLC has acquired ownership of the Project Site from CL Stelzer, LLC with the transfer being recorded at the County Auditor’s Office on April 3, 2023. The initial applicant, CL Stelzer, LLC is a partner in Stelzer Industrial LLC. The managing partner of Stelzer Industrial LLC is Weston, Inc., a developer of industrial properties based in Cleveland, Ohio with a presence in 8 different states. Due diligence has been undertaken by the CITY in that Stelzer Industrial LLC has agreed to fully assume the terms and commitments of the ENTERPRISE pursuant to the AGREEMENT, and has submitted an updated Economic Development Incentive Application. This change will not impact the scope of the project as authorized by Columbus City Council. All job retention, job creation, and investment commitments remain unchanged; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Development that an amendment is now required from Columbus City Council for Ordinance No. 0390-2023 to (1) revise the window to execute the AGREEMENT to 180 days after passage of this ordinance, and (2) to remove CL Stelzer, LLC as the ENTERPRISE and replaced by Stelzer Industrial LLC as the ENTERPRISE; Stelzer Industrial LLC will then assume the terms and commitments of the AGREEMENT as the ENTERPRISE; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Ordinance No. 0390-2023 is amended to remove CL Stelzer, LLC as the ENTERPRISE to be replaced by Stelzer Industrial LLC as the ENTERPRISE; Stelzer Industrial LLC will then assume the terms and commitments of the AGREEMENT as the ENTERPRISE.
SECTION 2. That Section 5 of Ordinance No. 0390-2023 is amended to revise the 180-day window needed to execute the City of Columbus Enterprise Zone Agreement to 180 days after the passage of this ordinance.
SECTION 3. That the remaining terms of the Enterprise Zone Agreement remain in full effect relative to the Ordinance.
SECTION 4. That the City and the Enterprise must execute the Enterprise Zone Agreement within ninety (180) days after passage of this Ordinance, or this Ordinance, and the authorization to enter into the tax abatement agreement, is null and void
SECTION 5. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.