Explanation
BACKGROUND: Community Reinvestment Areas (CRA) have been designated by Columbus City Council under the general guidelines of Ordinance 1698-78. Such areas allow for granting of real property tax incentives to encourage industrial, commercial and residential growth.
Columbus City Council (Council) by Ordinance 1292-2012, as approved on June 18, 2012, created the Short North CRA. In addition to providing for real property tax exemptions of 100% on the increase in the assessed valuation from improvements of or to various types of residential properties and projects, Ordinance 1292-2012 also provided for real property tax exemptions of up to 100% for a period of up to 15 years for the construction of new commercial structures (including, without limitation, retail structures and parking garages). Prior to confirmation by the Ohio Department of Development, Ordinance 1292-2012 was amended for the first time by Ordinance 1735-2012, approved by Council on July 30, 2012, to expand the boundaries of the CRA. The Short North CRA received confirmation by the Ohio Department of Development on August 15, 2012.
Fireproof Partners, LLC was recently created by the owners of Elford, Inc. for the sole purpose of redeveloping the vacant and abandoned Fireproof building in the Short North. Elford, Inc. is one of the largest self-performing General Contractors and Construction Managers in Central Ohio. The company was founded in 1910, and is one of the oldest commercial construction companies in central Ohio, but with largest local ownership, and one of the Top Five local builders annually. In 2010, in recognition of Elford's centennial celebration, the company was honored through official proclamations at the city, county, state and federal levels.
Fireproof Partners, LLC is proposing to redevelop the old vacant Fireproof building, located in the Short North District, into a 5-story mixed use facility on parcel number 010-015325. The first floor will be converted into retail and restaurant spaces consisting of approximately 4,780 square feet, while the remaining floors (2nd - 5th) will feature twelve multi-family residential spaces. In addition, the company will construct 4 and 5 story mixed use additions on the corner of N. High Street and Second Avenue consisting of approximately 58,148 total square feet. The first floors of this new development will roughly contain 10,645 square feet of retail and restaurant spaces, while the remaining floors (2nd - 4th) will be comprised of 44 multi-family residential units. The company will construct a connector between the two structures (the renovated Fireproof building and the new mixed use building) converting the property into one contiguous structure along N. High Street. The entire project will consist of approximately 91,381 square feet of new and renovated commercial retail space, 56 multi-family residential units and 87 parking spaces (located in the rear). Fireproof Partners, LLC plans to invest approximately $11.3 million for this project (of which $3.1 million will be related to the commercial retail) and create 24 full-time permanent positions.
The Department of Development recommends 50%/15-year Community Reinvestment Area tax abatement on real property improvements related to the commercial retail portion of the project.
The Columbus City School District has been advised of this project.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Community Reinvestment Area Agreement with Fireproof Partners, LLC for a tax abatement of fifty percent (50%) for a period of fifteen (15) years on real property improvements and acquisition in consideration of a proposed total investment of approximately $11.3 million.
Body
WHEREAS, Community Reinvestment Areas (CRA) has been designated by Columbus City Council under the general guidelines of Ordinance 1698-78, such areas allow for granting of real property tax incentives to encourage industrial, commercial and residential growth; and
WHEREAS, Columbus City Council by Ordinance 1292-2012, as approved on June 18, 2012, created the Short North CRA. In addition to providing for real property tax exemptions of 100% on the increase in the assessed valuation from improvements of or to various types of residential properties and projects, Ordinance 1292-2012 also provided for real property tax exemptions of up to 100% for a period of up to 15 years for the construction of new commercial structures (including, without limitation, retail structures and parking garages). Prior to confirmation by the Ohio Department of Development, Ordinance 1292-2012 was amended for the first time by Ordinance 1735-2012, approved by Council on July 30, 2012, to expand the boundaries of the CRA. The Short North CRA received confirmation by the Ohio Department of Development on August 15, 2012; and
WHEREAS, Fireproof Partners, LLC was recently created by the owners of Elford, Inc. for the sole purpose of redeveloping the vacant and abandoned Fireproof building in the Short North; and
WHEREAS, the first floor will be converted into commercial retail and restaurant spaces consisting of approximately 4,780 square feet, while the remaining floors (2nd - 5th) will feature twelve multi-family residential spaces; and
WHEREAS, the company will construct an additional mixed use facility on the corner of N. High Street and Second Avenue consisting of approximately 58,148 total square feet; and
WHEREAS, the first floors of this new development will roughly contain 10,645 square feet of commercial retail and restaurant spaces, while the remaining floors (2nd - 4th) will be comprised of 44 multi-family residential units; and
WHEREAS, the company will construct a connector between the two structures (the renovated Fireproof building and the new mixed use building) converting the property into one contiguous structure along N. High Street; and
WHEREAS, the entire project will be comprised of approximately 91,381 square feet of new and renovated commercial retail space, 56 multi-family residential units and 87 parking spaces; and
WHEREAS, the company plans to invest approximately $11.3 million for this project (of which $3.1 million will be related to the commercial retail) and create 24 full-time permanent positions with an annual payroll of approximately $1.0 million; and
WHEREAS, the City is encouraging this project because of plans to redevelop urban commercial property in the central city; and
WHEREAS, the City, having the appropriate authority to offer tax incentive on this project, is desirous of providing 50%/15-year tax abatement on real property improvements related to the commercial retail development portion of the project, NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That City hereby finds and determines that the project will (1) create jobs in the State and City (2) the project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) receiving the aforementioned tax abatement and tax credit is a critical factor in the decision by Fireproof Partners, LLC to go forward with the project redevelopment.
Section 2. That the City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the Director of the Department of Development is hereby authorized and directed to enter into and execute an Community Reinvestment Area Agreement with Fireproof Partners, LLC to provide therewith an exemption of fifty percent (50%) on real property improvements for a term of fifteen (15) taxable years in association with the project's proposed investment of approximately $3.1 million in eligible real property improvements.
Section 4. That the City of Columbus Community Reinvestment Area Agreement is signed by Fireproof Partners, LLC within ninety (90) days of passage of this ordinance, or this ordinance and the abatements and credits authorized herein are null and void.
Section 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.