Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 0476-2022, passed March 7, 2022, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with COI Alkire Industrial, LLC (Building #2) (“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 $20,000,000.00 in real property improvements to construct a proactive industrial distribution and warehouse facility consisting of approximately 330,000 square-feet on undeveloped land containing approximately 177.97 +/- acres at the southeast corner of the intersection of Alkire Road and Norton Road, Columbus, Ohio 43228, Parcel Number 570-154775 (the “ORIGINAL PARCEL”), within the City of Columbus and within the City of Columbus Enterprise Zone (the “PROJECT SITE”). Additionally, the ENTERPRISE committed to create or caused to be created thirty-seven (37) net new full-time permanent positions with an associated annual payroll of approximately $1,154,400.00 at the PROJECT SITE. The AGREEMENT was made and entered into effective June 17, 2022 with the PROJECT expected to begin approximately June 2022, with all real property improvements expected to be completed approximately by December 2023 and with the abatement to commence no later than 2024 nor extend beyond 2033 (Agreement No. 023-22-11).
Paragraph fourteen within Section 8 (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).”
Subsequently, in a letter from the ENTERPRISE dated July 23, 2026, received by the CITY and through ensuing correspondence, confirmed the that a portion of the PROJECT SITE, which contains a long-term ground lease with the Columbus Regional Airport Authority, will be transferred to COI Alkire Industrial II, LLC upon completion of the transfer. Furthermore, COI Alkire Industrial II, LLC will then assume the terms and commitments of the AGREEMENT. In addition, the PROJECT SITE was revised to be Parcel Number 570-306020 (split from the ORIGINAL PARCEL), containing approximately 24.157 +/acres. The legal description, per the Franklin County Auditor, is listed as Bolten Field Airport containing approximately 24.157 +/- acres with the current street address of 5465 Alkire Road, Columbus, Ohio 43119, which may or may not change upon completion of the transfer.
Due diligence has been undertaken by the CITY in that Lockbourne 6 Owner, LLC has agreed to fully assume the terms and commitments of the ENTERPRISE pursuant to the AGREEMENT, has submitted an updated Economic Development Incentive Application, the five-hundred dollars ($500.00) Amendment Fee and that this application and all other pertinent information has been reviewed and vetted.
This legislation is to authorize the Director of the Department of Development to amend the AGREEMENT for the first time for Assignment & Assumption to (1) remove COI Alkire Industrial, LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with COI Alkire Industrial II, LLC as ENTERPRISE and party to the AGREEMENT, whereby COI Alkire Industrial II, LLC will assume the terms and commitments of the AGREEMENT, (2) to revise the description of the PROJECT SITE, and (3) revise the notice information related to ENTERPRISE within Section 8 of the AGREEMENT.
This legislation is presented as 30-day legislation.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the Enterprise Zone Agreement for the first time for Assignment & Assumption with COI Alkire Industrial, LLC, to remove COI Alkire Industrial, LLC as enterprise and party to the agreement and to be replaced with COI Alkire Industrial II, LLC as enterprise and party to the agreement, to revise the description of the project site, and to revise the notice information related to enterprise within Section 8 of the agreement. ($0.00)
Body
WHEREAS, the City of Columbus (“CITY”) entered into an Enterprise Zone Agreement (the “AGREEMENT”) with COI Alkire Industrial, LLC (Building #2) (“ENTERPRISE”), approved by Columbus City Council (“COUNCIL”) by Ordinance No. 0476-2022, passed March 7, 2022, with this AGREEMENT made and entered into effective June 17, 2022; and
WHEREAS, the AGREEMENT granted a 75%/10-Year abatement on real property improvements; and
WHEREAS, the incentive was granted in consideration of a proposed total capital investment of approximately $20,000,000.00 in real property improvements to construct a proactive industrial distribution and warehouse facility consisting of approximately 330,000 square-feet on undeveloped land containing approximately 177.97 +/- acres at the southeast corner of the intersection of Alkire Road and Norton Road, Columbus, Ohio 43228, Parcel Number 570-154775 (the “ORIGINAL PARCEL”), within the City of Columbus and within the City of Columbus Enterprise Zone (the “PROJECT SITE”). Additionally, the ENTERPRISE committed to create or caused to be created thirty-seven (37) net new full-time permanent positions with an associated annual payroll of approximately $1,154,400.00 at the PROJECT SITE; and
WHEREAS, the AGREEMENT was made and entered into effective June 17, 2022 with the PROJECT expected to begin approximately June 2023, with all real property improvements expected to be completed approximately by December 2028 and with the abatement to commence no later than 2029 nor extend beyond 2038 (Agreement No. 023-22-11); and
WHEREAS, paragraph fourteen within Section 8 (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);” and
WHEREAS, in a letter from the ENTERPISE dated July 23, 2026, received by the CITY and through ensuing correspondence, confirmed the that a portion of the PROJECT SITE, which contains a long-term ground lease with the Columbus Regional Airport Authority, will be transferred to COI Alkire Industrial II, LLC upon completion of the transfer. Furthermore, COI Alkire Industrial II, LLC will then assume the terms and commitments of the AGREEMENT. Additionally, the PROJECT SITE was revised to be Parcel Number 570-306020 (split from the “ORIGINAL PARCEL”), containing approximately 24.157 +/acres. The legal description, per the Franklin County Auditor, is listed as Bolten Field Airport, 24.157 +/- acres with a street address of 5465 Alkire Road, Columbus, Ohio 43119, which may or may not change upon completion of the transfer; and
WHEREAS, due diligence has been undertaken by the CITY in that Lockbourne 6 Owner, LLC has agreed to fully assume the terms and commitments of the ENTERPRISE pursuant to the AGREEMENT, has submitted an updated Economic Development Incentive Application, the five-hundred dollars ($500.00) Amendment Fee and that this application and all other pertinent information has been reviewed and vetted; and
WHEREAS, a First Amendment to the AGREEMENT is now needed for Assignment & Assumption to remove COI Alkire Industrial, LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with COI Alkire Industrial II, LLC as ENTERPRISE and party to the AGREEMENT, revise the description of the PROJECT SITE, and to revise the notice information related to ENTERPRISE within Section 8 of the AGREEMENT; and
WHEREAS, the Director of the Department of Development of the CITY has investigated the Economic Development Application of COI Alkire Industrial II, LLC and concurs with the Columbus City Council on the basis that COI Alkire Industrial II, LLC, is qualified by financial responsibility and business experience to create and preserve employment opportunities in the Columbus Enterprise Zone and improve the economic climate of the CITY; and
WHEREAS, it has become necessary in the usual daily operation a First Amendment for Assignment & Assumption is now needed to the AGREEMENT with COI Alkire Industrial, LLC to (1) remove COI Alkire Industrial, LLC as ENTERPRISE and to be replaced by COI Alkire Industrial II, LLC as ENTERPRISE and party to the AGREEMENT; whereby, COI Alkire Industrial II, LLC will assume the terms and commitments of the AGREEMENT as ENTERPRISE, (2) revise the description of the PROJECT SITE, and (3) revise the notice information related to the ENTERPRISE within Section 8 of the AGREEMENT; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Council of the City of Columbus finds that the enterprise submitting this proposal is qualified by financial responsibility and business experience to create and preserve employment opportunities in the zone and improve the economic climate of the municipal corporation.
SECTION 2. That the Director of the Department of Development is hereby authorized to amend the City of Columbus Enterprise Zone Agreement with COI Alkire Industrial, LLC (the “AGREEMENT”) to remove COI Alkire Industrial, LLC as ENTERPRISE to be replaced with COI Alkire Industrial II, LLC as ENTERPRISE; whereby, COI Alkire Industrial II, LLC will assume the terms and commitments of the AGREEMENT as ENTERPRISE.
SECTION 3. That the Director of the Department of Development is hereby authorized to amend Section 1 (Establishment by Corporation) of the AGREEMENT to state that the PROJECT SITE is revised to be, per the Franklin County Auditor, and is listed as Bolton Field Airport Parcel Number 570-306020 containing approximately 24.157 +/- acres with the current street address of 5465 Alkire Road, Columbus, Ohio 43119, which may or may not change upon completion of the transfer of the lease agreement.
SECTION 4. That the Director of the Department of Development is hereby authorized to amend within Section 8 (Program Compliance) of the AGREEMENT, the “if to the ENTERPRISE” section regarding written communication from COI Alkire Industrial, LLC to COI Alkire Industrial II, LLC C/O Phil Rasey, 955 Yard Street, Suite 100, Columbus, Ohio, 43212.
SECTION 5. That this FIRST AMENDMENT for Assignment & Assumption to the City of Columbus Enterprise Zone Agreement be signed by COI Alkire Industrial II, LLC within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
SECTION 6. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.