Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Gowdy Partners III LLC. The Ohio Enterprise Zone law O.R.C. Section 5709.62 (3) requires the City to enter into a Council-approved agreement between the City and participating companies.
Gowdy Partners III LLC was created by Daimler Development Corporation of the purpose of developing Gowdy Field. Gowdy Field was originally annexed in 1921 and named after the famous baseball and war veteran Hank Gowdy. The site has since been covered and now serves as headquarters of Time Warner Cable, a newly constructed 140,000 square foot office building. Gowdy Partners III LLC is currently in the process of working with the City to redevelop the Gowdy Heliport site into an income producing property. Gowdy Partners III LLC is proposing to invest $22.5 million to acquire vacant land and make real property improvements that will include the construction of a 103,500 square foot office facility. The proposed site would potentially house a long term tenant that will relocate/retain approximately 100 employees, all new to Columbus, and create 33 new permanent full-time positions.
The Department of Development recommends a 75%/10-year Enterprise Zone tax abatement on real property improvements. The proposal is consistent with the Columbus Tax Incentive Policy under Edge City projects. The Columbus Public Schools has been advised of this project.
Emergency action is requested to facilitate a spring project start and immediately begin development.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an Enterprise Zone Agreement with Gowdy Partners III LLC for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a proposed $22.5 million investment in acquisition costs and real property improvements; and to declare an emergency.
Body
WHEREAS, the Columbus City Council authorized the designation of the Enterprise Zone by legislation, Ordinance 779-85, dated April 22, 1985; and subsequently amended the Zone by Ordinances 2722-85 in 1986; 2080-89 in 1989; 1949-92, 2609-92 and 2249-92 in 1992; 1079-94 and 1228-94 in 1994; 2196-95 and 2817-95 in 1995; 533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; and 225-03 in 2003; and
WHEREAS, the Director of the Development Department of the State of Ohio determined that the Columbus Enterprise Zone as amended by the aforementioned Ordinances continued to contain the characteristics set forth in Section 5709.61(A) of the Ohio Revised Code and recertified said Zone in 1986, December 20, 1989, September 28, 1992, October 22, 1992, December 17, 1992, May 31, 1994, June 24, 1994, June 16, 1995, October 5, 1995, December 19, 1995, April 1, 1999, September 25, 2000, January 27, 2003 and most recently on August 19, 2003 as an "urban jobs and enterprise zone" under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, Gowdy Partners III LLC plans to invest a total of $22.5 million in acquisition costs and real property improvements on parcel# 010-067230-00; and
WHEREAS, the project will include a newly constructed building of approximately 103,500 square feet of office space; and
WHEREAS, Gowdy Partners III LLC proposes to enter into a long-term lease agreement with a speculative tenant that will relocate/retain 100 employees with an annual payroll of $8.0 million (all new to Columbus) and create 33 new full-time positions; and
WHEREAS, Gowdy Partners III LLC will be the property owner; and
WHEREAS, the City is encouraging this project because of plans to develop vacant land known as Gowdy Field into a income producing property; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into contract with Gowdy Partners III LLC to facilitate a spring project start and immediately begin development, all for the preservation of public health, peace, property and safety, NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Development is hereby authorized to enter into an Enterprise Zone Agreement with Gowdy Partners III LLC to provide therewith an exemption of seventy-five percent (75%) on real property improvements for a term of ten (10) taxable years in association with the project's proposed $22.5 million investment.
Section 2. That the City of Columbus Enterprise Zone Agreement and First Source Agreement is signed by Gowdy Partners III 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 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, the ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after the passage if the Mayor neither approves nor vetoes the same.