Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 1181-2016, passed May 16, 2016, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Ball Metal Food Container, LLC (hereinafter, referred to as “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 $15,000,000.00, which included approximately $7,000,000.00 in real property improvements to expand its existing 352,611 square foot manufacturing facility by approximately 80,000 square feet located at 2690 Charter St. Columbus, OH 43228, parcel number 560-189899 (the “PROJECT SITE”). Additionally, the ENTERPRISE committed to create fifty (50) net new full-time permanent positions with an associated annual payroll of approximately $2,500,000.00 and retain one-hundred and forty-six (146) full-time jobs with an estimated annual payroll of approximately $10,800,000.00 at the PROJECT SITE. The AGREEMENT was made and entered into effective July 21, 2016, with the PROJECT expected to begin approximately June 2016, with all real property improvements expected to be completed by approximately June 2017 and with the abatement to commence no later than 2018 nor extend beyond 2027 (Agreement No. 023-16-01).
Paragraph thirteen 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”.
In a letter from Sonoco Products Company on behalf of the ENTERPRISE dated July 10, 2025, received by the CITY and through ensuing correspondence, Ball Metal Food Container, LLC confirmed that the company has been acquired by Sonoco Products Company as of January 27, 2022 and therefore a need exists to transfer all of its interest in the metal packaging facility built at 2690 Charter St. Columbus, OH 43228, parcel number 560-189899, to Sonoco Metal Packaging, LLC. The transfer of ownership was recorded at the County Auditor’s Office on May 5, 2023.
Due diligence has been undertaken by the CITY in that Sonoco Metal Packaging, 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 remove Ball Metal Food Container, LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with Sonoco Metal Packaging, LLC as ENTERPRISE and party to the AGREEMENT, whereby Sonoco Metal Packaging, LLC will assume the terms and commitments 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 Ball Metal Food Container, LLC to remove Ball Metal Food Container, LLC as enterprise and party to the agreement and to be replaced with Sonoco Metal Packaging, LLC as enterprise and party to the agreement, whereby Sonoco Metal Packaging, LLC will assume the terms and commitments of the agreement. ($0.00)
Body
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 $15,000,000.00, which included approximately $7,000,000.00 in real property improvements to expand its existing 352,611 square foot manufacturing facility by approximately 80,000 square feet located at 2690 Charter St. Columbus, OH 43228, parcel number 560-189899 (the “PROJECT SITE”). Additionally, the ENTERPRISE committed to create fifty (50) net new full-time permanent positions with an associated annual payroll of approximately $2,500,000.00 and retain one-hundred and forty-six (146) full-time jobs with an estimated annual payroll of approximately $10,800,000.00 at the PROJECT SITE. The AGREEMENT was made and entered into effective July 21, 2016, with the PROJECT expected to begin approximately June 2016, with all real property improvements expected to be completed by approximately June 2017 and with the abatement to commence no later than 2018 nor extend beyond 2027 (Agreement No. 023-16-01); and
WHEREAS, paragraph fifteen 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 sixteen 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 Sonoco Products Company on behalf of the ENTERPRISE dated July 10, 2025, received by the CITY and through ensuing correspondence, Ball Metal Food Container, LLC confirmed that the company has been acquired by Sonoco Products Company as of January 27, 2022 and therefore a need exists to transfer all of its interest in the metal packaging facility built at 2690 Charter St. Columbus, OH 43228, parcel number 560-189899, to Sonoco Metal Packaging, LLC. The transfer of ownership was recorded at the County Auditor’s Office on May 5, 2023; and
WHEREAS, due diligence has been undertaken by the CITY in that Sonoco Metal Packaging, 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 Ball Metal Food Container, LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with Sonoco Metal Packaging, LLC as ENTERPRISE and party to the AGREEMENT; and
WHEREAS, the Director of the Department of Development of the CITY has investigated the Economic Development Application of Sonoco Metal Packaging, LLC and concurs with the Columbus City Council on the basis that Sonoco Metal Packaging, 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, the need exists to authorize the Director of the Department of Development to amend the AGREEMENT for the first time for Assignment & Assumption with Ball Metal Food Container, LLC to remove Ball Metal Food Container, LLC as ENTERPRISE and to be replaced by Sonoco Metal Packaging, LLC as ENTERPRISE and party to the AGREEMENT, Sonoco Metal Packaging, LLC will assume the terms and commitments of the AGREEMENT as ENTERPRISE; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Columbus City Council 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 Enterprise Zone Agreement with Ball Metal Food Container, LLC (the AGREEMENT) to remove Ball Metal Food Container, LLC as ENTERPRISE to be replaced with Sonoco Metal Packaging, LLC as ENTERPRISE whereby Sonoco Metal Packaging, LLC will assume the terms and commitments of the AGREEMENT as ENTERPRISE.
SECTION 3. That this FIRST AMENDMENT for Assignment & Assumption to the City of Columbus Enterprise Zone Agreement be signed by Sonoco Metal Packaging, LLC within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
SECTION 4. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.