Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Broad & High CRI Limited Partnership. Ohio Enterprise Law, O.R.C. Section 5709.62 (3), requires the City to enter into a Council approval agreement between the City and participating companies.
Pursuant to State legislation, the City has created an approved Columbus Enterprise Zone. Broad & High CRI Limited Partnership desires to renovate and redevelop the area of 2 and 4 East Broad Street as well as 12, 18 and 20 North High Street totaling 48,500 square feet of retail and office space. This redevelopment project is a key component of the City of Columbus core downtown redevelopment plan. Broad & High CRI Limited Partnership plans to invest $8,800,000 in new construction and improvements including the placement of a permanent video-display system as well as create 2 full-time positions at the site within five years.
The Department of Development recommends a 75% / ten year abatement on real property. The Department also recommends a 75% / ten year personal property abatement restricted to the video-display system and related equipment if the video-display system is not included in the building value for tax purposes under the real property tax abatement.
The Columbus City School District has been advised of this project as required by O.R.C. Section 5709.83.
FISCAL IMPACT: No funding is required for this legislation.
Title
An ordinance authorizing the Director of Development to enter into an Enterprise Zone Agreement with Broad & High CRI Limited Partnership for a tax abatement of seventy five percent (75%) for ten (10) years on real property and seventy five percent (75%) for ten (10) years on personal property restricted to the permanent video-display system and related equipment in consideration of Broad & High CRI Limited Partnership proposed new investment of real and personal property in Columbus.
Body
WHEREAS, the Columbus City Council authorized the designation of the Enterprise Zone by legislation, Ordinance No 779-85, dated April 22, 1985; and
WHEREAS, the Ohio Development Department approved this designation under State of Ohio Enterprise Zone law, by letter, dated June 12, 1985; and
WHEREAS, Broad & High CRI Limited Partnership desires to renovate and redevelop 2 and 4 East Broad Street as well as 12, 18 and 20 North High Street totaling 48,500 square feet of retail and office space; and
WHEREAS, the Enterprise Zone project by Broad & High CRI Limited Partnership will add approximately $8,800,000 in real and personal property investment within Columbus; and
WHEREAS, Broad & High CRI Limited Partnership will create two new full-time jobs within five years; and
WHEREAS, it is required by law to enter into a binding, formal agreement in order to obtain tax incentives authorized by the State of Ohio; and
WHEREAS, the Board of Education for the Columbus City School District has been notified pursuant to O.R.C. Section 5709.83; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development is hereby authorized to enter into an Enterprise Zone agreement with Broad & High CRI Limited Partnership to provide therewith an exemption for new construction and improvements of 75% on the value of real property and 75% on personal property restricted to the permanent video-display system and related equipment attached to the exterior of the structure for a term of ten (10) taxable years in association with the project's proposed $8,800,000 investment.
Section 2. That this ordinance shall take effect and be in force from and after the earliest period provided by
law.