Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 0475-2022, 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 #1) (“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 337,500 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 cause 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. 023-22-10).
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 ENTERPISE dated May 19, 2026, received by the CITY and through ensuing correspondence, confirmed the that a portion of the PROJECT SITE, which contains a ground lease with the Columbus Regional Airport Authority, will be transferred to Jim Pattison Development (U.S.) Inc. upon completion of the execution of the transfer. Furthermore, Jim Pattison Development (U.S.) Inc. will then assume the terms and commitments of the AGREEMENT. In addition, the PROJECT SITE was revised to be Parcel Number 570-307356 (split from the “ORIGINAL PARCEL”), containing approximately 24.515 +/acres of undeveloped land. The legal description, per the Franklin County Auditor, is listed as Bolten Field Airport, 24.515 +/-acres with the current street address of 1948 Norton Road, Columbus, Ohio 43228.
Due diligence has been undertaken by the CITY in that Jim Pattison Development (U.S.) Inc. 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 Jim Pattison Development (U.S.) Inc. as ENTERPRISE and party to the AGREEMENT, whereby Jim Pattison Development (U.S.) Inc. will assume the terms and commitments of the AGREEMENT, (2) revised the description of the PROJECT SITE, and (3) revised 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 (1) remove COI Alkire Industrial, LLC as enterprise and party to the agreement and to be replaced with Jim Pattison Development (U.S.) Inc. as enterprise and party to the agreement, (2) revise the description of the project site, and (3) revise the notification information related to the 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 COI Alkire Industrial, LLC (“ENTERPRISE”), approved by Columbus City Council (“COUNCIL”), by Ordinance No. 0475-2022, passed March 7, 2022, with this AGREEMENT made and entered into effective August 15, 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 337,500 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 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 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. 023-22-10); 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, subsequently, in a letter from the ENTERPISE dated May 19, 2026, received by the CITY and through ensuing correspondence, confirmed that a portion of the PROJECT SITE, which contains a ground lease with the Columbus Regional Airport Authority, will be transferred to Jim Pattison Development (U.S.) Inc. upon completion of the execution of the transfer. Furthermore, Jim Pattison Development (U.S.) Inc. will then assume the terms and commitments of the AGREEMENT. In addition, the PROJECT SITE was revised to be Parcel Number 570-307356 (split from the “ORIGINAL PARCEL”), containing approximately 24.515 +/acres of undeveloped land. The legal description, per the Franklin County Auditor, is listed as Bolten Field Airport, 24.515 +/- acres with the current street address of 1948 Norton Road, Columbus, Ohio 43228; and
WHEREAS, due diligence has been undertaken by the CITY in that AC Jim Pattison Development (U.S.) Inc. 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 have 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 Jim Pattison Development (U.S.) Inc. as ENTERPRISE and party to the AGREEMENT, whereby Jim Pattison Development (U.S.) Inc. will assume the terms and commitments of the AGREEMENT, revise the description of the PROJECT SITE and 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 Jim Pattison Development (U.S.) Inc. and concurs with the Columbus City Council on the basis that Jim Pattison Development (U.S.) Inc. 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 Jim Pattison Development (U.S.) Inc. as ENTERPRISE and party to the AGREEMENT, whereby, Jim Pattison Development (U.S.) Inc. will assume the terms and commitments of the AGREEMENT, (2) revise the description of the PROJECT SITE within Section 1 of the AGREEMENT 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 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 Jim Pattison Development (U.S.) Inc. as ENTERPRISE whereby Jim Pattison Development (U.S.) Inc. 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 within Section 8 (Program Compliance) of the AGREEMENT, the “if to the ENTERPRISE” section regarding written communication from COI Alkire Industrial, LLC to Jim Pattison Development (U.S.) Inc. C/O Mitch Cramp, 2300, 1177 West Hastings Street, Vancouver, BC V6E 2k3.
SECTION 4. That this FIRST AMENDMENT for Assignment & Assumption to the City of Columbus Enterprise Zone Agreement be signed by Jim Pattison Development (U.S.) Inc. within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
SECTION 5. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.