Explanation
BACKGROUND: The Director of the Department of Development is requesting authorization to enter into an Enterprise Zone Agreement on behalf of the City with Westbourne Flex, LLC (the “Enterprise”). The Ohio Enterprise Zone law Section 5709.62(C) of the Ohio Revised Code authorizes the City to enter into a Council-approved tax abatement agreement between the City and qualifying companies.
Westbourne Flex, LLC is a wholly owned subsidiary of Pioneer Development. Established in 2021, Pioneer Development specializes in the acquisition, development, leasing, and management of light and flex industrial properties in strategically selected sub-markets within the Columbus, Ohio region. By leveraging deep understanding of market trends, local economic drivers, and industry-specific demands, Pioneer Development is able to deliver high-quality, efficient, and adaptable industrial spaces that cater to the evolving needs of growing businesses through strategic project selection, effective asset management, and efficient leasing strategies. To date they have developed approximately 500,000 square feet of light industrial products in Marysville, Plain City, Grove City, Columbus, and Delaware, Ohio.
Westbourne Flex, LLC is proposing to invest a total project cost of approximately $10,000,000.00 which includes $8,800,000.00 in real property improvements and $1,200,000.00 in acquisition cost to construct two (2) proactive industrial multi-tenant flex/warehouse facilities consisting of approximately 38,540 square feet and 27,000 square feet at 6140 and 6250 Westbourne Avenue, Columbus, OH 43213, Parcel No. 520-346972 (the “Project Site”). Additionally, Westbourne Flex, LLC proposes to create or cause to be created ten (10) net new full-time permanent positions with an estimated annual payroll of approximately $500,000.00 (“New Employees”) at the proposed Project Site.
The Director of the Department of Development is recommending that Council approve a 75%/10-year Enterprise Zone tax abatement on real property improvements made by the Enterprise at the Project Site, in consideration of creating the New Employees.
The Gahanna-Jefferson School District and Eastland-Fairfield Joint Vocational School District have been advised of this project.
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 enter into an Enterprise Zone Agreement with Westbourne Flex, LLC (the “Enterprise”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of the Enterprise investing approximately $8,800,000.00 in real property improvements and the creation of ten (10) net new full-time permanent positions with an estimated annual payroll of approximately $500,000.00 at the aforementioned Project Site. ($0.00)
Body
WHEREAS, the Columbus City Council authorized the designation of the City of Columbus Enterprise Zone by legislation, Ordinance Number 779-85, dated April 22, 1985; and subsequently amended the Zone by Ordinance Nos. 2722-85 in 1986; 2080-89 in 1989; 1949-92, 2690-92 and 2249-92 in 1992; 1079-94 and 1228-94 in 1994; 2196-95 and 2817-95 in 1995; 0533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; 0225-03 in 2003; 0032-2012 in 2012; 1442-2020 in 2020, 0279-2021 in 2021; and 0736-2022 in 2022; and
WHEREAS, the Director of the Development Department of the State of Ohio (“ODOD”) has determined that the Columbus Enterprise Zone (the “Zone”), as amended by the aforementioned Ordinances, continues to contain the characteristics set forth in Section 5709.61(A) of the Ohio Revised Code. The Director of ODOD has recertified this 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, August 19, 2003, April 3, 2012, September 18, 2020, May 20, 2021, and most recently on May 17, 2022 as an “urban jobs and enterprise zone” under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, Westbourne Flex, LLC is a wholly owned subsidiary of Pioneer Development. Established in 2021, Pioneer Development specializes in the acquisition, development, leasing, and management of light and flex industrial properties in strategically selected sub-markets within the Columbus, Ohio region. By leveraging deep understanding of market trends, local economic drivers, and industry-specific demands, Pioneer Development is able to deliver high-quality, efficient, and adaptable industrial spaces that cater to the evolving needs of growing businesses through strategic project selection, effective asset management, and efficient leasing strategies. To date they have developed approximately 500,000 square feet of light industrial products in Marysville, Plain City, Grove City, Columbus, and Delaware, Ohio; and
WHEREAS, the Enterprise has submitted a proposal (“Proposal”) to invest approximately $8,800,000.00 in real property improvements (the “Project) to construct two (2) proactive industrial multi-tenant flex/warehouse facilities consisting of approximately 38,540 square feet and 27,000 square feet at 6140 and 6250 Westbourne Ave. Columbus, OH 43213, Parcel No. 520-346972 (the “Project Site”); and
WHEREAS, the Enterprise anticipates that the Project will create or cause to be created ten (10) net new full-time permanent positions with an estimated annual payroll of approximately $500,000.00 (“New Employees”); and
WHEREAS, after reviewing and investigating the Proposal submitted by the Enterprise, the Director of the Department of Development believes that the Enterprise has demonstrated that it is qualified by financial responsibility and business experience to create and preserve employment opportunities in the Columbus Enterprise Zone and improve the City’s economic climate; and
WHEREAS, the Director of the Department of Development is recommending that City Council approve a 10-year, 75% abatement on the assessed valuation of the Project Site due to the new construction on their current site in the City of Columbus with an associated investment of real property improvements of $10,000,000.00, to incentivize the Enterprise to construct expand in the City’s eastern corridor; and
WHEREAS, the Development Director has notified the Gahanna-Jefferson School District and Eastland-Fairfield Joint Vocational School District of the Project; and
WHEREAS, the City desires to enter into an agreement with the Enterprise in order to incentivize economic growth and create employment opportunities for its citizens, and 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 Columbus City Council, having reviewed the proposal, finds that the Enterprise is qualified by financial responsibility and business experience to create and preserve employment opportunities in the City of Columbus Enterprise Zone and improve the City’s economic climate pursuant to Revised Code Section 5709.62(C).
SECTION 2. That City Council finds and determines (1) that the Enterprise will create, or cause to be created, the New Employee positions in the State and City; (2) that the Project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) that receiving the aforementioned tax abatement is a critical factor in the decision by representatives for Westbourne Flex, LLC, the Enterprise hereunder, to go forward with constructing the Project.
SECTION 3. Based on this determination, City Council approves and authorizes a 10-year, 75% abatement on the increase in assessed valuation of real property on the Project Site, contingent upon the Enterprise investing approximately $8,800,000.00 in real property improvements to construct two (2) proactive industrial multi-tenant flex/warehouse facilities consisting of approximately 38,540 square feet and 27,000 square feet at 6140 and 6250 Westbourne Ave. Columbus, Ohio 43213, Parcel No. 520-346972 and the creation of ten (10) net new full-time permanent positions with an estimated annual payroll of approximately $500,000.00 (“New Employees”) at the Project Site.
SECTION 4. That the City and the Enterprise must execute the attached Enterprise Zone Agreement within ninety (90) days of this Ordinance’s passage, or this Ordinance, and the authorization to enter into the tax abatement agreement, is null and void.
SECTION 5. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.