Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 3117-2016, passed December 12, 2016, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Huntington National Bank (The), Huntington Bancshares, Inc., Huntington Insurance, Inc., Huntington Investment Company, & Huntington Technology Finance, Inc. (collectively known as Huntington Nation Bank and 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 total capital investment of approximately $18,000,000.00 in the renovation of a 212,000 square-feet vacant commercial facility at 5555 Cleveland Ave. Columbus, OH 43231, parcel number: 010-143750, within the Columbus North Enterprise Zone (the “PROJECT SITE”). Additionally, the ENTERPRISE committed to create twenty-three (23) net new full-time permanent positions with an estimated associated payroll of approximately $1,380,000.00, and retain and relocate 1,179 full-time jobs from its Morse Road and Crosswoods locations with an associated estimated annual payroll of approximately $48,820,000.00 at the PROJECT SITE. The AGREEMENT was made and entered into effective July 27, 2017 with the PROJECT expected to begin approximately June 2017, with all real property improvements expected to be completed by approximately December 2017 and with the abatement to commence no later than 2018 nor extend beyond 2027 (Agreement No. 023-17-07).
On August 23, 2024 the 2024 TIRC recommended the City of Columbus modify the agreement to reflect a post-covid workplace. This recommendation was accepted by the City Council in Resolution 0250x-2024 passed by the CITY dated October 24, 2024. Following this, The Department of Development contacted the ENTERPRISE and through subsequent correspondence, revised new retained and net new job commitments were established reflecting the current employee configuration for this employment center. The CITY and the ENTERPISE agreed to a commitment of seven hundred-fifty (750) retained jobs and the creation of fifteen (15) net new full-time jobs.
This legislation is to authorize the Director of the Department of Development to modify Section 2 (Employment and Payroll) to (1) replace the “ENTERPRISE shall create 23 new full-time jobs” with “ENTERPRISE shall create fifteen (15) new full-time jobs” and (2) “ENTERPRISE shall retain the 1,179 existing full-time permanent employee positions. The current annual payroll of the retained full-time permanent positions is $48.82 million and this level of payroll will be maintained or exceeded for these positions. ” with “ENTERPRISE shall retain the 750 existing full-time permanent employee positions. The current annual payroll of the retained full-time permanent positions is $52,500,000.00 and this level of payroll will be maintained or exceeded for these positions.”
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 modify the Enterprise Zone Agreement for the first time with Huntington National Bank (The), Huntington Bancshares, Inc., Huntington Insurance, Inc., Huntington Investment Company, & Huntington Technology Finance, Inc (collectively known as Huntington Nation Bankand hereinafter, referred to as “ENTERPRISE”) and revise the retained and new job commitments of the AGREEMENT.
Body
WHEREAS, Columbus City Council (“COUNCIL”), by Ordinance No. 3117-2016, passed December 12, 2016, authorized CITY to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Huntington National Bank (The), Huntington Bancshares, Inc., Huntington Insurance, Inc., Huntington Investment Company, & Huntington Technology Finance, Inc. (collectively known as Huntington Nation Bank and 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 $18,000,000.00 in construction and renovation, the creation of twenty-three (23) net new full-time permanent positions with an associated annual payroll of approximately $1,380,000.00, and retain and relocate 1,179 full-time jobs from its Morse Road and Crosswoods locations with an associated estimated annual payroll of approximately $48,820,000.00, related to the renovation of a vacant commercial facility approximately of 212,000 square feet (the “PROJECT”) on parcel number 010-143750 located at 5555 Cleveland Ave. Columbus, OH 43231, within the City of Columbus and within the City of North Columbus Enterprise Zone (the “PROJECT SITE”); and
WHEREAS, the AGREEMENT was made and entered into effective July 27, 2017 (Agreement No. 023-17-07) with the PROJECT expected to begin in June 2017, with all real property improvements expected to be completed by December 2017, and with the abatement to commence no later than 2018 nor extend beyond 2027; and
WHEREAS, the Acceptance of the 2024 TIRC recommendations Resolution 0250x-2024 passed by the CITY dated October 24, 2024 instructed The CITY to consult with the ENTERPRISE on right sizing the new and retained job numbers for a post-Covid hybrid work environment; and
WHEREAS, the ENTERPRISE had consulted with the CITY and agreed to a retained job commitment of seven hundred fifty (750) and a new job creation of fifteen (15) net new full-time jobs, Pursuant to the AGREEMENT, the ENTERPRISE has submitted an updated Economic Development Incentive Application, submitted the five-hundred dollars ($500.00) Amendment Fee, and that these applications and all other pertinent information have been reviewed and vetted; and
NOW, THEREFORE, in consideration of the promises and mutual obligations of the parties contained in this FIRST Amendment for a modification to the Enterprise Zone Agreement, each of them hereby covenants and agrees with the other as follows:
BE IT ORDAINED BY THE COUNCIL 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 Enterprise Zone Agreement to revise the retained and new job figures.
SECTION 3. That the Director of the Department of Development is hereby authorized to amend Section 2 (Employment and Payroll) to (1) replace the “ENTERPRISE shall create 23 new full-time jobs” with “ENTERPRISE shall create fifteen (15) new full-time jobs” and (2) “ENTERPRISE shall retain the 1,179 existing full-time permanent employee positions. The current annual payroll of the retained full-time permanent positions is $48.82 million and this level of payroll will be maintained or exceeded for these positions. ” with “ENTERPRISE shall retain the 750 existing full-time permanent employee positions. The current annual payroll of the retained full-time permanent positions is $52,500,000.00 and this level of payroll will be maintained or exceeded for these positions.”
SECTION 4. That this FIRST AMENDMENT for the modification of terms to the City of Columbus Enterprise Zone Agreement be signed by the ENTERPRISE 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.