Explanation
BACKGROUND: Columbus City Council, by Ordinance 1883-2012, passed September 4, 2012, authorized the City of Columbus to enter into an Enterprise Zone Agreement (Agreement) with Pizzuti Short North Office LLC (Enterprise) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of $11.6 million in real property improvements and the creation of 217 new full-time permanent jobs with an associated payroll of $13,300,000 related to the construction of a speculative 60,000 square foot facility housing 55,000 square feet of Class A office space and 5,000 square feet of retail space on parcel number 010-002258 on North High Street in Columbus, Ohio and within the City of Columbus Enterprise Zone.
The need exists to amend the Ordinance 1883-2012 to (1) change the name of the Enterprise from Pizzuti Short North Office LLC to Pizzuti Short North LLC; (2) to add a public parking garage consisting of approximately 313 spaces with an associated additional $9,000,000 of investment to the scope of the project; to (3) change the location of the project from being located on parcel number 010-002258 on North High Street to being located on all of parcel number 010-002258 and all or part of parcel number 010-052208 and the portion of Wall Street between Russell Street and Millay Alley, as that latter property is combined and/or split to form the parcel on which the garage will be constructed and to (4) extend the 90 day period to execute the agreement to 90 days after the passage of this ordinance.
Development of the Pizzuti Short North LLC project began over four years ago with the vision of bringing a boutique hotel experience to the Columbus region. Over the course of the project's development, additional property became available adjacent to the original project site. This land was acquired and the site design refocused to install a one-of-a-kind mixed-use development in the district.
As part of the design, Pizzuti Short North LLC has proposed the construction of (i) a speculative 60,000 square foot facility housing 55,000 square feet of Class A office space and 5,000 square feet of retail space, and (ii) a public parking garage consisting of approximately 313 spaces. Project costs are expected to be approximately $20.6 million, including $8.9 million in new building construction, $2.7 million in leasehold improvements and $9 million for the construction of the garage. A total of approximately 217 new employees are anticipated to fill the space with the potential to generate approximately $13.3 million in annual payroll.
This Ordinance is necessary to ensure that the exemption applies to the increase in the assessed value of the property comprising the entirety of the project site.
The Columbus City School District has received notice of this project and the proposed Enterprise Zone Agreement in accordance with Ohio Revised Code Section 5709.83.
This legislation is requested to be considered as an emergency in order to immediately allow for the Agreement to executed as expeditiously as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend Ordinance 1883-2012, passed by Columbus City Council on September 4, 2012, to authorize the Director of the Department of Development to enter into an Enterprise Zone Agreement with Pizzuti Short North LLC for a tax abatement of seventy-five percent (75%) for a period of ten (10) years on the increase in the assessed value of real property in consideration of a proposed total investment of $20.6 million for new building construction ($8.9 million), tenant improvements ($2.7 million) and construction of a public parking garage ($9 million); and to declare an emergency.
Body
WHEREAS, the Columbus City Council, by Ordinance 779-85 passed April 22, 1985, and amended by Ordinances 2722-85 in 1986, 2080-89 in 1989, 1949-92, 2609-92 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, and 0032-2012 in 2012, has designated the area specified in those ordinances as an "urban jobs and enterprise zone" pursuant to Ohio Revised Code ("R.C.") Chapter 5709 (the "Enterprise Zone") and declared that incentives for business offered by such zones will enhance efforts to promote the viable and diverse economic activity necessary for rejuvenation of the Enterprise Zone; and
WHEREAS, effective most recently on April 3, 2012, the Director of Development of the State of Ohio determined that the Enterprise Zone contains the characteristics set forth in R.C. Section 5709.61(A)(1) and certified the Enterprise Zone as an "enterprise zone" under R.C. Chapter 5709; and
WHEREAS, the enterprise zone was created in accordance with R.C. Sections 5709.61 through 5709.69 (the "Enterprise Zone Act"); and
WHEREAS, the Enterprise Zone Act has authorized municipalities to execute agreements with certain enterprises for the purposes of establishing, expanding, renovating or occupying facilities and hiring new employees and preserving jobs within said Enterprise Zone in exchange for specified local tax incentives and granted by the City; and
WHEREAS, Pizzuti Short North LLC (the "Company") proposes to construct a speculative 60,000 square foot facility housing 55,000 square feet of Class A office space and 5,000 square feet of retail space, and (ii) a public parking garage consisting of approximately 313 spaces (collectively, the "Project") on the project site (the "Project Site") described in the Enterprise Zone Agreement, which is comprised of all of parcel number 010-002258 and all or part of parcel number 010-052208 and the portion of Wall Street between Russell Street and Millay Alley, as that latter property is combined and/or split to form the parcel on which the garage will be constructed; and
WHEREAS, the Project involves an anticipated investment of approximately $20.6 million, consisting of approximately $8.9 million in new building construction, approximately $2.7 million in tenant improvements and approximately $9 million for the construction of the garage; and
WHEREAS, the Company has submitted an Enterprise Zone Agreement application to the City; and
WHEREAS, the Project is expected to result in the creation of approximately 217 new full-time permanent employment opportunities at the Project Site, with total new payroll of approximately $13.3 million per year; and
WHEREAS, Columbus City Council authorized the Director of Development to enter into an Enterprise Zone Agreement (the Agreement) with Pizzuti Short North Office LLC by Ordinance 1883-2012, passed September 4, 2012; and
WHEREAS, this Agreement would grant a 75%/10-year abatement on the increase in the assessed value of real property; and
WHEREAS, the Agreement as authorized by Ordinance 1883-2012, passed September 4, 2012, would have committed Pizzuti Short North Office LLC to invest $11,600,000 in real property improvements and create 217 new permanent full-time jobs, related to the construction of a commercial and retail facility on parcel number 010-002258 on North High Street; and
WHEREAS, the need exists to amend the Ordinance 1883-2012 to (1) change the name of the Enterprise from Pizzuti Short North Office LLC to Pizzuti Short North LLC, (2) to add a public parking garage consisting of approximately 313 spaces with an associated additional $9,000,000 of investment to the scope of the Project, to (3) change the location of the project from being located on parcel number 010-002258 on North High Street to being located on all of parcel number 010-002258 and all or part of parcel number 010-052208 and the portion of Wall Street between Russell Street and Millay Alley, as that latter property is combined and/or split to form the parcel on which the garage will be constructed and to (4) extend the 90 day period to execute the agreement to 90 days after the passage of this ordinance; and
WHEREAS, the Columbus City School District Board of Education has received the required 14-day notice pursuant to R.C. Section 5709.83; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to amend said ordinance to facilitate the preservation of existing job opportunities and the creation of new job opportunities, all 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 the provisions of Ordinance 1883-2012 are hereby amended by the provisions of this ordinance.
Section 2. That the City hereby finds and determines that (i) the Project will create jobs in the State and City, (ii) 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 the City, and (iii) receiving the tax abatement is a critical factor in the decision by the Pizzuti Short North LLC to go forward with the Project.
Section 3. In consideration of the Company's commitment to develop the Project, the Director of Development is hereby authorized to enter into an Ohio Enterprise Zone Agreement with the Pizzuti Short North LLC to provide therewith an exemption of seventy-five percent (75%) on the increase in assessed value of real property at the Project Site for a period of ten (10) years in association with the project's proposed investment and job creation and the Director is authorized and directed to take any further actions and execute and deliver any further agreements, certificates or documents necessary to accomplish the granting of the aforementioned Ohio Enterprise Zone incentives.
Section 4. That the City of Columbus Enterprise Zone Agreement must be signed by Pizzuti Short North LLC within ninety (90) days after passage of this Ordinance, or this Ordinance and the abatements authorized herein are null and void.
Section 5. That for reasons stated in the preamble hereto, which is hereby made a part hereof, the Ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.