Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 1731-2019, passed July 22, 2019, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Pinchal and Company LLC (the “ENTERPRISE”) for a tax abatement of seventy five percent (75%) for a period of ten (10) years in consideration of a proposed total capital investment of approximately $10,190,000.00, which included $1,160,000.00 in acquisition cost and $9,030,000.00 in real property improvements, and the creation of four (4) full-time permanent positions with an associated annual payroll of approximately $124,800 related to the construction of a new 200,000-square-foot speculative distribution and warehouse facility (the (“PROJECT”) located at 6732 and 6770 Shook Road, Columbus, Ohio 43137, parcel numbers 512-232659 and 512-232662 (the “PROJECT SITE”), within the City of Columbus Enterprise Zone. The AGREEMENT was made and entered into effective September 12, 2019 with the abatement to begin no later than 2021 nor extend beyond 2030, with this PROJECT expected to begin September 2019 will all real property improvements expected to be completed by December 2020.
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 received by the CITY on behalf of the ENTERPRISE dated October 9, 2019 and through ensuing correspondence, it was confirmed that Columbus STS, LLC had acquired ownership of the PROJECT SITE from Pinchal and Company LLC on July 26, 2019 and with the transfer being recorded in the Franklin County Auditor’s Office on June 22, 2022.
COUNCIL by Ordinance No. 3099-2019, passed on December 9, 2019 authorized the Director of the Department of Development to amend the Enterprise Zone Agreement for the first time for Assignment and Assumptions with Pinchal & Company LLC to remove Pinchal & Company LLC as ENTERPRISE and to be replaced by Columbus STS, LLC as ENTERPRISE and party to the AGREEMENT. The First Amendment to the AGREEMENT was made and entered into effective December 30, 2019.
Furthermore, in a letter received by the CITY on behalf of the ENTERPRISE, dated April 6, 2026, and through ensuing correspondence, it was confirmed that 6770 Shook Road, LLC has acquired the ownership of the PROJECT SITE from Columbus STS, LLC on February 6, 2026 with that transfer being recorded in the Franklin County Auditor's Office on February 19, 2026. The letter requests the CITY to transfer the tax abatement from Columbus STS, LLC to 6770 Shook Road, LLC. In addition, the PROJECT SITE has been revised to be Parcel Number 512-232659 containing approximately 14.713 +/- acres with a legal description, per the Franklin County Auditor, is listed as Shook Road Lockbourne Air Base, Columbus, Ohio 43137.
Due diligence has been undertaken by the CITY in that 6770 Shook Road, LLC 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 second time for Assignment & Assumption to (1) remove Columbus STS, LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with 6770 Shook Road, LLC as ENTERPRISE and party to the AGREEMENT, whereby 6770 Shook Road, LLC will assume the terms and commitments of the AGREEMENT, (2) revise the description of the PROJECT SITE, and (3) revise 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 a second time for Assignment and Assumption with Columbus STS, LLC to remove Columbus STS, LLC as enterprise and party to the agreement and to be replaced with 6770 Shook Road, LLC as enterprise and party to the agreement, to redefine the project site, and revise the notification information in Section 8 of the agreement. ($0.00)
Body
WHEREAS, the City of Columbus (“CITY”) entered into an Enterprise Zone Agreement (the “AGREEMENT”) with Pinchal and Company LLC and approved by Columbus City Council (“COUNCIL”) on July 22, 2019 by Ordinance No. 1731-2019 with this AGREEMENT made and entered into effective September 12, 2019; and
WHEREAS, the AGREEMENT granted a 75%/10-Year abatement on real property improvements; and
WHEREAS, the incentive was granted in consideration of a total capital investment of approximately $10,190,000.00, which included $1,160,000.00 in acquisition cost and $9,030,000.00 in real property improvements, and the creation of four (4) full-time permanent positions with an annual payroll of approximately $124,800 related to the construction of a new 200,000-square-foot speculative distribution and warehouse facility (the “PROJECT”) located at 6732 and 6770 Shook Road, Columbus Ohio 43137 (the “PROJECT SITE”), and within the City of Columbus Enterprise Zone with the abatement to begin no later 2021 nor extend beyond 2030, with this PROJECT expected to begin September 2019 will all real property improvements expected to be completed by December 2020; 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).”
WHEREAS, subsequently, in a letter received by the CITY on behalf of the ENTERPRISE dated October 9, 2019 and through ensuing correspondence, confirmed that Columbus STS, LL had acquired ownership of the PROJECT SITE from Pinchal and Company on July 26, 2019; and
WHEREAS, COUNCIL by Ordinance No. 3099-2019, passed on December 9, 2019 authorized the Director of the Department of Development to amend the Enterprise Zone Agreement for the first time for Assignment and Assumptions with Pinchal & Company LLC to remove Pinchal & Company LLC as ENTERPRISE and to be replaced by Columbus STS, LLC as ENTERPRISE and party to the AGREEMENT.
WHEREAS, the First Amendment to the AGREEMENT was made and entered into effective December 30, 2019; and
WHEREAS, in a letter received by the CITY on behalf of the ENTERPRISE dated April 6, 2026 and through ensuing correspondence, it was confirmed that 6770 Shook Road, LLC has acquired the ownership of the PROJECT SITE from Columbus STS, LLC on February 6, 2026 with that transfer being recorded in the Franklin County Auditor's Office on February 19, 2026. The letter requests the CITY to transfer the tax abatement from Columbus STS, LLC to 6770 Shook Road, LLC. In addition, the PROJECT SITE has been revised to be Parcel Number 512-232659 containing approximately 14.713 +/- acres with a legal description, per the Franklin County Auditor, listed as Shook Road Lockbourne Air Base, Columbus, Ohio 43137; and
WHEREAS, due diligence has been undertaken by the CITY in that 6770 Shook Road, LLC 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 all other pertinent information have been reviewed and vetted; and
WHEREAS, a second amendment to the AGREEMENT is now needed for Assignment & Assumption to remove Columbus STS, LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with 6770 Shook Road, LLC as ENTERPRISE and party to 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 6770 Shook Road, LLC and concurs with the Columbus City Council on the basis that 6770 Shook Road, LLC, 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, a Second Amendment for Assignment & Assumption is need to the AGREEMENT with Columbus STS, LLC to (1) remove Columbus STS, LLC as ENTERPRISE and to be replaced by 6770 Shook Road, LLC as ENTERPRISE and party to the AGREEMENT, whereby 6770 Shook Road, LLC will assume the terms and commitments of the AGREEMENT as ENTERPRISE, (2) revise the description of the PROJECT SITE, and (3) revise the notice information; 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 Enterprise Zone Agreement for the second time for Assignment and Assumption with Columbus STS, LLC, to remove Columbus STS, LLC as ENTERPRISE and party to the AGREEMENT to be replaced by 6770 Shook Road, LLC as ENTERPRISE and party to the AGREEMENT, whereby 6770 Shook Road, LLC will assume the terms and commitments of the AGREEMENT.
Section 3. That the Director of the Department of Development is hereby authorized to amend Section 1 (Establishment by Corporation) of the AGREEMENT to state that the PROJECT SITE is revised to be Parcel Number 512-232659, containing approximately 14.713 +/- acres with the current street address of 6658-6732 Shook Road, Columbus, Ohio 43137.
Section 4. That the Director of the Department of Development is hereby authorized to amend Section 8, (Program Compliance) of the AGREEMENT, the “if to the ENTERPRISE” section regarding written communication from Columbus STS, LLC to 6770 Shook Road, LLC C/O Erin Shephard, 8888 Keystone Crossing, Suite 1150, Indianapolis, Indiana 46240.
Section 5. That this SECOND AMENDMENT for Assignment and Assumption to the City of Columbus Enterprise Zone Agreement be signed by 6770 Shook Road, LLC within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
Section 6. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.