Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 1144-2018, passed May 14, 2018, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Advanced Turf Solutions, Inc. and ATS Columbus Investments II, LLC (collectively, and hereinafter referred to as “ENTERPRISE”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a total investment of approximately $7,836,400.00, which included $3,200,000 in real property improvements, $401,400.00 in land, and another $4,065,000 in furniture, fixtures, computers, and inventory, and $150,000.00 in machinery and equipment related to the construction of an approximately 40,000 square feet regional distribution operations center at 4646 Journal Street Columbus, OH 43228, on parcel number 560-297845 (the “PROJECT SITE”), in Columbus Ohio, within the Hillard City School District and Tolles Career and Technical School, and the Columbus Enterprise Zone (the “PROJECT”). Additionally, the ENTERPRISE committed to the creation of six (6) net new full-time permanent positions with an estimated annual payroll of approximately $390,000.00 and the retention of eighteen (18) full-time jobs at the aforementioned PROJECT SITE. The AGREEMENT was made and entered into effective June 26, 2018, (EZA #023-18-06). The AGREEMENT stated that construction on the improvements of the PROJECT, were expected to begin July 2018 with all real property improvements expected to be completed by December 2018, and that no real property exemption was to commence after 2019 nor extend beyond 2028.
The CITY reported the status of the PROJECT to the 2024 Tax Incentive Review Council (“TIRC”) on August 23, 2024. The TIRC, noted from the annual report, that the net new jobs were below the job creation commitment per the AGREEMENT (as required per Section 5709.61(L) of the Ohio Revised Code), and the retained full-time jobs commitment were below the ENTERPRISE’s agreed upon commitment. The TIRC recommended that the AGREEMENT be continued, and send ENTERPRISE a letter, via certified mail, to specify if six (6) net new full-time permanent positions are not created, the AGREEMENT will be terminated in 2025 due to project non-compliance, and if there is no response within sixty (60) days of receipt of the letter, the AGREEMENT will be dissolved.
A certified letter was sent to the ENTERPRISE on October 23, 2024 as recommended by the TIRC board as well as an electronic mail communication. The ENTERPRISE responded to the communication and outlined a plan to meet the requirements of the TIRC.
In a review of the annual reporting filings, from the ENTERPRISE, for report year 2024 reviewed on August 22, 2025, the ENTERPRISE had not created the six (6) net new full-time permanent positions committed to in the AGREEMENT, therefore, the tax abatement is to be dissolved.
This legislation is to authorize the Director of the Department of Development to dissolve the AGREEMENT between the CITY and the ENTERPRISE and to notify, as necessary, the local and state agencies of the dissolution.
This legislation is presented as 30-day legislation.
FISCAL IMPACT: No funding is required for this legislation.
Title
To dissolve the Enterprise Zone Agreement with Advanced Turf Solutions, Inc. and ATS Columbus Investments II, LLC (collectively, referred to as “ENTERPRISE”), and to direct the Director of the Department of Development to notify, as necessary, the local and state tax authorities of the dissolution. ($0.00)
Body
WHEREAS, the City of Columbus (“CITY”) entered into an Enterprise Zone Agreement (the “AGREEMENT”) with Advanced Turf Solutions, Inc. and ATS Columbus Investments II, LLC (collectively, referred to as “ENTERPRISE”), approved by Columbus City Council (“COUNCIL”) on May 14, 2018 by Ordinance No. 1144-2018, with this AGREEMENT made and entered into effective June 26, 2018; and
WHEREAS, the AGREEMENT granted a 75%/10-Year abatement on real property improvements; and
WHEREAS, in consideration of a total investment of approximately $7,836,400.00, which included $3,200,000.00 in real property improvements, $401,400.00 in land, and another $4,065,000.00 in furniture, fixtures, computers, and inventory, and $150,000.00 in machinery and equipment related to the construction of an approximately 40,000 square feet regional distribution operations center at 4646 Journal Street Columbus, OH 43228, on parcel number 560-297845 (the “PROJECT SITE”), within the Hillard City School District and Tolles Career and Technical School and the Columbus Enterprise Zone (the “PROJECT”). Additionally, the ENTERPRISE committed to the creation of six (6) net new full-time permanent positions with an estimated annual payroll of approximately $390,000.00 and the retention of eighteen (18) full-time jobs at the aforementioned PROJECT SITE; and
WHEREAS, Advanced Turf Solutions, Inc., will be the sole tenant and employer of record, and enter into a lease agreement with ATS Columbus Investments II, LLC. Additionally, the ENTERPRISE committed to the creation of six (6) net new full-time permanent positions with an estimated annual payroll of approximately $390,000.00 and the retention of eighteen (18) full-time jobs with an estimated annual payroll of approximately $1,285,000.00 at the PROJECT SITE; and
WHEREAS, the AGREEMENT was made and entered into effective June 26, 2018 (EZA #023-18-06); and
WHEREAS, the AGREEMENT stated that construction on the improvements of the PROJECT was expected to begin July 2018, with all real property improvements expected to be completed by December 2018, and that no real property exemption was to commence after 2019 nor extend beyond 2028; and
WHEREAS, the CITY reported the status of the PROJECT to the 2024 Tax Incentive Review Council (“TIRC”) on August 23, 2024. The TIRC, noted from the annual report, that the net new jobs were below the job creation commitment per the AGREEMENT (as required per Section 5709.61(L) of the Ohio Revised Code and Section 2 of the AGREEMENT), and the retained full-time jobs commitment were below the ENTERPRISE’s agreed upon commitment. The TIRC recommended that if six (6) net new full-time permanent positions are not created, the AGREEMENT will be terminated in 2025 due to project non-compliance; and
WHEREAS, in a review of the annual reporting filings, from the ENTERPRISE, for report year 2024 reviewed in 2025 through the TIRC review process, the ENTERPRISE had not created the six (6) net new full-time permanent positions committed to in the AGREEMENT, therefore, the tax abatement is to be dissolved; and
WHEREAS, it has become necessary in the usual daily operation this legislation is to authorize the Director of the Department of Development to dissolve the AGREEMENT between the CITY and the ENTERPRISE and to notify, as necessary, the local and state agencies of the dissolution; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Columbus City Council hereby dissolves the Advanced Turf Solutions, Inc. and ATS Columbus Investments II, LLC’s Enterprise Zone Agreement (EZA#023-18-06) as of December 31, 2024, which was to apply a 75%/10-year real property tax abatement to the value of real property improvements made to parcel number 560-297845 within the Columbus Enterprise Zone.
SECTION 2. That the Director of the Department of Development is hereby directed to notify the necessary local and state agencies of any changes to the Advanced Turf Solutions, Inc. and ATS Columbus Investments II, LLC Enterprise Zone Agreement.
SECTION 3. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.