Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 2627-2016, passed November 21, 2016, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with JBG Enterprise, LLC and America’s Floor Source, 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 $3,500,000.00, which included $2,923,000.00 in new construction and approximately $577,000.00 in acquisition cost for machinery, equipment, furniture and fixtures to construct a 40,000 square-foot office, warehouse and training facility on a vacant land parcel located at 3374 Millennium Court, Columbus, Ohio, parcel number 010-261507 (the “PROJECT SITE”), in Columbus Ohio, within the Columbus City School District, and the Columbus Enterprise Zone (the “PROJECT”). The ENTERPRISE committed to create sixteen (16) net new full-time permanent positions with an estimated annual payroll of approximately $639,280.00 and to retain of 119 full-time jobs with an estimated annual payroll of approximately $7,130,000.00. The ENTERPRISE also acquired a 9,839 square-foot office facility at 2360 Citygate Drive, Columbus, Ohio 43219 (located next to the vacant land parcel), which will be used for additional office space creating a business park campus in three separate facilities (Millennium Court, parcel no. 010-261507, 2360 Citygate Drive and 3442 Millennium Court; collectively, the "CAMPUS"), to house the 119 retained positions and created positions. The AGREEMENT was made and entered into effective February 15, 2017, (EZA #023-17-02). The AGREEMENT stated that construction on the improvements of the PROJECT, were expected to begin October 2016 with all real property improvements expected to be completed by October 2017, and that no real property exemption was to commence after 2018 nor extend beyond 2027.
The CITY reported the status of the PROJECT to the 2025 Tax Incentive Review Council (“TIRC”) on August 22, 2025. The TIRC, noted from the annual report, that the PROJECT SITE was sold to a different entity and is now out-of-compliance. The TIRC recommended that the AGREEMENT be continued, and send the ENTERPRISE a letter, via certified mail, requesting full reporting within 60 days of receipt of the letter. If this reporting is successful than the city should amend the AGREEMENT to reflect the current ownership. Should the request not be fulfilled withing that time frame then the AGREEMENT would be dissolved.
A certified letter was sent to the ENTERPRISE on November 5, 2025 as recommended by the TIRC board as well as an electronic mail communication. The ENTERPRISE has not responded to the communication and has not submitted the required annual report and remains out-of-compliance; therefore, the AGREEMENT will 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 JBG Enterprise, LLC and America’s Floor Source, 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 JBG Enterprise, LLC and America’s Floor Source, LLC (collectively, referred to as “ENTERPRISE”), approved by Columbus City Council (“COUNCIL”) on November 21, 2016, by Ordinance No. 2627-2016, with this AGREEMENT made and entered into effective February 15, 2017; and
WHEREAS, the AGREEMENT granted a 75%/10-Year abatement on real property improvements; and
WHEREAS, in consideration of a total investment of approximately $3,500,000.00, which included $2,923,000.00 in new construction and approximately $577,000.00 in acquisition cost for machinery, equipment, furniture and fixtures to construct a 40,000 square-foot office, warehouse and training facility on a vacant land parcel located at 3374 Millennium Court, Columbus, Ohio, parcel number 010-261507 (the “PROJECT SITE”), within the Columbus City School District and the Columbus Enterprise Zone (the “PROJECT”). Additionally, the ENTERPRISE committed to create sixteen (16) net new full-time permanent positions with an estimated annual payroll of approximately $639,280.00 and to retain of 119 full-time jobs with an estimated annual payroll of approximately $7,130,000.00. The ENTERPRISE also acquired a 9,839 square-foot office facility at 2360 Citygate Drive, Columbus, Ohio 43219 (located next to the vacant land parcel), which will be used for additional office space creating a business park campus in three separate facilities (Millennium Court, parcel no. 010-261507, 2360 Citygate Drive and 3442 Millennium Court; collectively, the "CAMPUS"), to house the 119 retained positions and created positions; and
WHEREAS, the AGREEMENT stated that construction on the improvements of the PROJECT was expected to begin October 2017, with all real property improvements expected to be completed by October 2017, and that no real property exemption was to commence after 2018 nor extend beyond 2027; and
WHEREAS, the CITY reported the status of the PROJECT to the 2025 Tax Incentive Review Council (“TIRC”) on August 22, 2025. The TIRC, noted from the annual report, that the PROJECT SITE was sold to a different entity and is now out-of-compliance. The TIRC recommended that the AGREEMENT be continued, and send the ENTERPRISE a letter, via certified mail, requesting full reporting within 60 days of receipt of the letter. If this reporting is successful than the city should amend the AGREEMENT to reflect the current ownership. Should the request not be fulfilled withing that time frame then the AGREEMENT would be dissolved.
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 prior to the end of calendar year 2026, and to preserve the public health, property, safety and welfare; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Columbus City Council hereby dissolves the JBG Enterprise, LLC and America’s Floor Source, LLC’s Enterprise Zone Agreement (EZA#023-17-02) 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 010-261507 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 JBG Enterprise, LLC and America’s Floor Source, 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.