Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Metro City Ventures, LLC. and Southwestern Acquisition, LLC. The Ohio Enterprise Zone law O.R.C. Section 5709.62 (3) requires the City to enter into a Council-approved agreement between the City and participating companies.
Southwestern Acquisition, LLC. (Southwestern College) is an affiliate of Lincoln Educational Services Corporation, a New Jersey corporation. Southwestern College provides training in Health Services, Business IT and Spa & Cosmetology with locations in Cincinnati, Dayton, Toledo and Franklin, Ohio, as well as Florence, Kentucky. Southwestern College is fully accredited by the Accrediting Council of Independent Colleges and schools specializing in the business and healthcare industries.
Along with Metro City Ventures, LLC., a real estate venture owned by Andrew Showe and located in downtown Columbus, Southwestern College is proposing to expand into Columbus by the redevelopment and renovation of 3 floors of a 5-story commercial building, comprising 26,000 square feet to be used as class room and office space. The renovations and job creation associated with this project located at 45 North 4th Street, within the Mile on High District, will have a big impact on the continuing revitalization of the downtown area.
The Department of Development recommends a 75%/10-year Enterprise Zone tax abatement on real property improvements in consideration of a proposed $1.59 million investment and the creation of 49 new full-time permanent positions with an estimated annual payroll of $1.96 million. This proposal is consistent with the Columbus Tax Incentive Policy under Central City projects.
The Columbus Public Schools has been advised of this project.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into an Enterprise Zone Agreement with Metro City Ventures, LLC. and Southwestern Acquisition, LLC. for a tax abatement of seventy-five percent (75%) for a period of ten (10) years on real property improvements in consideration of a proposed $1.59 million investment.
Body
WHEREAS, the Columbus City Council authorized the designation of the Enterprise Zone by legislation, Ordinance Number 779-85, dated April 22, 1985; and subsequently amended the Zone by Ordinance Nos. 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; 533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; and 225-03 in 2003; and
WHEREAS, the Director of the Development Department of the State of Ohio determined that the Columbus Enterprise Zone as amended by the aforementioned Ordinances continued to contain the characteristics set forth in Section 5709.61(A) of the Ohio Revised Code and recertified said Zone in 1986, December 20, 1989, September 28, 1992, October 22, 1992, December 17, 1992, May 31, 1994, June 24, 1994, June 16, 1995, October 5, 1995, December 19, 1995, April 1, 1999, September 25, 2000, January 27, 2003 and most recently on August 19, 2003 as an "urban jobs and enterprise zone" under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, Metro City Ventures, LLC. plans to invest approximately $1.1 million in real property improvements on parcel Numbers 010-004994, 010-004955; and
WHEREAS, the project proposes to renovate 3 floors of a 5-story commercial building into an educational learning center comprising of approximately 26,000 square feet of office and classroom spaces; and
WHEREAS, Metro City Ventures, LLC. will invest and redevelop property at the project site; and
WHEREAS, Southwestern Acquisition, LLC. will create 49 new full-time permanent positions with an estimated annual payroll of $1.96 million; and
WHEREAS, the City is encouraging this project because of plans to redevelop an urban commercial property in the central city; and
WHEREAS, the City desires to enter in such a binding formal agreement in order to foster economic growth 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 Director of Development is hereby authorized to enter into an Enterprise Zone Agreement with Metro City Ventures, LLC and Southwestern Acquisition, LLC to provide therewith an exemption of seventy-five percent (75%) on real property improvements for a term of ten (10) taxable years in association with the project's proposed $1.59 million investment.
Section 2. That the City of Columbus Enterprise Zone Agreement is signed by Metro City Ventures, LLC. and Southwestern Acquisition, LLC. within ninety (90) days of passage of this ordinance, or this ordinance and the abatements and credits authorized herein are null and void.
Section 3. That this ordinance shall take effect and be in force form and after the earliest period allowed by law.