Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 0912-2020, passed May 18, 2020, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with The Gravity Project 2, dba Kaufman Development (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 $194,500,000.00, which included $7,500,000.00 in acquisition cost, $165,000,000.00 in real property improvements and approximately $22,000,000.00 in a new parking structure to redevelop approximately five (5) acres near the corner of W. Broad Street and McDowell Street in East Franklinton located at 451 and 455 W. Broad Street, Columbus, Ohio, (the "PROJECT SITE"), parcel number 010-039621 (the “ORIGINAL PARCEL”). The proposed mixed-use development consists of a new 6-story Class A commercial office facility consisting of approximately 184,189 square feet, a 12-story residential building comprised of approximately 218,796 square feet, with ground floor Class A office space consisting of approximately 22,622 square feet, a 5-story residential mid-rise building consisting of approximately 81,340 square feet, a 5-story residential building consisting of approximately 24,461 square feet of residential townhomes and flat apartment units and renovation of a 1-story retail building consisting of approximately 4,600 square feet. Additionally, there is a new parking structure of approximately 293,000 square feet containing approximately 889 parking spaces (of which, 200 of those parking spaces are targeted for public use).
The "PROJECT" as related to the AGREEMENT consisted of the development of approximately 184,189 square-foot 6-story Class A commercial office facility and the ground floor Class A office space comprising of approximately 22,622 square feet located in the residential building as it relates to the aforementioned project. The ENTERPRISE committed to invest approximately $31,176,371.00 of the proposed $165,000,000.00 in real property improvements, on the development of the commercial office facility and the ground floor office space. In addition, the ENTERPRISE committed to create fifty (50) net new full-time permanent positions with an estimated annual payroll of approximately $3,000,000.00 at the proposed PROJECT SITE, within the City of Columbus Enterprise Zone. The AGREEMENT was made and entered into effective October 15, 2020 with the abatement to begin no later October 2023 nor extend beyond 2032. The PROJECT was expected to begin October 2020 with all real property improvements expected to be completed by December 2021.
Paragraph fifteen within Section 6 (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 from Kaufman Development, on behalf of the ENTERPRISE dated December 19, 2023, received by the CITY and through ensuing correspondence, The Gravity Project 2, LLC confirmed that they have transferred all of its interest, ownership and title of the aforementioned commercial office building (the 6-story 184,189 square-foot Class A office) to another affiliate entity under the Kaufman Development umbrella, "Gravity 2 - Office, LLC". The transfer of title and ownership was recorded at the County Auditor's Office on February 11, 2021. In addition, the PROJECT SITE has been revised to be Parcel Number 010-301921 (split from the ORIGINAL PARCEL), containing approximately 1.032 +/-acres of developed land with the current street address of 449 -461 W. Broad Street, Columbus, Ohio 43215.
COUNCIL by Ordinance No. 0772-2024 passed on April 8, 2024 authorized the Director of the Department of Development to amend the Enterprise Zone Agreement for the first time for Assignment and Assumptions with The Gravity Project 2, dba Kaufman Development to (1) remove The Gravity Project 2, dba Kaufman Development as ENTERPRISE and to be replaced by Gravity 2 - Office, LLC as ENTERPRISE and party to the AGREEMENT; whereby, Gravity 2 - Office, LLC assumed the terms and commitments of the AGREEMENT, 2) revised the description of the PROJECT SITE, and (3) revised the notice information related to ENTERPRISE within Section 6 of the AGREEMENT. The First Amendment to the AGREEMENT was made and entered into effective May 7, 2024.
In an electronic communication received by the City on February 25, 2026, it was confirmed that 935 Cassady LLC acquired the PROJECT SITE from Gravity 2 - Office, LLC, with the transfer recorded by the Franklin County Auditor on February 12, 2025. The company requests that the City transfer the existing tax abatement from Gravity 2 - Office, LLC to 935 Cassady LLC so that the incentive benefits may continue.
Due diligence has been undertaken by the CITY in that 935 Cassady 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 Gravity 2 - Office, LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with 935 Cassady LLC as ENTERPRISE and party to the AGREEMENT, whereby 935 Cassady LLC will assume the terms and commitments of the AGREEMENT, and (2) revise the notice information related to ENTERPRISE within Section 6 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 Gravity 2 - Office, LLC to remove Gravity 2 - Office, LLC as enterprise and party to the agreement and to be replaced with 935 Cassady LLC as enterprise and party to the agreement and revise the notification information in Section 6 of the agreement. ($0.00)
Body
WHEREAS, the City of Columbus (“CITY”) entered into an Enterprise Zone Agreement (the “AGREEMENT”) with The Gravity Project 2, dba Kaufman Development, and approved by Columbus City Council (“COUNCIL”) on May 18, 2020 by Ordinance No. 0912-2020 with this AGREEMENT made and entered into effective October 15, 2020; 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 $194,500,000.00, which included $7,500,000.00 million in land and acquisition costs, $165,000,000.00 in real property improvements and approximately $22,000,000.00 in a new parking structure to redevelop approximately five (5) acres near the corner of W. Broad Street and McDowell Street in East Franklinton located at 451 and 455 W. Broad Street, Columbus, Ohio, parcel number 010-039621 (the "PROJECT SITE"). The proposed mixed-use development will consist of a new 6-story Class A commercial office facility consisting of approximately 184,189 square feet, a 12-story residential building comprised of approximately 218,796 square feet, with ground floor Class A office space consisting of approximately 22,622 square feet, a 5-story residential mid-rise building consisting of approximately 81,340 square feet, a 5-story residential building consisting of approximately 24,461 square feet of residential townhomes and flat apartment units and renovation of a 1-story retail building consisting of approximately 4,600 square feet. Additionally, a new parking structure of approximately 293,000 square feet containing approximately 889 parking spaces (of which 200 of those parking spaces are targeted for public use); and
WHEREAS, the "PROJECT" as related to the AGREEMENT consisted of the development of the approximately 184,189 square-foot 6-story Class A commercial office facility and the ground floor Class A office space comprising of approximately 22,622 square feet located in the residential building as it relates to the aforementioned project. The ENTERPRISE will invest approximately $31,176,371.00 of the proposed $164,000,000.00 in real property improvements, on the development of the commercial office facility and the ground floor office space. In addition, the ENTERPRISE will create 50 net new full-time permanent positions with an estimated annual payroll of approximately $3,000,000.00, to preserve or create employment opportunities within the Columbus Enterprise Zone, (hereinafter referred to as the "PROJECT"), provided that the appropriate development incentives are available to support the economic viability of said PROJECT; and
WHEREAS, the AGREEMENT was made and entered into effective October 15, 2020 with the abatement to begin no later October 2023 nor extend beyond 2032. The PROJECT was expected to begin October 2020 with all real property improvements expected to be completed by December 2021; and
WHEREAS, paragraph fifteen within Section 6, (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)”; and
WHEREAS, subsequently, in a letter from Kaufman Development on behalf of the ENTERPRISE dated December 19, 2023, received by the CITY and through ensuing correspondence, The Gravity Project 2, LLC confirmed that they have transferred all of its interest, ownership and title of the aforementioned commercial office building (the 6-story 184,189 square-foot Class A office) to another affiliate entity under the Kaufman Development umbrella, "Gravity 2 -Office, LLC". The transfer of title and ownership was recorded at the County Auditor's Office on February 11, 2021. In addition, the PROJECT SITE has been revised to be Parcel Number 010-301921 (split from the ORIGINAL PARCEL), containing approximately 1.032 +/-acres of developed land with the current street address of 449 -461 W. Broad Street, Columbus, Ohio 43215; and
WHEREAS, COUNCIL, by Ordinance No. 0772-2024 passed on April 8, 2024, authorized the Director of the Department of Development to amend the Enterprise Zone Agreement for the first time for Assignment and Assumptions with The Gravity Project 2, dba Kaufman Development to (1) remove The Gravity Project 2, dba Kaufman Development as ENTERPRISE and to be replaced by Gravity 2 - Office, LLC as ENTERPRISE and party to the AGREEMENT; whereby, Gravity 2 - Office, LLC assumed the terms and commitments of the AGREEMENT, 2) revised the description of the PROJECT SITE, and (3) revised the notice information related to ENTERPRISE within Section 6 of the AGREEMENT. The First Amendment to the AGREEMENT was made and entered into effective May 7, 2024; and
WHEREAS, in an electronic communication received by the City on February 25, 2026, confirmed that 935 Cassady LLC acquired the PROJECT SITE from Gravity 2 - Office, LLC, with the transfer recorded by the Franklin County Auditor on February 12, 2025. The company requests that the City transfer the existing tax abatement from Gravity 2 - Office, LLC to 935 Cassady LLC to allow the incentive benefits to continue; and
WHEREAS, due diligence has been undertaken by the CITY in that 935 Cassady 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 Gravity 2 - Office, LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with 935 Cassady LLC as ENTERPRISE and party to the AGREEMENT; whereby, 935 Cassady LLC will assume the terms and commitments of the AGREEMENT and revise the notice information related to ENTERPRISE within Section 6 of the AGREEMENT; and
WHEREAS, the Director of the Department of Development of the CITY has investigated the Economic Development Application of 935 Cassady LLC and concurs with the Columbus City Council on the basis that 935 Cassady 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, it has become necessary in the usual daily operation a Second Amendment for Assignment & Assumption is needed to the AGREEMENT with Gravity 2 - Office, LLC to (1) remove Gravity 2 - Office, LLC as ENTERPRISE and to be replaced by 935 Cassady LLC as ENTERPRISE and party to the AGREEMENT, whereby 935 Cassady LLC will assume the terms and commitments of the AGREEMENT as ENTERPRISE, and (2) revise the notice information related to the ENTERPRISE within Section 6 of the AGREEMENT; 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 Gravity 2 - Office, LLC, to remove Gravity 2 - Office, LLC as ENTERPRISE and party to the AGREEMENT and to be replaced by 935 Cassady LLC as ENTERPRISE and party to the AGREEMENT, whereby 935 Cassady 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 6, (Program Compliance) of the AGREEMENT, the “if to the ENTERPRISE” section regarding written communication from Gravity 2 - Office, LLC to 935 Cassady LLC C/O Faith Gunal, 455 W. Broad Street, Columbus, Ohio 43215.
Section 4. That this SECOND AMENDMENT for Assignment and Assumption to the City of Columbus Enterprise Zone Agreement be signed by 935 Cassady LLC within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
Section 5. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.