Explanation
BACKGROUND: The Director of the Department of Development is requesting authorization to enter into an Enterprise Zone Agreement on behalf of the City with C5 Columbus SW Building 1, LLC (the “Enterprise”). The Ohio Enterprise Zone Law Section 5709.62(C) of the Ohio Revised Code authorizes the City to enter into a Council-approved tax abatement agreements between the City and qualifying companies.
C5 Columbus SW Building 1, LLC is a wholly owned single purpose entity under the Core5 Industrial Partner’s umbrella. Core5 Industrial Partners (“Core5”) is a full-service real estate property company with expertise in development and acquisition of Class A inventory and build-to-suit industrial facilities. With 25 years of experience, the company has delivered more than 250 million square feet of Class A warehousing, distribution, and manufacturing facilities across North America. Core5 is based in Atlanta, Georgia and has quickly established a national presence in North America’s major distribution and logistics markets. Core5 is owned by the 180-year-old Kajima Corporation’s U.S division, Kajima USA Inc.
C5 Columbus SW Building 1, LLC is proposing to invest a total project cost of approximately $31,260,600.00 in real property improvements to construct a new Class-A proactive development industrial facility consisting of approximately 496,200 square feet on a vacant greenfield site located at 5192 Alkire Rd. Columbus, OH 43228, Parcel No. 570-154749 (the “Project Site”). Additionally, C5 Columbus SW Building 1, LLC proposes to create or cause to be created forty-eight (48) net new full-time permanent positions with an estimated annual payroll of approximately $2,112,000.00 (“New Employees”) at the proposed Project Site.
The Director of the Department of Development is recommending that Council approve a 75%/10-year Enterprise Zone tax abatement on real property improvements made by the Enterprise at the Project Site, in consideration of creating the New Employees.
The Columbus-Southwestern City School District has been advised of this project.
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 enter into an Enterprise Zone Agreement with C5 Columbus SW Building 1, LLC (the “Enterprise”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of the Enterprise investing approximately $31,260,600.00 in real property improvements and the creation of forty-eight (48) net new full-time permanent positions with an estimated annual payroll of approximately $2,112,000.00. ($0.00)
Body
WHEREAS, the Columbus City Council authorized the designation of the City of Columbus 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, 2690-92 and 2249-92 in 1992; 1079-94 and 1228-94 in 1994; 2196-95 and 2817-95 in 1995; 0533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; 0225-03 in 2003; 0032-2012 in 2012; 1442-2020 in 2020, 0279-2021 in 2021; and 0736-2022 in 2022; and
WHEREAS, the Director of the Development Department of the State of Ohio (“ODOD”) has determined that the Columbus Enterprise Zone (the “Zone”), as amended by the aforementioned Ordinances, continues to contain the characteristics set forth in Section 5709.61(A) of the Ohio Revised Code. The Director of ODOD has recertified this 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, August 19, 2003, April 3, 2012, September 18, 2020, May 20, 2021, and most recently on May 17, 2022 as an “urban jobs and enterprise zone” under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, C5 Columbus SW Building 1, LLC (the “Enterprise”) is a wholly owned single purpose entity under the Core5 Industrial Partner’s umbrella. Core5 Industrial Partners (“Core5”) is a full-service real estate property company with expertise in development and acquisition of Class A inventory and build-to-suit industrial facilities. With 25 years of experience, the company has delivered more than 250 million square feet of Class A warehousing, distribution, and manufacturing facilities across North America. Core5 is based in Atlanta, Georgia and has quickly established a national presence in North America’s major distribution and logistics markets. Core5 is owned by the 180-year-old Kajima Corporation’s U.S division, Kajima USA Inc.; and
WHEREAS, the Enterprise has submitted a proposal (“Proposal”) to invest approximately $31,260,600.00 in real property improvements (the “Project”) for the development of a vacant greenfield site to construct of a new Class-A proactive development industrial facility consisting of approximately 496,200 square feet at 5192 Alkire Rd. Columbus, OH 43228, Parcel No. 570-154749 (the “Project Site”); and
WHEREAS, the Enterprise anticipates that the Project will create or cause to be created forty-eight (48) net new full-time permanent positions with an estimated annual payroll of approximately $2,112,000.00 (“New Employees”); and
WHEREAS, after reviewing and investigating the Proposal submitted by the Enterprise, the Director of the Department of Development believes that the Enterprise has demonstrated that it is qualified by financial responsibility and business experience to create and preserve employment opportunities in the Columbus Enterprise Zone and improve the City’s economic climate; and
WHEREAS, the Director of the Department of Development is recommending that City Council approve a 10-year, 75% abatement on the assessed valuation of the Project Site due to the development of the vacant site in the City of Columbus with an associated investment of real property improvements of $31,260,600.00, to incentivize the Enterprise to construct/expand in the City’s southwestern corridor; and
WHEREAS, the Director of the Department of Development has notified the Columbus-Southwestern City School District of the Project; and
WHEREAS, it has become necessary in the usual daily operation the City desires to enter into an agreement with the Enterprise in order to incentivize economic growth and create employment opportunities for its citizens, and for the preservation of public health, peace, property and safety; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Columbus City Council, having reviewed the proposal, finds that the Enterprise is qualified by financial responsibility and business experience to create and preserve employment opportunities in the City of Columbus Enterprise Zone and improve the City’s economic climate pursuant to Revised Code Section 5709.62(C).
SECTION 2. That City Council finds and determines (1) that the Enterprise will create, or cause to be created, the New Employee positions in the State and City; (2) that the Project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) that receiving the aforementioned tax abatement is a critical factor in the decision by representatives for C5 Columbus SW Building 1, LLC, the Enterprise hereunder, to go forward with constructing the Project.
SECTION 3. Based on this determination, City Council approves and authorizes a 10-year, 75% abatement on the increase in assessed valuation of real property on the Project Site, contingent on the sale and transfer of ownership, the Enterprise investing approximately $31,260,600.00 in real property improvements for the development of a vacant greenfield site to construct a new Class-A proactive industrial development facility consisting of approximately 496,200 square feet at 5192 Alkire Rd. Columbus, OH 43228, Parcel No. 570-154749 (the “Project Site”). Additionally, C5 Columbus SW Building 1, LLC proposes to create or cause to be created forty-eight (48) net new full-time permanent positions with an estimated annual payroll of approximately $2,112,000.00 (“New Employees”) at the proposed Project Site.
SECTION 4. That the City and the Enterprise must execute the attached Enterprise Zone Agreement within ninety (90) days of this Ordinance’s passage, or this Ordinance, and the authorization to enter into the tax abatement agreement, is null and void.
SECTION 5. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.