Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Knightsbridge Olentangy, 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.
Knightsbridge Olentangy, LLC proposes to establish a new medical office facility on Olentangy River Road (parcel number 010-267768). The facility will be principally occupied by Tallo & Associates, a primary care medical services provider. A total capital investment of $3 million is proposed at the site for new building construction. A total of two new full-time permanent positions will be created as a result of the project.
The project consists of the new construction of a 21,000 square foot medical office facility. A total capital investment of $3 million is proposed at the site to be used toward new construction. A total of 2 new full-time positions will be created as a result of the project and 31 existing positions will be retained.
The Department of Development recommends a 75%/10-year Enterprise Zone tax abatement on real property improvements. This proposal is consistent with the Columbus Tax Incentive Policy under Central City projects.
The Columbus 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 Development to enter into an Enterprise Zone Agreement with Knightsbridge Olentangy, 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 total investment of $3 million (for new building construction).
Body
WHEREAS, the Columbus City Council authorized the designation of the Central 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; and 0225-03 in 2003; and 0032-2012 in 2012; 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, August 19, 2003, and most recently April 3, 2012 as an "urban jobs and enterprise zone" under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, Knightsbridge Olentangy, LLC proposes to construct a 21,000 square foot medical office facility on Olentangy River Road (parcel number 010-267768); and
WHEREAS, Knightsbridge Olentangy, LLC will make a proposed total investment of $3 million for new building construction at the project site; and
WHEREAS, Knightsbridge Olentangy, LLC will create 2 full-time permanent jobs with an annual payroll of $56,160 and retain 31 positions with an annual payroll of $1.68 million; and
WHEREAS, the City is encouraging this project because of plans to redevelop urban commercial property in the city; and
WHEREAS, the City desires to enter into such a binding formal agreement in order to foster economic growth; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That City hereby finds and determines that the project will (1) create jobs in the State and City (2) 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) receiving the aforementioned tax abatement is a critical factor in the decision by Knightsbridge Olentangy, LLC to go forward with the project expansion.
Section 2. That the City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the Director of Development is hereby authorized and directed to enter into and execute an Enterprise Zone Agreement with Knightsbridge Olentangy, 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 investment of approximately $3.0 million toward new building construction and the creation of 2 new permanent full-time positions with an annual payroll of approximately $56,160 and the retention of 31 full-time employees with an annual payroll of $1.68 million.
Section 4. That the City of Columbus Enterprise Zone Agreement is signed by Knightsbridge Olentangy, 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 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.