Explanation
BACKGROUND: This legislation authorizes the Director of Development to amend the existing Enterprise Zone Agreement (EZA) with Liberty Place, LLC. Columbus City Council approved an EZA by Ordinance Number 1368-04 on July 19, 2004. 1368-04 authorized the Director of Development to enter into a seventy five percent (75%) ten (10) year Enterprise Zone Agreement with Liberty Place, LLC in consideration of a real and personal property investment of thirty five million and the creation of eight to ten full time jobs. Liberty Place, LLC is a project that includes the construction of Liberty Place, a 314-unit rental residential project. The site is the former Capitol Manufacturing plant located immediately adjacent to I-70 in the Brewery District. In 2001, the site was purchased by Winther Investment, Inc. (Winther), a Houston-based development company with a track record of constructing residential projects on urban in fill sites. In June 2001, Columbus City Council, by Ordinance Number 1002-01, approved a tax incentive of sixty-five percent (65%) for ten (10) years on real property improvements under the Ohio Voluntary Action Program (VAP) for clean-up of brownfield sites. Columbus City Council subsequently amended this ordinance in November 2001 by Ordinance Number 1901-01 to reflect Liberty Place, LLC, as the successor to Winther as the developer of the project. Ordinance Number 1002-01, passed June 18, 2001 and Ordinance Number 1901-01, passed November 19, 2001 was repealed on July 19, 2004 by Ordinance Number 1368-04 for the purpose of authorizing the Director of Development to enter into an agreement with Liberty Place, LLC for a tax abatement of seventy-five percent (75%) for ten (10) years on real property improvements and personal property in consideration of an investment of $35.8 million and the creation of eight to ten full time jobs. The repeal was granted because the project was delayed due to unforeseen infrastructure issues and the uncertainty of the Ohio Department of Transportation's (ODOT) future plans for the I-70/I-71 widening project. Due to the delay in the project start, two years of the Ohio VAP abatement had elapsed. The need presently exists to amend the Enterprise Zone Agreement to reflect a change in the start time of Phase I and II of the project due to ODOT's future plans for the I-70/I-71 widening project. In May 2006, ODOT determined the amount of land to be taken for the I-70/I-71 widening project.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to amend the existing Enterprise Zone Agreement with Liberty Place, LLC to change the commencement year and ten year time frame by which Liberty Place may file tax exemptions for real and personal property for Phase I and Phase II construction.
Body
WHEREAS, the Columbus City Council approved an Enterprise Zone Agreement (EZA) with Liberty Place, LLC on July 19, 2004 by Ordinance No. 1368-04; and
WHEREAS, the Enterprise Zone Agreement (EZA) granted a 75%/10 year incentive on real and personal property improvements in consideration of an investment of $35.8 million and the creation of eight (8) to ten (10) full time permanent positions; and
WHEREAS, Liberty Place, LLL plans to construct a residential rental complex consisting of approximately three hundred and fourteen (314) units within the boundaries of the Brewers' District, specifically 100 Liberty Street; and
WHEREAS, there have been delays in construction of the project because of the Ohio Department of Transportation's (ODOT) announcement in September 2003, that it intended to take, by agreement or eminent domain, a portion of the project in conjunction with the widening of I-70/I71 immediately adjacent to the north; and
WHEREAS, the uncertainty of ODOT's plans has caused a delay in the construction of the Liberty Place project; and
WHEREAS, in May, 2006, ODOT determined the amount of land to be taken for the I-70/I-71 widening project; and
WHEREAS, construction of Phase I of Liberty Place began in 2006, and is underway and is nearing completion; and
WHEREAS, the City and Liberty Place, LLC are desirous of making revisions to certain provisions of said Agreement in order to clarify the commencement year and ten year time frame by which Liberty Place, LLC may file for tax exemptions for both real and personal property for Phase I and Phase II construction as provided for under said agreement; and NOW, THEREFORE,
BE IT ORDAINED BY TH COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Development is hereby authorized to amend the Enterprise Zone Agreement with Liberty Place, LLC to change the commencement year and ten-year time frame by which Liberty Place, LLC may file for exemptions for real and personal property for Phase I and Phase II as provided in the Agreement
Section 2. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.