Explanation
BACKGROUND: This legislation authorizes the Director of Development to amend the existing Weiler-Bowen/City Park Place Enterprise Zone Agreement (EZA). Columbus City Council approved the EZA by Ordinance No. 2329-97, adopted September 29, 1997. The project is located at 79 E. Thurman Avenue near the intersection with City Park Avenue. The property owner, Weiler-Bowen Ltd., proposed to renovate/restore two derelict industrial/commercial structures into 54,000 square feet of Class A office space. The tax abatement would allow lease rates in the renovated structure to be competitive with office space in suburban areas, where development typically enjoys a cost advantage.
CallTech was to be the primary tenant and it was anticipated that 150 jobs would be created. However, CallTech grew much faster than expected and had outgrown the size of the facility prior to the construction even being completed. Thus, the space was leased to other tenants while CallTech moved to a larger facility within the city of Columbus and has continued to create jobs ever since. The project has attained an investment of $6.2 million in real property improvements and new personal property (97% of the EZA goal) and has 132 retained jobs. The 10-yr/75% tax abatement is on real property only, and will run through 2009. The rate and years of the tax abatement will not be modified.
The EZA will be modified to acknowledge that multiple tenants occupy the facility, that the tenants will collectively retain and/or create 150 jobs, that the property owner is responsible for the job retention/creation being achieved and for the annual detailed reporting on the tenant jobs, payroll, real & personal property and other information the City requires to fulfill its obligations associated with the granting of Enterprise Zone tax abatements.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the Weiler-Bowen/City Park Place Enterprise Zone Agreement to acknowledge multiple tenants at the facility, to require the retention and/or creation of 150 jobs, to designate Weiler-Bowen Ltd. to be responsible for the job retention/creation being achieved and to be responsible for the annual report the City requires to fulfill its Enterprise Zone obligations; and to declare an emergency.
Body
WHEREAS, the Columbus City Council approved the Weiler-Bowen/City Park Place Enterprise Zone Agreement (EZA) on September 29, 1997 by Ordinance No. 2329-97; and
WHEREAS, the real and personal property investment goals called for in the EZA have been largely met and the renovated office space is now an asset to the core central city and adds to its competitiveness for retaining and/or attracting businesses and jobs; and
WHEREAS, the City desires the EZA to reflect the changes that have occurred in the project and also to protect the City's ability to obtain necessary annual reporting information; and
WHEREAS, the City believes it is in the best interest of job preservation and economic development to amend the EZA;
WHEREAS, an emergency exists in the usual daily operation of the City in that it is immediately necessary to amend the Weiler-Bowen/City Park Place Enterprise Zone Agreement to acknowledge multiple tenants at the facility, to require the retention and/or creation of 150 jobs, to designate Weiler-Bowen Ltd. to be responsible for the job retention/creation being achieved and to be responsible for the annual report the City requires to fulfill its Enterprise Zone obligations, all for the preservation of the public health, peace, property, safety and welfare; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development is hereby authorized to amend the Weiler-Bowen Ltd./City Park Place Enterprise Zone Agreement (EZA) by acknowledging that the facility has multiple tenants and eliminating references to CallTech, by allowing the job requirement to be 150 job retained and/or created and eliminating the specific payroll amount, by making the property owner responsible for the project attaining the job retention/creation, and for providing the detailed annual project status information the City requires in order to fulfill its obligations associated with the granting of Enterprise Zone tax abatements.
Section 2. That for the reasons stated in the preamble hereto, which hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.