Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Frieland High LLC, Freeland Contracting Company, FreeAir LLC, Frieland Opportunity LLC, Frieland LLC and FM Resources. The Ohio Enterprise Zone law O.R.C. Section 5709.62(C) requires the City to enter into a Council-approved agreement between the City and participating companies.
Freeland Contracting Company, established in 1991 and headquartered in Columbus, Ohio, has successfully completed many projects with an emphasis on commercial, retail, multifamily, and hospitality plumbing/piping projects. Freeland is also very proud to have one of only a few State of Ohio accredited plumbing apprenticeship school. Freeland Contracting Company, FreeAir LLC, Frieland Opportunity LLC and Frieland LLC are related and subsidiary companies of Frieland High LLC and FM Resources is a wholly-owned professional employer organization and employer of record.
Frieland High LLC, Freeland Contracting Company, FreeAir LLC, Frieland Opportunity LLC, Frieland LLC and FM Resources are proposing to invest a total project cost of approximately $5,550,000 including $5,000,000 in real property improvements to renovate a building of 14,918 sq. ft. and construct two new 12,000 sq. ft. buildings located at 2295 South High Street, Columbus, Ohio, parcel numbers 010-011211, 010-113280, 010-114238, and 010-114369 (“Project Site”). The company anticipates that the development of the proposed project will lead to the creation of 2 net new full-time permanent positions with an estimated new annual payroll of approximately $62,400 and retain 121 full-time permanent positions with an estimated annual payroll of 7,358,400 at the proposed Project Site.
The Department of Development recommends a 75%/10-year Enterprise Zone tax abatement on real property improvements.
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 the Department of Development to enter into an Enterprise Zone Agreement with Frieland High LLC, Freeland Contracting Company, FreeAir LLC, Frieland Opportunity LLC, Frieland LLC and FM Resources for a tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of a total proposed capital investment of approximately $5,550,000.00, including $5,000,000.00 in real property improvements, $300,000.00 in furniture and fixtures, $150,000.00 in computers and technology, and $100,000.00 in inventory, as well as the creation of 2 net new full-time permanent positions with an estimated new annual payroll of approximately $62,400.00 and retention of 121 full-time employees with an annual payroll of $7,358,400.00.
Body
WHEREAS, the Columbus City Council ("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; 0225-03 in 2003; 0032-2012 in 2012 and 1442-2020 in 2020; 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 5709.6l(A) of the Ohio Revised 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 April 3, 2012 and most recently on September 18, 2020 as an "urban jobs and enterprise zone" under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, Frieland High LLC, Freeland Contracting Company, FreeAir LLC, Frieland Opportunity LLC, Frieland LLC and FM Resources are a construction contracting company, headquartered in Columbus; and
WHEREAS, Frieland High LLC, Freeland Contracting Company, FreeAir LLC, Frieland Opportunity LLC, Frieland LLC and FM Resources are proposing to invest a total project cost of approximately $5,500,000, including $5,000,000 in real property improvements to renovate a building of 14,918 sq. ft. and construct two new 12,000 sq. ft. buildings located at 2295 South High Street, Columbus, Ohio, parcel numbers 010-011211, 010-113280, 010-114238, and 010-114369 (“Project Site”).
WHEREAS, Frieland High LLC, Freeland Contracting Company, FreeAir LLC, Frieland Opportunity LLC, Frieland LLC and FM Resources anticipates that the development of the proposed project will lead to the creation of 2 net new full-time permanent positions with an estimated new annual payroll of approximately $62,400 and retention of 121 full-time employees with an annual payroll of $7,358,400 at the proposed Project Site; and
WHEREAS, the City is encouraging this project because of plans to renovate a vacant building and construct two additional buildings; and
WHEREAS, the City desires to increase employment opportunities and encourage the creation of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, the City desires to enter in such a binding formal agreement in order to foster economic growth for the preservation of public health, peace, property and safety; and NOW, THEREFORE:
BE IT ORDAINED BY THE COUNCIL OF COLUMBUS:
SECTION 1. That this Council hereby finds and determines that the enterprise submitting the 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 and receiving this tax incentive is a critical factor in the decision by Frieland High LLC, Freeland Contracting Company, FreeAir LLC, Frieland Opportunity LLC, Frieland LLC and FM Resources to move forward with the proposed project.
SECTION 2. That the Director of the Department of Development is hereby authorized and directed to enter into an Enterprise Zone Agreement with Frieland High LLC, Freeland Contracting Company, FreeAir LLC, Frieland Opportunity LLC, Frieland LLC and FM Resources to provide therewith an exemption of seventy-five percent (75%) on real property improvements for a term of ten (10) consecutive taxable years in association with the project’s proposed total investment of approximately $5,550,000, including $5,000,000 in real property improvements, $300,000 in furniture and fixtures, $150,000 in computers and technology, and $100,000 in inventory, as well as the creation of 2 net new full-time permanent positions with an estimated new annual payroll of approximately $62,400 and retention of 121 full-time employees with an annual payroll of $7,358,400.
SECTION 3. That the City of Columbus Enterprise Zone Agreement is signed by Frieland High LLC, Freeland Contracting Company, FreeAir LLC, Frieland Opportunity LLC, Frieland LLC and FM Resources within ninety (90) days of passage of this ordinance, or this ordinance and the abatements and credit authorized herein are null and void.
SECTION 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.