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 Jetway Flex, 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.
Founded in 2021 and based in Columbus, OH, Pioneer Development specializes in acquisition, development, leasing, and management of light and flex industrial properties in strategically selected sub-markets within the Columbus Region. By leveraging market trends, local economic drivers, and industry-specific demands, Pioneer Development provides high-quality, efficient, and adaptable industrial spaces that cater to the evolving needs of growing businesses. To date, Pioneer Development has developed over 400,000 square feet of light industrial product in Marysville, Plain City, Grove City, and Delaware.
Jetway Flex, LLC is proposing to invest a total project cost of approximately $10,298,498.00 in real property improvements to construct two (2) multi-tenant flex/warehouses that will consist of a 28,130 square foot and a 46,500 square foot proactive industrial facilities located at 1905 and 1931 Jetway Blvd. Columbus, OH 43219, parcel number 010-255956 (the “Project Site”). Additionally, Jetway Flex, LLC proposes to create twelve (12) net new full-time permanent positions with an estimated annual payroll of approximately $600,000.00 (“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 it creating the New Employees.
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 Jetway Flex, 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 $10,298,498.00 in real property improvements and the creation of twelve (12) net new full-time permanent positions with an estimated annual payroll of approximately $600,000.00.
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, Founded in 2021 and based in Columbus, OH, Pioneer Development specializes in acquisition, development, leasing, and management of light and flex industrial properties in strategically selected sub-markets within the Columbus Region. By leveraging market trends, local economic drivers, and industry-specific demands, Pioneer Development provides high-quality, efficient, and adaptable industrial spaces that cater to the evolving needs of growing businesses. To date, Pioneer Development has developed over 400,000 square feet of light industrial product in Marysville, Plain City, Grove City, and Delaware; and
WHEREAS, the Enterprise has submitted a proposal (“Proposal”) to invest approximately $10,298,498.00 in real property improvements (the “Project) to construct two (2) multi-tenant flex/warehouses that will consist of a 28,130 square foot and a 46,500 square foot proactive industrial facilities located at 1905 and 1931 Jetway Blvd. Columbus, OH 43219, parcel number 010-255956 (the “Project Site”); and
WHEREAS, the Enterprise anticipates that the Project will create twelve (12) net new full-time permanent positions with an estimated annual payroll of approximately $600,000.00 (“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 new construction on their current site in the City of Columbus with an associated investment of real property improvements of $10,298,498.00, to incentivize the Enterprise to construct and expand in the City’s central corridor; and
WHEREAS, the Development Director has notified the Columbus City School District of the Project; and
WHEREAS, 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, safety and welfare; 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 Jetway Flex, 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 upon the Enterprise investing approximately $10,298,498.00 in real property improvements to construct two (2) multi-tenant flex/warehouses that will consist of a 28,130 square foot and a 46,500 square foot proactive industrial facilities located at 1905 and 1931 Jetway Blvd. Columbus, OH 43219, parcel number 010-255956 and the creation of twelve (12) net new full-time permanent positions with an estimated annual payroll of approximately $600,000.00 (“New Employees”) at the 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.