Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Agler Joint Venture, LLC. The Ohio Enterprise Zone law Section 5709.62(C) of the Ohio Revised Code requires the City to enter into Council-approved agreements between the City and participating companies.
Agler Joint Venture, LLC is a partnership that includes members of Fed One who will serve as the general contractor for the site. Fed One, established in 1993, is a full-service general contractor and real estate developer. Over the past 20 years, Fed One has constructed nearly 13 million square feet of industrial space. They specialize in large manufacturing facilities and big box warehouses.
Agler Joint Venture, LLC proposes to invest a total project cost of approximately $13,500,000 in real property improvements to construct an approximately 240,000 square-foot speculative industrial building at 3101 Agler Road, Columbus, Ohio 43218, parcel numbers 010-103721, 010-108654, 010-137514, 010-137519, 010-137520, and 010-137521 (“Project Site”). Additionally, the company will create 15 net new full-time permanent positions with an estimated annual payroll of approximately $750,000 at the proposed Project Site. It should be noted that the parcels comprising the Project Site are presently owned by SV Inc.; Agler Joint Venture, LLC will need to acquire ownership of these parcels prior to entering into an Enterprise Zone Agreement.
The Department of Development recommends 75%/10-year Enterprise Zone tax abatement on real property improvements.
The City of Columbus School District has been advised of this project.
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 Agler Joint Venture, LLC for a tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of the company’s proposed capital investment of $13,500,000.00 in real property improvements, and the creation of 15 new full-time permanent positions. (AMENDED BY ORD. 1065-2021; PASSED 11/16/2020)
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; 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 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 on April 3, 2012 as an “urban jobs and enterprise zone” under Chapter 5709 of the Ohio Revised Code; and
WHEREAS Agler Joint Venture, LLC is a partnership that includes members of Fed One who will serve as the general contractor for the site. Fed One, established in 1993, is a full-service general contractor and real estate developer. Over the past 20 years, Fed One has constructed nearly 13 million square feet of industrial space. They specialize in large manufacturing facilities and big box warehouses; and
WHEREAS, Agler Joint Venture, LLC proposes to invest a total project cost of approximately $13,500,000 in real property improvements to construct an approximately 240,000 square-foot speculative industrial building at 3101 Agler Road, Columbus, Ohio 43218, parcel numbers 010-103721, 010-108654, 010-137514, 010-137519, 010-137520, and 010-137521 (“Project Site”); and
WHEREAS, the parcels comprising the Project Site are presently owned by SV Inc.; Agler Joint Venture, LLC will need to acquire ownership of these parcels prior to entering into an Enterprise Zone Agreement; and
WHEREAS, Agler Joint Venture, LLC will create 15 net new full-time permanent positions with an estimated annual payroll of approximately $750,000 at the proposed Project Site; and
WHEREAS, the approval of this legislation will be contingent upon the applicant receiving the proper zoning at the proposed Project Site; and
WHEREAS, the City is encouraging this project because of plans to increase the industrial inventory in the central city; and
WHEREAS, the City desires to enter in to such a binding formal agreement in order to foster economic growth for the preservation of public health, peace, property and safety; NOW, THEREFORE:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 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 representatives for Agler Joint Venture, LLC to go forward with the project.
SECTION 2. That the Director of the Department of Development is hereby authorized and directed to enter into an Enterprise Zone Agreement with Agler Joint Venture, LLC 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 $13,500,000 in real property improvements at 3101 Agler Road, Columbus, Ohio 43218, parcel numbers 010-103721, 010-108654, 010-137514, 010-137519, 010-137520, 010-137521, and the creation of 15 net new full-time permanent positions with an estimated annual payroll of approximately $750,000.
SECTION 3. That the City of Columbus Enterprise Zone Agreement is signed by Agler Joint Venture, LLC 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.