Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Wood Real Estate, LLC and Wood Operating Company, LLC. The Ohio Enterprise Zone law O.R.C. Section 5709.62 (3) requires the City to enter into a Council-approved agreement between the City and participating companies.
Wood Real Estate, LLC is a commercial and residential real estate broker company that assisted in the revitalization of the historic Short North Arts District. Sandy Wood established Wood Real Estate, LLC and Wood Operating Company in the late 1980's and helped transform the Short North District into a vibrate community. Wood Real Estate, LLC is proposing to redevelop and expand a 1-story commercial building into a 4-story mixed use building consisting of 45,700 square feet. The first floor will remain a restaurant (North Star), with an additional 9,600 square feet of renovations for covered parking. The second floor will consist of 10,200 square feet of office space with 2 rental units comprising 2,300 square feet of residential space. The 3rd and 4th floors will feature twelve rental units consisting of 12,000 square feet of residential space on each floor. The company plans to invest approximately $4.2 million for this project and create 3 full-time permanent positions.
The Department of Development recommends a 75%/10-year Enterprise Zone tax abatement on real property improvements. The proposal is consistent with the Columbus Tax Incentive Policy under Central City projects.
The Columbus Public Schools have been advised of this project.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an Enterprise Zone Agreement with Wood Real Estate, LLC and Wood Operating Company, LLC for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a proposed $4.2 million investment.
Body
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 Code 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 and most recently on August 19, 2003 as an "urban jobs and enterprise zone" under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, Wood Real Estate, LLC plans to invest a total of $4.2 million in real property improvements on parcel Number 010-0077892-00; and
WHEREAS, the project proposes to renovate a 1-story commercial building into a 4-story mixed use property comprising of 45,700 square feet of office and residential spaces; and
WHEREAS, Wood Real Estate, LLC will invest, redevelop and own property, while Wood Operating Company, LLC will create 3 new full-time permanent positions with an estimated annual payroll of $111,300; and
WHEREAS, the City is encouraging this project because of plans to redevelop an urban commercial property in the central city; and
WHEREAS, the City desires to enter in such a binding formal agreement in order to foster economic growth, NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Development is hereby authorized to enter into an Enterprise Zone Agreement with Wood Real Estate, LLC and Wood Operating Company, LLC to provide therewith an exemption of seventy-five percent (75%) on real property improvements for a term of ten (10) taxable years in association with the project's proposed $4.2 million investment.
Section 2. That the City of Columbus Enterprise Zone Agreement is signed by Wood Real Estate, LLC and Wood Operating Company, LLC within ninety (90) days of passage of this ordinance, or this ordinance and the abatements and credits authorized herein are null and void.
Section 3. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.