Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 0470-2023, passed May 6, 2023, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with 0 Outerbelt Street, LLC (the “ENTERPRISE”), for a real property tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of a proposed total capital investment of approximately $30,444,390.00, which included approximately $7,000,000.00 in acquisition cost, and $23,444,390.00 in real property improvements to construct a proactive industrial facility consisting of approximately 205,000 square feet (the “PROJECT”) at or on Outerbelt Street, Columbus, Ohio 43213, and on four contiguous parcel numbers 520-143653, 520-143654, 520-143655 and 520-308803, within the City of Columbus and within the City of Columbus Enterprise Zone (the “PROJECT SITE”). Additionally, the ENTERPRISE committed to create or cause to be created twenty-five (25) net new full-time permanent positions with an associated annual payroll of approximately $1,040,000.00 at the PROJECT SITE. The AGREEMENT was made and entered into effective June 9, 2023 with the PROJECT expected to begin approximately July 2023, with all real property improvements expected to be completed approximately by June 2024 and with the abatement to commence no later than January 1, 2025 nor extend beyond December 31, 2034 (Agreement No. 023-23-07).
As of this date, the company has filed their DTE-24 with the Franklin County Auditor’s Office, but no Final Determination from the Ohio Department of Taxation, and so no forgone tax benefit has yet been received.
Paragraph fifteen within Section 8 (Program Compliance) of the AGREEMENT states that the “AGREEMENT is not transferable or assignable without the express, written, approval of the CITY” and paragraph fifteen of that same section states that “any requested amendment…to any of the terms of the AGREEMENT…shall require the payment to the CITY by the ENTERPRISE of an AMENDMENT FEE in the amount of five-hundred dollars ($500.00).”
In a letter received by the CITY on behalf of the ENTERPRISE dated October 24, 2025, through ensuing correspondence, confirmed that AH Columbus, LLC had acquired ownership of the PROJECT SITE from 0 Outerbelt Street, LLC with the transfer having been recorded at the County’s Auditor’s Office on September 18, 2025. Additionally, the PROJECT SITE has been revised to be Parcel Number 520-143653 (combining the previous four parcel numbers into one parcel), containing approximately 31.60 +/- acres with the current street address of 392-488 Outerbelt Street, Columbus, Ohio 43213.
Due diligence has been undertaken by the CITY in that AH Columbus, LLC agreed to fully assume the terms and commitments of the ENTERPRISE pursuant to the AGREEMENT, has submitted an updated Economic Development Incentive Application, the five-hundred dollars ($500.00) Amendment Fee and that this application and all other pertinent information has been reviewed and vetted.
This legislation is to authorize the Director of the Department of Development to amend the AGREEMENT for the first time for Assignment & Assumption to (1) remove 0 Outerbelt Street, LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with AH Columbus, LLC as ENTERPRISE and party to the AGREEMENT, whereby AH Columbus, LLC will assume the terms and commitments of the AGREEMENT, (2) revise the description of the PROJECT SITE, and (3) revise the notice information related to ENTERPRISE within Section 8 of the AGREEMENT.
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 amend the Enterprise Zone Agreement for the first time for Assignment & Assumption with 0 Outerbelt Street, LLC, to remove 0 Outerbelt Street, LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with AH Columbus, LLC as ENTERPRISE and party to the AGREEMENT, to redefine the PROJECT SITE, and to revise the notification information. ($0.00)
Body
WHEREAS, the AGREEMENT granted a 75%/10-Year abatement on real property improvements; and
WHEREAS, the incentive was granted in consideration of a proposed total capital investment of approximately $30,444,390.00, which included approximately $7,000,000.00 in acquisition cost, and $23,444,390.00 in real property improvements to construct a proactive industrial facility consisting of approximately 205,000 square feet (the “PROJECT”) at Outerbelt Street, Columbus, Ohio 43213 and on four contiguous parcel numbers 520-143653, 520-143654, 520-143655 and 520-308803, within the City of Columbus and within the City of Columbus Enterprise Zone (the “PROJECT SITE”). Additionally, the ENTERPRISE committed to create or cause to be created twenty-five (25) net new full-time permanent positions with an associated annual payroll of approximately $1,040,000.00 at the PROJECT SITE. The AGREEMENT was made and entered into effective June 9, 2023 with the PROJECT expected to begin approximately July 2023, with all real property improvements expected to be completed by approximately June 2024 and with the abatement to commence no later than January 1, 2025 nor extend beyond December 31, 2034 (Agreement No. 023-23-07). This street address may or may not change upon PROJECT completion; and
WHEREAS, paragraph fifteen within Section 8 (Program Compliance) of the AGREEMENT states that the “AGREEMENT is not transferable or assignable without the express, written, approval of the CITY” and paragraph fifteen of that same section states that “any requested amendment…to any of the terms of the AGREEMENT…shall require the payment to the CITY by the ENTERPRISE of an AMENDMENT FEE in the amount of five- 0 Outer Street, LLC hundred dollars ($500.00);” and
WHEREAS, in a letter received by the CITY on behalf of the ENTERPRISE dated October 24, 2025, through ensuing correspondence, confirmed that AH Columbus, LLC had acquired ownership of the PROJECT SITE from 0 Outerbelt Street, LLC with the transfer having been recorded at the County’s Auditor’s Office on September 18, 2025. Additionally, the PROJECT SITE has been revised to be Parcel Number 520-143653 (combining the previous four parcel numbers into one parcel), containing approximately 31.60 +/- acres with the current street address of 392-488 Outerbelt Street, Columbus, Ohio 43213; and
WHEREAS, due diligence has been undertaken by the CITY in that AH Columbus, LLC agreed to fully assume the terms and commitments of the ENTERPRISE pursuant to the AGREEMENT, has submitted an updated Economic Development Incentive Application, the five-hundred dollars ($500.00) Amendment Fee and that this application and all other pertinent information has been reviewed and vetted; and
WHEREAS, a First Amendment to the AGREEMENT is now needed for Assignment & Assumption to remove 0 Outerbelt Street, LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with AH Columbus, LLC as ENTERPRISE and party to the AGREEMENT, and revise the description of the PROJECT SITE, and revise the notice information related to ENTERPRISE within Section 8 of the AGREEMENT; and
WHEREAS, the Director of the Department of Development of the CITY has investigated the Economic Development Application of AH Columbus, LLC and concurs with the Columbus City Council on the basis that AH Columbus, LLC is qualified by financial responsibility and business experience to create and preserve employment opportunities in the Columbus Enterprise Zone and improve the economic climate of the CITY; and
WHEREAS, it has become necessary in the usual daily operation an amendment for Assignment & Assumption to the AGREEMENT with 0 Outerbelt Street, LLC to (1) remove 0 Outerbelt Street, LLC as ENTERPRISE and to be replaced by AH Columbus, LLC as ENTERPRISE and party to the AGREEMENT, whereby, AH Columbus, LLC will assume the terms and commitments of the AGREEMENT as ENTERPRISE, (2) to revise the description of the PROJECT SITE, and (3) revise the notice information; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Council of Columbus finds that the enterprise submitting this 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.
SECTION 2. That the Director of the Department of Development is hereby authorized to amend the City of Columbus Enterprise Zone Agreement with 0 Outerbelt Street, LLC (the “AGREEMENT”) to remove 0 Outerbelt Street, LLC as ENTERPRISE to be replaced with AH Columbus, LLC as ENTERPRISE, whereby AH Columbus, LLC will assume the terms and commitments of the AGREEMENT as ENTERPRISE.
SECTION 3. That the Director of the Department of Development is hereby authorized to amend Section 1 (Establishment by Corporation) of the AGREEMENT to state that the PROJECT SITE is revised to be Parcel Number 520-143653 containing approximately 31.60 +/- acres with the current street address of 392 - 488 Outerbelt Street, Columbus, Ohio 43213.
SECTION 4. That the Director of the Department of Development is hereby authorized to amend within Section 8 (Program Compliance) of the AGREEMENT, the “if to the ENTERPRISE” section regarding written communication from 0 Outerbelt Street, LLC to AH Columbus, LLC C/O Allen J. Lynch, 400 E. Sixth Street, Corona, CA 92879.
SECTION 5. That this FIRST AMENDMENT for Assignment & Assumption to the City of Columbus Enterprise Zone Agreement be signed by AH Columbus, LLC within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
SECTION 6. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.