Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Town Square Limited Partnership. Ohio Enterprise Law, O.R.C. Section 5709.62 (3) (C), requires the City to enter into a Council approval agreement between the City and participating companies.
Pursuant to State legislation, the City has created an approved Columbus Enterprise Zone. Town Square Limited Partnership desires to renovate and redevelop the area of 103-115 South High Street totaling 39,000 square feet of retail and office space. This redevelopment project is a key component of the downtown business plan and a vital part of the long-term retail health for downtown and City Center Mall. Town Square Limited Partnership plans to invest $3,921,000 in new construction and improvements including the placement of a permanent video-board as well as create 2 full-time positions at the site within five years.
The Department of Development recommends a 75% / ten year abatement on real property. The Department also recommends a 75% / ten year personal property abatement restricted to the video-board placement and related equipment if the video-board is not included in the building value for tax purposes under the real property tax abatement.
The Columbus City School District has been advised of this project as required by O.R.C. Section 5709.83.
FISCAL IMPACT: No funding is required for this legislation.
Title
An ordinance authorizing the Director of Development to enter into an Enterprise Zone Agreement with Town Square Limited Partnership for a tax abatement of seventy five percent (75%) for ten (10) years on real property and seventy five percent (75%), ten (10) years on personal property restricted to the permanent video-board and related equipment in consideration of Town Square Limited Partnership proposed new investment of real and personal property in Columbus.
Body
WHEREAS, the Columbus City Council authorized the designation of the Enterprise Zone by legislation, Ordinance No 779-85, dated April 22, 1985; and
WHEREAS, the Ohio Development Department approved this designation under State of Ohio Enterprise Zone law, by letter, dated June 12, 1985; and
WHEREAS, Town Square Limited Partnership desires to renovate and redevelop 103-115 South High Street within the Enterprise Zone, that will result in 39,000 square feet of retail and office space; and
WHEREAS, the Enterprise Zone project by Town Square Limited Partnership will add approximately $3,921,000 in real and personal property investment within Columbus; and
WHEREAS, Town Square Limited Partnership will create two new full-time jobs within five years; and
WHEREAS, it is required by law to enter into a binding, formal agreement in order to obtain tax incentives authorized by the State of Ohio; and
WHEREAS, the Board of Education for the Columbus City School District has been notified pursuant to O.R.C. Section 5709.83; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Town Square Limited Partnership is qualified by financial responsiblity and business experience to create and preserve employment opportunities in the Enterprise Zone and to improve the economic climate of the City.
Section 2. That, subject to the approval of the agreement described in Section 3 of this ordinance, Town Square Limited Partnership intends to expand its operations at 103-115 South High Street in the Enterprise Zone, which Town Square Limited Partnership currently operates.
Section 1 3. That the Director of the Department is hereby authorized to enter into an Enterprise Zone agreement with Town Square Limited Partnership to provide therewith an exemption for new construction and improvements of 75% on the value of real property and 75% on personal property limited to the placement of the permanent video-board and related equipment attached to the exterior of the structure for a term of ten (10) taxable years in association with the project's proposed $3,921,000 investment.
Section 2. 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.