Explanation
BACKGROUND: This legislation authorizes the Director of Development to consent to the transfer and assignment of an Enterprise Zone Agreement (EZA) to a business that has become the new property owner in connection with a property sale. The EZA project is Marketing Services by Vectra, Inc. and Business Park Company, located at 3900-4000 Business Park Drive on the west side. Business Park Company recently sold the project site and is requesting the City's consent to assign the EZA to the new owner, G.O.A.T. Real Estate, LLC. G.O.A.T. was formed and is owned by the three owners and executives of Best Restaurant Equipment & Design, Inc. "Best" is a growing business and will occupy approximately 80,000 square feet of vacant space at the project site. "Best" has already moved 5 jobs to the site and may move more. These represent new jobs to Columbus. The two existing tenants and their jobs will remain at the site (Marketing Services by Vectra and Full Court Press). Participation in this EZA project by G.O.A.T./Best Restaurant Equipment & Design is welcome and should result in improved job numbers and compliance with the EZA. "Best" was established locally in 1987, is presently headquartered on Kinnear Road (unincorporated territory), and specializes in chain restaurant layout, design, and supply. "Best" serves a national market area, has 65 permanent FT jobs and annual sales of $30 million. Earlier this year Council approved modifications to the EZA based on TIRC concerns about lack of job creation. G.O.A.T. (in place of Business Park Company) will enter into the EZA amendment Council had earlier authorized. Emergency action is requested to resolve purchase contract requirements and solidify the new owner's commitment to locating his business expansion and jobs at the project site in Columbus.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Development Director to consent to the assignment of the Marketing Services by Vectra, Inc. and Business Park Company Enterprise Zone Agreement (EZA) to G.O.A.T. Real Estate, LLC, provided that G.O.A.T. enters into an amendment to the EZA previously approved by Council; and to declare an emergency.
Body
WHEREAS, the Columbus City Council authorized the designation of the Enterprise Zone by
legislation, Ordinance No. 779-85, dated April 22, l985; and
WHEREAS, the Ohio Development Department approved this designation under State of
Ohio Enterprise Zone law, by letter, dated June 12, l985; and
WHEREAS, the Columbus City Council approved Ordinance No. 1168-95 on May 22, 1995
authorizing the Development Director to enter into an Enterprise Zone Agreement (EZA) with
Marketing Services by Vectra, Inc. (the anchor tenant) and Business Park Company (owner of
the real property); and
WHEREAS, the Columbus City Council approved Ordinance No. 205-03 on February 24, 2003,
authorizing the Development Director to amend the EZA with modifications based on
Development Department and Tax Incentive Review Council recommendations; and
WHEREAS, Business Park Company has sold its real property at the project site and desires to
assign its interests in the EZA to the buyer, G.O.A.T. Real Estate, LLC; and
WHEREAS, G.O.A.T. Real Estate, LLC, the buyer, desires to be assigned the interests and
obligations of Business Park Company under the EZA and has agreed to enter into the EZA
amendment in place of Business Park Company, and to fulfill the terms of the EZA as
amended with the conditions approved by Council; and
WHEREAS, assignment of an EZA requires the prior express, written, approval of the City;
and
WHEREAS, the City desires to consent to the assignment of Business Park Company's
interests in the EZA to G.O.A.T. Real Estate, LLC, provided that G.O.A.T. enters into the
above referenced amendment to the EZA; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development
in that it is immediately necessary to provide the City's consent for the assignment of the EZA (as
amended) to G.O.A.T. Real Estate, LLC so that purchase contract requirements may be satisfied
and to solidify the new owner's commitment to locating his growing business at the project site in
Columbus, thereby preserving the public health, peace, prosperity, safety and welfare; NOW,
THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development be authorized to consent to the assignment of the interest of Business Park Company in the Marketing Services by Vectra, Inc. and Business Park Company Enterprise Zone Agreement (EZA) to G.O.A.T. Real Estate, LLC, provided that G.O.A.T. Real Estate, LLC enters into an amendment to the EZA with the modifications as approved by Council (Ord. No. 205-03) and assumes all of the obligations of Business Park Company in the EZA (as amended).
Section 2. That for the reasons stated in the preamble hereto, this ordinance is herby declared to be an emergency and shall take effect and be in force from and after its passage and approval by the Mayor or ten days if the Mayor neither approves nor vetoes the same.