Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Town Square Limited Partnership. 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.
Town Square Limited Partnership is an affiliate company of Arshot Investment Group. The partnership was formed in 1995 for the purpose of redeveloping a mixed use facility at 107-109 S. High Street. Town Square Limited Partnership is now proposing further redevelopment along that block with the acquisition and renovation of a long vacant commercial building at 101 S. High Street.
The proposed project involves renovation of the 6,615 square foot facility, formerly home to Cord Camera. The site will be refitted for office condominiums, with a retail operation on the first floor. The future business condo unit owners will enter into an agreement for partial assignment to be eligible for their portion of the tax abatement.
An investment of $1.45 million will be made at the site. The investment includes the acquisition, renovation and equipping of the facility. A total of two (2) new full-time permanent positions will be created as a result of the project.
The Department of Development recommends a 75%/10-year Enterprise Zone tax abatement on real property improvements. This proposal is consistent with the Columbus Tax Incentive Policy under Central City projects. The Columbus City Schools 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 Town Square Limited Partnership for a tax abatement of seventy-five percent (75%) for a period of ten (10) years on real property improvements in consideration of a proposed total investment of $1.45 million.
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; and 0225-03 in 2003; 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 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, Town Square Limited Partnership is proposing redevelopment on the corner of High and State Streets, with the acquisition and renovation of a long vacant building at 101 S. High Street; and
WHEREAS, Town Square Limited Partnership will make a proposed total investment of $1.45 million ($800,000 toward building construction and improvement, $465,000 toward building acquisition and $190,000 toward equipping the facility) at the project site; and
WHEREAS, Town Square Limited Partnership will create a total of two (2) new full-time permanent positions with an annual payroll of $80,000; and
WHEREAS, the future business condo unit owners will enter into an agreement for partial assignment to be eligible for their portion of the tax abatement; and
WHEREAS, Columbus City Council approval is contingent upon approval by the Ohio Department of Development of a petition for an amendment to the certification of the designated area, known as the City of Columbus Enterprise Zone Number 023, which amendment approved by Ordinance Number 0032-2012 on January 23, 2012, adds approximately 46.85 acres recently annexed into the City and known as the site of Cooper Stadium, 1155-1215 West Mound Street, Columbus, Ohio, comprised of 495-286329, being an approved combination of tax parcels 425-286326,425-286327, 425-286328 and 425-286329, beginning with tax year 2013; and
WHEREAS, the City is encouraging this project because of plans to redevelop urban commercial property in the central city; and
WHEREAS, the City desires to enter into 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 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 Town Square Limited Partnership to go forward with the project expansion.
Section 2. That the City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the Director of Development is hereby authorized and directed to enter into and execute an Enterprise Zone Agreement with Town Square Limited Partnership 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 investment of approximately $1.45 million ($800,000 toward building construction and improvement, $465,000 toward building acquisition and $190,000 toward equipping the facility)and the creation of 2 new permanent full-time positions with an annual payroll of approximately $80,000.
Section 4. That the Director of Development is hereby authorized to submit for City Council approval any future partial assignment agreements with purchasers of the planned business condo units upon sale of these units provided the purchasers or owners agree to the job and reporting.
Section 5. That the City of Columbus Enterprise Zone Agreement is signed by Town Square Limited Partnership within ninety (90) days of passage of this ordinance, or this ordinance and the abatements and credits authorized herein are null and void.
Section 6. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.