Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with 3MX Partners, 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.
3MX Partners, LLC. is a subsidiary of JDS Management, Inc. JDS Management, Inc. has been instrumental in the revitalization of the Market Exchange District on East Main Street. 3MX Partners, LLC. is a separate entity created to redevelop a vacant commercial building located at the corner of East Main Street and South Washington Avenue. 3MX Partners, LLC. is proposing to renovate the 2-story building with the first floor consisting of 17,200 square feet and the second floor consisting of 3,500 square feet into a fully functional medical office building, total of 20,700 square feet. The renovation of 495 East Main Street will have a significant impact on the continuous revitalization of the Market Exchange District in Columbus.
The Department of Development recommends 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.
Emergency action is requested of Columbus City Council in order to accommodate a spring construction schedule and allow immediate project re-development.
The Columbus Public Schools has 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 3MX Partners, LLC. for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a proposed $3.2 million investment; and to declare an emergency.
Body
WHEREAS, the Columbus City Council authorized the designation of the 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, 2609-92 and 2249-92 in 1992; 1079-94 and 1228-94 in 1994; 2196-95 and 2817-95 in 1995; 533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; and 225-03 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, 3MX Partners, LLC. plans to invest a total of $3.2 million in real property improvements on parcel Numbers 010-042665, 010-017929, 010-027461,010-028123, 010-028122; and
WHEREAS, the project proposes to renovate a vacant 2-story commercial building into a fully functional medical office suite comprising of 20,700 square feet; and
WHEREAS, the project will invest approximately $3.2 million in real property improvements and will create 7 new full-time permanent positions with an estimated annual payroll of $314,900; and
WHEREAS, an emergency is needed to accommodate the construction schedule of the developer; and
WHEREAS, the City is encouraging this project because of plans to redevelop an urban commercial property in the central city; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into an Enterprise Zone Agreement with 3MX Partners, LLC. to accommodate construction time schedules, all 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 the Director of Development is hereby authorized to enter into an Enterprise Zone Agreement with 3MX Partners, 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 $3.2 million investment.
Section 2. That the City of Columbus Enterprise Zone Agreement is signed by 3MX Partners, 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 for reasons stated in the preamble hereto, which is hereby made a part hereof, the ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after the passage if the Mayor neither approves nor vetoes the same.