Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 2133-2020, passed October 12, 2020, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with TKS Industrial Company, with its main offices located at 1939 Refugee Road, Columbus, Ohio 43207 and Minerva Ridge II LLC, with its main offices located at 1241 Dublin Road, Columbus, Ohio 43215 (collectively, and hereinafter referred to as “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 $1,405,560.00, which included approximately $1,233,860.00 in real property improvements, and $171,700.00 in furniture and fixtures to expand its existing manufacturing facility by approximately 15,800 square feet at 1939 Refuge Road, Columbus, Ohio 43207, parcel number 010-087995 (the “PROJECT SITE”). Additionally, the ENTERPRISE committed to create twelve (12) net new full-time permanent positions with an associated annual payroll of approximately $686,820.00 at the PROJECT SITE. The AGREEMENT was made and entered into effective December 23, 2020 with the PROJECT expected to begin approximately January 2021, with all real property improvements expected to be completed approximately by December 2022 and with the abatement to commence no later than 2023 nor extend beyond 2032 (Agreement No. 023-21-06).
Paragraph fourteen within Section 6 (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 from Taikisha on behalf of the ENTERPRISE dated May 16, 2025, received by the CITY and through ensuing correspondence, Taikisha confirmed that TKS Industrial Company (“TKS”) changed its name to Taikisha USA, Inc. TKS is a member of Taikisha worldwide group of companies. Taikisha is the second largest international supplier of paint finishing systems in the world. The Taikisha name and trademarks are used everywhere except in North America, in which operations have been conducted under TKS. In 2024, TKS changed its name to Taikisha USa, Inc. to consolidate the operations of the Taikisha global enterprises under the Taikisha name and trademark.
Due diligence has been undertaken by the CITY in that Taikisha USA, Inc. has 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 to (1) remove TKS Industrial Company as one of the ENTERPRISES and party to the AGREEMENT and to be replaced with Taikisha USA, Inc. as ENTERPRISE and party to the AGREEMENT, whereby Taikisha USA, Inc. and Minerva Ridge II LLC will assume the terms and commitments of the AGREEMENT, and (2) revise the notice information related to ENTERPRISE within Section 6 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 TKS Industrial Company and Minerva Ridge II LLC, to remove TKS Industrial Company as one of the enterprises and party to the agreement and to be replaced with Taikisha USA, Inc. as enterprise and party to the agreement, and revise the notice information section of the agreement identifying the new enterprise and party to the agreement. ($0.00)
Body
WHEREAS, the City of Columbus (“CITY”) entered into an Enterprise Zone Agreement (the “AGREEMENT”) with TKS Industrial Company, with its main offices located at 1939 Refugee Road, Columbus, Ohio 43207 and Minerva Ridge II LLC, with its main offices located at 1241 Dublin Road, Columbus, Ohio 43215 (collectively, and hereinafter referred to as “ENTERPRISE”), approved by Columbus City Council (“COUNCIL”) by Ordinance No. 2133-2020, passed October 12, 2020, with this AGREEMENT made and entered into effective December 23, 2020; and
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 $1,405,560.00, which included approximately $1,233,860.00 in real property improvements and $171,700.00 in furniture and fixtures to expand its existing manufacturing facility by approximately 15,800 square feet at 1939 Refuge Road, Columbus, Ohio 43207, parcel number 010-087995 (the “PROJECT SITE”). Additionally, the ENTERPRISE committed to create twelve (12) net new full-time permanent positions with an associated annual payroll of approximately $686,820.00 at the PROJECT SITE. The AGREEMENT was made and entered into effective December 23, 2020 with the PROJECT expected to begin approximately January 2021, with all real property improvements expected to be completed by approximately December 2022 and with the abatement to commence no later than 2023 nor extend beyond 2032 (Agreement No. 023-21-06); and
WHEREAS, paragraph fourteen within Section 6 (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);” and
WHEREAS, in a letter from Taikisha on behalf of the ENTERPRISE dated May 16, 2025, received by the CITY and through ensuing correspondence, Taikisha confirmed that TKS Industrial Company (“TKS”) changed its name to Taikisha USA, Inc. TKS is a member of Taikisha worldwide group of companies. Taikisha is the second largest international supplier of paint finishing systems in the world. The Taikisha name and trademarks are used everywhere except in North America, in which operations have been conducted under TKS. In 2024, TKS changed its name to Taikisha USa, Inc. to consolidate the operations of the Taikisha global enterprises under the Taikisha name and trademark; and
WHEREAS, due diligence has been undertaken by the CITY in that Taikisha USA, Inc. has 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 TKS Industrial Company as one of the ENTERPRISES and party to the AGREEMENT and to be replaced with Taikisha USA, Inc. as ENTERPRISE and party to the AGREEMENT, and revise the notice information related to ENTERPRISE within Section 6 of the AGREEMENT so that this amendment to the AGREEMENT might be fully executed, which will allow the ENTERPRISE to remain in compliance and receive any future tax savings from the proposed abatement; and
WHEREAS, the Director of the Department of Development of the CITY has investigated the Economic Development Application of Taikisha USA, Inc. and concurs with the Columbus City Council on the basis that Taikisha USA, Inc., 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, an amendment for Assignment & Assumption to the AGREEMENT with TKS Industrial Company and Minerva Ridge II LLC to (1) remove TKS Industrial Company as one of the ENTERPRISES and to be replaced by Taikisha USA, Inc. as ENTERPRISE and party to the AGREEMENT; whereby, Taikisha USA, Inc. and Minerva Ridge II LLC will assume the terms and commitments of the AGREEMENT collectively as ENTERPRISE, and (2) revise the notice information related to ENTERPRISE within Section 6 of the AGREEMENT; thereby preserving the public health, peace, property and safety; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Columbus City Council 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 TKS Industrial Company and Minerva Ridge II LLC (the “AGREEMENT”) to remove TKS Industrial Company as one of the ENTERPRISES to be replaced with Taikisha USA, Inc. as ENTERPRISE; whereby, Taikisha USA, Inc. and Minerva Ridge II 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 within Section 6 (Program Compliance) of the AGREEMENT, the “if to the ENTERPRISE” section regarding written communication from TKS Industrial Company to Taikisha USA, Inc. C/O Mark Sweeney, 1939 Refugee Road, Columbus, Ohio 43207.
SECTION 7. That this FIRST AMENDMENT for Assignment & Assumption to the City of Columbus Enterprise Zone Agreement be signed Taikisha USA, Inc. and Minerva Ridge II 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.