Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No’s. 2017-2022, 2067-2022, and 2064-2022 passed July 25, 2022, authorized the City of Columbus (“CITY”) to enter into three (3) separate Enterprise Zone Agreements (collectively, the “AGREEMENTS”) with SFG Columbus Parsons LLC BLDG#1, BLDG#2, and BLDG#3 (collectively, and hereinafter referred to as “ENTERPRISE”) for tax abatements of seventy-five percent (75%) for a period of ten (10) years in consideration of a combined total investment of approximately $88,000,000.00 in real property improvements to construct three (3) separate Class A proactive industrial facilities totaling approximately 859,240 square feet on a vacant land parcel consisting of approximately 77 +/- acres at 2215-2295 Parsons Avenue, Columbus, Ohio 43207, parcel number 010-103971 (the “PROJECT SITE”). Additionally, the ENTERPRISE collectively committed to create one-hundred eight (108) net new full-time permanent positions with an estimated annual payroll totaling approximately $3,369,600.00 at the PROJECT SITE, and to preserve or create employment opportunities within the Columbus Enterprise Zone, (hereinafter referred to as the “PROJECT”). The AGREEMENTS were made and entered into effective September 6, 2022 (EZA #’s 023-22-23, 023-22-24, and 023-22-25).
In a letter received by the CITY from the ENTERPRISE, dated April 8, 2024, and through ensuing correspondence, the ENTERPRISE requested that the City of Columbus dissolve their current AGREEMENTS with SFG Columbus Parsons LLC BLDG#1, BLDG#2, and BLDG#3. The ENTERPRISE will pursue the Southside Investment District Community Reinvestment Area (“CRA”) tax abatement to continue to assist in the development of the aforementioned PROJECT and voluntarily wishes to terminate the AGREEMENTS in pursuit of the Southside Investment District CRA. As such, the need exists to dissolve the AGREEMENTS.
This legislation is to authorize the Director of the Department of Development to dissolve the AGREEMENTS between the CITY and the ENTERPRISE.
FISCAL IMPACT: No funding is required for this legislation.
Title
To dissolve the Enterprise Zone Agreements with SFG Columbus Parsons LLC Building 1, Building 2, and Building 3 and to direct the Director of the Department of Development to notify as necessary, the local and state tax authorities.
Body
WHEREAS, the City of Columbus (“CITY”) entered into the Enterprise Zone Agreements (collectively, the “AGREEMENTS”) with SFG Columbus Parsons LLC for BLDG#1, BLDG#2, and BLDG#3 (collectively, and hereinafter referred to as “ENTERPRISE”), approved by Columbus City Council (“COUNCIL”), on July 25, 2022, by Ordinance No’s. 2017-2022, 2067-2022, and 2064-2022 with these AGREEMENTS made and entered into effective September 6, 2022; and
WHEREAS, the AGREEMENTS granted 75%/10-Year abatement on real property improvements; and
WHEREAS, the incentive was granted in consideration of a combined total investment of approximately $88,000,000.00 in real property improvements to construct three (3) separate Class A proactive industrial facilities totaling approximately 859,240 square feet on a vacant land parcel consisting of approximately 77 +/- acres at 2215-2295 Parsons Avenue, Columbus, Ohio 43207, parcel number 010-103971 (the “PROJECT SITE”) in Columbus Ohio, within the Columbus City School District and within the Columbus Enterprise Zone; and
WHEREAS, the ENTERPRISE collectively committed to create one-hundred eight (108) net new full-time permanent positions with an estimated annual payroll totaling approximately $3,369,600.00 at the PROJECT SITE; and
WHEREAS, in a letter received by the CITY from the ENTERPRISE, dated April 8, 2024, and through ensuing correspondence, the ENTERPRISE requested that the City of Columbus dissolve their current AGREEMENTS with SFG Columbus Parsons LLC BLDG#1, BLDG#2, and BLDG#3. The ENTERPRISE will pursue the Southside Investment District Community Reinvestment Area (“CRA”) tax abatement to continue to assist in the development of the aforementioned PROJECT and voluntarily wishes to terminate the AGREEMENTS in pursuit of the Southside Investment District CRA. As such, the need exists to dissolve the AGREEMENTS; and
WHEREAS, this legislation is to be legislated in the most expedient manner as possible so that this dissolution of the AGREEMENTS can be reported to the necessary local and state agencies prior to the end of calendar year 2024, and to preserve the public health, property, safety and welfare; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF COLUMBUS
SECTION 1. That Columbus City Council hereby dissolves the SFG Columbus Parsons LLC (BLDG#1, BLDG#2, BLDG#3) Enterprise Zone Agreements (EZA #’s 023-22-23, 023-22-24, and 023-22-25), which was to apply a 75%/10-year real property tax abatement to the value of real property improvements made to the parcel number 010-103971, within the Columbus Enterprise Zone.
SECTION 2. That the Director of the Department of Development is hereby directed to notify the necessary local and state agencies that the Enterprise Zone Agreements between the CITY and the aforementioned ENTERPRISE have been terminated.
SECTION 3. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.