Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with WB Sports of Columbus, 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.
WB Sports of Columbus, LLC (WB Sports) is a real estate development company created in April 2008, to assist in the construction of a medical office facility for D1 Sports Training/Therapy facilities. WB Sports is proposing to construct a brand new medical office building of approximately 15,000 square feet on property located at 8068 N. High Street, parcel number 610-213822. The proposed site is currently vacant. The medical office facility will provide fitness and wellness care to the community (orthopedics, cardiology, pediatrics, sports therapy and physical rehabilitation or other similar medical practice types) whereas its medical partners and other associated healthcare providers can deliver the type of care and services necessary for the care and well being of the community.
The Department of Development recommends a 75%/10-year Enterprise Zone tax abatement on real property improvements in consideration of a proposed $7.0 million investment in acquisition costs and real property improvements. The proposal is consistent with the Columbus Tax Incentive Policy under Edge City projects.
The Worthington City 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 WB Sports of Columbus, LLC for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a proposed $7.0 million investment in acquisition costs and real property improvements.
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, WB Sports of Columbus, LLC plans to invest approximately $7.0 million in acquisition costs and real property improvements on parcel# 610-213822; and
WHEREAS, the project will include a newly constructed building of approximately 15,000 square feet of medical space; and
WHEREAS, WB Sports of Columbus, LLC proposes to enter into a long-term lease agreement with a speculative tenant that will create 33 new full-time positions with an annual payroll of approximately $5.6 million; and
WHEREAS, WB Sports of Columbus, LLC will be the property owner; and
WHEREAS, the City is encouraging this project because of plans to develop vacant land into a project known as WB Sports of Columbus, LLC; and
WHEREAS, the City desires to enter into such a binding formal agreement in order to foster economic growth; 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 WB Sports of Columbus, 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 $7.0 million investment.
Section 2. That the City of Columbus Enterprise Zone Agreement is signed by WB Sports of Columbus, 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 the ordinance shall take effect and be in force from and after the earliest period allowed by law.