Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with NWD Investments, LLC and Columbia Gas of Ohio, Inc. 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.
NWD Investments, LLC (NWD) was created on October 16, 1997, and is a joint venture between Nationwide Realty Investors, Ltd. (NRI) and Capitol Square, Ltd. NRI, a subsidiary of Nationwide Mutual Insurance Company, is a recognized real estate developer that is active throughout the United States with developments and investments in the office, commercial, retail, hotels, restaurant and residential real estate markets. Directly and through joint ventures, NRI controls more than $1 billion in real estate investments. NRI has a proven track record in development, having developed well over a billion dollars in commercial and residential real estate. NRI's concentration has been on large, complex mixed-use projects such as the Arena District in Columbus, Ohio. NRI is now recognized as one of the country's most progressive and successful mixed-use developers with a growing portfolio with representation across the United States. Capitol Square, Ltd. is the real estate investment arm of the Dispatch Printing Co.
NWD Investments, LLC is proposing to invest $51.0 million to construct two Class A office buildings consisting of at least 275,000 square feet in total. The buildings will be located at the northeast corner of Nationwide Boulevard and Neil Avenue in the Arena District. The proposed project will accommodate Columbia Gas of Ohio, Inc. (Columbia Gas) and its' effort to retain 650 jobs in the City of Columbus.
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 have 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 NWD Investments, LLC and Columbia Gas of Ohio, Inc. 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 investment of $51.0 million and the retention of 650 jobs.
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, NWD Investments, LLC plans to invest approximately $51.0 million in real property improvements on Parcel Numbers 010-247724-80 and 010-247724-90; and
WHEREAS, the project to be developed by NWD Investments, LLC at the project site will consist of two Class A office buildings containing at least 275,000 square feet, and located at the northeast corner of Nationwide Boulevard and Neil Avenue in the Arena District; and
WHEREAS, Columbia Gas will be the primary tenant for the project; and
WHEREAS, Columbia Gas will retain 650 full-time positions with an annual payroll of approximately $60.0 million; 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 in 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) retain 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 NWD Investments, LLC and Columbia Gas 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 NWD Investments, LLC and Columbia Gas of Ohio, Inc. 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 $51.0 million and retention of 650 full-time employees with an annual payroll of approximately $60.0 million.
Section 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.