Explanation
BACKGROUND: This legislation authorizes the Director of Development to consent to the transfer and assignment of the Spiegel Drive LLC/Safety Today, Inc. Enterprise Zone Agreement (EZA) to Meritex Columbus, LLC in connection with the sale of the property. Columbus City Council approved the EZA in 2001. The project site is located in the Rickenbacker area, at 2425 Spiegel Drive. Spiegel Drive LLC was the owner of the project site and proposed to construct a 225,000 square foot facility, part of which would be occupied by Safety Today, Inc., the anchor tenant. The facility was completed in 2001 and the abatement will run 2002-2008. The parties agreed to invest $6,350,000 in real and personal property and were granted a 60%/7-year abatement (on both real and personal). By the end of 2003 the investment goal had been largely attained. Safety Today agreed to retain 43 existing jobs and create 23 new jobs while Spiegel Drive LLC agreed to find a second tenant that would create at least 25 jobs. As of June 2004 the project had a total of 46 jobs all of which belonged to Safety Today. The project is still within the time period allowed for job creation by the EZA and the Columbus Tax Incentive Review Council in its 2004 review found the project to be in compliance.
In October 2004, Spiegel Drive LLC sold the project site to Meritex Columbus, LLC and both the enterprises have requested City consent for the assignment and transfer of Spiegel Drive LLC's interests in the EZA to Meritex Columbus, LLC. Meritex Columbus has reviewed the EZA, has stated in writing that it will assume all the obligations of Spiegel Drive LLC under the EZA. Meritex Columbus, LLC is a wholly owned subsidiary of Meritex Enterprises, Inc. The latter is an 87-year old company that currently owns and manages over 10 million square feet of warehouse space. In addition to the 2425 Spiegel Drive property, Meritex Columbus owns 10 facilities in Westbelt Business Park.
This legislation is presented as an emergency measure so that the tax abatement can transfer to Meritex Columbus, LLC by the end of the 2004 tax year which will provide incentive for Meritex to see that progress continues toward the EZA job goal.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to consent to the transfer and assignment of the Spiegel Drive LLC/Safety Today, Inc. Enterprise Zone Agreement to Meritex Columbus, LLC; and to declare an emergency.
Body
WHEREAS, the Spiegel Drive LLC/Safety Today, Inc. Enterprise Zone Agreement (EZA) was authorized by Columbus City Council Ord. No. 435-01, passed on March 19, 2001 and amended on September 17, 2001 by Ord. No. 1444-01; and
WHEREAS, Spiegel Drive LLC owned the land and facility pertaining to the EZA project site; and
WHEREAS, as of the most recent performance review, the EZA was found to be in compliance by the Columbus Tax Incentive Review Council; and
WHEREAS, Spiegel Drive LLC sold the EZA's project land and facility to
Meritex Columbus, LLC; and
WHEREAS, both Spiegel Drive LLC and Meritex Columbus, LLC have requested the City to consent to the transfer and assignment of Spiegel Drive LLC's interests under the EZA to Meritex Columbus, LLC; and
WHEREAS, Meritex Columbus, LLC has stated in writing that it has reviewed the EZA and is capable and willing to comply with the terms of the EZA and fulfill all of the obligations of Spiegel Drive LLC under the EZA, if the City consents to the transfer and assignment of the EZA; and
WHEREAS, the transfer and assignment of Enterprise Zone Agreements requires the prior express, written, approval of the City; and
WHEREAS, the City desires to consent to the transfer and assignment of the EZA to Meritex Columbus, LLC; and
WHEREAS, an emergency exists in the usual daily operation of the Development Department in that it is immediately necessary to provide City consent for the transfer of the EZA to Meritex Columbus, LLC by the end of the current tax year, thereby providing incentive for the project to attain its job goal, thereby preserving the public health, peace, prosperity, safety and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development be authorized to consent to the transfer and assignment of the interests of Spiegel Drive LLC in the Spiegel Drive LLC/Safety Today, Inc. Enterprise Zone Agreement (EZA) to Meritex Columbus, LLC, provided that Meritex Columbus, LLC has agreed to comply with the terms of the EZA and to assume all of the obligations of Spiegel Drive LLC under the EZA.
Section 2. That for the reasons stated in the preamble thereto, which is made a part hereof, this Ordinance is declared to be an emergency measure and shall be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.