Explanation
BACKGROUND: Columbus City Council by Ordinance 0564-2013, passed April 1, 2013, authorized the Director of the Department of Development (City) to enter into an Enterprise Zone Agreement (Agreement) with Town Square Limited Partnership (Enterprise) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of an approximately $1,450,000 investment involving $800,000 in real property improvements, $465,000 in building acquisition and $190,000 toward equipping the facility, and the creation of two (2) full-time permanent positions with an annual payroll of approximately $80,000 related to the renovation of a mixed use facility of approximately 6,615 square feet on parcel numbers 010-291771, 010-291776, 010-291778, 010-291780 and 010-291782, located at 101 S. High Street (the Project Site) in Columbus Ohio and within the City of Columbus Enterprise Zone. The Agreement was made and entered into effective May 24, 2013 (EZA #023-13-02). The Agreement stated that the project would involve a total investment of approximately $930,000 for real property improvements, that construction on the project was expected to begin in July 2013 with these improvements expected to be completed by July 2014 and that no real property exemption would commence after 2015 nor extend beyond 2024.
In a letter to the City from Arshot Investment Corporation dated February 19, 2014 and concurred with in a communication from Heartland Bank dated February 27, 2014, it was indicated that pursuant to Section 7 of the Agreement, it was requested that Heartland Bank, an Ohio corporation with a mailing address of 850 N. Hamilton Road, Gahanna, Ohio 43230 be recognized as a Transferee under the Agreement with respect to parcel 010-291771 as Heartland Bank acquired title to that parcel on March 7, 2013.
This legislation is to authorize the Director of Development to amend the Agreement for the first time to add Heartland Bank as an additional party to the Agreement and to be identified as the Owner of parcel number 010-291771; that Town Square Limited Partnership be identified as the Owner of parcel numbers 010-291776, 010-291778, 010-291780 and 010-291782 and that together Heartland Bank and Town Square Limited Partnership be known as Enterprise with Heartland Bank to be responsible for the job creation and payroll commitments currently in place within the Agreement.
This legislation is being presented as an emergency measure in order for this amendment to be legislated in as expedient manner as possible so that Enterprise can continue to make investments and engage in job creation and commerce.
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 with Town Square Limited Partnership to add Heartland Bank as an additional party to the Agreement, to identify ownership of the parcels comprising the Project Site and to establish responsibility for the job creation and payroll commitments currently in place within the Agreement; and to declare an emergency.
Body
WHEREAS, the City of Columbus (City) entered into an Enterprise Zone Agreement (Agreement) with Town Square Limited Partnership, approved by Columbus City Council on April 1, 2013 by Ordinance No. 0564-2013 with this Agreement made and entered into effective May 24, 2013; and
WHEREAS, the Agreement granted a 75%/10-Year abatement on real property improvements; and
WHEREAS, the incentive was granted in consideration of an approximate $930,000 investment in real property improvements and the creation of two (2) full-time permanent positions with an annual payroll of approximately $80,000 related to the renovation of a mixed use facility of approximately 6,615 square feet on parcel numbers 010-291771, 010-291776, 010-291778, 010-291780 and 010-291782, located at 101 S. High Street in Columbus Ohio and within the City of Columbus Enterprise Zone; and
WHEREAS, construction on the project was expected to begin in July 2013 with these improvements expected to be completed by July 2014 and that no real property exemption was to commence after 2015 nor extend beyond 2024; and
WHEREAS, a letter to the City from Arshot Investment Corporation dated February 19, 2014 and concurred with in a communication from Heartland Bank dated February 27, 2014 indicated that pursuant to Section 7 of the Agreement, it was requested that Heartland Bank, an Ohio corporation with a mailing address of 850 N. Hamilton Road, Gahanna, Ohio 43230 be recognized as a Transferee under the Agreement with respect to parcel 010-291771 as Heartland Bank acquired title to that parcel on March 7, 2013; and
WHEREAS, an amendment is needed to add Heartland Bank as an additional party to the Agreement and to be identified as the Owner of parcel number 010-291771; that Town Square Limited Partnership be identified as the Owner of parcel numbers 010-291776, 010-291778, 010-291780 and 010-291782 and that together Heartland Bank and Town Square Limited Partnership be known as Enterprise with Heartland Bank to be responsible for the job creation and payroll commitments currently in place within the Agreement; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to seek such an amendment to the Agreement with Town Square Limited Partnership so that Town Square Limited Partnership and Heartland Bank can continue to make investments and engage in job creation and commerce in as expedient means as is possible; 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 Director of Development is hereby authorized to amend the Enterprise Zone Agreement with Town Square Limited Partnership, to add Heartland Bank as an additional party to the Agreement and to be identified as the Owner of parcel number 010-291771; that Town Square Limited Partnership be identified as the Owner of parcel numbers 010-291776, 010-291778, 010-291780 and 010-291782 and that together Heartland Bank and Town Square Limited Partnership be known as Enterprise with Heartland Bank to be responsible for the job creation and payroll commitments currently in place within the Agreement.
Section 2. That this First Amendment to the City of Columbus Enterprise Zone Agreement be signed by Town Square Limited Partnership and Heartland Bank within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
Section 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, the ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after the passage if the Mayor neither approves nor vetoes the same.