Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 1896-2023, passed July 24, 2023, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with BGO Charter Street Storage Owner LLC (hereinafter, referred to as “ENTERPRISE”), for a real property tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of a proposed total capital investment of approximately $48,500,000.00, which included approximately $2,774,538.00 in acquisition cost and $45,725,462.00 in real property improvements to construct an approximately 179,170 square-foot Class A proactive industrial cold storage facility at 2865 Charter St. Columbus, OH 43228, Parcel No. 560-277650 (the “PROJECT SITE”). Additionally, the ENTERPRISE committed to create twenty-two (22) net new full-time permanent positions with an associated annual payroll of approximately $915,200.00 at the PROJECT SITE. The AGREEMENT was made and entered into effective October 30, 2023 with the PROJECT expected to begin approximately September 2023, with all real property improvements expected to be completed by approximately July 2024, and with the abatement to commence no later than 2025 nor extend beyond 2034 (Agreement No. 023-23-06).
Paragraph fourteen within Section 8 (Program Compliance) of the AGREEMENT states that the “AGREEMENT is not transferable or assignable without the express, written, approval of the CITY” and paragraph fifteen of that same section states that “any requested amendment…to any of the terms of the AGREEMENT…shall require the payment to the CITY by the ENTERPRISE of an AMENDMENT FEE in the amount of five-hundred dollars ($500.00).”
In a letter from Crawford Hoying on behalf of the ENTERPRISE dated June 2, 2025, received by the CITY and through ensuing correspondence, BGO Charter Street Storage Owner LLC confirmed that they have transferred all of its interest in the cold storage facility built at 2865 Charter St. Columbus, OH 43228 to ARIS Charter Street, LLC. The transfer of ownership was recorded at the County Auditor’s Office on March 31, 2025.
Due diligence has been undertaken by the CITY in that ARIS Charter Street, LLC has agreed to fully assume the terms and commitments of the ENTERPRISE pursuant to the AGREEMENT, has submitted an updated Economic Development Incentive Application, the five-hundred dollars ($500.00) Amendment Fee and that this application and all other pertinent information has been reviewed and vetted.
This legislation is to authorize the Director of the Department of Development to amend the AGREEMENT for the first time for Assignment & Assumption to remove BGO Charter Street Storage Owner LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with ARIS Charter Street, LLC as ENTERPRISE and party to the AGREEMENT, whereby ARIS Charter Street, LLC will assume the terms and commitments of the AGREEMENT.
This legislation is presented as 30-day legislation.
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 for the first time for Assignment & Assumption with BGO Charter Street Storage Owner LLC to remove BGO Charter Street Storage Owner LLC as enterprise and party to the agreement and to be replaced with ARIS Charter Street, LLC as enterprise and party to the agreement, whereby ARIS Charter Street, LLC will assume the terms and commitments of the agreement. ($0.00)
Body
WHEREAS, the City of Columbus (“CITY”) entered into an Enterprise Zone Agreement (the “AGREEMENT”) with BGO Charter Street Storage Owner LLC (“ENTERPRISE”), approved by Columbus City Council (“COUNCIL”) by Ordinance No. 1896-2023, passed July 24, 2023, with this AGREEMENT made and entered into effective October 30, 2023; and
WHEREAS, the AGREEMENT granted a 75%/10-Year abatement on real property improvements; and
WHEREAS, the incentive was granted in consideration of a proposed total capital investment of approximately $48,500,000.00, which included approximately $2,774,538.00 in acquisition cost and $45,725,462.00 in real property improvements to construct an approximately 179,170 square-foot Class A proactive industrial cold storage facility located at 2865 Charter St. Columbus, OH 43228, Parcel No. 560-277650 (the “PROJECT SITE”). Additionally, the ENTERPRISE committed to create twenty-two (22) net new full-time permanent positions with an associated annual payroll of approximately $915,200.00 at the PROJECT SITE. The AGREEMENT was made and entered into effective October 30, 2023 with the PROJECT expected to begin approximately September 2023, with all real property improvements expected to be completed by approximately July 2024 and with the abatement to commence no later than 2025 nor extend beyond 2034 (Agreement No. 023-23-06); and
WHEREAS, paragraph fourteen within Section 8 (Program Compliance) of the AGREEMENT states that the “AGREEMENT is not transferable or assignable without the express, written, approval of the CITY” and paragraph fifteen of that same section states that “any requested amendment…to any of the terms of the AGREEMENT…shall require the payment to the CITY by the ENTERPRISE of an AMENDMENT FEE in the amount of five-hundred dollars ($500.00);” and
WHEREAS, in a letter from Crawford Hoying on behalf of the ENTERPRISE dated June 2, 2025, received by the CITY and through ensuing correspondence, BGO Charter Street Storage Owner LLC confirmed that they have transferred all of its interest in the cold storage facility built at 2865 Charter St. Columbus, OH 43228 to ARIS Charter Street, LLC. The transfer of ownership was recorded at the County Auditor’s Office on March 31, 2025; and
WHEREAS, due diligence has been undertaken by the CITY in that ARIS Charter Street, LLC has agreed to fully assume the terms and commitments of the ENTERPRISE pursuant to the AGREEMENT, has submitted an updated Economic Development Incentive Application, the five-hundred dollars ($500.00) Amendment Fee and that this application and all other pertinent information has been reviewed and vetted; and
WHEREAS, a First Amendment to the AGREEMENT is now needed for Assignment & Assumption to remove BGO Charter Street Storage Owner LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with ARIS Charter Street, LLC as ENTERPRISE and party to the AGREEMENT; and
WHEREAS, the Director of the Department of Development of the CITY has investigated the Economic Development Application of ARIS Charter Street, LLC and concurs with the Columbus City Council on the basis that ARIS Charter Street, LLC is qualified by financial responsibility and business experience to create and preserve employment opportunities in the Columbus Enterprise Zone and improve the economic climate of the CITY; and
WHEREAS, the need exists to authorize the Director of the Department of Development to amend the AGREEMENT for the first time for Assignment & Assumption with BGO Charter Street Storage Owner LLC to remove BGO Charter Street Storage Owner LLC as ENTERPRISE and to be replaced by ARIS Charter Street, LLC as ENTERPRISE and party to the AGREEMENT, ARIS Charter Street, LLC will assume the terms and commitments of the AGREEMENT as ENTERPRISE; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Columbus City Council finds that the enterprise submitting this proposal is qualified by financial responsibility and business experience to create and preserve employment opportunities in the zone and improve the economic climate of the municipal corporation.
SECTION 2. That the Director of the Department of Development is hereby authorized to amend the Enterprise Zone Agreement with BGO Charter Street Storage owner LLC (the AGREEMENT) to remove BGO Charter Street Storage Owner LLC as ENTERPRISE to be replaced with ARIS Charter Street, LLC as ENTERPRISE whereby ARIS Charter Street, LLC will assume the terms and commitments of the AGREEMENT as ENTERPRISE.
SECTION 3. That this FIRST AMENDMENT for Assignment & Assumption to the City of Columbus Enterprise Zone Agreement be signed by ARIS Charter Street, LLC within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
SECTION 4. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.