Explanation
BACKGROUND: This legislation authorizes the Director of Development to consent to the assignment of the tax abatement and obligations under the City's Enterprise Zone Agreement with Omni Management Group, Ltd. ("Omni") to SRS Unity Health H, LLC in connection with a property sale. The City entered into the Enterprise Zone Agreement with Omni effective June 8, 2000 ("EZA"). Under the EZA, Omni was granted a 60%/7-year tax abatement for its proposed project consisting of an investment of $4.6 million in real and personal property, the construction of a new 50,000 square foot healthcare facility, the retention of 32 jobs and the creation of 28 new jobs. The healthcare facility was completed in 2001, is located at 3433 Agler Road, Columbus, OH 43219, and is known as the Unity Health & Resource Center (the "Property"). The 60% tax abatement commenced in 2002 and is scheduled to run through 2008. As of December 2005, Omni had met or exceeded the investment and jobs goals, having invested $4.6 million, retained 32 jobs and created 41 new jobs. The 2005 Tax Incentive Review Council found the project to be in compliance.
Omni plans to sell the Property to SRS Unity Health H, LLC and, contingent on the actual closing on the Property taking place, Omni desires to assign its tax exemptions and obligations under the EZA to SRS Unity Health H, LLC. SRS Unity Health H, LLC will be the lead investor and manager of the Property and will own the Property together with its affiliated passive tenant-in-common investors. SRS Unity Health H, LLC is a wholly owned entity of SRS Investments, LLC, a privately owned real estate investment firm specializing in the acquisition and ownership of office and retail assets in the Southeast and Midwest United States. Both SRS Unity Health H, LLC and SRS Investments, LLC have reviewed the EZA and have stated in writing that they will assume all the obligations of Omni under the EZA.
This legislation is presented as an emergency measure so that the Columbus City Council authorization for the consent can be obtained by June 16, 2006 when the closing for the Property transfer is scheduled.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to consent to the assignment of the tax abatement and obligations under the City's Enterprise Zone Agreement with Omni Management Group, Ltd. ("Omni") to SRS Unity Health H, LLC; and to declare an emergency.
Body
WHEREAS, the Omni Management Group, Ltd. Enterprise Zone Agreement was
authorized by Columbus City Council Ord. No. 1046-010, passed on May 8, 2000 (EZA);
and
WHEREAS, Omni Management Group, Ltd. owns the land and facility pertaining to the
EZA project site at 3433 Agler Road, Columbus, OH 43219 (the "Property"); 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, Omni Management Group, Ltd. plans to sell the Property to SRS Unity
Health H, LLC, a wholly owned entity of SRS Investments, LLC; and
WHEREAS, both Omni Management Group, Ltd., SRS Investments, LLC and its
wholly owned entity SRS Unity Health H, LLC have requested the City to consent to
the transfer and assignment of Omni Management Group, Ltd.'s interests under the
EZA to SRS Unity Health H, LLC; and
WHEREAS, SRS Investments, LLC and SRS Unity Health H, LLC have stated in
writing that they have reviewed the EZA and are capable and willing to comply with
the terms of the EZA and fulfill all of the obligations of Omni Management Group,
Ltd. under the EZA, if the City consents to the transfer and assignment of the EZA to
SRS Unity Health H, LLC; 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
SRS Unity Health H, 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 SRS Unity Health H, LLC and providing incentive for the project to maintain
its good standing without lapse, 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 Omni Management Group, Ltd. in the Omni Management Group, Ltd. Enterprise Zone Agreement (EZA) to SRS Unity Health H, LLC, a wholly owned entity of SRS Investment, LLC, provided that SRS Unity Health H, LLC and SRS Investments, LLC have agreed to comply with the terms of the EZA and to collectively assume all of the obligations of Omni Management Group, Ltd. 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.