Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 1647-2019, 1648-2019, 1649-2019, and 1646-2019 passed July 1, 2019, authorized the City of Columbus (“CITY”) to enter into four (4) Enterprise Zone Agreements (the “AGREEMENTS”) with Mission XC, LLC (I, II, III, and VI) (hereinafter referred to as “ENTERPRISES”), for real property tax abatements of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of a proposed combined total capital investment of approximately $56,000,000.00 in real property improvements to construct four (4) proactive industrial distribution facilities totaling approximately 1,590,472 square-feet on undeveloped land containing approximately 105 +/- acres containing the addresses 1260, 1280, 1302, and 1322 London Groveport Road, Columbus, Ohio 43137, parcel number 495-232636 (the “ORIGINAL PARCEL”), within the City of Columbus and within the City of Columbus Enterprise Zone (the “PROJECT SITE”). Additionally, the ENTERPRISES collectively committed to create ninety (90) net new full-time permanent positions with an associated annual payroll of approximately $2,932,800.00 at the PROJECT SITE, to preserve or create employment opportunities within the Columbus Enterprise Zone, (hereinafter referred to as the “PROJECT”). The AGREEMENTS were made and entered into effective December 3, 2019 with the PROJECT expected to begin approximately January 1, 2020, with all real property improvements expected to be completed by approximately December 31, 2020 and with the abatement to commence no later than 2021 nor extend beyond 2030 (EZA #’s. 023-19-14, 023-19-15, 023-19-16, 023-19-17).
Paragraph fourteen within Section 8 (Program Compliance) of the AGREEMENTS state 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 ENTERPRISES of an AMENDMENT FEE in the amount of five-hundred dollars ($500.00).”
The First Amendments for Assignment and Assumption to the AGREEMENTS (the “FIRST AMENDMENTS”) were made and entered into effective April 19, 2022. Mission XC, LLC (I, II, III, and VI) had conveyed the PROJECT to The HUB XO, LLC (I, II, III, and VI), and affiliates of Mission XC with all entities being under parent entity of Xebec Holdings, LLC.
In a letter from Xebec on behalf of the ENTERPRISES dated December 3, 2024, received by the CITY and through ensuing correspondence, The HUB XO, LLC (I, II, III, VI) confirmed that they had transferred ownership of all four (4) buildings in relation to the PROJECT SITE following an assignment of the purchase and sale agreement for the PROJECT SITE from the ENTERPRISES on October 18, 2024. The transfer of ownership conveyed The Hub XO, LLC I to EXETER 1260 LONDON GROVEPORT, LLC, The Hub XO, LLC II to EXETER 1302 LONDON GROVEPORT, LLC, The Hub XO, LLC III to EXETER 6322 COLLINGS, LLC, and The Hub XO, LLC VI to EXETER 6201 COLLINGS (2024), LLC; whereas all transferred owners are Delaware limited liability companies. In addition, the PROJECT SITE has been revised to be parcel numbers 495-300545, 495-300546, 495-300547, and 495-300551 (split from the ORIGINAL PARCEL).
Due diligence has been undertaken by the CITY in that EXETER 1260 LONDON GROVEPORT, LLC, EXETER 1302 LONDON GROVEPORT, LLC, EXETER 6322 COLLINGS, LLC, and EXETER 6201 COLLINGS (2024), LLC has agreed to fully assume the terms and commitments of the ENTERPRISES pursuant to the AGREEMENTS, has submitted an updated Economic Development Incentive Applications, the five-hundred dollars ($500.00) Amendment Fees and that these applications 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 AGREEMENTS for the second time for Assignment & Assumption to (1) remove The Hub XO, LLC (I, II, III, VI) as ENTERPRISES and party to the AGREEMENTS and to be replaced with EXETER 1260 LONDON GROVEPORT, LLC, EXETER 1302 LONDON GROVEPORT, LLC, EXETER 6322 COLLINGS, LLC, and EXETER 6201 COLLINGS (2024), LLC as ENTERPRISES and parties to the AGREEMENTS, whereby EXETER 1260 LONDON GROVEPORT, LLC, EXETER 1302 LONDON GROVEPORT, LLC, EXETER 6322 COLLINGS, LLC, and EXETER 6201 COLLINGS (2024), LLC will assume the terms and commitments of the AGREEMENTS, (2) revise the parcel numbers in the AGREEMENTS to 495-300545, 495-300546, 495-300547, and 495-300551 (split from the ORIGINAL PARCEL).
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 Agreements for a the second time for Assignment & Assumption with The Hub XO, LLC (I, II, III, VI), to remove The Hub XO, LLC (I, II, III, VI) as the ENTERPRISES and parties to the AGREEMENTS and to be replaced with EXETER 1260 LONDON GROVEPORT, LLC, EXETER 1302 LONDON GROVEPORT, LLC, EXETER 6322 COLLINGS, LLC, and EXETER 6201 COLLINGS (2024), LLC as the ENTERPRISES and parties to the AGREEMENTS, and to redefine the PROJECT SITE.
Body
WHEREAS, the City of Columbus (“CITY”) entered into Enterprise Zone Agreements (the “AGREEMENTS”) with Mission XC, LLC (I, II, III, and VI) (“ENTERPRISES”), approved by Columbus City Council (“COUNCIL”) by Ordinance No. 1647-2019, 1648-2019, 1649-2019, and 1646-2019 passed July 1, 2019, with these AGREEMENTS made and entered into effective December 3, 2019; and
WHEREAS, the AGREEMENTS granted a 75%/10-Year abatement on real property improvements; and
WHEREAS, the incentives were granted in consideration of a proposed total capital investment of approximately $56,000,000.00, in real property improvements to construct four (4) proactive industrial distribution facilities totaling approximately 1,590,472 square-feet on undeveloped land containing approximately 105 +/- acres containing the addresses 1260, 1280, 1302, and 1322 London Groveport Road, Columbus, Ohio 43137, parcel number 495-232636 (the “ORIGINAL PARCEL”), within the City of Columbus and within the City of Columbus Enterprise Zone (the “PROJECT SITE”). Additionally, the ENTERPRISES collectively committed to create ninety (90) net new full-time permanent positions with an associated annual payroll of approximately $2,932,800.00 at the PROJECT SITE. The AGREEMENTS were made and entered into effective December 3, 2019 with the PROJECT expected to begin approximately January 1, 2020, with all real property improvements expected to be completed by approximately December 31, 2020 and with the abatement to commence no later than 2021 nor extend beyond 2030 (EZA #’s. 023-19-14, 023-19-15, 023-19-16, 023-19-17); and
WHEREAS, Paragraph fourteen within Section 8 (Program Compliance) of the AGREEMENTS state 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 ENTERPRISES of an AMENDMENT FEE in the amount of five-hundred dollars ($500.00)”; and
WHEREAS, The First Amendments for Assignment and Assumption to the AGREEMENTS (the “FIRST AMENDMENTS”) were made and entered into effective April 19, 2022. Mission XC, LLC (I, II, III, and VI) had conveyed the PROJECT to The HUB XO, LLC (I, II, III, and VI), and affiliates of Mission XC with all entities being under parent entity of Xebec Holdings, LLC.
WHEREAS, In a letter from Xebec on behalf of the ENTERPRISES dated December 3, 2024, received by the CITY and through ensuing correspondence, The HUB XO, LLC (I, II, III, VI) confirmed that they had transferred ownership of all four (4) buildings in relation to the PROJECT SITE following an assignment of the purchase and sale agreement for the PROJECT SITE from the ENTERPRISES on October 18, 2024. The transfer of ownership conveyed The Hub XO, LLC I to EXETER 1260 LONDON GROVEPORT, LLC, The Hub XO, LLC II to EXETER 1302 LONDON GROVEPORT, LLC, The Hub XO, LLC III to EXETER 6322 COLLINGS, LLC, and The Hub XO, LLC VI to EXETER 6201 COLLINGS (2024), LLC; whereas all transferred owners are Delaware limited liability companies. In addition, the PROJECT SITE has been revised to be parcel numbers 495-300545, 495-300546, 495-300547, and 495-300551 (split from the ORIGINAL PARCEL); and
WHEREAS, Due diligence has been undertaken by the CITY in that EXETER 1260 LONDON GROVEPORT, LLC, EXETER 1302 LONDON GROVEPORT, LLC, EXETER 6322 COLLINGS, LLC, and EXETER 6201 COLLINGS (2024), LLC has agreed to fully assume the terms and commitments of the ENTERPRISES pursuant to the AGREEMENTS, has submitted an updated Economic Development Incentive Applications, the five-hundred dollars ($500.00) Amendment Fees and that these applications and all other pertinent information has been reviewed and vetted; and
WHEREAS, a Second Amendment to the AGREEMENTS is now needed for Assignment & Assumption to (1) remove The Hub XO, LLC (I, II, III, VI) as ENTERPRISES and party to the AGREEMENTS and to be replaced with EXETER 1260 LONDON GROVEPORT, LLC, EXETER 1302 LONDON GROVEPORT, LLC, EXETER 6322 COLLINGS, LLC, and EXETER 6201 COLLINGS (2024), LLC as ENTERPRISES and parties to the AGREEMENTS, whereby EXETER 1260 LONDON GROVEPORT, LLC, EXETER 1302 LONDON GROVEPORT, LLC, EXETER 6322 COLLINGS, LLC, and EXETER 6201 COLLINGS (2024), LLC will assume the terms and commitments of the AGREEMENTS, (2) revise the parcel numbers in the AGREEMENTS to 495-300545, 495-300546, 495-300547, and 495-300551 (split from the ORIGINAL PARCEL); and
WHEREAS, the Director of the Department of Development of the CITY has investigated the Economic Development Application of EXETER 1260 LONDON GROVEPORT, LLC, EXETER 1302 LONDON GROVEPORT, LLC, EXETER 6322 COLLINGS, LLC, and EXETER 6201 COLLINGS (2024), LLC and concurs with the Columbus City Council on the basis that with EXETER 1260 LONDON GROVEPORT, LLC, EXETER 1302 LONDON GROVEPORT, LLC, EXETER 6322 COLLINGS, LLC, and EXETER 6201 COLLINGS (2024), LLC, are 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 for Assignment & Assumption to the AGREEMENTS with The HUB XO, LLC (I, II, III, and VI) to (1) remove The Hub XO, LLC (I, II, III, VI) as ENTERPRISES and party to the AGREEMENTS and to be replaced with EXETER 1260 LONDON GROVEPORT, LLC, EXETER 1302 LONDON GROVEPORT, LLC, EXETER 6322 COLLINGS, LLC, and EXETER 6201 COLLINGS (2024), LLC as ENTERPRISES and parties to the AGREEMENTS, EXETER 1260 LONDON GROVEPORT, LLC, EXETER 1302 LONDON GROVEPORT, LLC, EXETER 6322 COLLINGS, LLC, and EXETER 6201 COLLINGS (2024), LLC will assume the terms and commitments of the AGREEMENTS as ENTERPRISES, (2) revise the parcel numbers in the AGREEMENTS to 495-300545, 495-300546, 495-300547, and 495-300551 (split from the ORIGINAL PARCEL); and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Council of Columbus 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 Agreements with The Hub XO, LLC (I, II, III, VI) (the AGREEMENTS) to remove The Hub XO, LLC (I, II, III, VI) as the ENTERPRISES to be replaced with EXETER 1260 LONDON GROVEPORT, LLC, EXETER 1302 LONDON GROVEPORT, LLC, EXETER 6322 COLLINGS, LLC, and EXETER 6201 COLLINGS (2024), LLC as the ENTERPRISES whereby EXETER 1260 LONDON GROVEPORT, LLC, EXETER 1302 LONDON GROVEPORT, LLC, EXETER 6322 COLLINGS, LLC, and EXETER 6201 COLLINGS (2024), LLC will assume the terms and commitments of the AGREEMENTS as the ENTERPRISES.
SECTION 3. That the Director of the Department of Development is hereby authorized to amend Section 1 (Establishment by Corporation) of the AGREEMENT to state that the PROJECT SITE is revised to be Parcel Numbers 495-300545, 495-300546, 495-300547, and 495-300551 (split from the ORIGINAL PARCEL), containing four (4) proactive industrial distribution facilities totaling approximately 1,590,472 square-feet on undeveloped land containing approximately 105 +/- acres containing the addresses 1260, 1280, 1302, and 1322 London Groveport Road, Columbus, Ohio 43137
SECTION 5. That this SECOND AMENDMENT for Assignment & Assumption to the City of Columbus Enterprise Zone Agreement be signed by EXETER 1260 LONDON GROVEPORT, LLC, EXETER 1302 LONDON GROVEPORT, LLC, EXETER 6322 COLLINGS, LLC, and EXETER 6201 COLLINGS (2024), LLC within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
SECTION 6. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.