Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 2504-2019, passed October 14, 2019, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with RM Biltrite LLC and Watkins Road LLC (collectively, and hereinafter referred to as “ENTERPRISE”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a total investment of approximately $11,470,500.00, which included $1,650,000.00 in real property improvements, $4,705,500.00 in acquisition cost, $5,000,000.00 in machinery and equipment, $100,000.00 in furniture, fixtures, and $15,000.00 in stand-alone computers to acquire, renovate, and redevelop a vacant industrial warehouse consisting of approximately 177,566 square feet at 1635 Watkins Road, Columbus, Ohio 43207, parcel number 010-001860 (the “PROJECT SITE”), within the Columbus City School District, and the Columbus Enterprise Zone (the “PROJECT”). Additionally, the ENTERPRISE committed to create forty (40) net new full-time permanent positions with an estimated annual payroll of approximately $1,677,740.00 and the retain one (1) full-time job at the aforementioned PROJECT SITE. The AGREEMENT was made and entered into effective January 30, 2020, (EZA #023-20-02). The AGREEMENT stated that construction on the improvements of the PROJECT was expected to begin December 2019 with all real property improvements expected to be completed by December 2020, and that no real property exemption was to commence after 2021 nor extend beyond 2030.
Subsequently, on January 22, 2024, COUNCIL passed Ordinance No. 0015-2024 which authorized the Director of the Department of Development to amend the AGREEMENT. The ordinance added QRRI, Inc. as an additional entity and party to the AGREEMENT; whereby, all three entities RM Biltrite LLC, Watkins Road LLC and QRRI, Inc. assumed the terms and commitments of the AGREEMENT. The First Amendment to the AGREEMENT was made and entered into effective March 12, 2024.
The CITY reported the status of the PROJECT to the 2025 Tax Incentive Review Council (“TIRC”) on August 22, 2025. The TIRC, noted from the annual report, that the net new jobs were below the job creation commitment per the AGREEMENT (as required per Section 5709.61(L) of the Ohio Revised Code). The TIRC recommended that the AGREEMENT be dissolved, and send the ENTERPRISE a letter, via certified mail, informing them of the dissolution of the AGREEMENT.
A certified letter was sent to the ENTERPRISE on November 5, 2025 as recommended by the TIRC board as well as an electronic mail communication. The ENTERPRISE has not responded, and the project continues to be out-of-compliance.
This legislation is to authorize the Director of the Department of Development to dissolve the AGREEMENT between the CITY and the ENTERPRISE and to notify, as necessary, the local and state agencies of the dissolution.
This legislation is presented as 30-day legislation.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To dissolve the Enterprise Zone Agreement with RM Biltrite LLC, Watkins Road LLC and QRRI, Inc. (collectively, referred to as “ENTERPRISE”), and to direct the Director of the Department of Development to notify, as necessary, the local and state tax authorities of the dissolution. ($0.00)
Body
WHEREAS, the City of Columbus (“CITY”) entered into an Enterprise Zone Agreement (the “AGREEMENT”) with RM Biltrite LLC and Watkins Road LLC (collectively, referred to as “ENTERPRISE”), approved by Columbus City Council (“COUNCIL”) on October 14, 2019 by Ordinance No. 2504-2019, and
WHEREAS, the AGREEMENT granted a 75%/10-Year abatement on real property improvements; and
WHEREAS, in consideration of a total investment of approximately $11,470,500.00, which included $1,650,000.00 in real property improvements, $4,705,500.00 in acquisition cost, $5,000,000.00 in machinery and equipment, $100,000.00 in furniture and fixtures, and $15,000.00 in stand-alone computers to acquire, renovate, and redevelop a vacant industrial warehouse consisting of approximately 177,566 square feet at 1635 Watkins Road, Columbus, Ohio 43207, parcel number 010-001860 (the “PROJECT SITE”), within the Columbus City School District and the Columbus Enterprise Zone (the “PROJECT”). Additionally, the ENTERPRISE committed to create forty (40) net new full-time permanent positions with an estimated annual payroll of approximately $1,677,740.00 and retain one (1) full-time job at the aforementioned PROJECT SITE; and
WHEREAS, the AGREEMENT was made and entered into effective January 30, 2020 (EZA #023-20-02); and
WHEREAS, the AGREEMENT stated that construction on the improvements of the PROJECT was expected to begin December 2019 with all real property improvements expected to be completed by December 2020, and that no real property exemption was to commence after 2021 nor extend beyond 2030; and
WHEREAS, subsequently, on January 22, 2024, COUNCIL passed Ordinance No. 0015-2024 which authorized the Director of the Department of Development to amend the AGREEMENT. The ordinance added QRRI, Inc. as an additional entity and party to the AGREEMENT; whereby, all three entities: RM Biltrite LLC, Watkins Road LLC and QRRI, Inc. assumed the terms and commitments of the AGREEMENT; and
WHEREAS, the First Amendment to the AGREEMENT was made and entered into effective March 12, 2024; and
WHEREAS, the CITY reported the status of the PROJECT to the 2025 Tax Incentive Review Council (“TIRC”) on August 22, 2025. The TIRC, noted from the annual report, that the net new jobs were below the job creation commitment per the AGREEMENT (as required per Section 5709.61(L) of the Ohio Revised Code). The TIRC recommended that the AGREEMENT be dissolved, and send the ENTERPRISE a letter, via certified mail, informing them of the dissolution of the AGREEMENT; and
WHEREAS, it has become necessary in the usual daily operation this legislation is to authorize the Director of the Department of Development to dissolve the AGREEMENT between the CITY and the ENTERPRISE and to notify, as necessary, the local and state agencies of the dissolution prior to the end of calendar year 2026, and to preserve the public health, property, safety and welfare; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Columbus City Council hereby dissolves the RM Biltrite LLC, Watkins Road LLC and QRRI, Inc.’s Enterprise Zone Agreement (EZA#023-20-02) as of December 31, 2024, which was to apply a 75%/10-year real property tax abatement to the value of real property improvements made to parcel number 010-001860 within the Columbus Enterprise Zone.
SECTION 2. That the Director of the Department of Development is hereby directed to notify the necessary local and state agencies of any changes to the RM Biltrite LLC, Watkins Road LLC and QRRI, Inc. Enterprise Zone Agreement.
SECTION 3. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.