Explanation
BACKGROUND: Columbus City Council (COUNCIL), by Ordinance No. 0723-2014, passed April 7, 2014, authorized the City of Columbus (CITY) to enter into an Community Reinvestment Area Agreement (the AGREEMENT) with Fireproof Partners, LLC (ENTERPRISE) with the AGREEMENT being for a tax abatement of fifty percent (50%) for a period of fifteen (15) years in consideration of a total investment of approximately $11.3 million, including $8.5 million for new construction (the legislation authorizing the AGREEMENT indicated a proposed investment of approximately $2.8 million in eligible real property improvements) and the creation of 24 full-time permanent positions with an associated annual payroll of approximately $1,055,080 related to rehabilitation and new construction at the site of the vacant and abandoned 5-story Fireproof building with the entire project consisting of approximately 91,381 square feet comprised of new and renovated commercial retail space, 56 multi-family residential units and 87 parking spaces at 1024 North High Street on parcel number 010-015325 in Columbus, Ohio (the “PROJECT SITE”) and within the Short North Community Reinvestment Area (the “CRA”). The AGREEMENT was made and entered into effective May 16, 2014 (CRA #049-18000-40/14-001) with the abatement currently effective from 2015-2029. As per the terms of the CRA, the only eligible improvement applicable to the AGREEMENT is the new commercial retail space.
Based on a recommendation from the 2017 Tax Incentive Review Council (the “TIRC”), the AGREEMENT was subsequently authorized to be amended for the first time by Ordinance 1634-2018, passed on June 18, 2018, to (1) revise the job creation number from 24 to 4; (2) to revise the commensurate new job payroll amount from $1,055,080 to $87,360; (3) to add language to the AGREEMENT indicating that only full-time jobs that pay at least $12 per hour can be considered to fulfill the job creation commitment of the AGREEMENT; and (4) to r...
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