Explanation
BACKGROUND: The Director of the Department of Development is requesting authorization to enter into an Enterprise Zone Agreement on behalf of the City with AAVII, LLC (the “Enterprise”). The Ohio Enterprise Zone Law Section 5709.62(C) of the Ohio Revised Code authorizes the City to enter into a Council-approved tax abatement agreements between the City and qualifying companies.
AAVII, LLC is a newly single purpose entity formed to purchase, sale and develop real estate transactions. The company is a wholly owned subsidiary of Fairway Realty, LLC (“Fairway Realty”). Organized in 2009 by Mark Catalano, Fairway Realty is a privately owned real estate firm that specializes in real estate development and construction management. With years of experience in producing returns for their clients and partners, Fairway Realty’s both enhance the communities that surround them and provide residents and owners with years of enjoyment. Both entities have a common owner.
AAVII, LLC is proposing to invest a total project cost of approximately $15,800,000.00 in real property improvements for the development of an 8.12-acre vacant site and the construction of a new proactive industrial facility consisting of approximately 110,500 square feet located at 4810 Alkire Road, Columbus, OH 43228, Parcel No(s). 570-163191 & 570-163189 (the “Project Site”). Additionally, AAVII, LLC proposes to create or cause to be created twenty (20) net new full-time permanent positions with an estimated annual payroll of approximately $832,000.00 (“New Employees”) at the proposed Project Site.
The Director of the Department of Development is recommending that Council approve a 75%/10-year Enterprise Zone tax abatement on real property improvements made by the Enterprise at the Project Site, in consideration of it creating the New Employees.
The Columbus City School District has been advised of this project.
This legislation is presented as 30-day legislation.
FISCAL IMPACT:
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