Explanation
BACKGROUND: The need exists to amend the Columbus Enterprise Zone Agreement with Jana Holdings, LLC and Acorn Distributors, Inc. (collectively and hereinafter referred to as “ENTERPRISE”). Columbus City Council (“COUNCIL”), by Ordinance No. 0089-2017, passed February 27, 2017, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Jana Holdings, LLC (owner) and Acorn Distributors, Inc. (tenant) for a tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of a total investment of approximately $4,800,000.00, which included $4,500,000.00 for real property improvements and $300,000.00 in machinery and equipment, furniture and fixtures, and computers to construct a 100,000-square-foot facility (the “PROJECT”) on a vacant parcel at Crosswind Drive, Columbus, Ohio 43228, parcel number 570-210752 (the “PROJECT SITE”), within the Columbus City School District and within the City of Columbus Enterprise Zone. Additionally, the ENTERPRISE committed to create twelve (12) new full-time permanent positions with an estimated annual payroll of approximately $540,000.00 and retain forty-two (42) full-time permanent positions with an annual payroll of approximately $2,100,000.00 at the PROJECT SITE. The AGREEMENT was made and entered into effective May 17, 2017 with PROJECT expected to begin first quarter of 2017, with all real property improvements expected to be completed approximately by December 2018, and that no real property exemption shall commence after January 1, 2019 nor extend beyond December 31, 2028 (Agreement No. 023-17-06).
In the 2024 Tax Incentive Review Council (“TIRC”) it was recommended to amend the AGREEMENT to reduce the job creation from twelve (12) new full-time permanent positions to six (6) new full-time permanent positions, on the condition that the ENTERPRISE was able to create six new full-time jobs. If the ENTERPRISE was unable to creat...
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