Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 1731-2019, passed July 22, 2019, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Pinchal and Company LLC (the “ENTERPRISE”) for a tax abatement of seventy five percent (75%) for a period of ten (10) years in consideration of a proposed total capital investment of approximately $10,190,000.00, which included $1,160,000.00 in acquisition cost and $9,030,000.00 in real property improvements, and the creation of four (4) full-time permanent positions with an associated annual payroll of approximately $124,800 related to the construction of a new 200,000-square-foot speculative distribution and warehouse facility (the (“PROJECT”) located at 6732 and 6770 Shook Road, Columbus, Ohio 43137, parcel numbers 512-232659 and 512-232662 (the “PROJECT SITE”), within the City of Columbus Enterprise Zone. The AGREEMENT was made and entered into effective September 12, 2019 with the abatement to begin no later than 2021 nor extend beyond 2030, with this PROJECT expected to begin September 2019 will all real property improvements expected to be completed by December 2020.
Paragraph fourteen within Section 8 (Program Compliance) of the AGREEMENT states 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 ENTERPRISE of an AMENDMENT FEE in the amount of five-hundred dollars ($500.00).”
Subsequently, in a letter received by the CITY on behalf of the ENTERPRISE dated October 9, 2019 and through ensuing correspondence, it was confirmed that Columbus STS, LLC had acquired ownership of the PROJECT SITE from Pinchal and Company LLC on July 26, 2019 and with the transfer being recorded in the Franklin County Auditor’s Office on June 22, 2022.
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