Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 1144-2018, passed May 14, 2018, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Advanced Turf Solutions, Inc. and ATS Columbus Investments II, 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 $7,836,400.00, which included $3,200,000 in real property improvements, $401,400.00 in land, and another $4,065,000 in furniture, fixtures, computers, and inventory, and $150,000.00 in machinery and equipment related to the construction of an approximately 40,000 square feet regional distribution operations center at 4646 Journal Street Columbus, OH 43228, on parcel number 560-297845 (the “PROJECT SITE”), in Columbus Ohio, within the Hillard City School District and Tolles Career and Technical School, and the Columbus Enterprise Zone (the “PROJECT”). Additionally, the ENTERPRISE committed to the creation of six (6) net new full-time permanent positions with an estimated annual payroll of approximately $390,000.00 and the retention of eighteen (18) full-time jobs at the aforementioned PROJECT SITE. The AGREEMENT was made and entered into effective June 26, 2018, (EZA #023-18-06). The AGREEMENT stated that construction on the improvements of the PROJECT, were expected to begin July 2018 with all real property improvements expected to be completed by December 2018, and that no real property exemption was to commence after 2019 nor extend beyond 2028.
The CITY reported the status of the PROJECT to the 2024 Tax Incentive Review Council (“TIRC”) on August 23, 2024. 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), and the retained full-time jobs commitment were be...
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