Explanation
BACKGROUND: Columbus City Council (“Council”), by Ordinance No. 1701-2019 (the “Ordinance”), approved on July 22, 2019, authorized the Director of the Department of Development of the City of Columbus (“CITY”) to enter into a Columbus Downtown Office Incentive Agreement (the “AGREEMENT”) with ORIX Real Estate Capital Holdings, LLC dba Lancaster Pollard Mortgage Company and Red Mortgage Capital (collectively, hereinafter referred to as “GRANTEE”) for an annual cash payment equal to fifty percent (50%) of the City of Columbus income tax withheld on the payroll for the new employees added to the city of Columbus for a term of five (5) consecutive years on the retention of one-hundred eighty-seven (187) full-time positions with an estimated payroll of approximately $18.1 million and the creation of sixty-two (62) net new full-time permanent positions with an annual payroll of $6.1 million at 10 West Broad Street, Columbus, Ohio 43215, (the “PROJECT SITE”). The AGREEMENT was made and entered into effective October 31, 2019, with the incentive term beginning January 1, 2020 through December 31, 2024 for a five (5) year credit.
In an electronic written communication from the GRANTEE received by the CITY on January 11, 2023, the GRANTEE requested that the City of Columbus dissolve its current AGREEMENT with the CITY. Unfortunately, the GRANTEE indicated that the anticipated expansion and growth as previously planned will not occur in the City. Due to the prolonged nature of the COVID-19 pandemic and its many ripple effects, the GRANTEE will not create the proposed new jobs as described in the AGREEMENT. Additionally, the GRANTEE’s parent company acquired another large company of approximately the same size in 2020 and shifted the company’s headquarters from Columbus, Ohio to New York, New York. The GRANTEE is voluntarily seeking to cancel the AGREEMENT effective immediately because of the effects of the coronavirus (“COVID-19”). There is a need to disso...
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