City of Columbus - File #: 1613-2020

• File #: 1613-2020
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 7/1/2020
• In control: Economic Development Committee
• On agenda: 7/27/2020
• Final action: 7/30/2020
• Title: To authorize the Director of the Department of Development to enter into an Enterprise Zone Agreement with Pinchal & Company LLC for a tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of a total proposed capital investment of approximately $29,680,750.00 and the creation of 20 net new full-time permanent positions with an estimated annual payroll of approximately $624,000.00 and with an anticipated project start date of October 2020.

Date	Ver.	Action By	Action	Result
7/30/2020	1	CITY CLERK	Attest
7/29/2020	1	MAYOR	Signed
7/27/2020	1	COUNCIL PRESIDENT	Signed
7/27/2020	1	Columbus City Council	Approved	Pass
7/20/2020	1	Columbus City Council	Read for the First Time

Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Pinchal & Company LLC (“Pinchal & Company”). The Ohio Enterprise Zone law O.R.C. Section 5709.62(C) requires the City to enter into a Council-approved agreement between the City and participating companies.

Pinchal & Company is a privately owned real estate investment company that focuses on development, acquisition, operation, and portfolio management throughout the United States. The company has acquired more than 30 million square feet of institutional grade industrial product and often owns approximately 5 million square feet at any given time. Pinchal & Company serves a range of tenants, including Fortune 500 Companies, government agencies, and investment grade companies. Pinchal & Company was founded in 1986 and is headquartered in Houston, Texas.

Pinchal & Company is proposing to invest a total project cost of approximately $29,680,750, which includes approximately $1.5 million in leasehold improvements, $2.18 million in acquisition cost and $26 million in real property improvements to construct a new speculative distribution and warehouse facility consisting of approximately 583,740 square feet at 1594 London Groveport Road, Columbus, Ohio 43137, parcel number 495-232641 (the “Project Site”). The company anticipates that the development of the proposed project will lead to the relocation of an unknown number of positions from within the City of Columbus and the creation of 20 net new full-time permanent positions with an estimated new annual payroll of approximately $624,000 at the proposed Project Site.

The Department of Development recommends a 75%/10-year Enterprise Zone tax abatement on real property improvements. Real property improvements are expected to begin as soon as October 2020 with a scheduled time of completion of December 2021. A separate ordinance (Ord 1627-2020) authorizing an EZA for an additional speculative distribution and warehouse facility ...