Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 2086-2022, passed July 25, 2022, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Becknell Industrial dba BI Developer LLC (hereinafter, referred to as “ENTERPRISE”), for a real property tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of a proposed total capital investment of approximately $37,000,000.00 in real property improvements to construct a Class A proactive industrial facility consisting of approximately 527,023 square-feet at 5811 Gender Road Columbus, Ohio 43110, parcel numbers: 010-224901 and 010-260326 (collectively, and hereinafter referred to as the “ORIGINAL PARCEL”), within the Columbus Southeast Enterprise Zone (the “PROJECT SITE”). Additionally, the ENTERPRISE committed to creating 50 net new full-time permanent positions with an estimated associated payroll of approximately $1,528,800.00 at the PROJECT SITE. The AGREEMENT was made and entered into effective October 14, 2022, with the PROJECT expected to begin approximately November 2022, with all real property improvements expected to be completed by approximately July 2023 and with the abatement to commence no later than 2024 nor extend beyond 2033 (Agreement No. 392-22-01).
As of this date, there has not been a filing of the DTE-24 with the Franklin County Auditor. There also has not been a Final Determination from the Ohio Department of Taxation, and so no forgone tax benefit has yet been received.
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...
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