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File #: 1634-2018    Version: 1
Type: Ordinance Status: Passed
File created: 6/5/2018 In control: Economic Development & Small and Minority Business Committee
On agenda: 6/18/2018 Final action: 6/20/2018
Title: To authorize the Director of Development to amend the Community Reinvestment Area Agreement with Fireproof Partners, LLC for the first time to (1) revise the job creation number from 24 to 4; (2) to revise the commensurate new job payroll amount from $1,055,080.00 to $87,360.00; (3) to add language providing that only full-time jobs that pay at least $12 per hour can be considered to fulfill the job creation commitment; and (4) to revise the investment in new construction from $8.5 million to an investment of $2,457,143.00 in new construction related to new commercial retail space; and to declare an emergency.
Explanation
BACKGROUND: Columbus City Council (COUNCIL), by Ordinance No. 0723-2014, passed April 7, 2014, authorized the City of Columbus (CITY) to enter into an Community Reinvestment Area Agreement (the AGREEMENT) with Fireproof Partners, LLC (ENTERPRISE) with the AGREEMENT being for a tax abatement of fifty percent (50%) for a period of fifteen (15) years in consideration of a total investment of approximately $11.3 million, including $8.5 million for new construction (the legislation authorizing the AGREEMENT indicated a proposed investment of approximately $2.8 million in eligible real property improvements) and the creation of 24 full-time permanent positions with an associated annual payroll of approximately $1,055,080 related to rehabilitation and new construction at the site of the vacant and abandoned 5-story Fireproof building with the entire project consisting of approximately 91,381 square feet comprised of new and renovated commercial retail space, 56 multi-family residential units and 87 parking spaces at 1024 North High Street on parcel number 010-015325 in Columbus, Ohio (the “PROJECT SITE”) and within the Short North Community Reinvestment Area (the “CRA”). The AGREEMENT was made and entered into effective May 16, 2014 (CRA #049-18000-40/14-001) with the abatement currently effective from 2015-2029. As per the terms of the CRA, the only eligible improvement applicable to the AGREEMENT is the new commercial retail space.

The job and payroll commitments of the ENTERPRISE as per the AGREEMENT are 24 new jobs to be created as a result of the project with a commensurate total annual payroll of $1,055,080. City policy is to only incentivize full-time jobs that pay at least $12 per hour.

For the past two reporting cycles, Report Year 2015 and Report Year 2016, due to the mix of tenants, the number of eligible jobs created as a result of the project were significantly below the commitments per the AGREEMENT.

The City reported to the Columbus Tax I...

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