Explanation
BACKGROUND: This legislation authorizes the Director of Development to amend the existing Weiler-Bowen/City Park Place Enterprise Zone Agreement (EZA). Columbus City Council approved the EZA by Ordinance No. 2329-97, adopted September 29, 1997. The project is located at 79 E. Thurman Avenue near the intersection with City Park Avenue. The property owner, Weiler-Bowen Ltd., proposed to renovate/restore two derelict industrial/commercial structures into 54,000 square feet of Class A office space. The tax abatement would allow lease rates in the renovated structure to be competitive with office space in suburban areas, where development typically enjoys a cost advantage.
CallTech was to be the primary tenant and it was anticipated that 150 jobs would be created. However, CallTech grew much faster than expected and had outgrown the size of the facility prior to the construction even being completed. Thus, the space was leased to other tenants while CallTech moved to a larger facility within the city of Columbus and has continued to create jobs ever since. The project has attained an investment of $6.2 million in real property improvements and new personal property (97% of the EZA goal) and has 132 retained jobs. The 10-yr/75% tax abatement is on real property only, and will run through 2009. The rate and years of the tax abatement will not be modified.
The EZA will be modified to acknowledge that multiple tenants occupy the facility, that the tenants will collectively retain and/or create 150 jobs, that the property owner is responsible for the job retention/creation being achieved and for the annual detailed reporting on the tenant jobs, payroll, real & personal property and other information the City requires to fulfill its obligations associated with the granting of Enterprise Zone tax abatements.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to...
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