Explanation
BACKGROUND: Columbus City Council (COUNCIL), by Ordinance No. 0852-2018, passed April 9, 2018, authorized the City of Columbus (CITY) to enter into an Enterprise Zone Agreement (the AGREEMENT) with KDL Properties LLC and Fortner Upholstering, Inc. (hereinafter “ENTERPRISE”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a proposed investment of approximately $2.3 million in real property improvements (the “PROJECT”), the retention of 37 full-time employees with an associated annual payroll of approximately $1.86 million and the creation of 6 new full-time permanent positions with an annual payroll of approximately $237,000 related to the renovation and redevelopment of an historic manufacturing facility with a total square footage of approximately 209,335 square feet at 2050-2060 S. High Street (parcel number 010-104087), an adjacent property located at 2000 S. High Street (parcel numbers 010-104083 and 010-104093) and four vacant adjacent S. High Street lots (parcel numbers 010-104088, 010-104232, 010-002039 and 010-104098), Columbus, OH 43207 (the Project Site), in Columbus, Ohio, within the City of Columbus Enterprise Zone (Zone #023) and within the Columbus City School District. The AGREEMENT was made and entered into to be effective June 6, 2018 (EZA# 023-18-05); the PROJECT was expected to begin by May 2018 and all real property improvements were expected to be completed by May 2019 with the term of the abatement not to commence after 2019 nor extend beyond 2028.
ENTERPRISE filed the DTE-24 with the Franklin County Auditor (AUDITOR) in January 2019 and although the Final Determination from the Office of the Tax Commissioner, Ohio Department of Taxation issued in November 2019 was to approve of the exemption related to the AGREEMENT, the CITY was advised by the AUDITOR in November 2019 that there was no value increase for tax year 2019 for any real property improvements related to the AGREEME...
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