Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 1277-2022, passed July 18, 2022, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Parkside on Pearl, LLC (hereinafter referred to as “ENTERPRISE”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of an investment of $2,275,797 and the creation of ten (10) net new full-time permanent positions with an annual payroll of approximately $416,000 related to the construction of approximately 12,534 +/- square-feet of a new Class A office space at 35 E. Hubbard Avenue, Columbus, Ohio, 43201, on parcel number 010-010941 (the “PROJECT SITE”), in Columbus Ohio, within the Columbus City School District and the Columbus Central Enterprise Zone. The AGREEMENT was made and entered into effective October 5, 2022 (EZA# 023-22-26). The AGREEMENT stated that construction of the 7-story, 88,563-square-foot mixed-use development would consist of approximately 780 square-feet of retail space on the first floor, 12,534 square feet of commercial office space on the second floor, and roughly 75,249 square feet of residential units on the remaining floors (the “PROJECT”). All real property improvements were expected to be completed by October 2024, and that no real property exemption was to commence after 2025 nor extend beyond 2034.
The CITY reported the status of the PROJECT to the 2022 Tax Incentive Review Council (“TIRC”) on August 19, 2022. The TIRC noted the annual report was received late, but fully compliant, and recommended the AGREEMENT be continued and a letter be sent advising the ENTERPRISE of the need for accurate and timely reporting.
In a letter received by the City on October 3, 2023, the ENTERPRISE requested to terminate the existing AGREEMENT due to the current challenging state of the national office market. The ENTERPRISE stated that the predetermined 12,534-square-feet of commer...
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