Explanation
BACKGROUND: Columbus City Council (COUNCIL), by Ordinance No. 2516-2018, passed September 24, 2018, authorized the City of Columbus (CITY) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with EX2 Investment LTD and Carr Supply Co. (collectively, and 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 approximately $2,700,000.00, which included $2,600,000.00 in real property improvements, $25,000.00 in machinery and equipment, and $80,000.00 in furniture and fixtures to expand its corporate headquarters and distribution facility by approximately 30,000 square feet on parcel number 010-231120 located at 1415 Leonard Avenue, Columbus, Ohio 43219 (the “PROJECT SITE”). Additionally, the ENTERPRISE committed to create fifteen (15) net new full-time permanent positions with an estimated annual payroll of approximately $521,456.00 and retain one-hundred twenty-two (122) full-time jobs with an annual payroll of approximately $7,080,000.00 to preserve or create employment opportunities within the Columbus Enterprise Zone, (hereinafter referred to as the “PROJECT”). The AGREEMENT was made and entered into effective November 21, 2018 (EZA #023-18-07).
The CITY reported the status of the PROJECT to the 2023 Tax Incentive Review Council (“TIRC”) on August 18, 2023. The TIRC noted from the annual report that the net new jobs and retained jobs were both below the commitment as outlined in the AGREEMENT. Based on the presentation of the annual report, the TIRC recommend that the AGREEMENT be continued, and for the City to send a letter to the ENTERPRISE requesting a jobs plan outlining the process for attaining the commitment in the AGREEMENT, with the jobs plan to be received by the City within sixty (60) days of receipt date of the notification.
In a letter received by the CITY from the ENTERPRISE dated July 31, 2023 and through ensuing corre...
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