Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 2913-2022, passed November 21, 2022, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Cologix US, Inc. and Cologix Services Company, LLC (collectively, and hereinafter referred to as the “ENTERPRISE”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of the company’s total proposed investment of approximately $160,500,000, which included approximately $61,000,000 in real property improvements and $99,500,000 in machinery and equipment to construct a data center of approximately 250,000 square feet on an undeveloped land consisting of 7.49 +/- acres at 7500 & 7474 Alta View Boulevard, Columbus Ohio 43085, parcel number 610-207094, (the “PROJECT”). The ENTERPRISE committed to create fifteen (15) net new full-time permanent positons with an estimated annual payroll of approximately $1,500,000 and retain 24 full-time jobs with an annual payroll of approximately $1,400,000 at two separate locations, 7500 & 7474 Alta View Boulevard, Columbus, Ohio 43085, parcel number 610-207094 and 555-585 Scherers Court, parcel number 610-210593, which are adjacent from one another, (collectively, the “PROJECT SITE”), and within the City of Columbus Enterprise Zone. The AGREEMENT was made and entered into effective January 24, 2023.
Paragraph fourteen within Section 8 (Program Compliance) of the AGREEMENT states that the “AGREEMENT is not transferable or assignable without the express, written, approval of the CITY” and paragraph fifteen of that same section states that “any requested amendment…to any of the terms of the AGREEMENT…shall require the payment to the CITY by the ENTERPRISE of an AMENDMENT FEE in the amount of five-hundred dollars ($500.00).”
In a letter received by the CITY from the ENTERPRISE dated June 8, 2023, and through ensuing correspondence, the ENTERPRISE indicated th...
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