Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 0470-2023, passed May 6, 2023, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with 0 Outerbelt Street, LLC (the “ENTERPRISE”), for a real property tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of a proposed total capital investment of approximately $30,444,390.00, which included approximately $7,000,000.00 in acquisition cost, and $23,444,390.00 in real property improvements to construct a proactive industrial facility consisting of approximately 205,000 square feet (the “PROJECT”) at or on Outerbelt Street, Columbus, Ohio 43213, and on four contiguous parcel numbers 520-143653, 520-143654, 520-143655 and 520-308803, within the City of Columbus and within the City of Columbus Enterprise Zone (the “PROJECT SITE”). Additionally, the ENTERPRISE committed to create or cause to be created twenty-five (25) net new full-time permanent positions with an associated annual payroll of approximately $1,040,000.00 at the PROJECT SITE. The AGREEMENT was made and entered into effective June 9, 2023 with the PROJECT expected to begin approximately July 2023, with all real property improvements expected to be completed approximately by June 2024 and with the abatement to commence no later than January 1, 2025 nor extend beyond December 31, 2034 (Agreement No. 023-23-07).
As of this date, the company has filed their DTE-24 with the Franklin County Auditor’s Office, but no Final Determination from the Ohio Department of Taxation, and so no forgone tax benefit has yet been received.
Paragraph fifteen 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 requir...
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