Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 2949-2021, passed May 9, 2022, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Pinchal & Company LLC (hereinafter, referred to as “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 $60,819,433.00, which included approximately $3,299,593.00 in acquisition costs, $3,255,840.00 in leasehold improvements and $54,264,000.00 in real property improvements to construct a proactive distribution and warehouse facility consisting of approximately 1,085,280 square-feet on undeveloped land containing approximately 182 +/- acres south of State Route 317 on Lockbourne Road, Columbus, Ohio 43137, Parcel Number 495-263119 (the “ORIGINAL PARCEL”), building #5 legislated as Pinchal & Company LLC Building 2 (the “PROJECT SITE”), within the City of Columbus and within the City of Columbus Enterprise Zone. Additionally, the ENTERPRISE committed to create one-hundred thirty five (135) net new full-time permanent positions with an associated annual payroll of approximately $4,212,000.00 at the PROJECT SITE. The AGREEMENT was made and entered into effective August 15, 2022 with the PROJECT expected to begin approximately August 2022, with all real property improvements expected to be completed by approximately December 2023, and with the abatement to commence no later than 2024 nor extend beyond 2033 (Agreement No. 023-22-19).
As of this date, there has not been a filing of the DTE-24 with the Franklin County Auditor, no Final Determination from the Ohio Department of Taxation, and so no forgone tax benefit has yet been received by the ENTERPRISE.
Paragraph fourteen within Section 8 (Program Compliance) of the AGREEMENT states that the “AGREEMENT is not transferable or assignable without the express, writte...
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