Explanation
BACKGROUND: The Tax Incentive Review Council (the "TIRC") recommended on August 25, 2006, that the City should amend the Community Reinvestment Area Agreement with Schmidt Development LLC (the "CRA Agreement") to reduce the real property investment requirement to $13,446,000, to change the job requirement to 210 jobs retained and 65 jobs created, and to clarify that jobs in the building at 515 E. Main Street may be applied to satisfy the CRA Agreement to the extent that those jobs are in excess of the jobs needed to satisfy the requirements of the 515 Partners, LLC Enterprise Zone Agreement. The City concurs with the TIRC recommendation to amend the CRA Agreement.
Columbus City Council approved an expansion of the South Washington Community Reinvestment Area (the "CRA") by Ord. No. 1661-00, adopted July 10, 2000 and in the same ordinance authorized the CRA Agreement. Schmidt Development LLC (J. Daniel Schmidt) proposed to invest $20 million to renovate and construct buildings along several blocks of E. Main Street, just the west of the I-71 underpass. The area is known today as the Market Exchange District. Tenants were to fulfill the job retention and creation, estimated to total at least 275, of which 65 would be retained/existing jobs and 210 would be new jobs. A year earlier, the same developer had entered into an Enterprise Zone Agreement to construct a building at 515 E. Main Street. That location was not initially part of the CRA territory but was added in the CRA expansion of July 2000.
It has been determined that the $20 million investment figure stated in the CRA Agreement was inclusive of $6,554,000 being invested at the time to construct the 515 E. Main building. This same $6,554,000 is the commitment in the Enterprise Zone Agreement with 515 Partners, LLC (the "EZA"), in which J. Daniel Schmidt is a Member. This legislation will correct the investment figure in the CRA Agreement to $13,446,000, by subtracting the $6,55...
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