Explanation
BACKGROUND: This legislation authorizes the Director of Development to consent to the transfer and assignment of the Spiegel Drive LLC/Safety Today, Inc. Enterprise Zone Agreement (EZA) to Meritex Columbus, LLC in connection with the sale of the property. Columbus City Council approved the EZA in 2001. The project site is located in the Rickenbacker area, at 2425 Spiegel Drive. Spiegel Drive LLC was the owner of the project site and proposed to construct a 225,000 square foot facility, part of which would be occupied by Safety Today, Inc., the anchor tenant. The facility was completed in 2001 and the abatement will run 2002-2008. The parties agreed to invest $6,350,000 in real and personal property and were granted a 60%/7-year abatement (on both real and personal). By the end of 2003 the investment goal had been largely attained. Safety Today agreed to retain 43 existing jobs and create 23 new jobs while Spiegel Drive LLC agreed to find a second tenant that would create at least 25 jobs. As of June 2004 the project had a total of 46 jobs all of which belonged to Safety Today. The project is still within the time period allowed for job creation by the EZA and the Columbus Tax Incentive Review Council in its 2004 review found the project to be in compliance.
In October 2004, Spiegel Drive LLC sold the project site to Meritex Columbus, LLC and both the enterprises have requested City consent for the assignment and transfer of Spiegel Drive LLC's interests in the EZA to Meritex Columbus, LLC. Meritex Columbus has reviewed the EZA, has stated in writing that it will assume all the obligations of Spiegel Drive LLC under the EZA. Meritex Columbus, LLC is a wholly owned subsidiary of Meritex Enterprises, Inc. The latter is an 87-year old company that currently owns and manages over 10 million square feet of warehouse space. In addition to the 2425 Spiegel Drive property, Meritex Columbus owns 10 facilities in Westbelt Business Park.
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