Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Pizzuti Short North Office LLC. The Ohio Enterprise Zone law O.R.C. Section 5709.62 (3) requires the City to enter into a Council-approved agreement between the City and participating companies.
Development of Pizzuti Short North Office LLC (dba The Joseph) began over 4 years ago with the vision of bringing a boutique hotel experience to the Columbus region. Over the course of the project's development additional property became available adjacent to the original project site. This land was acquired and the site design refocused to install a one of a kind mixed-use development in the district.
As part of the design Pizzuti has proposed the construction of a speculative 60,000 square foot facility housing 55,000 square feet of Class A office and 5,000 square feet of retail space. Project costs are estimated to be $11.6 million including $8.9 million in new building construction and $2.7 million in leasehold improvements. A total of 217 new employees are anticipated to fill the space with the potential to generate $13.3 million in annual payroll.
The Department of Development recommends a 75%/10-year Enterprise Zone tax abatement on real property improvements. This proposal is consistent with the Columbus Tax Incentive Policy under Central City projects.
The Columbus City School District has been advised of this project.
This legislation is presented as 30 day legislation.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into an Enterprise Zone Agreement with Pizzuti Short North Office LLC for a tax abatement of seventy-five percent (75%) for a period of ten (10) years on real property improvements in consideration of a proposed total investment of $11.6 million for new building construction ($8.9 million) and tenant build out ($2.7 million). (AMENDED BY ORD. 0175-2013 P...
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