Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with 770 West Broad AGA LLC and Anchor Management Group, Inc. 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.
770 West Broad AGA LLC is a subsidiary of Anchor Management Group, Inc., a consortium of real estate, construction, retail, management, accounting and architectural entities headquartered in Columbus, Ohio. Larry Gunorek and Jason Gunorek (father and son) are the main principles in the company. The site will be used to consolidate the State of Ohio Department of Rehabilitation and Corrections that will include the relocation of 600 current employees. 770 West Broad AGA LLC will be the property owner and Anchor Management Group, Inc. will be the employer. The project will include an investment of $7 million in acquisition costs, new construction and real property improvements. Action Management Group, Inc will create 2 full time permanent positions.
The Department of Development recommends a 75%/10 year Enterprise Zone tax abatement The proposal is consistent with the Columbus Tax Incentive Policy under Edge City projects. The Columbus Public Schools have been advised of this project.
Emergency action is requested to facilitate a project start date of June 2008.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an Enterprise Zone Agreement with 770 West Broad AGA LLC and Anchor Management Group. ; and to declare an emergency.
Body
WHEREAS, the Columbus City Council authorized the designation of the Enterprise Zone by legislation, Ordinance Number 779-85, dated April 22, 1985; and subsequently amended the Zone by Ordinance Nos. 2722-85 in 1986; 2080-89 in 1989; 1949-92, 2609-92 and 2249-92 in 1992; 1079-94 and 1228-94 in 1994; 2196-95 and 2817-95 in 1995; 533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; and 225-03 in 2003; and
WHEREAS, the Director of the Development Department of the State of Ohio determined that the Columbus Enterprise Zone as amended by the aforementioned Ordinances continued to contain the characteristics set forth in Section 5709.61(A) of the Ohio Revised Code and recertified said Zone in 1986, December 20, 1989, September 28, 1992, October 22, 1992, December 17, 1992, May 31, 1994, June 24, 1994, June 16, 1995, October 5, 1995, December 19, 1995, April 1, 1999, September 25, 2000, January 27, 2003 and most recently on August 19, 2003 as an "urban jobs and enterprise zone" under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, 770 West Broad AGA LLC and Anchor Management Group, Inc. plan to invest a total of $7 million in new construction, acquisition costs and real property improvements on parcel# 010-016817-00; and
WHEREAS, the project includes the renovation of approximately 170,000 square feet of existing office space; and
WHEREAS, Anchor Management Group, Inc. will create 2 (two) full-time permanent positions; and;
WHEREAS, 770 West Broad AGA LLC will be the property owner and Anchor Management Group, Inc. will be the employer; and
WHEREAS, the City is encouraging this project because of plans to renovate and improve an abandoned office building in the Historic Franklinton community; and
WHEREAS, the project site will be used to consolidate the State of Ohio Department of Rehabilitation and Corrections; and
WHEREAS, the project will include the relocation of 600 State of Ohio employees; NOW, THEREFORE, and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into contract with 770 West Broad AGA LLC and Anchor Management Group, Inc. to facilitate a project start date of June 2008, all for the preservation of public health, peace, property and safety, NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Development is hereby authorized to enter into an Enterprise Zone Agreement with 770 West Broad AGA LLC and Anchor Management Group, Inc. to provide therewith an exemption of seventy-five percent (75%) on real property improvements for a term of ten (10) taxable years in association with the project's proposed $7 million investment and job creation.
Section 2. That the City of Columbus Enterprise Zone Agreement and First Source Agreement is signed by 770 West Broad AGA LLC and Anchor Management Group, Inc. within ninety (90) days of passage of this ordinance, or this ordinance and the abatements and credits authorized herein are null and void.
Section 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, the ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after the passage if the Mayor neither approves nor vetoes the same. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.