Explanation
BACKGROUND: Columbus City Council, by Ordinance 0605-2004, passed March 29, 2004 authorized the City of Columbus (City) to enter into an Enterprise Zone Agreement (Agreement) with Cabot Properties, Inc., aka (CIVF I-OH1B02 LLC) (hereinafter “Enterprise”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of an investment of $11.2 million in real property improvements and the creation of 150 new full-time jobs related to the construction of an approximately 500,000 square foot facility at Eastport Business Park in the Rickenbacker area, parcel 495-255312 (The Project Site), in Columbus, Ohio, within the City of Columbus Enterprise Zone (Zone #023) and within the Columbus City School District. The Agreement was made and entered into to be effective April 6, 2005 (EZA #023-05-02) with the term of the abatement running from 2006 to 2015.
As per the annual report submitted for Report Year 2012, Enterprise reported no new jobs on site and no payroll which placed the project in a state of non-compliance as per the terms of the Agreement. Enterprise did report a total investment in real property improvements over the term of the abatement thus far of $9.41 million which is 84% of the commitment in the Agreement of $11.2 million. This information was presented at the 2013 Columbus Tax Incentive Review Council (the TIRC). It was also reported to the TIRC that the facility has been vacant since 2009 (four years) and that the average time on market in the Rickenbacker area (according to Enterprise) for a facility of this type is 4.5 years, that forgone tax for tax year 2011 was $255,011 (taxes paid was $147,144) and that the reported cumulative forgone tax over the term of the abatement thus far was $1,531,168 (taxes paid was $898,756). City staff recommended to the TIRC that the Agreement be continued and that a letter be sent to Enterprise requesting that they continue to advise the City as to the status of their...
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