Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Jai Guru, LLC. The Ohio Enterprise Zone law O.R.C. Section 5709.62 (C) requires the City to enter into a Council-approved agreement between the City and participating companies.
Jai Guru, LLC is an affiliate of Sintel Hotel Group, which consists of numerous affiliated hotels in the Central Ohio Area. All of the hotels are owned privately by closely held companies. The purchase of a Wyndham brand limited service hotel in 1997 was the first in the group. Today, the Sintel Hotel Group has grown to include a portfolio of close to 740 rooms. That growth has also included the development and operational strategy within the entire group to operate with premium service as the number one criteria. The Sintel Hotel Group now includes Hilton and Intercontinental Hotels Group its family of hotels. Intercontinental Hotels Group franchises the Holiday Inn Express and the Staybridge brand.
The proposed Staybridge Suites hotel project involves the construction of a 93 room hotel above a two-level parking garage at 3121 Olentangy River Road, within the Columbus North Enterprise Zone. The $10 million project ($8.5 million for building construction and $1.5 million for furniture, fixtures and equipment) will include seven stories and a total of 67,000 square feet and will replace a car wash and drive-thru at the site currently. A total of five (5) jobs will be created that are above the $12.00 an hour range.
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 Schools has been advised of this project.
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 Jai Guru, LLC for a tax abatement of ...
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