Explanation
BACKGROUND: Columbus City Council, by Ordinance 0121-2013, passed January 28, 2013, authorized the City of Columbus to enter into an Enterprise Zone Agreement (Agreement) with SEA, Ltd. (Enterprise) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a $9 million investment in real property improvements, the retention of ninety-six (96) full-time employees with an annual payroll of $9.77 million and the creation of thirty (30) full-time permanent positions with an annual payroll of approximately $3 million related to the construction of a new global headquarters and research & development facility of approximately 90,000 square feet on Schrock Road at parcel number 610-291371, in Columbus Ohio, within the Worthington City School District and within the Columbus North Enterprise Zone. The Agreement was made and entered into effective May 5, 2013 (EZA #393-13-01). The Agreement stated that construction on the improvements (Project) was expected to begin in October 2013, but in no event later than April 1, 2014 with these improvements expected to be completed by June 2015, but in no event later than October 31, 2015 and that no real property exemption was to commence after 2016 nor extend beyond 2025.
In a letter to the City from SEA, Ltd., dated September 3, 2014 and received September 4, 2014, it was indicated that due to several factors, the planned investment in real property improvements had been delayed. The letter requested that the Agreement be modified to state that the Project is expected to begin no later than December 31, 2014 and that all improvements are expected to be completed no later than March 31, 2016. Additionally, the letter requested that the term of real property exemption be amended to commence no later than 2017 nor extend beyond 2026 instead of 2016 through 2025.
This legislation is to authorize the Director of Development to amend the Agreement for the first time to (1) stat...
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