City of Columbus - File #: 2885-2014

• File #: 2885-2014
• Version: 1
• Type: Ordinance
• Status: Passed
• File created: 11/25/2014
• In control: Development Committee
• On agenda: 12/8/2014
• Final action: 12/10/2014
• Title: To authorize the Director of Development to amend and/or restate the Community Reinvestment Area Agreement with MORSO Holding Co. for the first time to add an additional Landowner, Owner or Grantee to the Agreement, to add additional parcels which would be covered under the Agreement, to revise the Project description, employment and payroll parameters, to revise Project construction and allowable exemption dates, to clarify the assignment process for future entities which would be responsible for the fulfillment of certain Project parameters, and to authorize the Director of Development to approve any future assumption agreements related to the parameters of the Project on behalf of the City; and to declare an emergency.

Date	Ver.	Action By	Action	Result
12/10/2014	1	CITY CLERK	Attest
12/9/2014	1	MAYOR	Signed
12/8/2014	1	COUNCIL PRESIDENT	Signed
12/8/2014	1	Columbus City Council	Approved	Pass

Explanation

BACKGROUND: Columbus City Council (COUNCIL), by Ordinance No. 1206-2007, passed July 23, 2007, authorized the City of Columbus (CITY) to enter into an Community Reinvestment Area Agreement (the AGREEMENT) with MORSO Holding Co. (the LANDOWNER, OWNERS or GRANTEE) to grant a tax abatement of one hundred percent (100%) for a period of ten (10) taxable years in association with the LANDOWNER’s proposed project. The AGREEMENT was made and entered into effective March 14, 2008 (CRA Agreement Number 049-18000-15 / 08-001) in consideration of an expected $135 million investment in real property improvements, exclusive of any amounts for acquisition of machinery and equipment, furniture and fixtures, inventory, infrastructure and roads, which collectively were expected to create approximately 1 million square feet of office space and the creation of an estimated four thousand (4,000) full-time equivalent employees (“FTE”) and an estimated total annual payroll of approximately $160 million (the “PROJECT”) upon full build out and occupancy of the PROJECT, or an average of approximately two hundred (200) FTE per year, resulting in an estimated additional average annual payroll of approximately $8 million per year located within the Columbus City School District and within the Easton Square Place Community Reinvestment Area (the “PROJECT SITE”). The AGREEMENT stated that no employee positions existed at that time at the PROJECT SITE and therefore no employee positions would be retained due to construction of the PROJECT, that the estimates provided in the AGREEMENT were good faith estimates and should not be construed in a manner that would limit the amount or term of the tax exemptions provided in the AGREEMENT and that the parties to the AGREEMENT recognize that the employment and any payroll estimates associated with the PROJECT may increase or decrease significantly and that all employees at the PROJECT will be hired by the OWNERS or their lessees. The AGRE...