Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Cleve Corp. and United Parcel Service, Inc. The Ohio Enterprise Zone law (Section 5709.62(C) of the Ohio Revised Code) requires the City to enter into Council-approved agreements between the City and participating companies.
Cleve Corp. is a real estate holding entity related to the site operator, United Parcel Service, Inc. (“United Parcel Service”). Founded in 1907, United Parcel Service is a package delivery company which provides global packaging delivery and supply chain management services. United Parcel Service offers logistics services to the global market, which include transportation, distribution, forwarding, ground, ocean and air freight, brokerage and financing.
Cleve Corp., together with the related site operator, United Parcel Service, Inc., is proposing to expand its existing 408,343-square-foot facility located at 5101 Trabue Road Columbus, Ohio 43228 (parcel number: 560-205289) by adding approximately 348,196 square feet of warehouse distribution space. United Parcel Service will occupy the entirety of the expanded space. This investment is both an expansion and modification project to upgrade United Parcel Service’s existing infrastructure to meet expected site demands for several years to come. Principally, these improvements are expected to increase the company’s package sorting capacity (packages per hour).
United Parcel Service, Inc. will retain 748 full-time permanent positions at the project site and create 75 new full-time permanent positions with an associated new annual payroll of approximately $3,185,000. The project involves a total investment of approximately $176,943,365, which includes approximately $43,155,760 in real property improvement costs and the balance related to the acquisition of machinery, equipment, computers, and leasehold improvements.
The Department of Development recommends an Enterprise Zone property tax abatement of seve...
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