Explanation
BACKGROUND: Columbus City Council (COUNCIL), by Ordinance No. 0832-2015, passed April 20, 2015, authorized the City of Columbus (CITY) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Hirschvogel Incorporated (hereinafter “ENTERPRISE”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of an approximate $14.7 million investment in real property improvements and the creation of thirty-seven (37) full-time permanent positions with an annual payroll of approximately $1.3 million related to the expansion of its Columbus facility by adding approximately 65,000 square feet of manufacturing and machining space to its 142,000 square foot operation located at 2230 S. 3rd Avenue Columbus, OH 43207, at parcel number 010-112529, 010-112530, 010-112727, 010-112778, 010-113245 and 010-113324 (“PROJECT SITE”), within the Columbus City School District and within the City of Columbus Enterprise Zone. The AGREEMENT was made and entered into effective August 24, 2015. The AGREEMENT stated that construction on the improvements (the “PROJECT”) was expected to begin no later than the end of September, 2015 and that all real property improvements were expected to be completed by the end of 2017 and that no real property exemption was to commence after 2018 nor extend beyond 2027.
In a letter from the ENTERPRISE to the City dated July 20, 2016, it was indicated that the aforementioned expansion project was restructured and realigned with the ENTERPRISE’s new corporate strategic growth plan. The letter requested that the AGREEMENT be amended to change the ENTERPRISE’s proposed capital expenditure investment, allow for additional addresses and parcel numbers to be associated with the PROJECT SITE, to modify the proposed new job creation goal along with the associated annual payroll, to change the expected to begin date from September 2015 to no later than the end of December 2016 and to modify the expected comp...
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