Explanation
BACKGROUND: Columbus City Council (COUNCIL), by Ordinance No. 1686-2014, passed July 28, 2014, authorized the City of Columbus (CITY) to enter into an Enterprise Zone Agreement (the AGREEMENT) with Clarus Partners, LLC and Clarus Solutions, LLC “Clarus” (ENTERPRISE) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a proposed $1.5 million investment in real property improvements and the creation of 33 full-time jobs with an associated annual payroll of approximately $1,745,600 in addition to the relocation and retention of 39 full-time jobs with an annual retained payroll of approximately $3,232,200 related to the renovation of an existing +/-20,000-square-foot building on parcel number 010-129600, located at 1233 Dublin Road in Columbus Ohio and within the City of Columbus Enterprise Zone. The AGREEMENT was made and entered into effective November
25, 2014 (EZA #023-14-100).
Following discussion with Clarus Partners, LLC and Clarus Solutions, LLC, a letter to the CITY from Clarus Partners, LLC, was received January 13, 2017 requesting an amendment to the AgreemenT. Executives from Clarus Partners, LLC, and Clarus Solutions, LLC - related firms with some common ownership - advanced the acquisition of the Project Site and four partners of both firms each put up the necessary capital to acquire and renovate the property. In doing so, the four partners created a real estate holding company, Clarus Ventures LLC, which took title of parcel number 010-129600 on October 1, 2014. It was noted in the letter that this new entity is the property owner of record. Clarus requested that the AGREEMENT be amended to add Clarus Ventures, LLC to the AGREEMENT as the Project Site owner, and therefore the direct beneficiary of the property tax abatement. All other terms of the AGREEMENT are to remain unchanged.
This legislation is to authorize the Director of Development to amend the AGREEMENT for the first time ...
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