Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 1277-2016, passed June 6, 2016, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the AGREEMENT) with Lightning Propco I, LLC (property owner) and Micro Electronics, Inc. (tenant) (hereinafter collectively known as the “ENTERPRISE”) for an exemption of fifty percent (50%) on real property improvements for a term of eight (8) taxable years in consideration of the project's proposed investment of approximately $2.97 million, including $2.67 million for building construction, the retention of 104 full-time permanent positions with an associated annual payroll of approximately $3,005,612, and the creation of 5 new full-time permanent positions with an associated new annual payroll of approximately $130,000 at 2701 Charter Street Columbus, Ohio 43228 (the “PROJECT SITE”). The AGREEMENT was made and entered into to be effective October 11, 2016 by and between the CITY and the ENTERPRISE with the term to commence no later than 2017 and to extend no later than 2024.
In a letter from the parent company of Lightning Propco I, LLC, Evergreen Industrial Properties, dated June 21, 2017, the property owner informed the CITY that since the AGREEMENT was executed in 2016 they positioned the warehouse at the PROJECT SITE occupied by Micro Electronics, Inc. for sale to GPT Charter Street Owner LLC, an affiliate of Gramercy Property Trust, a global investor and asset manager of commercial real estate. The letter went on to state that the sale of the PROJECT SITE was expected to be finalized on June 22, 2017 and that it was the desire of both Lightning Propco I, LLC and Micro Electronics, Inc., as well as the prospective buyer, that the property tax abatement as described in the Enterprise Zone Agreement be assumed by GPT Charter Street Owner LLC.
A subsequent letter dated June 23, 2017 from Gramercy Property Trust following the purchase of the PROJECT SITE reaffirmed...
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