File #: 1636-2018    Version: 1
Type: Ordinance Status: Passed
File created: 6/5/2018 In control: Economic Development & Small and Minority Business Committee
On agenda: 6/18/2018 Final action: 6/20/2018
Title: To authorize the Director of Development to amend the Enterprise Zone Agreement with Pizzuti Short North Office LLC for the first time to: (1) revise the job creation number from 217 to 20; (2) revise the commensurate new job payroll amount from $13,300,000.00 to $1,225,000.00; and (3) add language providing that only full-time jobs that pay at least $12 per hour can be considered to fulfill the job creation commitment; and to declare an emergency.
BACKGROUND: Columbus City Council (COUNCIL), by Ordinance No. 1883-2012, passed September 24, 2012, as amended by Ordinance No. 0175-2013, passed January 28, 2013, authorized the City of Columbus (CITY) to enter into an Enterprise Zone Agreement (the AGREEMENT) with Pizzuti Short North Office LLC (ENTERPRISE) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a proposed $20.6 million investment in real property improvements and the creation of 217 full-time jobs with an associated annual payroll of approximately $13.3 million related to the construction of a speculative 60,000 square foot facility housing 55,000 square feet of Class A office space and 5,000 square feet of retail space and a public parking garage on parcel number 010-002258, part of parcel 010-052208, located along North High Street within the Short North District in Columbus Ohio and within the Columbus Enterprise Zone. The AGREEMENT was made and entered into effective April 5, 2013 (EZA #023-13-01) with the abatement currently effective from 2015-2024.

The job and payroll commitments of the ENTERPRISE as per the AGREEMENT are 217 new jobs to be created as a result of the project with a commensurate total annual payroll of $13.3 million. City policy is to only incentivize full-time jobs that pay at least $12 per hour.

For the past two reporting cycles, Report Year 2015 and Report Year 2016, due to the particular mix of tenants, the number of eligible jobs created as a result of the project were low - significantly below the commitments per the AGREEMENT.

The City reported to the Columbus Tax Incentive Review Council in 2017 the status of the Project and the TIRC found the AGREEMENT not to be in compliance but “recommended to continue, for City Staff to meet with the ENTERPRISE to determine if the employment and wage levels in the AGREEMENT are achievable and if not, then amend as needed to “right size” the project regarding jobs an...

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