Explanation
BACKGROUND: The need exists to amend Ordinance 3269-2018 approved by Columbus City Council on December 10, 2018, which authorized the Director of the Department of Development to enter into a Downtown Office Incentive (“DOI”) Agreement (the “AGREEMENT”) with BBI Logistics LLC (“BBI Logistics”). An amendment is now required to revise the initial incentive term and also to revise the 90-day period needed to execute the DOI Agreement to 90 days after the passage of this proposed legislation.
The ordinance authorized the Director of the Department of Development to enter into a DOI Agreement of fifty percent (50%) for a period of three (3) consecutive years in consideration of the company’s proposed capital investment of approximately $435,000 to renovate and equip a new commercial office space at 80 E. Rich Street, Columbus, Ohio 43215 (“Project Site”). BBI Logistics intends to retain and relocate 15 existing full-time permanent positions with an associated annual payroll of approximately $615,000 from their current office operations located at 4449 Easton Way, Suite 330, Columbus, Ohio 43219 and expects to create approximately 150 net new full-time permanent positions with an associated new annual payroll of approximately $8,175,000 at the proposed Project Site.
The Columbus Downtown Office Incentive Program allows an incentive term of two (2) years less than the lease agreement with a maximum incentive term of five (5) years. Subsequent to signing the AGREEMENT, and through ensuing correspondence, it was ascertained that the company entered into a longer lease agreement on the proposed Project Site. BBI Logistics originally planned on entering into a five-year lease agreement, which qualified the company for a three-year incentive term. However, the company decided to enter into a longer lease agreement of eight (8) years or 97 months, which qualifies the company for a longer incentive term. With a longer lease agreement, BBI Logistics now quali...
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