Explanation
BACKGROUND: Columbus City Council (COUNCIL), by Ordinance No. 0761-2012, passed April 16, 2012, authorized the City of Columbus (CITY) to enter into an Enterprise Zone Agreement (the AGREEMENT) with SPARC Holding, LLC (hereinafter “ENTERPRISE”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a proposed investment of approximately $12 million in real property improvements (the “PROJECT”) and the creation of 20 new full-time jobs with an annual payroll of approximately $579,360 related to the construction of a new multi-purpose complex featuring a sports pavilion, automotive research center and track facility on Parcel Number 495-286329 at 1155 W. Mound Street, Columbus, OH 43223 (the Project Site), in Columbus, Ohio, within the City of Columbus Enterprise Zone (Zone #023) and within the Columbus City School District. The AGREEMENT was made and entered into to be effective April 27, 2012 (EZA# 023-12-02); the PROJECT was expected to begin by September 2013; all real property improvements were expected to be completed by September 2018 with the term of the abatement not to commence after 2019 nor extend beyond 2028.
Based on a review of the annual report submitted for calendar year 2018 for the AGREEMENT, as of the end of calendar year 2018, the cumulative investment level in real property improvements achieved from the signing of the agreement was $716,282 (this figure does not include the reported original purchase price of the property). With no significant investment in real property improvements having been made to-date and with the project being in a state of non-compliance with the terms of the AGREEMENT, the recommendation of the CITY is to dissolve the AGREEMENT effective December 31, 2018. ENTERPRISE was advised of the intent of the City to dissolve the AGREEMENT in a letter dated May 28, 2019 sent to ENTERPRISE via Certified Mail and received by ENTERPRISE on May 30, 2019. It should be n...
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