Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 1731-2019, passed July 22, 2019, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Pinchal and Company LLC (the “ENTERPRISE”) for a tax abatement of seventy five percent (75%) for a period of ten (10) years in consideration of a proposed total capital investment of roughly $10,190,000, which included $1.16 million in acquisition cost and $9.03 million in real property improvements, and the creation of four (4) full-time permanent positions with an associated annual payroll of approximately $124,800 related to the construction of a new 200,000-square-foot speculative distribution and warehouse facility (the (“PROJECT”) located at 6732 and 6770 Shook Road, Columbus, Ohio 43137, parcel numbers 512-232659 and 512-232662 (the “PROJECT SITE”), within the City of Columbus Enterprise Zone. The AGREEMENT was made and entered into effective September 12, 2019 with the abatement to begin no later than 2021 nor extend beyond 2030, with this PROJECT expected to begin September 2019 with all real property improvements expected to be completed by December 2020.
In a letter received by the CITY on behalf of the ENTERPRISE dated October 9, 2019 and through ensuing correspondence, it was confirmed that Columbus STS, LLC had acquired ownership of the PROJECT SITE from Pinchal and Company on July 26, 2019. Due diligence has been undertaken by the CITY in that Columbus STS, LLC has agreed to fully assume the terms and commitments of the ENTERPRISE pursuant to the AGREEMENT, has submitted an updated Economic Development Incentive Application and that this application and all other pertinent information has been reviewed and vetted.
This legislation is to authorize the Director of the Department of Development to amend the AGREEMENT for the first time to remove Pinchal and Company LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with Colum...
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