Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Upgrade Equity, LLC and Texas Taggart, LTD. The Ohio Enterprise Zone law Section 5709.62(C) of the Ohio Revised Code requires the City to enter into Council-approved agreements between the City and participating companies.
Based out of Palo Alto, California Upgrade Equity LLC (“Upgrade”) and Taggart Texas LTD (“Taggart”) are both owned by Jim and Ken Taggart who have been in the industrial development business since 1982. Along with Columbus, they own properties in Texas and California totaling 1.24 million square feet of space valued at $69 million. The majority of the properties are industrial properties they purchase to rehabilitate and lease out. The two entities also operate and own several manufacturing operations in the metals industry. The groups purchased the former Techneglas manufacturing facility in 2018 which is a legacy industrial property that has been at least partially vacant for decades.
Upgrade Equity, LLC and Texas Taggart, LTD are proposing to invest a total project cost of approximately $3,217,088 which includes $2,291,656 in real property improvements to renovate an approximately 389,599 square-foot existing warehouse and office facility at 711 Southwood Ave., Columbus, Ohio 43207, parcel number 010-113409 (“Project Site”). The companies anticipate that the redevelopment of the proposed project will lead to the relocation of an unknown number of positions from within the City of Columbus and the creation of 27 net new full-time permanent positions with an estimated annual payroll of approximately $1,254,341 at the Project Site.
The Department of Development recommends 75%/10-year Enterprise Zone tax abatement on real property improvements.
The Columbus City School Board of Education has been advised of this project.
FISCAL IMPACT: No funding is required for this legislation
Title
To authorize the Director of the Department of Development to en...
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