Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with 1489 Rohr Holding, LLC. The Ohio Enterprise Zone law O.R.C. Section 5709.62(C) requires the City to enter into a Council-approved agreement between the City and participating companies.
1489 Rohr Holding, LLC is a real estate holding company that is a subsidiary of Warden Capital, a commercial real estate developer. Headquartered in New York, Warden Capital acquires and develops projects across various asset classes, including speculative industrial development. Additionally, the company focuses its investments on self-storage, industrial, multi-family, office and retail properties in Chicago, Il., Columbus, OH, Indianapolis, IN, Louisville, KY and Nashville, TN. Hawkins Entrekin is the founder and managing principal of Warden Capital.
1489 Rohr Holding, LLC is proposing to invest a total project cost of approximately $12,600,000 on real property improvements to construct a speculative industrial distribution and warehouse facility consisting of approximately 550,000 square feet on approximately 230 +/- acres of an undeveloped land parcel located at 1279 and 1489 Rohr Road, Columbus, Ohio 43137, parcel numbers 495-266702, 495-266703 and 495-266704 (the “Project Site”). The developer anticipates that the development 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 4 net new full-time permanent positions with an estimated new annual payroll of approximately $124,800 at the proposed Project Site.
Contingent upon the successful expansion of the City of Columbus Enterprise Zone (Zone 023), which would include the three parcels comprising the Project Site, the Department of Development recommends a 75%/10-year Enterprise Zone tax abatement on real property improvements.
The Columbus City School District has been advised of this project. This legislation is presented as 30-day legislation.
FISCAL IMPACT: No Funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into an Enterprise Zone Agreement with 1489 Rohr Holding, LLC for a tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of a total proposed capital investment of approximately $12,600,000.00 and the creation of 4 net new full-time permanent positions with an estimated annual payroll of approximately $124,800.00.
Body
WHEREAS, the Columbus City Council (“Council”) authorized the designation of the Central Enterprise Zone by legislation, Ordinance Number 779-85, dated April 22, 1985; and subsequently amended the Zone by Ordinance Nos. 2722-85 in 1986; 2080-89 in 1989; 1949-92, 2690-92 and 2249-92 in 1992; 1079-94 and 1228-94 in 1994; 2196-95 and 2817-95 in 1995; 0533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; 0225-03 in 2003; and 0032-2012 in 2012; and
WHEREAS, the Director of the Development Department of the State of Ohio determined that the Columbus Enterprise Zone as amended by the aforementioned Ordinances continued to contain the characteristics set forth in Section 5709.61(A) of the Ohio Revised and recertified said Zone in 1986, December 20, 1989, September 28, 1992, October 22, 1992, December 17, 1992, May 31, 1994, June 24, 1994, June 16, 1995, October 5, 1995, December 19, 1995, April 1, 1999, September 25, 2000, January 27, 2003, August 19, 2003 and most recently on April 3, 2012 as an “urban jobs and enterprise zone” under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, 1489 Rohr Holding, LLC is a real estate holding company that is a subsidiary of Warden Capital, a commercial real estate developer headquartered in New York, New York; and
WHEREAS, Warden Capital acquires and develops projects across various asset classes, including speculative industrial development. Additionally, the company focuses its investments on self-storage, industrial, multi-family, office and retail properties in Chicago, Ill, Columbus, OH, Indianapolis, IN, Louisville, KY and Nashville, TN. Hawkins Entrekin is the founder and managing principal of Warden Capital; and
WHEREAS, 1489 Rohr Holding, LLC is proposing to invest a total project cost of approximately $12,600,000 on real property improvements to construct a speculative industrial distribution and warehouse facility consisting of approximately 550,000 square feet on approximately 230+/- acres of an undeveloped land located at 1279 and 1489 Rohr Road, Columbus, Ohio 43137, parcel numbers 495-266702, 495-266703 and 495-266704 (“Project Site”); and
WHEREAS, 1489 Rohr Holding, LLC anticipates that the development of the aforementioned project will lead to the relocation of an unknown number of positions from within the City of Columbus and the creation of 4 net new full-time permanent positions with an estimated new annual payroll of approximately $124,800 at the Project Site; and
WHEREAS, authorization by Council of the agreement will be contingent upon the successful expansion of the City of Columbus Enterprise Zone (Zone 023), which would include the three parcels comprising the Project Site; and
WHEREAS, the City is encouraging this project because of plans to construct a new industrial distribution and warehouse facility on an undeveloped land parcel South of the City in close proximity to Rickenbacker; and
WHEREAS, the City desires to increase employment opportunities and encourage the creation of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, the City desires to enter in such a binding formal agreement in order to foster economic growth for the preservation of public health, peace, property and safety; and NOW, THEREFORE:
BE IT ORDAINED BY THE COUNCIL OF COLUMBUS:
SECTION 1. That the City hereby finds and determines that the project will (1) create jobs in the State and City (2) the project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) receiving the aforementioned tax abatement is a critical factor in the decision by representatives for 1489 Rohr Holding, LLC to move forward with the proposed project.
SECTION 2. Contingent upon the successful expansion of the City of Columbus Enterprise (Zone 023), which would include the three parcels comprising of the Project Site, that the Director of the Department of Development is hereby authorized and directed to enter into an Enterprise Zone Agreement with 1489 Rohr Holding, LLC to provide therewith an exemption of seventy-five percent (75%) on real property improvements for a term of ten (10) consecutive taxable years in association with the project’s proposed total investment of approximately $12,600,000 in real property improvements and the creation of 4 net new full-time permanent positions with an estimated annual payroll of approximately $124,800.
SECTION3. That the City of Columbus Enterprise Zone Agreement must be signed by 1489 Rohr Holding, LLC within one-hundred eighty (180) days of passage of this ordinance, or this ordinance and the abatements and credit authorized herein are null and void.
SECTION 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.