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File #: 1647-2020    Version: 1
Type: Ordinance Status: Passed
File created: 7/2/2020 In control: Economic Development Committee
On agenda: 7/27/2020 Final action: 7/30/2020
Title: To authorize the Director of the Department of Development to 1) repeal Ordinance 0954-2020 and replace with this Ordinance and; 2) enter into an Enterprise Zone Agreement with Settle-Muter Electric, Ltd. and 711 Claycraft LLC for a tax abatement of sixty-five percent (65%) for a period of ten (10) consecutive years in consideration of the company’s proposed capital investment of $1,650,000.00 in real property improvements, the retention of 175 full-time permanent positions, and the creation of 20 new full-time permanent positions.
Attachments: 1. ORD1647-2020 SME EZ - Fact Sheet 6.8.20 (1), 2. ORD1647-2020 SME EZ - Site Map 4.7.20
Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Settle-Muter Electric, Ltd. and 711 Claycraft LLC. 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.

Incorporated in 1995 and headquartered in Columbus, OH, Settle-Muter Electric, Ltd. (“SME”) is an electrical contractor specializing in the construction of schools/universities, hospitals/medical facilities, industrial plants, retail stores, data centers, and other facilities in diverse markets. 711 Claycraft LLC is a real estate holding company owned by Mark Muter, owner of SME, respectively.

SME and 711 Claycraft LLC are proposing to invest a total project cost of approximately $2,250,000 which includes $1,650,000 in real property improvements to construct an approximately 12,000 square-foot addition onto their existing headquarters facility and construct a 3,500 square-foot warehouse at 711 Claycraft Road, Columbus, Ohio 43230, parcel number 520-237575 and 675 Claycraft Road Columbus, Ohio 43230, parcel number 520-135888 (“Project Sites”). Additionally, the company will retain 175 full-time permanent positions with an annual payroll of approximately $9,962,749 million and create 20 net new full-time permanent positions with an estimated annual payroll of approximately $1,094,998 at the proposed Project Site.

On May 18, 2020, City Council approved Ordinance 0954-2020, approving a 65%, ten (10) year tax abatement for Settle-Muter Electric Ltd. and 711 Claycraft LLC. Prior to City Council approval of that Ordinance, School Board notification was provided to the Columbus City School District in error and not to the Gahanna-Jefferson City School District (GJCSD). The CITY was subsequently advised of this by the GJCSD and the GJSCD has subsequently received proper notice. This being so, there is a need to rescind Ordinance 0954-2020 and take acti...

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