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File #: 0220-2021    Version: 1
Type: Ordinance Status: Passed
File created: 1/25/2021 In control: Economic Development Committee
On agenda: 2/8/2021 Final action: 2/11/2021
Title: To authorize the Director of Development to amend the Enterprise Zone Agreement with Meritex Columbus, LLC to remove Meritex Columbus, LLC as ENTERPRISE to be replaced by 6380 Adelaide Court, LLC that will assume the terms and commitments of the AGREEMENT and to add language requiring an Amendment Fee for future Grantee-initiated Amendments; and to declare an emergency.
Explanation
BACKGROUND: Columbus City Council (COUNCIL), by Ordinance No. 1624-2017, passed July 17, 2017, as amended by Ordinance No. 2217-2017, passed September 18, 2017, authorized the City of Columbus (CITY) to enter into an Enterprise Zone Agreement (the AGREEMENT) with Meritex Columbus, LLC (“ENTERPRISE”), for a real property tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of a proposed $10.34 million investment in real property improvements and the creation of 22 new full-time permanent positions with an associated annual payroll of approximately $1.12 million related to the construction of a new 250,000 square foot speculative office/warehouse facility on a 16-acre site located at the southeast corner of Spiegel Drive and Adelaide Court on Parcel Number 495-232645 within the City of Columbus and within the Columbus Central Enterprise Zone (The PROJECT SITE). The AGREEMENT was made and entered into effective September 27, 2017 with the abatement to commence no later than 2019 nor extend beyond 2028.

The Final Determination of the Tax Commissioner regarding the application for exemption of real property from taxation that was filed by Meritex Columbus, LLC on April 15, 2019 was issued on May 31, 2019 whereby the abatement was processed by the Franklin County Auditor to begin in the first year for which the real property would first be taxable were that property not exempted from taxation for a period of ten (10) years, such period not to exceed ten (10) years with that term being from 2019 to 2028.

Paragraph thirteen within Section 6 (Program Compliance) of the AGREEMENT states that the “AGREEMENT is not transferable or assignable without the express, written, approval of the CITY.”

In email communication on August 19, 2020 from The Meritex Company on behalf of Meritex Columbus, LLC), the CITY was advised of the pending sale of the property located at 6380-6480 Adelaide Court (the PROJECT SITE) to a...

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