header-left
File #: 1914-2021    Version: 1
Type: Ordinance Status: Passed
File created: 7/2/2021 In control: Economic Development Committee
On agenda: 7/19/2021 Final action: 7/22/2021
Title: To authorize the Director of the Department of Development to amend the Downtown Office Incentive Agreement with Coastal Ridge Real Estate Partners, LLC, Coastal Ridge Management, LLC, PPG Management, LLC and Foxen Insurance Company, LLC for the first time to (1) revise the incentive term window from commencing January 1, 2020 and for five (5) consecutive years thereafter (i.e. January 1, 2020 through December 31, 2024 for a 5-year credit) to commencing January 1, 2021 and five (5) consecutive years thereafter (i.e. January 1, 2021 through December 31, 2025 for a 5-year credit), and (2) to revise the name of Foxen Insurance Company, LLC to Foxen Insurance Company, and to declare an emergency.
Explanation
BACKGROUND: The need exists to amend the Downtown Office Incentive Agreement between the City of Columbus (“CITY”), Coastal Ridge Real Estate Partners, LLC, Coastal Ridge Management, LLC, PPG Management, LLC and Foxen Insurance Company, LLC (collectively, and hereafter referred to as “GRANTEE”). Columbus City Council (“COUNCIL”), by Ordinance No. 2561-2019, passed October 14, 2019, authorized the Director of the Department of Development of the CITY to enter into a Downtown Office Incentive Agreement (the “DOI AGREEMENT”) for an annual cash payment equal to fifty percent (50%) of the City of Columbus income tax withheld on the payroll for new employees added to the City of Columbus for a term of up to five (5) consecutive years. The financial incentive was granted in consideration of the GRANTEE’s total proposed investment of approximately $300,000, which included $156,000 in machinery and equipment, $120,000 in stand-alone computers, and $24,000 in furniture and fixtures to relocate and expand its corporate headquarters (HQ) into the newly constructed commercial office facility known as “80 on the Commons” located at 80 E. Rich Street, Columbus, Ohio 43215, parcel number 010-296465 (the “PROJECT SITE”). Additionally, the GRANTEE committed to create 80 net new full-time permanent positions with an annual payroll of approximately $6,138,700, and to retain and relocate 75 full-time positions with an estimated annual payroll of approximately $5,793,200 (the (“PROJECT”), which will be new jobs to the CITY but not incentivized at the PROJECT SITE. The DOI AGREEMENT was made and entered into effective January 10, 2020 with the incentive term to begin January 1, 2020 through December 31, 2024 for a 5-year credit.

In a letter received by the Department of Development dated May 11, 2021, and through ensuing correspondence, it was requested that the PROJECT incentive term be amended. Unfortunately, the project was delayed due to the affects from the COVI...

Click here for full text