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File #: 1917-2021    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 Enterprise Zone Agreement with Airside Five LLC for the first time to (i) revise the construction window of the PROJECT from expected to begin September 2019 with all real property improvements are expected to be completed by March 2021 to the PROJECT is expected to begin summer of 2021 with all real property improvements are expected to be completed by December 2023, and (ii) to revise the allowable abatement term window from no real property exemption shall commence after 2022 nor extend beyond 2031 to no real property exemption shall commence after 2024 nor extend beyond 2033, and to declare an emergency.
Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 1836-2019, passed July 22, 2019, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Airside Five LLC (the “ENTERPRISE”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of a proposed total capital investment of roughly $8,000,000 in real property improvements and the creation of ten (10) net new permanent full-time positions with an associated annual payroll of approximately $350,000 related to the construction of a new speculative office and distribution center consisting of approximately 140,000 square feet +/- (the “PROJECT”) at Bridgeway Avenue, Columbus Ohio 43137, parcel numbers 520-164536, 520-263243, 520-263245, 520-263244, 520-164555, and 520-287806 (the “PROJECT SITE”), within the City of Columbus Enterprise Zone. The AGREEMENT was made and entered into effective October 31, 2019 (Agreement #023-19-13) with this PROJECT expected to begin September 2019 with all real property improvements expected to be completed by March 2021, with the abatement to begin no later than 2022 nor extend beyond 2031.

In a letter received by the Department of Development dated May 24, 2021, and through ensuing correspondence, it was requested that the proposed PROJECT be amended. Unfortunately, due to the COVID-19 pandemic all ongoing leasing and development activities for the PROJECT were terminated April 2020. As the various COVID-19 State of Ohio public health orders have recently begun to be lifted, the ENTERPRISE has recommenced construction activities. However, due to the shortage of construction laborers and necessary building materials the ENTERPRISE will not have a building constructed upon the PROJECT SITE until 2023. Therefore, the ENTERPRISE is requesting that the AGREEMENT be amended to revise the construction window for the PROJECT to be completed and to revise the a...

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