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File #: 2423-2021    Version: 1
Type: Ordinance Status: Passed
File created: 9/16/2021 In control: Economic Development Committee
On agenda: 10/11/2021 Final action: 10/13/2021
Title: To authorize the Director of the Department of Development to amend the Enterprise Zone Agreement for a second time for Assignment & Assumption with HCP 1860 Walcutt Road, LLC, to remove HCP 1860 Walcutt Road, LLC as ENTERPRISE and party to the AGREEMENT and to be replaced with Lex 1860 Walcutt LLC as ENTERPRISE and party to the AGREEMENT; and to declare an emergency.
Explanation
BACKGROUND: Columbus City Council (COUNCIL), by Ordinance No. 1205-2018, passed May 14, 2018, authorized the City of Columbus (CITY) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Columbus Industrial Owner I, LLC (hereinafter “ENTERPRISE”) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of the company’s investment of approximately $15 million in real property improvements and the creation of five (5) net new full-time permanent positions with a total payroll of approximately $156,000. The project involved the construction of an approximately 280,000 square foot speculative industrial warehouse on the east side of Walcutt Road, north of Trabue Road on Parcel Number 560-184817 (“PROJECT SITE”) located within the Hilliard City School District and the Tolles Career & Technical Center and within the Columbus Enterprise Zone, (hereinafter referred to as the “PROJECT”). The AGREEMENT was made and entered into effective August 13, 2018.

The AGREEMENT was subsequently authorized by COUNCIL, by Ordinance No. 1257-2019, passed May 13, 2019, to be Amended for the first time for Assignment & Assumption to (i) assign the AGREEMENT to HCP 1860 Walcutt Road, LLC, whereby HCP 1860 Walcutt Road, LLC assumed the terms of the AGREEMENT; and (ii) redefined the Project Site as the 20.118 acre parcel split from the original parcel, transferred to HCP 1860 Walcutt Road, LLC and identified as parcel number 560-298454. The First Amendment was made and entered into effective August 9, 2019.

In a letter received by the CITY on behalf of the ENTERPRISE dated August 23, 2021 and through ensuing correspondence, it was confirmed that Lex 1860 Walcutt LLC had acquired ownership of the PROJECT SITE from HCP 1860 Walcutt Road, LLC on August 16, 2021, and the transfer of ownership is in the process of being recorded by the County Auditor. Due diligence has been undertaken by the CITY in that Lex 1860 Walcutt L...

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