Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with Wilson Twin Creek Partners 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.
Wilson Twin Creek Partners LLC is a partnership that is comprised of members of Tenby Partners who will serve as the sponsor entity that invests directly in and oversees the development of the project. Tenby Partners, established in 2005, is one of the larger local real estate development firms in the Columbus region. Over the past decade, Tenby Partners has successfully completed over 500 major projects nationwide. Wilson Twin Creek Partners LLC will be the owner of the project.
The project represents a massive private investment in an area of the City lacking in Class A flex office space. Office flex buildings are often desired by companies doing research and development in the technology and biotechnology industries. This development is specifically designed to meet needs of smaller businesses with a higher-end Office, R&D, Lab & Showroom Tenancy.
Wilson Twin Creek Partners LLC proposes to invest a total project cost of approximately $9,600,000 in real property improvements to construct two separate 41,400 square-foot proactive Class A flex office buildings for a total of 82,800 square-feet at 1330 N. Wilson Road, Columbus, Ohio 43204, parcel number 145-286330 and 3590 Twin Creeks Drive Columbus, Ohio 43204, parcel number 560-125544 (collectively, and hereinafter referred to as the “Project Site”). The company anticipates that the development of the proposed project will lead to the relocation of an unknown number of positions from within the City of Columbus or surrounding communities, and the creation 15 net new full-time permanent positions with an estimated annual payroll of approximately $600,000 at the proposed Project Site.
The Department of Development recommends 75%/10-year Enterprise Zone tax abatement on real property improvements.
The Hilliard City School District and Tolles Career & Technical Center has been advised of this project.
FISCAL IMPACT:
No funding is required for this legislation
Title
To authorize the Director of the Department of Development to enter into an Enterprise Zone Agreement with Wilson Twin Creek Partners LLC for a tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of the company’s proposed capital investment of $9,600,000.00 in real property improvements and the creation of 15 net new full-time permanent positions with an estimated annual payroll of approximately $600,000.00.
Body
WHEREAS, the Columbus City Council authorized the designation of the Central Enterprise Zone by legislation, Ordinance Number 779-85, dated April 22, 1985; and subsequently amended the Zone by Ordinance Nos. 2722-85 in 1986; 2080-89 in 1989; 1949-92, 2690-92 and 2249-92 in 1992; 1079-94 and 1228-94 in 1994; 2196-95 and 2817-95 in 1995; 0533-99 in 1999; 1785-00 in 2000; 1464-02 in 2002; 0225-03 in 2003; 0032-2012 in 2012; 1442-2020 in 2020 and 0279-2021 in 2021; and
WHEREAS, the Director of the Development Department of the State of Ohio determined that the Columbus Enterprise Zone as amended by the aforementioned Ordinances continued to contain the characteristics set forth in Section 5709.61(A) of the Ohio Revised and recertified said Zone in 1986, December 20, 1989, September 28, 1992, October 22, 1992, December 17, 1992, May 31, 1994, June 24, 1994, June 16, 1995, October 5, 1995, December 19, 1995, April 1, 1999, September 25, 2000, January 27, 2003, August 19, 2003, April 3, 2012, September 18, 2020 and most recently May 20, 2021 as an “urban jobs and enterprise zone” under Chapter 5709 of the Ohio Revised Code; and
WHEREAS, Wilson Twin Creek Partners LLC is a partnership that is comprised of members of Tenby Partners who will serve as the sponsor entity that invests directly in and oversees the development of the project. Tenby Partners, established in 2005, is one of the larger local real estate development firms in the Columbus region. Over the past decade, Tenby Partners has successfully completed over 500 major projects nationwide. Wilson Twin Creek Partners LLC will be the owner of the project; and
WHEREAS, the project represents a massive private investment in an area of the City lacking in Class A flex office space. Office flex buildings are often desired by companies doing research and development in the technology and biotechnology industries. This development is specifically designed to meet needs of smaller businesses with a higher-end Office, R&D, Lab & Showroom Tenancy; and
WHEREAS, Wilson Twin Creek Partners LLC proposes to invest a total project cost of approximately $9,600,000 in real property improvements to construct two separate 41,400 square-foot proactive Class A flex office buildings for a total of 82,800 square-feet at 1330 N. Wilson Road, Columbus, Ohio 43204, parcel number 145-286330 and 3590 Twin Creeks Drive Columbus, Ohio 43204, parcel number 560-125544 (collectively, and hereinafter referred to as the “Project Site”).
WHEREAS, the company anticipates that the development of the proposed project will lead to the relocation of an unknown number of positions from within the City of Columbus or surrounding communities, and the creation 15 net new full-time permanent positions with an estimated annual payroll of approximately $600,000 at the proposed Project Site; and
WHEREAS, the City is encouraging this project because of plans to construct a speculative Class A office flex facilities in the central city; and
WHEREAS, the City desires to enter in to such a binding formal agreement in order to foster economic growth for the preservation of public health, peace, property and safety; and NOW, THEREFORE:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That City hereby finds and determines that the project will (1) create jobs in the State and City (2) the project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) receiving the aforementioned tax abatement is a critical factor in the decision by representatives for Wilson Twin Creek Partners LLC to go forward with the project.
Section 2. That the Director of the Department of Development is hereby authorized and directed to enter into an Enterprise Zone Agreement with Wilson Twin Creek Partners LLC to provide therewith an exemption of seventy-five percent (75%) on real property improvements for a term of ten (10) consecutive taxable years in association with the project’s proposed total investment of approximately $9,600,000 in real property improvements at 1330 N. Wilson Road, Columbus, Ohio 43204, parcel number 145-286330 and 3590 Twin Creeks Drive Columbus, Ohio 43204 parcel number 560-125544, and the creation of 15 net new full-time permanent positions with an estimated annual payroll of approximately $600,000.
Section 3. That the City of Columbus Enterprise Zone Agreement is signed by Wilson Twin Creek Partners LLC within ninety (90) days of passage of this ordinance, or this ordinance and the abatements and credit authorized herein are null and void.
Section 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.