Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with lululemon usa, inc. The Ohio Enterprise Zone law O.R.C. Section 5709.62(C) requires the City to enter into a Council-approved agreement between the City and participating companies.
lululemon usa, inc. (“lululemon”), headquartered in Sumner, WA, is a subsidiary of lululemon athletica, inc. and makes and distributes technical athletic wear including tops, clothes for yoga, shorts, sweaters, jackets, running and work-out apparel, etc. The company has operated a regional hub and distribution center from Columbus since 2014, and plans to expand with the following major updates: 1) existing employee restroom and breakroom expansion and renovations within the existing building footprint 2) expand existing parking lots onsite to support current and future staffing levels 3) expansion of the existing building to add 176,000 sq. ft. including additional employee spaces such as prayer rooms, meditation rooms, mother's rooms, training spaces and open office areas, and 4) new outdoor covered basketball court for warehouse employees and the addition of two outdoor patio breakroom spaces for staff.
lululemon is proposing to invest a total project cost of approximately $27,700,000, which includes $4,500,000 in machinery and equipment, $1,200,000 in furniture and fixtures, and $22,000,000 in real property improvements to renovate approximately 15,000 sq. ft. of existing space and construct approximately 176,000 sq. ft. of new industrial and office space at 2200 Spiegel Drive, Columbus, Ohio 43125, parcel number 495-233211 (the “Project Site”). The company anticipates that the development of the proposed project will lead to the retention of 209 employees with an approximate annual payroll of $9,650,042 and the creation of 199 net new full-time permanent positions with an estimated annual payroll of approximately $7,036,640 at the proposed Project Site.
The Department of Development recomme...
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