Explanation
BACKGROUND: Columbus City Council (COUNCIL), by Ordinance No. 0492-2020, passed March 16, 2020, authorized the City of Columbus (CITY) to enter into an Enterprise Zone Agreement (the AGREEMENT) with Upgrade Equity, LLC and Taggart Texas, LTD (ENTERPRISE) for a tax abatement of seventy-five percent (75%) for a period of ten (10) years in consideration of a proposed capital investment of $2,291,656 investment in real property improvements and the creation of twenty-seven (27) new full-time permanent positions with an estimated annual payroll of approximately $1,254,341 related to the renovation of an approximately 389,599 square foot existing warehouse and office facility at 711 Southwood Avenue on parcel number 010-113409 (the PROJECT SITE), in Columbus Ohio, within the Columbus City School District and within the City of Columbus Enterprise Zone. The AGREEMENT was made and entered into effective August 13, 2020 (EZA #023-20-05). The AGREEMENT stated that construction on the improvements (the PROJECT) was expected to begin March 2020 with all real property improvements expected to be completed by December 2021, and that no real property exemption was to commence after January 1, 2022 nor extend beyond December 31, 2031. Per the Franklin County Auditor as of February 2, 2022, a DTE-24 has been filed by the ENTERPRISE, the status of which is currently pending.
The CITY reported the status of the PROJECT to the 2021 Tax Incentive Review Council (the “TIRC”) on August 20, 2021, in that ENTERPRISE missed the reporting deadlines set by the City and by the Ohio Department of Development (i.e. the Ohio Revised Code). Following these missed deadlines but prior to the TIRC, the City sent a second set of reporting documents to the consultant for ENTERPRISE. At the time of the TIRC, ENTERPRISE had yet to submit their annual report. The recommendation of the TIRC was to continue the AGREEMENT, send ENTERPRISE a letter (the “TIRC LETTER”) requesting full repor...
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