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File #: 0522-2023    Version: 1
Type: Ordinance Status: Passed
File created: 2/8/2023 In control: Economic Development Committee
On agenda: 2/27/2023 Final action: 3/1/2023
Title: To authorize the Director of the Department of Development to enter into a FIRST AMENDMENT with Shook Road Storage, LLC, to remove Shook Road Storage, LLC as the ENTERPRISE and party to the ENTERPRISE ZONE AGREEMENT and replaced with ARIS Shook Road, LLC as the ENTERPRISE and party to the AGREEMENT and to declare an emergency ($0.00).
Explanation

BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 1562-2021, passed July 19, 2021, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with Shook Road Storage, LLC (“ENTERPRISE”), for a real property tax abatement of seventy-five percent (75%) for a period of ten (10) consecutive years in consideration of a proposed total capital investment of approximately $20,904,201.00 in real property improvements and the creation of 10 net new full-time permanent positions with an associated annual payroll of approximately $312,000.00 related to the construction of a new approximately 165,000 square-foot speculative cold storage warehouse facility (the “PROJECT”) at B Miller Street, Columbus, Ohio 43217, parcel number 512-299843 within the City of Columbus and within the City of Columbus Enterprise Zone (the “PROJECT SITE”). The AGREEMENT was made and entered into effective August 30, 2021 with the PROJECT expected to begin approximately September 2021, with all real property improvements expected to be completed by August 2022 and with the abatement to commence no later than 2023 nor extend beyond 2032 (Agreement No. 023-21-10).

Paragraph fourteen within Section 7 (Program Compliance) of the AGREEMENT states that the “AGREEMENT is not transferable or assignable without the express, written, approval of the CITY” and paragraph fifteen of that same section states that “any requested amendment…to any of the terms of the AGREEMENT…shall require the payment to the CITY by the ENTERPRISE of an AMENDMENT FEE in the amount of five-hundred dollars ($500.00).”

In a letter received by the CITY on behalf of the ENTERPRISE dated January 24, 2023, and through ensuing correspondence, it was confirmed that ARIS Shook Road, LLC has acquired ownership of the PROJECT SITE from Shook Road Storage, LLC with the transfer having been recorded at the County Auditor’s Office on January 27, 2023. Due diligence has been ...

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