Explanation
BACKGROUND: Columbus City Council (“COUNCIL”), by Ordinance No. 0154-2021, passed February 22, 2021, authorized the City of Columbus (“CITY”) to enter into an Enterprise Zone Agreement (the “AGREEMENT”) with T. Marzetti Company (“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 expenditure of approximately $18,000,000, which included $5.4 million in real property improvements, $2.6 million in improvements, and $10 million in machinery and equipment to expand its current manufacturing facility. Additionally, the ENTERPRISE committed to create twenty (20) net new full-time permanent positions with an annual payroll of approximately $900,000 and retain one-hundred four (104) full-time jobs with an annual payroll of approximately $5,742,374 (the “PROJECT”) at 1709 Frank Road, Columbus, Ohio 43223, parcel number 570-126842 within the City of Columbus and within the City of Columbus Enterprise Zone (the “PROJECT SITE”). The AGREEMENT was made and entered into effective April 22, 2021 with the PROJECT expected to begin approximately spring 2021, with all real property improvements expected to be completed by October 2022 and with the abatement to commence no later than 2022 nor extend beyond 2031 (Agreement No. 023-21-11).
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 25, 2023, and through ensuing correspondence, it was confirmed that Marzetti Manufacturing Company has acquired ownership o...
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