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AN ORDINANCE AUTHORIZING THE MAYOR TO ENTER INTO A COMMUNITY REINVESTMENT AREA AGREEMENT WITH EASTGATE FLEX LLC FOR THE CONSTRUCTION OF FLEX COMMERCIAL OFFICE/INDUSTRIAL SPACE ON PARCEL NO. 025-006522-00, PART OF COMMUNITY REINVESTMENT AREA NO. 1.
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WHEREAS, Eastgate Flex LLC, a venture of LTK Realty LLC, proposes the construction of approximately 36,000 square feet of flex office/industrial space on Parcel No. 025-006522-00 on Eastgate Parkway (the “Project”); and
WHEREAS, the Project consists of three identical buildings designed to create a cohesive campus environment, with each building containing up to eight tenant spaces of approximately 1,500 square feet; and
WHEREAS, the proposed development will provide flexible, modular spaces suitable for small-scale office, retail, service, industrial, and similar uses, providing opportunities for entrepreneurs to establish businesses and for existing businesses to expand within the City of Gahanna; and
WHEREAS, the Project is consistent with the City's Economic Development Strategy and addresses demonstrated local market demand for flexible commercial and industrial space within the community; and
WHEREAS, the applicant has committed to creating and maintaining a minimum of fifteen (15) new jobs in Gahanna with a minimum annual payroll of Seven Hundred Fifty-Six Thousand Six Hundred Dollars ($756,600), to be achieved within three (3) years after verification of completion of construction, with such employment and payroll measured in the aggregate for the Company and all tenants at the Project Site; and
WHEREAS, the applicant has committed to making improvements to the Project Site totaling not less than Three Million Six Hundred Twelve Thousand Dollars ($3,612,000) in construction costs; and
WHEREAS, the Department of Economic Development evaluated the application using the City's standard tax incentive evaluation criteria and determined that the Project will generate an estimated economic output of approximately Two Hundred Twenty-Eight Thousand Five Hundred Forty-Five Dollars ($228,545) per acre, produce a net fiscal benefit of approximately Five Hundred Forty Thousand Dollars ($540,000) during the tax exemption period, and recover the value of the incentive in approximately 9.9 years; and
WHEREAS, although the property is located within Community Reinvestment Area No. 1, which permits tax exemptions of up to one hundred percent (100%) for fifteen (15) years, the applicant has requested, and the Administration recommends, a tax exemption of seventy-five percent (75%) for a period of ten (10) years; and
WHEREAS, the requested tax exemption is intended to support the economic viability of the Project and maintain market affordability for tenant leases; and
WHEREAS, the Administration has determined that the proposed Community Reinvestment Area Agreement will further the City's economic development objectives and provide a public benefit through investment, employment opportunities, business growth, and an expanded tax base.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF GAHANNA, COUNTY OF FRANKLIN, STATE OF OHIO:
Section 1. That the Mayor is hereby authorized to enter into a Community Reinvestment Area Agreement with Eastgate Flex LLC, in substantial accordance with the agreement attached hereto as EXHIBIT A and incorporated herein by reference, providing for a seventy-five percent (75%) real property tax exemption for a period of ten (10) years in connection with the construction of approximately 36,000 square feet of flex office/industrial space on Parcel No. 025-006522-00.
Section 2. That this Ordinance shall be in full force and effect after passage by this Council and thirty (30) days after signature of approval by the Mayor.