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File #: ORD-0020-2024    Version: Name:
Type: Ordinance Status: Passed
File created: 3/7/2024 In control: City Council
On agenda: Final action: 4/1/2024
Title: AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A COMMUNITY REINVESTMENT AREA INCENTIVE AGREEMENT WITH BURNS AND SCALO TO FACILITATE RELOCATION OF ITS CORPORATE HEADQUARTERS TO A NEW FACILITY ON TECH CENTER DRIVE, PART OF COMMUNITY REINVESTMENT AREA #3
Attachments: 1. DEV-RPT 03-06-2024, 2. DEV-ATT Exhibit A, Burns and Scalo CRA Application, 3. DEV-ATT Burns and Scalo Site Map, 4. DEV-ATT Burns and Scalo Project Estimates, 5. Burns and Scalo slide 3.11.2024, 6. DEV-ATT Burns & Scalo CRA Agreement - Discussed in COTW 3.11.2024, 7. Burns and Scalo Project Estimates (002) - Revised 3.15.2024, 8. ORD-0020-2024 EXHIBIT A - Burns Scalo CRA Agreement - 3-13 edit PDT REV (003) as Introduced 3.18.2024, 9. Burns and Scalo Project Estimates - 50 percent for 12 years - Bowers Requested Comparison 3.25.2024, 10. Burns and Scalo Project Estimates - 80 percent abatement for 12 years - Bowers Requested Comparison 3.25.2024, 11. Abatement Letter to Gahanna - Received 3.27.2024, 12. Burns and Scalo Project Estimates - 50% for 12 years - Received 3.27.2024, 13. Burns and Scalo Project Estimates - 70% abatement for 12 years - Received 3.27.2024, 14. Burns and Scalo Project Estimates - 80% abatement for 12 years - Received 3.27.2024, 15. Copy of CRAs as of 2023 - Received 3.27.2024, 16. PROPOSED SUBSTITUTE EXHIBIT A - Clean edited copy Burns Scalo CRA Agreement - 3-28 PDT, 17. ORD-0020-2024 PROPOSED AMENDMENTS - Redline reflecting Substitute Exhibit A changes, 18. ORD-0020-2024 EXHIBIT A FINAL - CLEAN edited copy Burns Scalo CRA Agreement - 3-28 PDT AS AMENDED BY COUNCIL 4.1.2024, 19. ORD-0020-2024 EXHIBIT A FINAL - REDLINED edited copy Burns Scalo CRA Agreement - 3-28 PDT AS AMENDED BY COUNCIL 4.1.2024, 20. ORD-0020-2024 SIGNED - Authorizing CRA Incentive Agreement with Burns and Scalo for New Facility on Tech Center Drive, Part of CRA No 3
TITLE
AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A COMMUNITY REINVESTMENT AREA INCENTIVE AGREEMENT WITH BURNS AND SCALO TO FACILITATE RELOCATION OF ITS CORPORATE HEADQUARTERS TO A NEW FACILITY ON TECH CENTER DRIVE, PART OF COMMUNITY REINVESTMENT AREA #3
BODY

WHEREAS, the Department of Economic Development requests that this Council authorize the Mayor to enter into a Community Reinvestment Area (CRA) Agreement with BSOH HQ LLC ("Burns and Scalo") to facilitate the planned relocation of its corporate headquarters presently located in Delaware, Ohio, to a new facility contemplated for development on an 8.48-acre parcel (025-013634) on Tech Center Drive, part of Community Reinvestment Area #3; and

WHEREAS, the Burns and Scalo company plans to invest approximately $8.7 million in the purchase and development of the above-referenced parcel to include construction of a 34,500 sq. ft. building comprising 10,000 sq. ft. of office space; and

WHEREAS, the Burns and Scalo company would, as a result of the approval of a 12-year, 70 percent tax abatement on the improvements, and subsequent relocation, bring 34 employees to the City, consisting of an anticipated $2.228 million in annual payroll and nearly $56,000 in annual payroll taxes; and

WHEREAS, the Burns and Scalo company expects to grow to 52 employees within the first six years after relocation to Gahanna, generating an anticipated $85,000 or more in annual income taxes; and

WHEREAS, the incentive is anticipated to result in an estimated net of $514,682 in new payroll taxes to the City over 12 years, and with the increase in land taxes and new building taxes, the City would receive about $18,400 in revenues over the 12 years, as compared to about $7,972 that would be collected on only land taxes over the same period.

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 authorized to execute a Community Reinvestment Area Agreeme...

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