developer planned to fully lease the space by 2027, following a one-year
construction timeline. Mr. Gottke then detailed the projected impact of the
project. The total investment would reach approximately $20 million, including
land purchase and construction costs. The project guaranteed a minimum of
37 jobs, generating an estimated $466,770 in city income tax, with an average
salary on site of just under $56,000. Total workforce income would reach
$17.5 million, while regional gross domestic product (GDP) contribution would
amount to $18.5 million. Economic output across the 43230 zip code was
projected at $28.9 million, with $4.5 million generated in state, federal, and
local tax revenue. The schools would receive nearly $1.3 million through
income tax sharing, unabated tax value, and increased base tax. Mr. Gottke
added that the project would not result in any new students. He
recommended a 12-year abatement at 80%, noting that the company had not
requested nor been offered any other city-administered incentives. The CRA
was classified as Area 3, which allowed for negotiated abatements. He
explained that the developer cited high construction and land development
costs, including topography and drainage issues, as reasons the project
would not be financially feasible without the abatement. Without the
abatement, rental rates would exceed market rates, making the project
unviable. The abatement would help subsidize rents to market levels.
Director Gottke stated that the proposed abatement aligned with similar
speculative developments in both the city and neighboring communities. After
analyzing five comparable projects based on jobs, payroll, abatement rate,
location, and project impact, he determined that this proposal fell in the
middle. He highlighted the unique inclusion of guaranteed income tax
collections, explaining that the developer would guarantee the projected
income tax even if tenants did not meet the expected amounts, ensuring
consistent revenue for the city and schools over the life of the agreement. He
reiterated that the flexible industrial space was in high demand across the
Columbus region, particularly in Gahanna due to its location. The parcel was
available for sale for an extended period, and a company was now willing to
take on its development. He also noted the inclusion of an emergency clause
in the legislation, as the developer needed to close on the property sale by
July 14, 2025, and the seller would not grant an extension. He concluded by
summarizing that the project guaranteed income tax collections, offered a
highly desirable use that would lease quickly, and passed the "but for" test.
President Bowers thanked Mr. Gottke for his overview and clarification
regarding the guaranteed income tax collections. She referred to a 2019 CRA
agreement for a previous speculative project, which also projected a similar
number of jobs. That project failed to meet its job targets, resulting in a
reduction of its abatement. She requested additional clarification on how the
job performance number for the current proposal was determined, particularly
without identified end users. Director Gottke explained that the developer, who
was guaranteeing the job numbers, led the discussion. Industry standards for
jobs per square foot guided the projection, and even at the minimum of 37
jobs across 141,000 square feet, the figure remained within an acceptable
range.
President Bowers confirmed that the developer would guarantee income tax
collections for at least that minimum number of jobs, which Mr. Gottke