Columbus City Council approves tax breaks for new Coca-Cola Consolidated facility, others
Besides a major funding deal for the North Market expansion and the adjacent Merchant Building development, Columbus City Council on Monday approved major tax abatements for Coca-Cola Consolidated and other businesses as well as a zoning variance for a private-equity housing developer.
The council also voted to dissolve previous tax incentives for several firms that failed to meet the terms of their agreements.
“The legislation being voted on tonight show our investment strategies in action, from the creation and retention of hundreds of well-paying jobs, to investment in our local schools,” said Michael Stevens, director of the city’s Department of Development. “All of these tools work together to thoughtfully promote investment, foster equitable growth and create opportunity for Columbus residents.”
But several members of the public voiced concerns about new projects during the meeting.
Joe Motil, who is running against Mayor Andrew Ginther in the November general election, said that tax abatements come at the cost of neighborhoods.
“The increase of crime and violence in Columbus is a direct result of the city's ongoing defunding of public education through tax abatements,” he said. “Nonprofit social service agencies who rely heavily on property tax revenue have stated recently that they will not have sufficient revenue to support their programs this year.“
New tax abatements for Coca-Cola, others
The council voted to approve a 10-year, 75% tax abatement for Coca-Cola Consolidated, the largest Coca-Cola bottler in the United States, for an expansion of its facilities near Rickenbacker International Airport. The planned new 400,000-square-foot distribution and warehouse facility, anticipated to open in spring 2025, will be part of the Rickenbacker Industrial Center located on Rohr Road, a 230-acre master planned industrial development by Trident Capital Group and O’Connor Capital Partners.
The company’s expansion is expected to create just 12 new full-time positions, but Council member Nick Bankston, who chairs the council's economic development committee, said the tax abatement was necessary to preserve 329 existing full-time jobs after the company had threatened to move its operations outside Columbus.
“This particular company … worked with us, and we were able to retain 329 good-paying jobs here in this community,” Bankston said.
Coca-Cola Consolidated said in an announcement Tuesday that it will spend nearly $100 million (the city information said $82 million) to create the new three-function facility that includes warehouse and distribution, equipment services, and fleet shop for its transportation subsidiary, Red Classic Transit.
Headquartered in Charlotte, North Carolina, Coca-Cola Consolidated bottles, sells and distributes beverages of the Coca-Cola Company and other partner companies in more than 300 brands and flavors across 14 states in the Midwest, Southeast, Mid-Atlantic and the District of Columbia to approximately 60 million consumers.
"We are excited to continue our journey of growth in the Buckeye state,” Sam Meiner, Coca-Cola Consolidated’s Market Unit vice president and general manager in Ohio, said in a release posted on the company's website. “This investment in our distribution capabilities is a long-term commitment to improving how we serve the world’s best brands and flavors to our communities.”
The city also approved a 10-year, 75% tax abatement for Trident Broad Development, LLC on a $21.8 million investment that is expected to create 25 new full-time positions. The Boston-based company is building an industrial facility at 260 Taylor Station Road, on Columbus’ Far East Side.
Another 10-year, 75% tax abatement went to BGO Charter Street Storage Owner LLC, for a $45.7 million investment to create an industrial cold storage facility at 2865 Charter Street on the city’s Far West Side. It is expected to create 22 new full-time jobs.
Old incentives canceled
City Council on Monday also voted to dissolve tax incentives for companies that failed to meet the terms of their agreements, including job creation.
ORIX Real Estate Capital Holdings, LLC lost a cash incentive equal to 50% of its income tax withheld on payroll after it said the expansion and growth previously planned in Columbus would not occur as it has relocated its headquarters to New York.
McDaniels Construction Corporation lost an Enterprise Zone Tax Abatement for a $1 million investment at 1069 Woodland Avenue on the Near East Side after the city found that it failed to create two new jobs, as previously agreed upon.
Likewise, the council voted to dissolve a cash incentive for Xariable, Inc. dba Loop Returns, which had previously committed to retain 14 full-time positions and create 40 new, permanent full-time positions at a new facility at 797 North Wall St. on the city’s North Side.
University District housing developer gets rezoning approval
The council voted 6-1 to rezone 1.7 acres at 50 W. Lane Ave. in the University District to allow the development of a student housing project by American Campus Communities, which is a subsidiary of the private equity firm Blackstone.
Only council member Lourdes Barroso de Padilla voted against the rezoning, which had been previously rejected by the University Area Commission but approved by the University Impact District Review Board.
Several members of the public cited Blackstone’s record of evictions as a reason to oppose the project.
Another community member, Xenia Palus, told The Dispatch that she opposed the project because it will cut down numerous trees and because she believes it will cause parking and traffic congestion problems.
Revenue sharing
As part of an income tax revenue sharing agreement, the council approved sharing of $4.2 million with Columbus City Schools and other local school districts. The breakdown is as follows:
$3,125,794.26 to the Columbus City School District
$710,645.50 to the Hilliard City School District
$252,096.70 to the Olentangy Local School District
$103,699.61 to the South-Western City School District
$23,239.10 to the Worthington City School District.
$92,937.76 to Gahanna-Jefferson Schools.
The money comes from projects that received city tax abatements and generated new employee payroll of more than $1 million. In these cases, the city shares half the municipal income tax revenue from the new employee payroll at the project site with the local school district in which it is located.
In other action Monday, the council:
Agreed to spend $840,000 for the second year of a three-year agreement with SoundThinking Inc., formerly known as ShotSpotter, Inc. to continue the use of its gunfire detection, alert, and analysis system in various parts of the city.
Approved paid leave for city employees to work as poll workers during the August 8 special election and the November general election.
Conducted a first reading on new legislation intended to protect tenants from eviction. The legislation, which will likely be voted on during the next meeting, will require landlords to halt evictions for nonpayment of rent when tenants, or those acting on their behalf, provide the rent and court costs.
Conducted a first reading of legislation to annex nearly 100 acres in Madison Township. The company, Bachman Farm Ltd. of Canal Winchester, is seeking rezoning of more than 90 acres of agricultural land inn two separate locations for residential development.
Peter Gill covers immigration, new American communities and religion for The Dispatch in partnership with Report for America. You can support work like his with a tax-deductible donation to Report for America at:bit.ly/3fNsGaZ.
pgill@dispatch.com
This article originally appeared on The Columbus Dispatch: Council gives major tax benefits to Coca-Cola Consolidated, others
