Explanation
BACKGROUND: The City of Columbus entered into a Job Creation Tax Credit Agreement (hereinafter "Agreement") with Clear Saleing, Inc. effective August 27, 2009. Columbus City Council approved the Agreement by Ordinance 0583-2009, passed May 4, 2009 and granted a non-refundable tax credit allowed against the tax imposed under Article 9, Chapter 361 of the Columbus City Codes (the "City Tax Credit") of sixty-five percent (65%) of the new income tax revenue received by the City for a taxable year from new employees, as that term was defined in Section 4 of the Agreement, commencing January 1, 2009 and for eight (8) consecutive years thereafter based on the investment of $640,600 in capitalized software development costs within the geographical boundaries of the City, the retention of 14 employees, and the creation of 60 new permanent full-time positions.
Annual Reporting documents for Report Year 2009 were sent to Clear Saleing, Inc. on April 26, 2010. On April 28, 2010 an email from Clear Saleing, Inc. was received by the city indicated that "they had withdrawn from the program and should be noted as such." A reply email was sent to Clear Saleing, Inc. that same day indicating that steps would be undertaken to dissolve the Agreement and that they would be notified at that time. This legislation is to dissolve the Agreement between the City of Columbus and Clear Saleing, Inc.
This legislation is presented as an emergency measure so that the dissolution of the Agreement can be reported to the necessary local and state agencies in an expedient manner.
FISCAL IMPACT: No funding is required for this legislation.
Title
To dissolve the Job Creation Tax Credit Agreement between the City of Columbus and Clear Saleing, Inc.; to direct the Director of the Department of Development to notify as necessary the local and state tax authorities; and to declare an emergency.
Body
WHEREAS, Columbus City Council approved a Job Creation Tax Cr...
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