Explanation
BACKGROUND: The need exists to amend and restate the City of Columbus Jobs Growth Incentive Agreement (“AGREEMENT”) between the City of Columbus (“CITY”) and Upstart Network, Inc. (“GRANTEE”). Columbus City Council (“COUNCIL”), by Ordinance No. 1187-2019, passed on May 13, 2019, authorized the Director of the Department of Development to enter into an AGREEMENT with the GRANTEE for an annual cash payment equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on the Columbus payroll of new employees and (ii) thirty percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of those employees who are also City of Columbus residents at the end of each calendar year, for a term up to five (5) years. The GRANTEE proposed a total project investment of approximately $1.4 million, which included $100,000 in technology, $200,000 in machinery and equipment, $100,000 in furniture and fixtures, and $1,000,000 in leasehold improvements to lease office space at 711 N. High Street, Columbus, Ohio 43215, parcel number 010-031749 and 886 N. High Street, Columbus, Ohio 43215, parcel number 010-007464 (collectively, and hereinafter referred to as the “PROJECT SITE”). Additionally, the GRANTEE committed to create 100 net new full-time permanent positions with an estimated annual payroll of approximately $10,750,000 at the proposed PROJECT SITE. The AGREEMENT was made and entered into effective March 4, 2020.
In a letter received by the CITY from the GRANTEE dated July 9, 2020, and through additional correspondence, the GRANTEE confirmed that TriNet Group, Inc., dba TriNet (“TriNet”), a third party employer recognized as a Professional Employer Organization (“PEO”), will be the employer of record for some of the new employees hired at the PROJECT SITE. Additionally, in a letter from TriNet, dated October 19, 2020 validated that the company will serve as the GRANTEE’s employer of record. Also, the GRANTEE planned to...
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