Explanation
BACKGROUND: The City of Columbus (“CITY”) entered into a Jobs Growth Incentive Agreement (hereinafter “AGREEMENT”) with SK Food Group, Inc. (also referred to as the “GRANTEE”) effective March 29, 2022. Columbus City Council approved the AGREEMENT by Ordinance Number 2751-2021, adopted November 15, 2021, and granted a dual-rate financial incentive based on an amount equal to (i) thirty percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of New Employees at the Project Site and (ii) thirty-five percent (35%) of the City of Columbus income tax withheld on the Columbus payroll of those New Employees at the Project site who are also City of Columbus residents at the end of each calendar year, commencing on January 1, 2022 for five (5) consecutive years thereafter (i.e. January 1, 2022 through December 31, 2026) based on the investment of approximately $18,000,000.00 comprised of approximately $10,000,000.00 in leasehold improvements, $8,000,000.00 in machinery and equipment and entering into a long-term lease agreement to establish new operations (the “PROJECT”) at a vacant industrial warehouse consisting of approximately 144,000 square feet at 2955-3035 Charter Street, Columbus, Ohio 43228 (the “PROJECT SITE”) and create 305 net new full-time permanent positions with projected cumulative annual payroll at the end of the five (5) year term of approximately $13,341,917.00.
Based on correspondence between the CITY and the GRANTEE, the GRANTEE has advised the CITY of having issues with the owner of the PROJECT SITE which have delayed the start of the PROJECT. Additionally, the GRANTEE has also advised the CITY of their intent to expand the scope of the PROJECT to include an additional location at which to establish additional operations by entering into a long term lease at 2099 Wright Brothers Avenue, Columbus, Ohio 43217 which they project will result in an additional 35 net new employees, an additional projected $1,745,000....
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