Explanation
BACKGROUND: The need exists to amend the City of Columbus Jobs Growth Incentive Agreement (“AGREEMENT”) between the City of Columbus (“CITY”) and Hollingsworth Logistics Group, LLC dba Hollingsworth, LLC and Hollingsworth Management Services, LLC (collectively and hereinafter referred to as “GRANTEE”). Columbus City Council (“COUNCIL”), by Ordinance No. 2751-2021, passed on November 15, 2021, 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 $850,000 in machinery and equipment to expand its operations at 2450 Spiegel Drive, Groveport, Ohio 43215, parcel number 495-249651 (the “PROJECT SITE”). Additionally, the GRANTEE committed to retain sixteen (16) full-time positions with an estimated payroll of approximately $700,000 and create ninety-five (95) net new full-time permanent positions with an estimated annual payroll of approximately $3,302,140 at the proposed PROJECT SITE. The AGREEMENT was made and entered into effective March 29, 2022.
In a letter received by the CITY from the GRANTEE dated June 2, 2023, and through additional correspondence, the GRANTEE confirmed that Crown Staffing Solutions, LLC, 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 Crown Staffing Solutions, LLC dated June 9, 2023, it was validated that the company will serve as the GRANTEE’s employer of record. As a result, the GRANTEE is requesting the AGREEMENT be amended to add the company’s third party employer Crown Staffing Solutions, LLC as an additional GRANTEE to the AGREEMENT.
This legislation is to authorize the Director of the Department of Development to amend the AGREEMENT for the first time to add Crown Staffing Solutions, LLC as an additional GRANTEE to the AGREEMENT.
This legislation is presented as 30-day legislation.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the City of Columbus Jobs Growth Incentive Agreement with Hollingsworth Logistics Group, LLC dba Hollingsworth, LLC and Hollingsworth Management Services, LLC for the purpose of adding Crown Staffing Solutions, LLC as an additional GRANTEE to the AGREEMENT. ($0.00)
Body
WHEREAS, the City of Columbus (“CITY”) entered into a Jobs Growth Incentive Agreement (“AGREEMENT”) with Hollingsworth Logistics Group, LLC dba Hollingsworth, LLC and Hollingsworth Management Services, LLC (“GRANTEE”) and was approved by Columbus City Council (“COUNCIL”) on November 15, 2021, by Ordinance Number 2751-2021 with this AGREEMENT having been made and entered into effective March 29, 2022; and
WHEREAS, the AGREEMENT granted a financial incentive based on an amount 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) consecutive years; and
WHEREAS, the GRANTEE committed to invest a total project investment of approximately $850,000 in machinery and equipment to expand its current operations at 2450 Spiegel Drive, Groveport, Ohio 43215, parcel number 495-249651 (the “PROJECT SITE”); and
WHEREAS, the GRANTEE committed to the retention of sixteen (16) full-time positions with an estimated payroll of approximately $700,000 and the creation ninety-five (95) net new full-time permanent positions with an estimated annual payroll of approximately $3,302,140 at the PROJECT SITE; and
WHEREAS, in a letter received by the CITY from the GRANTEE dated June 2, 2023, and through additional correspondence, the GRANTEE confirmed that Crown Staffing Solutions, LLC, 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 Crown Staffing Solutions, LLC dated June 9, 2023, it was validated that the company will serve as the GRANTEE’s employer of record; and
WHEREAS, as a result of the employees being employed by the proposed PEO, the GRANTEE requests the AGREEMENT be amended to add the company’s third party employer Crown Staffing Solutions, LLC as an additional GRANTEE to the AGREEMENT, and
WHEREAS, a First Amendment to the AGREEMENT is now needed for the purposes of adding Crown Staffing Solutions, LLC as an additional GRANTEE to the AGREEMENT; and
WHEREAS, it has become necessary in the usual daily operations of the Department of Development that the City of Columbus desires to facilitate the future growth of the GRANTEE at the Project Site and capture all net new employees as required by the annual reporting; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development is authorized to amend the City of Columbus Jobs Growth Incentive Agreement with Hollingsworth Logistics Group, LLC dba Hollingsworth, LLC and Hollingsworth Management Services, LLC to add Crown Staffing Solutions, LLC (a Professional Employer Organization) as an additional Grantee and third party employer to the AGREEMENT.
SECTION 2. That the remaining terms of the Jobs Growth Incentive Agreement remain in full effect relative to the Ordinance.
SECTION 3. That the First Amendment to the City of Columbus Jobs Growth Incentive Agreement be signed by Hollingsworth Logistics Group, LLC dba Hollingsworth, LLC, Hollingsworth Management Services, LLC and Crown Staffing Solutions, LLC within ninety (90) days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.