Explanation
BACKGROUND: The need exists to amend Ordinance Number 0795-2008. Columbus City Council approved the ordinance on May 12, 2008. The ordinance authorized the Director of the Department of Development to enter into a Job Creation Tax Credit Agreement of sixty-five percent (65%) for a period of eight (8) years and a Jobs Growth Incentive Agreement of twenty-five percent (25%) for a period of five (5) years with Express, LLC and Express Holding, LLC. An amendment is now required to add the following affiliates of Express as grantees in the Agreements: Express Topco, LLC and Express Parent, LLC. Henceforth, all four entities will collectively be referred to herein as "Express".
Express, founded in 1980, is one of the 10 largest specialty retailers in the United States. Headquartered in Columbus, Ohio, Express started as a subsidiary of Limited Brands, Inc., starting with one store in Chicago, Illinois known as the Limited Express. The company presently has 620 retail operations and over 20,000 associates nationally. In July 2007, the company was purchased by Golden Gate Capital, which is a private equity firm based in San Francisco, California. Today, although under new management, Express continues to operate under its original name and maintains its reputation as a premium brand through innovative designs, competitive prices and consistent quality.
In order to successfully segregate Express operations from Limited Brands Inc., the company developed a comprehensive transition strategy that incorporates establishing a corporate headquarters in Columbus, Ohio. The headquarters will occupy approximately 200,000 square feet of the 1.2 million square feet of space leased from Limited Brands.
Express is proposing to invest approximately $7.9 million to renovate and expand its corporate headquarters located at 1 Limited Parkway Columbus, Ohio. The company will retain 368 full-time permanent employees and create 120 new full-time permanent positions.
The State has approved a Jobs Creation Tax Credit of 60% for 8 years for Express.
Emergency action is requested in order to allow Express to begin investing and creating jobs as quickly as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend Ordinance 0795-2008, passed by Columbus City Council on May 12, 2008, for the purpose of including the specified Express affiliates as grantees to the Job Creation Tax Credit Agreement and the Jobs Growth Incentive Agreement; and to declare an emergency.
Body
WHEREAS, pursuant to Ohio Revised Code Section 122.17, the State of Ohio is authorized to establish the Tax Credit Authority and to execute agreements with taxpayers of the State of Ohio for the purpose of granting these taxpayers job creation tax credits against their corporate franchise tax or income tax, which tax credits are provided to create new jobs in the State of Ohio; and
WHEREAS, pursuant to Section 718.15 of the Ohio Revised Code (the "City Act") a municipal corporation is authorized to grant local income tax credits to taxpayers who have received tax credits from the State; and
WHEREAS, contingent on the City granting an amendment to ordinance 0795-2008, Express will expand its corporate headquarters located at 1 Limited Parkway Columbus, Ohio; and
WHEREAS, in connection with the Project, Express plan to make an investment equal to $7,900,000; and
WHEREAS, in connection with the Project, Express plan to hire approximately 120 new full-time employees and retain 368 employees at the project site; and
WHEREAS, on May 12, 2008, Columbus City Council passed Ordinance 0795-2008 approving an eight year, 65% Job Creation Tax Credit and a five year, 25% Jobs Growth Incentive for Express, LLC and Express Holding, LLC in connection with the project; and
WHEREAS, the Ohio Department of Development approved a 60%/8 year Jobs Creation Tax Credit on April 28th, 2008 for Express; and
WHEREAS, subsequent to approval by council, Express determined that several new employees would be hired by one of four Express affiliates, which include Express LLC, Express Holding LLC, Express Topco LLC and Express Parent LLC; and
WHEREAS, Express, LLC and Express Holding, LLC seek to have the specified Express affiliates added as grantees to the City Job Creation Tax Credit Agreement and the Jobs Growth Incentive Agreement ; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to seek an amendment from Columbus City Council for Ordinance 0795-2008 to include the specified Express affiliates in order to allow Express to begin investing and creating jobs as quickly as possible, thereby preserving the public health, peace, property and safety; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Ordinance 0795-2008 is hereby amended to add Express Topco, LLC, and Express Parent, LLC, to Express Holding, LLC and Express, LLC as grantees to the Job Creation Tax Credit and the Jobs Growth Incentive Agreements (collectively referred herein as "Express").
Section 2. That City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the City of Columbus Job Creation Tax Credit and the Jobs Growth Incentive Agreements are signed by Express and all its affiliates within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 4. That for reasons stated in the preamble hereto, which is hereby made a part hereof, the ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after the passage if the Mayor neither approves nor vetoes the same.