Explanation
BACKGROUND:
The City of Columbus currently has an excessive amount of vacant office space in our downtown market. This high vacancy rate is having a negative impact on all business activity downtown and throughout the city. Interpath Communication-Ohio, Inc. is currently exploring sites for expansion. They are currently located at 180 E Broad Street. They anticipate creating an estimated 15 new positions by 2008. This new job creation is estimated to generate $1.5 million of payroll and $30,000 annually in City income tax revenue. The City has proposed a Columbus Downtown Office Incentive (CDOI) for a term of five (5) years. Based on the above estimates, the Interpath incentive will be an amount equal to 50% of the payroll taxes paid each year, or an estimated $15,000 each year for five (5) years. The Downtown Development Office recommends granting the Columbus Downtown Office Incentive Program to Interpath Communication-Ohio, Inc.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Columbus Downtown Office Incentive Program agreement with Interpath Communication-Ohio, Inc.
Body
WHEREAS, the City desires to increase employment opportunities and encourage establishment of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, Resolution 0088-2007, adopted June 4, 2007, authorized the Department of Development to establish the Columbus Downtown Office Incentive Program; and
WHEREAS, the Department of Development has received a completed application for the Columbus Downtown Office Incentive Program from Interpath Communication-Ohio, Inc.; and
WHEREAS, Interpath Communication-Ohio, Inc. estimates they will create 15 new positions at 180 East Broad Street. with a projected payroll of $1.5 million generating estimated City of Columbus income tax revenue of $30,000 annually; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development is hereby authorized to enter a Columbus Downtown Office Incentive Program agreement with Interpath Communication-Ohio, Inc. pursuant to Columbus City Council Resolution 0088-2007, adopted June 4, 2007, for an annual cash payment equal to 50% of the total income tax withholding for the new positions located in downtown Columbus for a term of five (5) years.
Section 2. This employment at Interpath Communication-Ohio, Inc. is the result of creating 15 new positions at the Downtown site as defined in Columbus City Code Title 33 Section 3359.03 downtown district boundary.
Section 3. As provided in the program guidelines the proposed 10-year lease at 180 East Broad Street qualifies Interpath Communication-Ohio, Inc. for a five (5) year incentive term. The term beginning in calendar year 2007, with the incentive payment made in the first quarter of the following year based on actual City of Columbus income tax withholding paid by eligible employees for the preceding year.
Section 4. Each year of the term of the agreement with Interpath Communication-Ohio, Inc. that a payment is due, the City's obligation to pay the incentive is expressly contingent upon the passing of an ordinance appropriating and authorizing the expenditure of monies sufficient to make such payment and the certification of the City Auditor pursuant to Section 159 of the Columbus City
Section 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.