Explanation
BACKGROUND: The need exists to amend Ordinance 2474-2012, passed by Columbus City Council on December 3, 2012. The ordinance authorized the Director of the Department of Development to enter into a Jobs Growth Incentive Agreement of twenty-five percent (25%) for a period of five (5) years with Total Quality Logistics, LLC. Prior to signing the agreement, the company entered into a five (5)-year lease agreement instead of a seven (7)-year lease agreement as first proposed. By policy, the Jobs Growth Incentive (JGI) term is two (2) years less than the term of the signed lease agreement; therefore the term of the Jobs Growth Incentive Agreement needs to reflect a 3-year term to be in compliance with the program. An amendment is now required to change the incentive term from five (5) years to three (3) years.
This legislation is requested to be considered as an emergency in order to allow Total Quality Logistics, LLC to begin investing and creating jobs as quickly as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend Ordinance 2474-2012, passed by Columbus City Council on December 3, 2012, for the purpose of changing the term of the Jobs Growth Incentive Agreement with Total Quality Logistics, LLC from five (5) years to three (3) years; and to declare an emergency.
Body
WHEREAS, on December 3, 2012, Columbus City Council passed Ordinance 2474-2012 for a five (5) year, twenty five percent (25%) Jobs Growth Incentive Agreement with Total Quality Logistics, LLC, in connection with the project; and
WHEREAS, in consideration of Total Quality Logistics, LLC's proposed investment of $125,000, the creation of 40 new full-time permanent positions and the retention of 40 existing jobs; and
WHEREAS, prior to signing the Jobs Growth Incentive Agreement, the company entered into a five (5)-year lease agreement instead of a seven (7)-year lease agreement as first proposed. By policy, the Jobs Growth Incentive term is two (2) years less than the term of the signed lease agreement; therefore, the change in term is necessary to be in compliance with the program; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to amend Ordinance 2474-2012 to change the Jobs Growth Incentive Agreement term from five (5) years to three (3) years to allow Total Quality Logistics, LLC 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 2474-2012 is hereby amended to authorize the Director of the Department of Development to enter into a Jobs Growth Incentive Agreement with Total Quality Logistics, LLC equal to twenty-five percent (25%) of the amount of new income tax withheld on new employees for a term of three (3) years.
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 Jobs Growth Incentive Agreement is signed by Total Quality Logistics, LLC 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.