Explanation
BACKGROUND: The need exists to enter into a Job Creation Tax Credit Agreement with NBBJ LLC. The Ohio Tax Credit Legislation (Section 718.15 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter a Council-approved agreement between the City and a participating company.
Founded in 1943, NBBJ LLC is an architectural and design company that serves a range of firms and organizations that specialize in the design services of health care and corporate facilities. The company's clients include Reebok, Cleveland Clinic, Massachusetts General Hospital and Microsoft Corporation. NBBJ LLC maintains a staff of more than 750 professionals in Beijing, Boston, Columbus, Hong Kong, Kuwait City, London, Los Angeles, New York, Pune, San Francisco, Seattle and Shanghai. It serves clients in the civic, corporate, commercial, health care and transportation markets. The company offers consulting, branding, planning, and interior and landscape design solutions. NBBJ LLC provides services for Fortune 500 companies. The company is recognized as one of the largest architecture firms in New York by Puget Sound Business Journal and is ranked as the #1 architecture firm in Columbus by Business First.
NBBJ LLC is proposing to relocate and expand its Columbus operation by making an investment of approximately $2,000,000 in leasehold improvements, which includes $360,000 in furniture and fixtures, create approximately 16 new full-time permanent positions with an estimated annual payroll of $1,120,000, retain and relocate 100 full-time jobs into a new office facility located in the southern downtown business district, further known as 250 South High Street.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize 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 six (6) years with NBBJ LLC in consideration of the company's proposed investment of $2,000,000.00 and the creation of 16 new full-time permanent positions. ($2,000,000.00)
Body
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code, 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 tax payers 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 a Job Creation Tax Credit, NBBJ LLC will expand its operation by creating 16 new full-time permanent positions with an annual payroll of $1,120,000, investing approximately $2,000,000 in leasehold improvements, including furniture and fixtures, increase job opportunities and strengthen the economy of the city; and
WHEREAS, receiving these tax credits from the State and the City is a critical factor in NBBJ LLC's decision to go forward with the project in Columbus; and
WHERESAS, the City desires to increase employment opportunities and encourage the creation of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, NBBJ LLC has indicated that a Job Creation Tax Credit is crucial to its decision to locate the aforementioned expansion in Columbus; and
WHEREAS, the City of Columbus desires to facilitate NBBJ LLC's growth at the project site; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the City hereby finds and determines that the project will (1) create jobs in the State and City; (2) the project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) receiving the aforementioned tax credits is a critical factor in the decision by NBBJ LLC to go forward with the project.
Section 2. That the City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the Director of the Department of Development is hereby authorized and directed to enter into and execute a Job Creation Tax Credit of sixty-five percent (65%) of the amount of personal income tax withheld on new employees for a term six (6) years with NBBJ LLC.
Section 4. That the City of Columbus Job Creation Tax Credit Agreement is signed by NBBJ LLC within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 5. The City Council hereby extends authority to the Director of Development to amend the NBBJ LLC City of Columbus Job Creation Tax Credit Agreement for non-substantive modifications to the agreement requested in writing by the company and or the City and deemed appropriate by the Director of Development with these non-substantive modifications being specifically limited to reductions in length of term, methods of calculating the incentive, or adding or deleting business entities associated with the employment commitments related to this incentive. All other requested amendments must be approved by City Council.
Section 6. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.