Explanation
BACKGROUND: The City of Columbus entered into a Jobs Growth Incentive Agreement (Agreement) with Simonton Windows, Inc., (Grantee) effective May 23, 2011. Columbus City Council approved the Agreement by Ordinance 0348-2011, adopted March 14, 2011, and granted a financial incentive based on an amount equal to twenty-five percent (25%) of the new Columbus withholding tax paid by the new employees at the project site, to commence on January 1, 2011 for a period of seven (7) consecutive taxable years based on an investment of approximately $1.1 million in leasehold improvements and personal property, the relocation of 49 full-time positions to the City of Columbus and the creation of 46 new permanent full-time positions at 3948 Townsfair Way, Columbus, OH 43219.
In a letter from the Grantee received by the City on October 9, 2012, the Grantee indicated that many of the jobs related to the project are associated with another entity, Simonton Building Products, Incorporated, and are attributable to this project. As such, the need exists to amend the Agreement to add Simonton Building Products, Incorporated as an additional grantee to the Agreement.
This legislation is submitted as an emergency in order to add Simonton Building Products, Incorporated as a grantee to the Agreement prior to the end of calendar year 2012 so that the Agreement will be amended prior to the start of the reporting season for Report Year 2012.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the Jobs Growth Incentive Agreement with Simonton Windows, Inc. to include Simonton Building Products, Inc. as an additional grantee to the agreement; and to declare an emergency.
Body
WHEREAS, Columbus City Council approved a Jobs Growth Incentive Agreement (Agreement) with Simonton Windows, Inc. (Grantee) by Ordinance 0348-2011 on March 14, 2011; and
WHEREAS, the Agreement granted a financial incentive based on an amount equal to twenty-five percent (25%) of the new Columbus withholding tax paid at the project site, to commence on January 1, 2011 for a period of seven (7) consecutive taxable years; and
WHEREAS, in the Agreement, Grantee committed to making an investment of approximately $1.1 million in leasehold improvements and personal property, relocating 49 full-time positions to the City of Columbus and creating 46 new permanent full-time positions at 3948 Townsfair Way, Columbus, OH 43219; and
WHEREAS, a letter from the Grantee received by the City on October 9, 2012 indicated that many of the jobs related to the project are associated with another entity, Simonton Building Products, Incorporated, and are attributable to this project; and
WHEREAS, an amendment is needed to add Simonton Building Products, Incorporated as an additional grantee to the 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 to the Jobs Growth Incentive Agreement with Simonton Windows, Inc. for the purpose of including Simonton Building Products, Incorporated as an additional grantee to the Agreement; 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 the Director of the Department of Development is hereby authorized to amend the Jobs Growth Incentive Agreement with Simonton Windows, Inc. to add Simonton Building Products, Incorporated as an additional grantee to the agreement.
Section 2. That the amendment to the City of Columbus Jobs Growth Incentive Agreement be signed by Simonton Windows, Inc. and Simonton Building Products, Incorporated within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
Section 3. 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.