Explanation
BACKGROUND: The City of Columbus entered into a Job Creation Tax Credit Agreement (hereinafter "Agreement") with JPMorgan Chase Bank, National Association and JPMorgan Chase & Co. (together also referred to as "Grantee") effective November 9, 2010. Columbus City Council approved the Agreement by Ordinance 0709-2009, adopted May 18, 2009 and granted a non-refundable tax credit allowed against the tax imposed under Article 9, Chapter 361 of the Columbus City Codes (the "City Tax Credit") of sixty-five percent (65%) of the new income tax revenue received by the City for a taxable year from new employees, as that term was defined in Section 4 of the Agreement, commencing January 1, 2009 and for ten (10) consecutive years thereafter based on an investment of $16 million in real and personal property at any or all of the buildings at 1111 Polaris Parkway, 3415 Vision Drive and 3401 Morse Crossing in Columbus, the creation of 1,000 new permanent full-time positions and the retention of 10,850 full-time positions.
Annual reporting documents for Report Year (RY) 2009, RY 2010 and RY 2011 were sent to Grantee on June 7, 2011 for RY 2009 and RY2010 and June 12, 2012 for RY 2011. No annual report submissions have been received by the City. A letter dated July 31, 2012 was received by the City via email transmission on July 31, 2012 from Ice Miller LLP, legal counsel for Grantee which read in part to "respectfully request on behalf of JPMorgan that its Job Creation Tax Credit Agreement be rescinded." This legislation is to dissolve the Agreement between the City of Columbus and JPMorgan Chase Bank, National Association and JPMorgan Chase & Co.
This legislation is presented as an emergency measure so that the dissolution of the Agreement can be reported to the necessary local and state agencies in as expeditious a manner as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To dissolve the Job Creation Tax Credit Agreement between the City of Columbus and JPMorgan Chase Bank, National Association and JPMorgan Chase & Co.; to direct the Director of the Department of Development to notify as necessary the local and state tax authorities; and to declare an emergency.
Body
WHEREAS, Columbus City Council approved a Job Creation Tax Creation Agreement ("Agreement") with JPMorgan Chase Bank, National Association and JPMorgan Chase & Co. (together also referred to as "Grantee") by Ordinance 0709-2009 on May 18, 2009; and
WHEREAS, the Agreement grants a non-refundable tax credit allowed against the tax imposed under Article 9, Chapter 361 of the Columbus City Codes (the "City Tax Credit") of sixty-five percent (65%) of the new income tax revenue received by the City for a taxable year from new employees commencing January 1, 2009 and for ten (10) consecutive years thereafter; and
WHEREAS, in the Agreement, Grantee commits to making an investment of $16 million in real and personal property at any or all of the buildings at 1111 Polaris Parkway, 3415 Vision Drive and 3401 Morse Crossing in Columbus, the creation of 1,000 new permanent full-time positions and the retention of 10,850 full-time positions; and
WHEREAS, annual reporting documents for Report Year (RY) 2009, RY 2010 and RY 2011 were sent to Grantee on June 7, 2011 for RY 2009 and RY2010 and June 12, 2012 for RY 2011. No annual report submissions have been received by the City. A letter dated July 31, 2012 was received by the City via email transmission on July 31, 2012 from Ice Miller LLP, legal counsel for Grantee which read in part to "respectfully request on behalf of JPMorgan that its Job Creation Tax Credit Agreement be rescinded." This legislation is to dissolve the Agreement between the City of Columbus and JPMorgan Chase Bank, National Association and JPMorgan Chase & Co. which has led to this legislation to dissolve the Agreement between the City of Columbus and JPMorgan Chase Bank, National Association and JPMorgan Chase & Co. effective January 1, 2009; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development so that the dissolution of the Agreement can be reported to the necessary local and state agencies in as expeditious a manner as possible, all for the preservation of the public health, property, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Columbus City Council hereby dissolves the JPMorgan Chase Bank, National Association and JPMorgan Chase & Co. Job Creation Tax Credit Agreement effective January 1, 2009 thereby effectively eliminating any remaining tax years for the incentive.
Section 2. That the Director of Development is hereby directed to notify the necessary local and state agencies of any changes to the JPMorgan Chase Bank, National Association and JPMorgan Chase & Co. Job Creation Tax Credit Agreement.
Section 3. For the reasons stated in the preamble hereto, which is made a part hereof, this Ordinance is 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 (10) days after passage if the Mayor neither approves nor vetoes this Ordinance.