Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a dual-rate Jobs Growth Incentive Agreement with Williams Lea, Inc. (“Williams Lea”) in an amount equal to (i) thirty percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of new employees and (ii) thirty-five percent (35%) of the City of Columbus income tax withheld on the Columbus payroll of new employees, who are also City of Columbus residents at the end of each calendar year, for a term of up to five (5) consecutive years.
Williams Lea is a global company that offers Business Support Services to large financial, legal and professional services firms. The company was founded in 1820 and is headquartered in New York City. Williams Lea began as a financial printer and has expanded into a global organization which specializes in delivering skilled business support and document solutions for some of the largest and most recognized companies around the world. The company has 7,000 employees and a presence in 195 cities across 40 countries. Williams Lea serves clients onsite at their offices and through several virtual delivery centers located in Wheeling, WV, Normanton, UK and Chennai, India. William Lea Holdings Inc. is the parent company of Williams Lea and is backed by Advent International, one of the largest and most experienced global private equity investors with offices in four continents: Asia, Europe, Latin America and North America.
Williams Lea is proposing to invest a total project cost of approximately $6,000,000 which includes $4,000,000 in leasehold improvements, and $2,000,000 in furniture and fixtures to establish a new operations center within the Columbus Region. With this new operations center, the company proposes to enter into a long-term lease agreement on a vacant office space consisting of approximately 60,000 square feet located at 671 S. High Street, Columbus, Ohio 43215, parcel number 010-014149 (the “Project Site”), inside the Grange Mutual Insurance building. Additionally, Williams Lea proposes to create 550 net new full-time permanent positions with a cumulative estimated annual payroll of approximately $24,750,000 at the proposed Project Site.
Williams Lea Inc. is requesting a dual-rate Jobs Growth Incentive from the City of Columbus to assist in the expansion of this project. This legislation is presented as 30-day legislation.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a dual-rate Jobs Growth Incentive Agreement with Williams Lea Inc. for a term of up to five (5) consecutive years in consideration of the company’s proposed capital investment of $6,000,000.00 and the creation of 550 net new full-time permanent positions with an estimated annual payroll of approximately $24,750,000.00. (AMENDED BY ORD. 2602-2019; PASSED 7/22/2019)
Body
WHEREAS, 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, the Department of Development received a completed Jobs Growth Incentive Application from Williams Lea; and
WHEREAS, Williams Lea’s is proposing to invest a total project cost of approximately $6,000,000 which includes $4,000,000 leasehold in improvements and $2,000,000 in furniture and fixtures to establish a new operations center in the Columbus Region to accommodate its strategic growth initiative; and
WHEREAS, with this new operations center, Williams Lea proposes to enter into a long-term lease agreement on a vacant office space consisting of approximately 60,000 square feet located at 671 S. High Street, Columbus, Ohio 43206, parcel number 010-014149 (the “Project Site”), inside the Grange Mutual Insurance building; and
WHEREAS, Williams Lea will proposes to create 550 net new full-time permanent positions with a cumulative estimated annual payroll of approximately $24,750,000 at the proposed Project Site to support its strategic growth initiative; and
WHEREAS, Williams Lea has indicated that a Jobs Growth Incentive is crucial to its decision to expand its Columbus operation within the City; and
WHEREAS, the City of Columbus desires to facilitate the future growth of Williams Lea at the proposed Project Site by providing a Jobs Growth Incentive; and 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 into a dual-rate Jobs Growth Incentive Agreement with Williams Lea, Inc. equal to (i) thirty-percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of new employees and (ii) thirty-five percent (35%) of the City of Columbus income tax withheld on the Columbus payroll of new employees, who are also City of Columbus residents at the end of each calendar year, for a term of up to five (5) consecutive years.
SECTION 2. Should Williams Lea Inc. not be able to sufficiently document residency for an employee associated with this project during a calendar year of the term of the agreement, the default rate of the Jobs Growth Incentive to be applied that calendar year for that new employee shall be thirty percent (30%).
SECTION 3. Each year of the term of the agreement with Williams Lea Inc. the City’s obligation to pay the incentive is expressly contingent upon the passage 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 Charter.
SECTION 4. That the City of Columbus Jobs Growth Incentive Agreement is signed by Williams Lea Inc. 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 the Department of Development to amend Williams Lea Inc.’s City of Columbus Jobs Growth Incentive Agreement for certain modifications to the agreement requested in writing by the company and or the City and deemed appropriate by the Director of Development with these certain 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.