Explanation
BACKGROUND: The need exists to enter into a Columbus Downtown Office Incentive Agreement with Engauge. Engauge is proposing to expand its corporate headquarters by entering into a 6-year lease, invest $250,000 in leasehold improvements, retain 76 employees and create 50 new full-time permanent positions. The new positions will create approximately $3.2 million in additional payroll and approximately $80,000 annually in City income tax revenue.
Engauge is an advertising agency that offers advertising and promotion services, such as print and outdoor, radio and television, direct response, sales promotion, retail display and merchandising, channel marketing, and packaging services. The company was founded as DDF&M Advertising and changed its name to Hallmark Tassone, Inc. The company changed its name to HMS Hallmark, Ltd. in 1999 and then to TenUnited in 2000. TenUnited changed its name to Engauge Communication in April 2008. The company is headquartered in Columbus, Ohio with additional offices in Pittsburgh, Pennsylvania and Orlando, Florida.
Based on this estimate, Engauge would qualify for the Columbus Downtown Office Incentive of an amount equal to fifty-percent (50%) of the payroll taxes paid on the new positions or approximately $160,000 over four (4) years.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Columbus Downtown Office Incentive Agreement with Engauge as provided in Columbus City Council Resolution 0088X-2007, adopted June 4, 2007, in consideration of the company's proposed investment of $250,000 in leasehold improvements, the retention of 76 employees and the creation of 50 new full-time permanent positions.
Body
WHEREAS, the City desires to increase employment opportunities and encourage establishment of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, Resolution Number 0088X-2007, adopted June 4, 2007, authorized the Department of Development to continue operation of the Columbus Downtown Office Incentive program as amended; and
WHEREAS, the Department of Development has received a completed application for the Columbus Downtown Office Incentive program from Engauge; and
WHEREAS, Engauge is proposing to expand its corporate headquarters in the Columbus market by entering into a 6-year lease agreement with NWD Arena District V, LLC, retain 76 employees and create 50 new full-time permanent positions at 375 North Front Street, Suite 400 Columbus, Ohio, with a projected additional payroll of $3.2 million annually and approximately $80,000 annually in income tax revenue to the City of Columbus; and
WHEREAS, based on this estimate, Engauge qualifies for the Columbus Downtown Office Incentive of an amount equal to fifty-percent (50%) of the payroll taxes paid on the new positions or approximately $160,000 over four (4) years; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Development is hereby authorized to enter into a Columbus Downtown Office Incentive Agreement with Engauge, pursuant to Columbus City Council Resolution Number 0088X-2007, for an annual cash payment equal to fifty percent (50%) of the amount of City withholding tax withheld on new employees for a term of four (4) years on the estimated addition of 50 new positions and the retention of 76 employees located at 375 North Front Street, Suite 400 Columbus, Ohio.
Section 2. This additional employment at Engauge is the result of creating 50 new positions in downtown as defined in Columbus City Code Title 33 Section 3359.03 downtown district boundary.
Section 3. As provided in the program guidelines, ownership of the project site qualifies Engauge for a four (4) year incentive term. The term begins in calendar year 2010 with the incentive payment made in the second quarter of the following year based on actual City of Columbus income tax withholding paid by the new positions for the preceding year.
Section 4. Each year of the term of the agreement with Engauge that a payment is due, the City's obligation to pay the incentive is expressly contingent upon the passing 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 5. That this ordinance shall take effect at the earliest time allowed by law.