Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with FlightSafety International Inc. (FlightSafety) equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term of five (5) years. FlightSafety International Inc. will make an investment of approximately $113 million, which includes real property improvements, machinery, equipment, furniture and fixtures to expand its Columbus Learning Center and create new job opportunities for the Columbus community.
FlightSafety is the world's premier professional aviation training company and supplier of flight simulators, visual systems and displays to commercial, government and military organizations. The company provides more than a million hours of training each year to pilots, technicians and other aviation professionals. FlightSafety operates the world's largest fleet of advanced full flight simulators in its Learning Centers located in the United States, Canada, France, Japan, South Africa and the United Kingdom. The company is owned and backed by Berkshire Hathaway, Inc., an American multinational conglomerate holding company headquartered in Omaha, Nebraska that oversees and manages a number of subsidiary companies.
FlightSafety is proposing to invest approximately $113 million to expand its Columbus Learning Center. This investment amount includes $22.5 million in real property improvements, $88 million in machinery and equipment, $2.5 million furniture and fixtures. The company plans to construct a new Learning Center consisting of two separate buildings of approximately 54,000 and 90,000 square feet, respectively. Eventually, the two facilities will connect making it one large flight simulator Learning Center. This new Learning Center will house 18 new full flight simulators and will train pilots, technicians and other aviation professionals. FlightSafety will retain 137 full-time employees with an estimated annual payroll of $9.17 million and create 18 new full-time permanent positions with an estimated annual payroll of approximately $1.19 million.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Jobs Growth Incentive Agreement with FlightSafety International Inc. equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years in consideration of the company's total proposed investment of approximately $113 million, the retention of 137 full-time jobs and the creation of 18 new full-time permanent positions.
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 has received a completed Jobs Growth Incentive Application from FlightSafety International Inc.; and
WHEREAS, FlightSafety is proposing to invest approximately $113 million to expand its Columbus Learning Center located at 625 N. Hamilton Road 4010 Bridgeway Avenue by investing approximately $22.5 million in real property improvements, $88 million in machinery and equipment, $2.5 million furniture and fixtures; and
WHEREAS, FlightSafety plans to construct a new Learning Center facility consisting of two separate buildings of approximately 54,000 and 90,000 square feet, respectively. Eventually, the two facilities will connect making it one large flight simulator Learning Center. This new Learning Center will house 18 new full flight simulators and will train pilots, technicians and other aviation professionals; and
WHEREAS, FlightSafety International Inc. has indicated that a Jobs Growth Incentive is crucial to its decision to expand the aforementioned Learning Center in Columbus; and
WHEREAS, the City of Columbus desires to facilitate FlightSafety International Inc.'s future growth at the project site; and
WHEREAS, in consideration of FlightSafety International Inc.'s total proposed investment of $113 million, and the retention of 137 full-time jobs and the creation of 18 new full-time permanent positions; 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 Jobs Growth Incentive Agreement with FlightSafety International Inc. equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years.
Section 2. Each year of the term of the agreement with FlightSafety International 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 3. That the City of Columbus Jobs Growth Incentive Agreement is signed by FlightSafety International Inc. within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 4. The City Council hereby extends authority to the Director of the Department of Development to amend the FlightSafety International Inc. City of Columbus Jobs Growth Incentive 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 the Department 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 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.