Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a dual-rate Jobs Growth Incentive Agreement with Civil & Environmental Consultants, Inc.in an amount equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on Columbus payroll of new employees and (ii) thirty-percent (30%) 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, both for a term of up to five (5) consecutive years.
Civil & Environmental Consultants, Inc.(“CEC”) was founded in 1989 and is headquartered in Pittsburgh, Pennsylvania. CEC is an engineering and environmental consulting firm with more than 1,400 team members and 34 offices nationwide. Additionally, CEC is an employee-owned team of professionals working with clients to deliver solutions to complex engineering challenges. These clients span across many markets and industries, including mining, oil & gas, power, public sector, real estate, and solid waste. CEC consistently ranks on Engineering News-Record’s annual lists of the Top Design Firms and Top Environmental Firms in the nation.
CEC is proposing to invest a total project cost of approximately $1,450,000.00, which includes $1,100,000.00 in improvements to the existing building, and $350,000.00 in furniture & fixtures, to relocate operations to Columbus. With this investment, the company proposes to enter into a lease agreement on a vacant commercial office space consisting of approximately 22,866 square feet at 8800 Lyra Drive, Columbus, Ohio 43240, parcel number 318-434-01-025 (the “Project Site”). The proposed project will allow CEC to relocate their operations to a larger, renewed office space for future growth by creating fifteen (15) net new full-time permanent positions with a cumulative associated estimated annual payroll of approximately $1,500,000.00 at the proposed Project Site. Additionally, CEC proposes to retain sixty-six (66) employees with a cumulative associated estimated annual payroll of approximately $12,392,154.42.
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 Civil & Environmental Consultants, Inc. for a term of up to five (5) consecutive years in consideration of the company’s proposed total capital investment of $1,450,000.00 and the creation of fifteen (15) net new full-time permanent positions with an estimated annual payroll of approximately $1,500,000.00. ($0.00)
Body
WHEREAS, Civil & Environmental Consultants, Inc.(“CEC”) was founded in 1989 and is headquartered in Pittsburgh, Pennsylvania. CEC is an engineering and environmental consulting firm with more than 1,400 team members and 34 offices nationwide. Additionally, CEC is an employee-owned team of professionals working with clients to deliver solutions to complex engineering challenges. These clients span across many markets and industries, including mining, oil & gas, power, public sector, real estate, and solid waste. CEC consistently ranks on Engineering News-Record’s annual lists of the Top Design Firms and Top Environmental Firms in the nation.
WHEREAS, CEC is proposing to invest a total project cost of approximately $1,450,000.00 to relocate operations to Columbus. With this investment, the company proposes to enter into a lease agreement on a vacant commercial office space consisting of approximately 22,866 square feet at 8800 Lyra Drive, Columbus, Ohio 43240, parcel number 318-434-01-025 (the “Project Site”); and
WHEREAS, CEC proposes to create fifteen (15) net new full-time permanent positions with a cumulative associated estimated annual payroll of approximately $1,500,000.00 at the proposed Project Site; and
WHEREAS, CEC has indicated that a Jobs Growth Incentive is crucial to its decision to relocate office operations to the City of Columbus; and
WHEREAS, the City of Columbus desires to facilitate the future growth of CEC at the proposed Project Site by providing a Jobs Growth Incentive; 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 Civil & Environmental Consultants, Inc. equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on Columbus payroll of new employees and (ii) thirty-percent (30%) 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, both for a term of up to five (5) consecutive years.
SECTION 2. That, should Civil & Environmental Consultants, 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 twenty-five percent (25%).
SECTION 3. That, each year of the term of the agreement with Civil & Environmental Consultants, Inc. the City’s obligation to pay the incentive is expressly contingent upon passage of an ordinance appropriating and authorizing the expenditure of monies sufficient to make such a 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 Civil & Environmental Consultants, Inc. within 90 days of the passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 5. That the Columbus City Council hereby extends authority to the Director of the Department of Development to amend Civil & Environmental Consultants, Inc. and 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 the Department 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. Columbus City Council must approve all other requested amendments.
SECTION 6. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.