Explanation
BACKGROUND: The Department of Development is proposing to enter into a Columbus Downtown Office Incentive with Teng & Associates, Inc. Teng & Associates, Inc. provides design and construction management services for the corporate, cultural, government, health care, higher education, homeland security, military, public safety, telecommunications, and transportation markets. Its services include architectural design, landscape architecture, interior design, and space planning and urban design. The company was founded in 1959 and is based in Chicago, Illinois with additional offices in Atlanta, Georgia; Dallas, Texas; Denver, Colorado; Los Angeles and San Diego, California; Milwaukee, Wisconsin; Richmond, Virginia; St. Louis, Missouri; and New York, New York.
Teng & Associates, Inc. is expanding into the Columbus area from its Chicago location. The new twenty-five (25) full-time positions will create approximately $1.87 million in new payroll and approximately $46,900 annually in new City income tax revenue. Based on this estimate, Teng & Associates, Inc. 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 $70,500 over a term of three (3) years. The Development Department recommends granting the Columbus Downtown Office Incentive program to Teng & Associates, Inc.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Agreement with Teng & Associates, Inc. as provided in Columbus City Council Resolution Number 0088X-2007, adopted June 4, 2007. (AMENDED BY ORD. 2222-2012 PASSED 10/22/2012)
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 establish 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 Teng & Associates, Inc.; and
WHEREAS, Teng & Associates, Inc. is proposing to expand into the Columbus market by entering into a 5-year lease agreement and create 25 new positions at 150 East Gay Street, 6th floor, Columbus, Ohio, with an estimated annual payroll of $1.87 million generating an estimated City of Columbus income tax revenue of $46,900 annually; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. Columbus City Council authorizes the Director of Development to enter into a Columbus Downtown Office Incentive Agreement with Teng & Associates, Inc. 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 three (3) years on the estimated job creation of 25 new full-time permanent positions at 150 E. Gay Street, 6th Floor Columbus, Ohio.
Section 2. As provided in the program guidelines, leasing of the project site qualifies Teng & Associates, Inc. for a three (3) years incentive term. The term beginning in calendar year 2009, 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 3. Each year of the term of the agreement with Teng & Associates, Inc. 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 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.