Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with CallTech Communications, LLC. The Ohio Tax Credit Legislation (Section 718.08 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter a Council-approved agreement between the City and a participating company.
Founded and headquartered here in Columbus since 1996, CallTech Communications, LLC (CallTech) is a leading provider of outsourced customer service calls. With a staff of over 2,000 employees working in five call centers located in Ohio, Pennsylvania, Florida, Georgia, and South Carolina, CallTech provides customer service, technical support, and sales support to a diverse range of clients. The company handles inbound technical support, customer service and sales calls for Internet service providers, telephone companies, retailers and others. Clients include Abercrombie & Fitch, BellSouth, the Ohio Department of Travel and Tourism and Verizon.
CallTech needs new workers to handle increased business from new and existing clients. The company is at capacity at its call center on the Far West Side and is proposing an expansion, including a new facility at 2500 Farmers Drive. This expansion would include an investment of approximately $1.3 million and the creation of 400 new full-time jobs and the retention of 611 full-time positions.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Jobs Creation Tax Credit Agreement with CallTech Communications, LLC at sixty percent (60%) for a period of ten (10) taxable years in consideration of CallTech Communications, LLC creating 400 (four hundred) new full-time jobs and retaining 611 (six-hundred eleven) full-time jobs in the Columbus community; and to declare an emergency.
Body
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code, the State of Ohio is authorized to establish the Tax Credit Authority and to execute agreements with taxpayers of the State of Ohio for the purpose of granting these taxpayers job creation tax credits against their corporate franchise or income tax, which tax credits are provided to create new jobs in the State of Ohio; and
WHEREAS, the State of Ohio Tax Credit Authority has granted CallTech Communications, LLC a 65%/5 year Jobs Creation Tax Credit; and
WHEREAS, pursuant to Section 718.08 of the Ohio Revised Code (the "City Act") a municipal corporation is authorized to grant local income tax credits to taxpayers who have received tax credits from the State; and
WHEREAS, the granting of the tax credit by the City for the proposed expansion project by CallTech Communications, LLC will create 400 (four-hundred) full-time permanent jobs; retain 611 (six-hundred eleven) full-time positions; increase opportunities for employment and strengthen the economy of the city; and
WHEREAS, receiving these tax credits from the State and the City is a critical factor in CallTech Communications, LLC's decision to go forward with the project; and
WHEREAS, an emergency exist in the usual daily operation of the Department of Development in that it is immediately necessary to enter into a Jobs Creation Tax Credit Agreement with CallTech Communications, Inc., for the preservation of public health, peace, property and safety; now therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the City hereby finds and determines that the project will (1) create jobs in the State and City; (2) the project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) receiving the aforementioned tax credits is a critical factor in the decision by CallTech Communications, LLC to go forward with the project.
Section 2. That the City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the Director of the Department of Development is hereby authorized and directed to enter into and execute a 10 year, 60% Jobs Creation Tax Credit Agreement with CallTech Communications, LLC
Section 4. That for reasons stated in the preamble hereto, which is hereby made a part hereof, the ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the mayor neither approves nor vetoes the same.