Explanation
BACKGROUND:
The City of Columbus currently has an excessive amount of vacant office space in our downtown market. This high vacancy rate is having a negative impact on all business activity downtown and throughout the city. Palmer & Cay Holdings, Inc. is currently exploring downtown Columbus as a potential site for their regional expansion. They anticipate relocating 20 positions downtown. This job creation is estimated to generate $1,500,000 of payroll and $30,000 annually in City income tax revenue. Based on this estimate, they would qualify for the Columbus Downtown Office Incentive of an amount equal to 50% of the payroll taxes paid or $15,000 each year for three years. The Downtown Development Office recommends granting the Columbus Downtown Office Incentive Program to Palmer & Cay Holdings, 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 Program agreement with Palmer & Cay Holdings, Inc. as provide in Columbus City Council Resolution 075X-2004, adopted March 29, 2004.
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 075X-2004, adopted March 29, 2004, authorized the Department of Development to establish the Columbus Downtown Office Incentive Program; and
WHEREAS, the Department of Development has received a completed application for the Columbus Downtown Office Incentive Program from Palmer & Cay Holdings, Inc.; and
WHEREAS, Palmer & Cay Holdings, Inc. estimates that it will create 20 new jobs at 250 West Nationwide Blvd., with a projected payroll of $1,500,000 generating estimated City of Columbus income tax revenue of $30,000 annually; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. The Director of the Department of Development is hereby authorized to enter into a Columbus Downtown Office Incentive Program agreement with Palmer & Cay Holdings, Inc., pursuant to Columbus City Council Resolution 075X-2004, for an annual cash payment equal to 50% of the total income tax withholding for the new positions located in downtown Columbus for a term of three (3) years based on the estimated addition of 20 jobs at 250 West Nationwide Blvd.
Section 2. This employment at Palmer & Cay Holdings, Inc. is the result of relocating 20 new jobs to the Downtown as defined in Columbus City Code Title 33 Section 3359.03 downtown district boundary.
Section 3. As provided in the program guidelines the proposed 5-year lease at 250 West Nationwide Blvd. qualifies Palmer & Cay Holdings, Inc. for a three (3) year incentive term. The term beginning in calendar year 2004, with the incentive payment made in the first quarter of the following year based on actual City of Columbus income tax withholding paid by employees for the preceding year.
Section 4. Each year of the term of the agreement with Palmer & Cay Holdings, 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 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.