Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Nationwide Mutual Insurance Company (NMIC), its affiliates and subsidiaries equal to fifty percent (50%) of the amount of personal income tax withheld on new employees which will be jobs in excess of the 6,633 retained jobs and the 1,400 jobs that were located from various locations in Dublin, Ohio into the Downtown Business District for a term of ten (10) years.
Over the last 85 years, NMIC, its affiliates and subsidiaries has grown from a small mutual auto insurer owned by policyholders in 1925, to one of the largest insurance and financial services companies in the world, with more than $158 billion in statutory assets. The world headquarters of NMIC, its affiliates and subsidiaries is located at One Nationwide Plaza and various other locations within the Downtown Business District of Columbus, Ohio and owns 1,000,000, square feet of commercial office space within the district. The company offers a range of financial products and services for individuals and business clients that includes variety of life, auto and motorcycle insurance plans, home equity and mortgage loans, checking and money market accounts, as well as online financial calculators. Additionally, NMIC, its affiliates and subsidiaries provides individual retirement accounts, credit cards and annuities.
NMIC, its affiliates and subsidiaries has expanded its world headquarters by investing approximately $47.61 million in real property improvements of which approximately $40 million were used to construct a new Class A office building consisting of approximately 201,975 square feet located at 10 W. Nationwide Blvd. in the Arena District. The company consolidated its offices and relocated 1,400 employees from Dublin, Ohio to its world headquarters and various offices into the Downtown Business district, joining the 6,633 jobs which were already located downtown. In addition, the company has invested approximately $3.8 million in machinery and equipment, $4.94 million in furniture and fixtures, and $1.1 million in stand-alone computers.
Emergency action is necessary in order to allow NMIC to begin investing and creating jobs as quickly as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Jobs Growth Incentive Agreement with Nationwide Mutual Insurance Company, its affiliates and subsidiaries equal to fifty (50%) of the amount of new income tax withheld on new employees for a term of ten (10) years in consideration of the company's total investment of approximately $57.4 million and the retention of jobs; and to declare an emergency.
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 incentive application from Nationwide Mutual Insurance Company, its affiliates and subsidiaries; and
WHEREAS, Nationwide Mutual Insurance Company, its affiliates and subsidiaries has expanded its world headquarters located at One Nationwide Plaza and constructed a new Class A office space at 10 W. Nationwide Boulevard; and
WHEREAS, Nationwide Mutual Insurance Company, its affiliates and subsidiaries has indicated that a Jobs Growth Incentive was crucial to its decision to expand the aforementioned offices within the Downtown Business district; and
WHEREAS, the City of Columbus desires to facilitate Nationwide Mutual Insurance Company, its affiliates and subsidiaries future growth at the aforementioned project sites and other locations owned by company within the Downtown Business district as defined by Columbus City Code Title 33 Section 3359.03 Downtown Business Boundary; and
WHEREAS, in consideration of Nationwide Mutual Insurance Company, its affiliates and subsidiaries investment of approximately $57.4 million in real property improvements, including machinery, equipment, furniture, fixtures and stand-alone-computers, the relocation of 1,400 jobs from Dublin and the retention of 6,633 existing jobs; and
WHEREAS, emergency action is necessary in order to allow NMIC to begin investing and creating jobs as quickly as possible; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, Economic Development Division, in that it is immediately necessary to enter into a Jobs Growth Incentive agreement with Nationwide Mutual Insurance Company, its affiliates and subsidiaries, thereby preserving the public health, peace, property, safety, and welfare; 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 Nationwide Mutual Insurance Company, its affiliates and subsidiaries equal to fifty percent (50%) of the amount of new income tax withheld on new employees for a term of ten (10) years.
Section 2. Each year of the term of the agreement with Nationwide Mutual Insurance Company, its affiliates and subsidiaries 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 Nationwide Mutual Insurance Company, its affiliates and subsidiaries within 120 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 Department of Development to amend the Nationwide Mutual Insurance Company, its affiliates and subsidiaries 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 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. For the reasons stated in the preamble hereto, which is made a part hereof, this Ordinance is 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 (10) days after passage if the Mayor neither approves nor vetoes this Ordinance.