Explanation
BACKGROUND: The Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with DSW Inc. and its subsidiaries (DSW Shoe Warehouse, Inc., eTailDirect LLC, DSW Information Technology LLC and Brand Card Services LLC) equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term of five (5) years. DSW Inc. and its subsidiaries will make an investment of approximately $17 million, including $14 million in new machinery and equipment, $3.0 million in new construction and create 200 new full-time permanent positions with an annual payroll of approximately $10 million.
DSW Inc. is a leading branded footwear and accessories retailer that offers a wide selection of brand name and designer dress, casual and athletic footwear and accessories for women, men and kids. The company was founded in 1991, opening its first DSW store in Dublin, Ohio. As of March 2012, DSW Inc. operates 328 retail stores in 40 states and 341 leased departments for other retailers in the United States, making the company one of the fastest growing retailers. The average DSW (which stands for Designer Shoe Warehouse) store is approximately 22,000 square-feet and covered wall to wall with 24,000-plus pairs of shoes in more than 2,000 styles.
DSW Inc. and its subsidiaries are proposing to expand its corporate headquarters and distribution centers by investing approximately $17 million. The company will enter into a long-term lease agreement to expand its current corporate office at 810 DSW Drive and its distribution centers located at 4150 and 4314 East Fifth Avenue, to meet its increased growth and consumer demand.
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 DSW Inc. and its subsidiaries equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years in consideration of the company's proposed investment of $17 million and the creation of 200 new permanent full-time positions.
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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 Jobs Growth Incentive Application from DSW Inc., and its subsidiaries DSW Shoe Warehouse, Inc., eTailDirect LLC, DSW Information Technology LLC and Brand Card Services LLC; and
WHEREAS, DSW Inc., DSW Shoe Warehouse, Inc., eTailDirect LLC, DSW Information Technology LLC and Brand Card Services LLC are proposing to enter into a long-term lease agreement to expand its current corporate headquarters located at 810 DSW Drive and its distribution centers located at 4150 and 4314 East Fifth Avenue Columbus, Ohio 43219; and
WHEREAS, DSW Inc., DSW Shoe Warehouse, Inc., eTailDirect LLC, DSW Information Technology LLC and Brand Card Services LLC has indicated that a Jobs Growth Incentive is crucial to its decision to expand the aforementioned corporate headquarters and distribution centers in Columbus; and
WHEREAS, the City of Columbus desires to facilitate DSW Inc., DSW Shoe Warehouse, Inc., eTailDirect LLC, DSW Information Technology LLC and Brand Card Services LLC's future growth at the project sites; and
WHEREAS, in consideration of the company's proposed investment of $17 million and the proposed creation of 200 new full-time permanent positions with an annual payroll of $10 million; 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 DSW Inc., DSW Warehouse, Inc., DSW Information Technology LLC, eTailDirect LLC and Brand Card Services LLC equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years.
Section 2. Each year of the term of the agreement with DSW Inc., DSW Shoe Warehouse, Inc., eTailDirect LLC, DSW Information Technology, LLC and Brand Card Services LLC 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 DSW Inc., DSW Shoe Warehouse, Inc., eTailDirect LLC, DSW Information Technology LLC and Brand Card Services LLC within 120 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.