Explanation
BACKGROUND: The City of Columbus entered into a Jobs Growth Incentive Agreement (hereinafter "Agreement") with 2Checkout.com, Inc. effective December 21, 2011. Columbus City Council approved the Agreement by Ordinance 1390-2011, passed September 19, 2011 and granted a tax incentive based on an amount equal to twenty-five percent (25%) of the new Columbus withholding tax paid by New Employees, as that term was defined in Section 5 of the Agreement, commencing January 1, 2012 and for a period of five (5) consecutive taxable years through December 31, 2016 thereafter based on an investment amount of $390,000 in leasehold improvements, including personal property, the retention of 89 full-time positions and the creation of 100 new permanent full-time jobs at 1785 O'Brien Road (the "Project Site") within the City of Columbus.
On January 3, 2013, the Department of Development, Economic Development office received a letter from 2Checkout.com, Inc.'s Chief Executive Officer dated December 11, 2012 respectfully requesting the dissolution of the Columbus Jobs Growth Incentive Agreement. Accordingly, the company has outgrown its current space and relocated its operations from the City of Columbus to the City of Grandview Heights. 2Checkout.com, Inc. was in operation at the Project Site during Report Year 2012, however, began moving its operation to the City of Grandview Heights and so no payment and reporting is required per the terms of the Agreement for Report Year 2012 in 2013. This legislation is to dissolve the Agreement between the City of Columbus and 2Checkout.com, Inc.
This legislation is presented as an emergency measure so that the dissolution of the Agreement can be reported to the necessary local and state agencies in an expedient manner.
FISCAL IMPACT: No funding is required for this legislation.
Title
To dissolve the Jobs Growth Incentive Agreement between the City of Columbus and 2Checkout.com, Inc.; to direct the Director of Development to notify any and all parties to the Agreement of the dissolution; and to declare an emergency.
Body
WHEREAS, Columbus City Council approved a Jobs Growth Incentive Agreement ("Agreement") with 2Checkout.com, Inc. by Ordinance 1390-2011 on September 19, 2011; and
WHEREAS, the Agreement granted a tax incentive based on an amount equal to twenty-five percent (25%) of the new Columbus withholding tax paid by New Employees, as that term was defined in Section 5 of the Agreement, to commence January 1, 2012 and for a period of five (5) consecutive taxable years through December 31, 2016; and
WHEREAS, in the Agreement, 2Checkout.com, Inc. committed to invest $390,000 in leasehold improvements and personal property, retain 89 full-time positions and create 100 new full-time positions at 1785 O'Brien Road (the "Project Site") within the City of Columbus; and
WHEREAS, On January 3, 2013, the Department of Development, Economic Development office received a letter from 2Checkout.com, Inc.'s Chief Executive Officer dated December 11, 2012 respectfully requesting the dissolution of the Columbus Jobs Growth Incentive Agreement which led to this legislation to dissolve the Agreement between the City of Columbus and 2Checkout.com, Inc. effective immediately; and
WHEREAS, the company has outgrown its current space and relocated its operations from the City of Columbus to the City of Grandview Heights. 2Checkout.com, Inc. was in operation at the Project Site during Report Year 2012, however, began moving its operation to the City of Grandview Heights and so no payment and reporting is required per the terms of the Agreement for Report Year 2012 in 2013; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to dissolve the Jobs Growth Incentive Agreement between the City of Columbus and 2Checkout.com, Inc. so that the dissolution of the Agreement can be reported to the necessary local and state agencies in an expedient manner, all for the preservation of 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 Columbus City Council hereby dissolves the 2Checkout.com, Inc. Jobs Growth Incentive Agreement with the dissolution effective January 1, 2012.
Section 2. That the Director of Development is hereby directed to notify any and all parties to the 2Checkout.com, Inc. Jobs Growth Incentive Agreement of the dissolution.
Section 3. 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.