Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with Intellinetics. 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.
Intellinetics plans to expand in Columbus if Columbus is selected as the project site for expansion. If selected, Intellinetics will retain 11 full-time permanent positions, create 11 full-time permanent positions, and invest $150,000 in personal property.
The Department of Development recommends a 60%/6 year Jobs Creation Tax Credit.
Emergency action is requested in order to allow Intellinetics to make a decision on the expansion of the proposed project as quickly as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an agreement with Intellinetics for a Jobs Creation Tax Credit of sixty percent (60%) for a period of six (6) years; 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, this legislation is contingent upon the Ohio Department of Development granting Intellinetics a 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, contingent on the City granting a Jobs Creation Tax Credit, Intellinetics will expand in Columbus, retain 11 full-time permanent jobs, create 11 full-time permanent jobs, invest $150,000 which will include machinery & equipment of $100,000 and furniture & fixtures of $50,0000 and 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 Intellinetics' decision to go forward with the expansion project; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to enter into an agreement with Intellinetics 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 Intellinetics 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 6-year, 60% Jobs Creation Tax Credit Agreement with Intellinetics.
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 the passage if the Mayor neither approves nor vetoes the same.