Explanation
BACKGROUND: The Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Oxford Consulting Group, Inc. equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term of two (2) years. Oxford Consulting Group, Inc. will make an investment of approximately $60,000, including $15,000 in leasehold improvements, $20,000 in equipment, $25,000 in furniture and fixtures, and create 45 new full-time permanent positions with annual payroll of approximately $3.65 million and relocate 4 existing jobs from Westerville to the City of Columbus.
Oxford Consulting Group, Inc. is a nationwide information technology consulting firm serving businesses across North America. Michelle Kerr, President, founded Oxford Consulting Group Inc. in 1998 in Indianapolis, Indiana by providing consulting and project management services to mid-market manufacturers in the automotive and consumer packaged goods arena. The company expanded to include business-to-business (B2B) integration and electric data interchange. In 2004, Oxford Consulting Group, Inc. sold the largest portion of the company to a publicly traded software company, QAD, based in Santa Barbara, California. The remainder of the company was relocated to Westerville, Ohio where the company services include IBM B2B and commerce solutions, mid-market IT staffing and IT services for small and medium sized businesses in the Central Ohio area.
Oxford Consulting Group, Inc. is proposing to expand into the Columbus community by establishing a satellite office. The company will enter into a 4-year lease agreement on a vacant commercial office space comprised of 1,400 square feet located at 1500 West Third Avenue and invest approximately $60,000 in leasehold improvements, including new equipment, furniture, and fixtures to meet its increased growth and consumer demand.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Jobs Growth Incentive Agreement with Oxford Consulting Group, Inc. equal to twenty-five percent (25%) of the amount of new income tax withheld on new employees for a term of two (2) years in consideration of the company's proposed creation of 45 new full-time permanent positions.
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 Jobs Growth Incentive Application from Oxford Consulting Group, Inc.; and
WHEREAS, Oxford Consulting Group, Inc. is proposing to enter into a 4-year lease agreement on a vacant office space located at 1500 West Third Avenue to expand its' business into the Columbus community; and
WHEREAS, Oxford Consulting Group, Inc. has indicated that a Jobs Growth Incentive is crucial to its decision to establish the aforementioned satellite office in Columbus; and
WHEREAS, the City of Columbus desires to facilitate Oxford Consulting Group, Inc.'s future growth at the project site; and
WHEREAS, in consideration of Oxford Consulting Group, Inc.'s proposed investment of $60,000, the creation of 45 new full-time permanent positions and the relocation of 4 existing jobs; 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 Oxford Consulting Group, Inc. equal to twenty-five percent (25%) of the amount of income tax withheld on new employees for a term of two (2) years.
Section 2. Each year of the term of the agreement with Oxford Consulting Group, Inc. 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 Oxford Consulting Group, Inc. within 90 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.