Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with InfoCision Management Corporation. 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.
InfoCision Management Corporation plans to expand business into the City of Columbus, InfoCision does not currently have a location in Columbus. The project will include an investment of $1.2 million in real and personal property and the creation of 250 full-time jobs.
The Department of Development recommends a 65%/10 year Jobs Creation Tax Credit. Only jobs with an annual average hourly rate of $10.00 or more, not including overtime, will be eligible for the tax credit.
This legislation is requested to be considered as an emergency in order to allow InfoCision Management Corporation to make a decision on the location 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 InfoCision Management Corporation for a Jobs Creation Tax Credit of sixty-five percent (65%) for a period of ten (10) years in consideration of a proposed $1.2 million investment and the creation of 250 new full-time jobs, only jobs with an annual average hourly rate of $10.00 or more will be eligible for the tax credit; 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, the Ohio Department of Development has offered InfoCision Management Corporation a Jobs Creation Tax Credit and has scheduled this project for the September 26, 2005 State of Ohio Tax Credit Authority meeting; 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, InfoCision Management Corporation will expand into Columbus, create 250 full-time permanent jobs, invest $1.2 million 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 InfoCision Management Corporation's decision to go forward with the 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 InfoCision Management Corporation to enable the company to make a decision on the location of the proposed project at the earliest possible date 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 InfoCision Management Corporation 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 10-year, 65% Jobs Creation Tax Credit Agreement with InfoCision Management Corporation. Only jobs with an annual average hourly rate of $10.00 or more will be eligible for the tax credit.
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.