Explanation
BACKGROUND: The Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Apelles, LLC (Apelles) equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term of five (5) years. Apelles will make a fixed-asset investment of approximately $505,000 including, $250,000 in new machinery and equipment and $200,000 in renovation and leasehold improvements, $55,000 in new furniture and fixtures, create 17 new full-time permanent positions and retain 29 existing jobs, which will all be new to the City of Columbus.
Apelles is a privately held company founded in 2003 by Michael E. Fitzmartin, President and CEO. Headquartered in Westerville, Ohio, Apelles is a leading provider of outsourced collections and customer service solutions nationwide. The company specializes in collections, accounts receivable management, and customer retention services. Apelles's customized service offerings range from welcome calls and fraud prevention programs through customer care, first party accounts receivable, and third party projects, as well as accounts receivable outsourcing services and debt recovery services.
Apelles is proposing to relocate its corporate headquarters and operations to the City of Columbus by entering into a 7-year lease agreement on a vacant office facility located at 3700 Corporate Drive 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 Apelles, LLC 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 $505,000, the creation of 17 new permanent full-time jobs and the retention of 29 existing jobs, which will be new to the City of Columbus.
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 Agreement Application from Apelles; and
WHEREAS, Apelles is proposing to enter into 7-year lease agreement on a vacant office facility located at 3700 Corporate Drive, to accommodate the relocation of its corporate headquarters and client support operation; and
WHEREAS, Apelles has indicated that a Jobs Growth Incentive is crucial to its decision to locate the aforementioned corporate headquarters in Columbus; and
WHEREAS, the City of Columbus desires to facilitate Apelles's future growth at the project site; and
WHEREAS, in consideration of Apelles's proposed investment of $505,000, creation of 17 new full time permanent jobs and the retention of 29 existing jobs, which will be new to the City of Columbus; 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 equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years with Apelles, LLC.
Section 2. Each year of the term of the agreement with Apelles, 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 Apelles 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.