Explanation
BACKGROUND: The need exists to enter into a Jobs Growth Incentive Agreement with Joseph T. Ryerson & Son, Inc. equal to twenty-five (25%) of the amount of personal income tax withheld on new employees for a term of three (3) years.
Joseph T. Ryerson & Son, Inc. is proposing to expand in the City of Columbus by opening a new 164,000 square feet service center for its core steel products. The company will enter into a 5 year lease agreement on a vacant building located at 555 N. Yearling Road, invest approximately $7.6 million, create seventeen (17) new full time permanent positions and relocate 13 jobs from its Cincinnati plant, which will be new to Columbus.
Joseph T. Ryerson & Son, Inc. is a Chicago-based steel corporation with plants in 29 U.S. cities. Joseph T. Ryerson & Son, Inc., a wholly owned subsidiary of Inland Steel Industries, Inc., was founded in 1842 by Joseph T. Ryerson. In 1935, Inland Steel Company and Joseph T. Ryerson & Son, Inc. merged to begin a long-term relationship. Inland Steel was a well-established Chicago-based steel producer, engaged in the manufacture of bars, shapes, plates, sheets, strips, rails, track accessories, and tin plate. Under the parent company of Inland Steel since 1935, the company processes and distributes carbon, stainless and alloy steels through its service centers.
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 Joseph T. Ryerson & Son, Inc. equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of three (3) years in consideration of the company's proposed investment of $7.6 million, the relocation of 13 full-time permanent employees, which will be new to Columbus, and the creation of 17 permanent full-time jobs.
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 application for the Jobs Growth Incentive from Joseph T. Ryerson & Son, Inc.; and
WHEREAS, Joseph T. Ryerson & Son, Inc. is proposing to enter into a 5 year lease and renovate property located at 555 N. Yearling Road, to accommodate expansion; and
WHEREAS, Joseph T. Ryerson & Son, Inc. has indicated that a Jobs Growth Incentive is crucial to its decision to locate the aforementioned expansion in Columbus; and
WHEREAS, the City of Columbus desires to facilitate Joseph T. Ryerson & Son, Inc. future growth at the project site by the creation of new jobs; and
WHEREAS, in consideration of Joseph T. Ryerson & Son, Inc. proposed investment of $7.6 million, the relocation and retention of 13 full-time permanent employees, which will be new to Columbus, and the creation of 17 new permanent full-time 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 equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of three (3) years with Joseph T. Ryerson & Son, Inc. beginning February, 2010.
Section 2. Each year of the term of the agreement with Joseph T. Ryerson & Son, 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 Joseph T. Ryerson, 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.