Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a dual-rate Jobs Growth Incentive Agreement with Koorsen Fire & Security, Inc. in an amount equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on the Columbus payroll of new employees and (ii) thirty percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of new employees, who are also City of Columbus residents at the end of each calendar year, for a term of up to five (5) consecutive years.
Koorsen Fire & Security, Inc. was founded in 1946 by Mr. and Mrs. Robert Stroup as Indiana Fire Prevention and Service Company, a servicer of fire extinguishers. The husband and wife tandem began working out of their garage to refill fire extinguishers. The company changed hands in 1954, when the Stroups’ daughter and son-in-law, Jane and George Koorsen, took over and continued the tradition of diligence in all facets of the business. Their son Randy Koorsen eventually became president in 1984 and renamed the company Koorsen Protection Services, Inc. Randy’s leadership brought tremendous growth to the company, expanding it into six states within the Midwest and Southeast while increasing the scope of service by acquiring security operations and adding fire products, sprinkler systems, and engineered fire suppression systems. In 2004, the company became Koorsen Fire & Security, Inc. to better reflect its wider focus. Today, Koorsen Fire & Security, Inc. is a market leader in robust fire alarm systems complete with sprinkler and suppression integration, and business security alarms that have safeguarded both small and large businesses in Columbus for decades. The company has over 30 plus locations and is a recognized leader in loss prevention.
Koorsen Fire & Security, Inc. is proposing to invest approximately $750,000 in real property improvements to expand its Columbus Regional Operations Headquarters/Distribution Center at 727 Manor Park Drive, Columbus, Ohio 43228, parcel number 570-231853. With this expansion, the company plans to increase the size of its current facility of approximately 19,824 sq. ft. by an additional 14,000 sq. ft. to support its strategic growth plan to enter into new markets and to further its footprint in the Midwest. Additionally, Koorsen Fire & Security, Inc. will retain 84 full-time jobs with an annual payroll of approximately $3.47 million and create 25 new full-time permanent positions with a cumulative estimated annual payroll of approximately $1.13 million to support its strategic growth initiative.
Koorsen Fire & Security, Inc. is requesting a dual-rate Jobs Growth Incentive from the City of Columbus to assist in the expansion of this project. This legislation is presented as 30 day legislation.
FISCAL IMPACT: No funding is required for this legislation
Title
To authorize the Director of the Department of Development to enter into a dual-rate Jobs Growth Incentive Agreement with Koorsen Fire & Security, Inc. for a term of up to five (5) consecutive years in consideration of the company’s proposed capital investment of $750,000.00, the retention of 84 jobs and the creation of 25 new full-time permanent positions with an estimated annual payroll of approximately $1.13 million.
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 received a completed Jobs Growth Incentive Application from Koorsen Fire & Security, Inc.; and
WHEREAS, Koorsen Fire & Security, Inc. proposes to expand its Columbus Regional Operations Headquarters/Distribution Center by investing a total project cost of approximately $750,000 in real property improvements. With this expansion, the company proposes to increase the size of its current facility of approximately 19,824 sq. ft. by an additional 14,000 sq. ft. at 727 Manor Park Drive, Columbus, Ohio, parcel number 570-23185; and
WHEREAS, Koorsen Fire & Security, Inc. will retain 84 full-time jobs with an annual payroll of approximately $3.47 million and create 25 new full-time permanent positions with an estimated associated annual payroll of approximately $1.13 million at the proposed project site; and
WHEREAS, Koorsen Fire & Security, Inc. has indicated that a Jobs Growth Incentive is crucial to its decisions to expand its Columbus Regional Operational Headquarters/Distribution Center within the City of Columbus; and
WHEREAS, the City of Columbus desires to facilitate the future growth of Koorsen Fire & Security, Inc. at the project site by providing a Jobs Growth Incentive; 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 dual-rate Jobs Growth Incentive Agreement with Koorsen Fire & Security, Inc. equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on the Columbus payroll of new employees and (ii) thirty percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of new employees, who are also City of Columbus residents at the end of each calendar year, for a term of up to five (5) consecutive years.
SECTION 2. That should Koorsen Fire & Security, Inc. not be able to sufficiently document residency for an employee associated with this project during a calendar year of the term of the agreement, the default rate of the Jobs Growth Incentive to be applied that calendar year for that new employee shall be twenty-five percent (25%).
SECTION 3. That each year of the term of the agreement with Koorsen Fire & Security, 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 4. That the City of Columbus Jobs Growth Incentive Agreement is signed by Koorsen Fire & Security, Inc. within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 5. The City Council hereby extends authority to the Director of the Department of Development to amend Koorsen Fire & Security, Inc.’s City of Columbus Jobs Growth Incentive Agreement for certain modifications to the agreement requested in writing by the company and or the City and deemed appropriate by the Director of Development with these modifications being specifically limited to reductions in length of term, methods of calculating the incentive, or adding or deleting business entities associated with the employment commitments related to this incentive. All other requested amendments must be approved by City Council.
SECTION 6. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.