Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Ultimus Fund Solutions, LLC equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees to Columbus for a term of up to five (5) years.
Ultimus Fund Solutions, LLC (Ultimus Fund Solutions) provides mutual fund services to small-and medium-sized fund groups including organizational services, fund accounting and administration, transfer agent and shareholder services. The company, which opened in 1999 in Cincinnati, has invested heavily in technology and innovation to better service its clients while opening offices in Indianapolis, Indiana and Columbus, Ohio. Ultimus Fund Solutions’ workforce includes accountants, attorneys, paralegals and other investment industry professionals to provide middle and back office services for open and closed-end funds, business development organizations, separately management accounts, private accounts and other investment products. The company received the highest overall score for a mutual fund provider in a 2015 Mutual Fund Administration Survey given by Global Custodian.
Ultimus Fund Solutions, LLC is proposing to invest approximately $200,000 in leasehold improvements, which includes machinery and equipment, to expand its Columbus operations. The company will enter into a lease agreement on a vacant commercial office space consisting of approximately 11,900 square feet at Two Easton Oval, Suite 300 Columbus, Ohio, 43219, with first right of refusal on an additional 10,000 square feet. Ultimus Fund Solutions will retain 28 full-time positions with an associated annual payroll of approximately $2,127,962 and create 32 new full-time permanent positions with an associated new annual payroll of approximately $1,644,869, which will be new income tax revenue for the City of Columbus.
Ultimus Fund Solutions, LLC is requesting a Jobs Growth Incentive from the City of Columbus to assist in the development of this project.
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 Ultimus Fund Solutions, LLC equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term up to five (5) years in consideration of the company’s proposed investment of $200,000 and the creation of 32 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 for its citizens; and
WHEREAS, the Department of Development received a completed Jobs Growth Incentive application from Ultimus Fund Solutions, LLC; and
WHEREAS, Ultimus Fund Solutions, LLC is proposing to invest approximately $200,000 in leasehold improvements, which includes machinery and equipment, to expand its Columbus operations by entering into a long-term lease agreement on approximately 11,900 square feet of vacant commercial office space at Two Easton Oval, Suite 300 Columbus Ohio; and
WHEREAS, Ultimus Fund Solutions, LLC will retain 28 full-time positions with an associated annual payroll of approximately $2,127,962 and create approximately 32 new full-time permanent positions with an estimated new annual payroll of approximately $1,644,869; and
WHEREAS, Ultimus Fund Solutions, LLC has indicated that a Jobs Growth Incentive is crucial to its decisions to expand their operation within the City of Columbus; and
WHEREAS, the City of Columbus desires to facilitate the future growth of Ultimus Fund Solutions, LLC at the project sites by providing a Jobs Growth Incentive; 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 Ultimus Fund Solutions, LLC equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees to Columbus for a term of up to five (5) years.
SECTION 2. That each year of the term of the agreement with Ultimus Fund Solutions, LLC 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 Ultimus Fund Solutions, LLC within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. That this Council hereby extends authority to the Director of the Department of Development to amend the Ultimus Fund Solutions, LLC 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 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.