Explanation
Background: The need exists to enter into a Jobs Growth Incentive Agreement with ComResource, Inc. The City has adapted and expanded its concept of the Jobs Growth Incentive tool to apply to areas outside of Downtown to help retain and create jobs in Columbus.
ComResource, Inc. (ComResource) is a privately owned business technology solutions provider, founded in 1991 and located in Columbus, Ohio. Due to business growth ComResource is proposing to consolidate its three Columbus locations into one location consisting of an office, warehouse and training center at 1159 Dublin Road.
The Columbus Department of Development is proposing a Jobs Growth Incentive equal to 25% of the amount of personal income tax withheld on new employees for a term of 5 years.
Emergency action is requested in order to allow ComResource, Inc. to begin investing and creating jobs as quickly as possible.
Fiscal Impact: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Jobs Growth Incentive agreement equal to 25% of the amount of personal income tax withheld on new employees for a term of 5 years with ComResource, Inc., in consideration of ComResource, Inc.'s proposed investment of $60,000, the retention of 45 full-time jobs and the creation of 30 permanent full-time jobs; and to declare an emergency.
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 ComResource, Inc.; and
WHEREAS, ComResource, Inc. is currently located at 330 W. Spring Street, Columbus, Ohio and is engaged in a process to identify a location for its headquarters, warehouse and training facility as well as effect a consolidation of operations in Columbus; and
WHEREAS, ComResource, Inc. has indicated that a Jobs Growth Incentive is crucial to its decision to locate the aforementioned consolidation/expansion in Columbus; and
WHEREAS, the City of Columbus desires to facilitate ComResource, Inc.'s future growth at the project site by the retention of its current employment and the creation of new jobs; and
WHEREAS, in consideration of ComResource, Inc.'s retention of 45 full-time positions with an annual payroll of $1.5 million and the creation of 30 new positions with an annual payroll of $1.7 million generating an estimated $34,000 in income tax revenue; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into an agreement with ComResource, Inc., all 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 Director of the Department of Development is hereby authorized to enter into a Jobs Growth Incentive agreement equal to 25% of the amount of personal income tax withheld on new employees for a term of 5 years with ComResource, Inc beginning January 1, 2007.
Section 2. Each year of the term of the agreement with ComResource, 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 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 passage if the Mayor neither approves nor vetoes the same.