Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with ContactUS, LLC equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term of five (5) years. ContactUS, LLC will make a fixed-asset investment of approximately $1.0 million, including $135,000 in renovations and lease-hold improvements, $615,000 in new machinery and equipment, and $250,000 in new furniture and fixtures, and create 150 new full-time permanent positions with an annual payroll of approximately $5.6 million.
ContactUS, LLC was formed in December, 2011 by the Board of Directors of CallCopy, Inc. (a leading provider of innovative call recording and contact center solutions), and is a privately owned company. The product of cloud computing is the broader concept of infrastructure convergence and shared services. This type of data environment allows enterprises to get their computerized applications to work faster, with easier manageability and less maintenance.
ContactUS, LLC is proposing to establish its corporate headquarters and client support operation in the City of Columbus. The company will enter into a 7-year lease agreement on vacant office space consisting of approximately 11,000 square feet located at 1108 City Park Avenue. The renovated space will allow the company to start up its new cloud based contact center and software development facility, and also allow room for increased growth and consumer demand.
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 ContactUS, 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 $1 million and the creation of 150 new permanent full-time 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 and its citizens; and
WHEREAS, the Department of Development has received a completed Jobs Growth Incentive Agreement Application from ContactUS, LLC; and
WHEREAS, ContactUS, LLC will enter into 7-year lease agreement on vacant office space located at 1108 City Park Avenue to establish its corporate headquarters and client support facility; and
WHEREAS, ContactUS, LLC 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 ContactUS, LLC's future growth at the project site; and
WHEREAS, in consideration of ContactUS, LLC's proposed investment of $1.0 million and the proposed creation of 150 new full-time permanent positions; 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 ContactUS, LLC equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years.
Section 2. Each year of the term of the agreement with ContactUS, 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 ContactUS, 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 ordinance shall take effect and be in force from and after the earliest period allowed by law.