Explanation
BACKGROUND:
The City of Columbus currently has an excessive amount of vacant office space in our downtown market. This high vacancy rate is having a negative impact on all business activity downtown and throughout the city. CityNet, a leader in integrated communication solutions, is currently exploring downtown Columbus as a potential site for their corporate headquarters. They anticipate the creation of 110 new positions downtown. This job creation is estimated to generate $11,000,000 of payroll and $220,000 annually in City income tax revenue. Based on this estimate, they would qualify for the Columbus Downtown Office Incentive of an amount equal to 50% of the payroll taxes paid or $110,000 each year for five years. The Downtown Development Office recommends granting the Columbus Downtown Office Incentive Program to CityNet.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Program agreement with CityNet as provide in Columbus City Council Resolution 144X-02 adopted July 22, 2002.
Body
WHEREAS, the City desires to increase employment opportunities and encourage establishment of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, Resolution 144X-02, adopted July 22, 2002, authorized the Department of Development to establish the Columbus Downtown Office Incentive program; and
WHEREAS, The Department of Development has received a completed application for the Columbus Downtown Office Incentive Program from CityNet; and
WHEREAS, CityNet estimates that it will create 110 new jobs at 343 North Front Street, with a projected payroll of $11,000,000 generating estimated City of Columbus income tax revenue of $220,000 annually; 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 the Columbus Downtown Office Incentive Program agreement with CityNet, pursuant to Columbus City Council Resolution 144X-02, for an annual cash payment equal to 50% of the total income tax withholding for the new positions located in downtown Columbus for a term of five (5) years based on the estimated addition of 110 jobs at 343 North Front Street.
Section 2. This employment at CityNet is the result of relocating 110 new jobs to the Downtown as defined in Columbus City Code Title 33 Section 3359.03 downtown district boundary.
Section 3. As provided in the program guidelines the proposed ten (10) year lease qualifies CityNet for a five (5) year incentive term. The term beginning in calendar year 2004, with the incentive payment made in the first quarter of the following year based on actual City of Columbus income tax withholding paid by employees for the preceding year.
Section 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.