Explanation
BACKGROUND:
On May 20, 2002, Council adopted Resolution 092x-02 to support the creation of the Columbus Downtown Office Incentive Program as one of the development tools needed to implement the Downtown Business Plan. On July 22, 2002 Council adopted Resolution 144X-02 providing a job creation component to the Columbus Downtown Office Incentive Program to assist with expansion and retention of downtown employers. A second revision must now be made to the incentive qualifications for larger potential employers that requires a repeal of the previous resolution and adoption of this revised resolution.
The City of Columbus has a one of the highest downtown office vacancy rate in the nation. This high vacancy rate is having a negative impact on all business activity downtown and throughout the city. The Downtown Development Office, working in accordance with the Downtown Business Plan, is proposing this revised Columbus Downtown Office Incentive Program. This program is an essential component of the stabilization of the downtown office market. This program as revised is an important part of the overall revitalization strategy for our downtown.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To support the creation of the Columbus Downtown Office Incentive Program as one of the development tools needed to implement the Downtown Business Plan; to repeal Resolution 144X-02, adopted July 22, 2002; and to declare an emergency.
Body
WHEREAS, the City desires to increase employment opportunities and encourage creation of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, to carry out this public purpose the City seeks to pursue all reasonable and legitimate incentives to accomplish downtown development and redevelopment; and
WHEREAS, the Downtown Office Incentive Program is one of several vehicles implemented to help create a growing, healthy downtown; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary to repeal Resolution 144X-02 and adopt this revised version of the resolution to ensure the program's continued competitiveness in the downtown office market, all for the immediate preservation of the public health, property, safety and welfare; NOW, THEREFORE:
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Resolution 144X-02, adopted July 22, 2002, be and is hereby repealed.
Section 2. That this Council with the full support of the Mayor of the City of Columbus, does hereby support the creation of the Columbus Downtown Office Incentive Program as one of the development tools needed to implement the Downtown Business Plan in accordance with the principles expressed herein above.
Section 3. That the City of Columbus creates an employment-based office incentive equal to 50% of the municipal income tax paid through withholding for the new jobs created by an employer in downtown as defined in Section 4 below.
Section 4. For the purpose of this resolution, the boundaries of downtown are defined in Columbus City Code Title 33 Section 3359.03 downtown district boundary.
Section 5. At the end of 5 years from the time resolution 144X-02 was passed by City Council, July 22, 2002, the effective date this program concludes unless otherwise extended by Council action.
Section 6. The minimum employment requirement to qualify for this incentive is 10 new employees (net job creation). The jobs must be newly created positions or moved from outside the city of Columbus to the downtown as defined in Section 4 above.
Section 7. Only private sector employees qualify for this incentive.
Section 8. This program will be applied on a case-by-case basis and when criteria are met, legislation will be prepared and forwarded to Council to approve the incentive.
Section 9. Program term eligibility will be determined by qualifying under either paragraph A or B of this Section:
A) The term of the incentive for qualifying employers occupying leased space shall be two (2) years less than the lease term not to exceed five (5) years term; for employers using owner occupied space the term is five (5) years.
B) The term of the incentive based on new to Columbus jobs shall be:
1.) 10 to 49 new employees - one (1) year,
2.) 50 to 149 new employees - two (2) years,
3.) 150 to 249 new employees - three (3) years,
4.) 250 to 399 new employees - five (5) years,
5.) 400 plus new employees - eight (8) years
Section 10. The availability of this incentive is contingent on the one time approval of the incentive for a company by City
Council and the City's obligation to pay the incentive each year is expressly contingent upon the passing 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 11. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this Resolution is declared to be an emergency measure and shall take effect and be in force from and after its adoption and approval by the Mayor, or ten days after adoption if the Mayor neither approves nor vetoes the same.