Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Downtown Office Incentive Agreement with Matic Insurance Services Inc.
Matic Insurance Services Inc. was founded in 2014 in California as a technology company integrating into the insurance industry. They developed an application that is used to help borrowers obtain homeowners insurance during the mortgage loan process. In 2016, Matic Insurance Services Inc. selected Columbus, Ohio for their agent call center to assist customers directed to them by lenders in selecting the most appropriate insurance carrier and policy. Matic Insurance Services Inc. has recently landed several large integration partnerships which require an expansion of their insurance agent services as well as their legal team and administrative staff. This expansion could take place in their California or Columbus offices. Matic would like to expand in Columbus to take advantage of relationships with the insurance carriers headquartered in Columbus.
Matic Insurance Services Inc. intends to lease, renovate, and occupy approximately 12,000 square feet of office space at 2 Miranova Place, Suite 400, Columbus, Ohio 43215 (“Project Site”) in the Riversouth District. The expansion of this client’s services center and establishment of legal and administrative offices will support new integration partnerships and provide access to a diverse and talented pool of prospective employees. Matic Insurance Services Inc. will invest approximately $400,000 related to leasehold improvements and equipping the Project Site. Matic Insurance Services Inc. anticipates retaining 10 existing full-time permanent positions with an associated annual payroll of approximately $645,000 and expects to create 50 new full-time permanent positions with an associated annual payroll of approximately $3,317,000.
Matic Insurance Services Inc. is requesting a Downtown Office Incentive from the City of Columbus to assist in the expansion of operations in Columbus.
FISCAL IMPACT: No funding is required for this legislation
Title
To authorize the Director of the Department of Development to enter into a Downtown Office Incentive Agreement with Matic Insurance Services Inc.
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 0088X-2007, adopted June 4, 2007, authorized the Department of Development to establish the Columbus Downtown Office Incentive Program as amended; and
WHEREAS, the Department of Development has received a completed application for the Downtown Office Incentive from Matic Insurance Services Inc.; and
WHEREAS, Matic Insurance Services Inc. intends to lease, renovate, and occupy approximately 12,000 square feet of office space at 2 Miranova Place, Suite 400, Columbus, Ohio 43215; and
WHEREAS, Matic Insurance Services Inc. will invest approximately $400,000 related to leasehold improvements and equipping the Project Site, anticipates retaining 10 existing full-time permanent positions with an associated annual payroll of approximately $645,000, and expects to create 50 new full-time permanent positions with an associated annual payroll of approximately $3,317,000; 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 Downtown Office Incentive Agreement, pursuant to Columbus City Council Resolution 0088X-2007, with Matic Insurance Services Inc. for an annual cash payment equal to fifty percent (50%) of the amount of City withholding tax withheld on new employees for a term of up to four (4) consecutive years on the estimated job creation of 50 new full-time permanent positions located at 2 Miranova Place, Suite 400, Columbus, Ohio 43215.
SECTION 2. Each year of the term of the agreement with Matic Insurance Services Inc. that a payment is due, the City's obligation to pay the incentive 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 3. That the City of Columbus Downtown Office Incentive Agreement is signed by Matic Insurance Services Inc. within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. That the Director of the Department of Development is hereby authorized to amend the Downtown Office Incentive Agreement with Matic Insurance Services Inc. 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.