Explanation
BACKGROUND: RAPID Biomedical GmbH was founded in 1998 by Professor Axel Haase, President of the University of Wuerzburg and Dr. Ulrike Haase, General Manager. The company is headquartered in Rimpar, Germany. RAPID Biomedical GmbH is a technology company that develops, produces, and sells products to be used in Magnetic Resonance Imaging (MRI) units. These products are called MRI coils which make MRI examinations faster, more precise and more efficient. RAPID Biomedical GmbH, with 24 employees all located in Germany, is the only company in the world that develops and produces MRI coils for all purposes and field strengths. The company's MRI coils are used for application in medical diagnosis, chemistry and animal research.
The project will result in an investment of $350,000 in new personal property and the creation of 11 full-time permanent jobs with an annual payroll of $686,400.
The Department of Development recommends a 65%/7 year Jobs Creation Tax Credit.
This legislation is requested to be considered as an emergency in order to allow RAPID MR International, LLC to make a decision on the location of the proposed project as quickly as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into an agreement with RAPID MR International, LLC for a Jobs Creation Tax Credit of 65% for a period of 7 years in consideration of the company's investment of $350,000 in new personal property and the creation of 11 permanent full-time jobs; and to declare an emergency.
Body
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code, the State of Ohio is authorized to establish the Tax Credit Authority and to execute agreements with taxpayers of the State of Ohio for the purpose of granting these taxpayers job creation tax credits against their corporate franchise tax or income tax, which tax credits are provided to create new jobs in the State of Ohio; and
WHEREAS, the Ohio Department of Development approved a 35%/5 year Jobs Creation Tax Credit for RAPID MR International, LLC; and
WHEREAS, pursuant to Section 718.15 of the Ohio Revised Code (the "City Act") a municipal corporation is authorized to grant local income tax credits to taxpayers who have received tax credits from the State; and
WHEREAS, contingent on the City granting a Jobs Creation Tax Credit, RAPID MR International, LLC will expand into Columbus, creating 11 full-time permanent jobs with an annual payroll of $686,400, investing $350,000 in computers & software, increasing job opportunities and strengthening the economy of the city; and
WHEREAS, receiving these tax credits from the State and the City is a critical factor in RAPID MR International, LLC's decision to go forward with the project in the City of Columbus; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to enter into an agreement with RAPID MR International, LLC 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 City hereby finds and determines that the project will (1) create jobs in the State and City; (2) the project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) receiving the aforementioned tax credit is a critical factor in the decision by RAPID MR International, LLC to go forward with the project.
Section 2. That the City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the Director of the Department of Development is hereby authorized and directed to enter into and execute an 7-year, 65% Jobs Creation Tax Credit Agreement with RAPID MR International, LLC.
Section 4. That the City of Columbus Jobs Creation Tax Credit Agreement is signed by RAPID MR International, LLC within 90 days of passage of this ordinance, or the credit, authorized herein is null and void.
Section 5. 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 the passage if the Mayor neither approves nor vetoes the same.