Explanation
BACKGROUND: The Department of Development is proposing to enter into a Columbus Downtown Office Incentive agreement with Floyd Browne Group. For over 70 years, Floyd Browne Group has been providing solutions for Government, Land Development, Institutions, Parks, Trails & Greenways, and Industrial markets. Floyd Browne Group is recognized as a premier provider of engineering, planning, surveying, and environmental services, as well as operations and maintenance services for water and wastewater facilities. The company employs over 160 employees in seven (7) office locations throughout West Virginia and Ohio. Floyd Browne Group is expanding into the Columbus area from its Delaware, Ohio location. The new positions will create approximately $450,000 in additional payroll and approximately $9,000 annually in City income tax revenue. Based on this estimate, Floyd Browne Group would qualify for the Columbus Downtown Office Incentive of an amount equal to fifty percent (50%) of the payroll taxes paid on the new positions or $4,500 for one (1) year. The Development Department recommends granting the Columbus Downtown Office Incentive program to Floyd Browne Group.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Columbus Downtown Office Incentive Agreement with Floyd Browne Group as provided in Columbus City Council Resolution Number 0088X-2007, adopted June 4, 2007.
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 Number 0088X-2007, adopted June 4, 2007, authorized the Department of Development to continue operation of the Columbus Downtown Office Incentive program as amended; and
WHEREAS, the Department of Development has received a completed application for the Columbus Downtown Office Incentive program from Floyd Browne Group; and
WHEREAS, Floyd Browne Group is proposing to expand into the Columbus market by entering into a 3-year lease agreement with 15-19 E. Gay St. LLC and create 10 new positions at 15 East Gay Street, Suite 2A, Columbus, Ohio, with a projected additional payroll of $450,000 annually and approximately $9,000 annually in income tax revenue to the City of Columbus; 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 Columbus Downtown Office Incentive agreement with Floyd Browne Group, pursuant to Columbus City Council Resolution Number 0088X-2007, 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 one (1) year on the estimated addition of 10 new positions at 15 E. Gay Street, Suite 2A Columbus, Ohio.
Section 2. This employment at Floyd Brown Group is the result of relocating 10 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 ownership of the project site qualifies Floyd Browne Group for a one (1) year incentive term. The term beginning in calendar year 2008, with the incentive payment made in the second quarter of the following year based on actual City of Columbus income tax withholding paid by the new positions for the preceding year.
Section 4. Each year of the term of the agreement with Floyd Browne Group 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 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.