Explanation
BACKGROUND: The need exists to amend the Jobs Growth Incentive Agreement between the City of Columbus (“CITY”) and Goosehead Insurance Agency, LLC (the “GRANTEE”). Columbus City Council (“COUNCIL”), by Ordinance No. 0750-2021, passed April 5, 2021, authorized the Director of the Department of Development of the CITY to enter into a dual-rate Jobs Growth Incentive Agreement (the “AGREEMENT”) for an annual cash payment equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on the Columbus payroll of new employees and (ii) thirty percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of new employees, who are also City of Columbus residents at the end of each calendar year, for a term of up to six (6) consecutive years. Should the GRANTEE not be able to sufficiently document residency for a new employee associated with this project during a calendar year of the term of the AGREEMENT, the default rate of the Jobs Growth Incentive to be applied that calendar year for that new employee shall be twenty-five percent (25%). The financial incentive was granted in consideration of the GRANTEE’s total proposed investment of approximately $1,335,000.00, which included $825,000.00 in leasehold improvements, $180,000.00 in machinery and equipment, and $330,000.00 in furniture and fixtures to expand its operations at 4131 Worth Avenue, Columbus, Ohio 43219, parcel number 010-298178 (the “PROJECT SITE”). Additionally, the GRANTEE committed to create sixty (60) net new full-time permanent positions with an annual payroll of approximately $4,600,000.00 to support its growth (the “PROJECT”). The AGREEMENT was made and entered into effective May 17, 2021 with the incentive term to begin January 1, 2022 through December 31, 2027 for a 6-year credit.
In an electronic communication from the GRANTEE’s general counsel, received by the Department of Development dated April 25, 2025, and through ensuing correspondence, it was requested that the PROJECT SITE be amended to reflect the GRANTEE’s current operating address. In 2021, the GRANTEE leased 16,027 square feet of office space at 4131 Worth Avenue in Columbus, the PROJECT SITE. The lease included a 7-year term through year 2028. After about four (4) years of operating out of the facility, the company determined the layout of its space was not suitable for the operation it wished to build in Columbus. The landlord and GRANTTE agreed to a termination of the lease on April 14, 2025 and on that same day the landlord and GRANTEE entered into a new lease agreement for a nearby office space consisting of approximately 7,159 square-feet at 4215 Worth Avenue, Columbus, Ohio 43219.
This legislation is to authorize the Director of the Department of Development to amend the AGREEMENT for the first time to revise the PROJECT SITE from “4131 Worth Avenue, Columbus, Ohio 43219, parcel number 010-298178” to “4215 Worth Avenue, Columbus, Ohio 43219, parcel number 010-147168”.
This legislation is presented as 30-day legislation.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the Jobs Growth Incentive Agreement with Goosehead Insurance Agency, LLC for the first time to revise the Project Site from “4131 Worth Avenue, Columbus, Ohio 43219, parcel number 010-298178” to “4215 Worth Avenue, Columbus, Ohio 43219, parcel number 010-147168. ($0.00)
Body
WHEREAS, the need exists to amend the Jobs Growth Incentive Agreement between the City of Columbus (“CITY”) and Goosehead Insurance Agency, LLC (the “GRANTEE”). Columbus City Council (“COUNCIL”), by Ordinance No. 0750-2021, passed April 5, 2021, authorized the Director of the Department of Development of the CITY to enter into a dual-rate Jobs Growth Incentive Agreement (the “AGREEMENT”) for an annual cash payment equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on the Columbus payroll of new employees and (ii) thirty percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of new employees, who are also City of Columbus residents at the end of each calendar year, for a term of up to six (6) consecutive years; and
WHEREAS, should the GRANTEE not be able to sufficiently document residency for a new employee associated with this project during a calendar year of the term of the AGREEMENT, the default rate of the Jobs Growth Incentive, to be applied that calendar year for the new employee, shall be twenty-five percent (25%); and
WHEREAS, the AGREEMENT was made and entered into effective May 17, 2021 with the incentive term to begin January 1, 2022 through December 31, 2027 for a 6-year credit; and
WHEREAS, the financial incentive was granted in consideration of the GRANTEE’s total proposed investment of approximately $1,335,000.00, which included $825,000.00 in leasehold improvements, $180,000.00 in machinery and equipment, and $330,000.00 in furniture and fixtures to expand its operations at 4131 Worth Avenue, Columbus, Ohio 43219, parcel number 010-298178 (the “PROJECT SITE”). Additionally, the GRANTEE committed to create sixty (60) net new full-time permanent positions with an annual payroll of approximately $4,600,000.00 to support its growth (the (“PROJECT”); and
WHEREAS, in an electronic communication from the GRANTEE’s general counsel, received by the Department of Development dated April 25, 2025, and through ensuing correspondence, it was requested that the PROJECT SITE be amended to reflect the GRANTEE’s current operating address. In 2021, the GRANTEE leased 16,027 square feet in an office building located at 4131 Worth Avenue in Columbus. The lease included a 7-year term through year 2028. After about 4 years of operating out of the facility, the company determined the layout of its space was not suitable for the operation it wished to build in Columbus. The landlord and GRANTEE agreed to a termination of the lease on April 14, 2025 and on that same day the landlord and GRANTEE entered into a new lease agreement for a nearby office space consisting of approximately 7,159 square-feet at 4215 Worth Avenue, Columbus, Ohio 43219; and
WHEREAS, as a result of the GRANTEE moving into a different office space, the company request the AGREEMENT be amended to revise the PROJECT SITE; and
WHEREAS, a First Amendment to the AGREEMENT is now needed to revise the PROJECT SITE from 4131 Worth Avenue, Columbus, Ohio 43219, parcel number 010-298178” to “4215 Worth Avenue, Columbus, Ohio 43219, parcel number 010-147168”;
WHEREAS, the City of Columbus desires to facilitate the future growth of the GRANTEE at the revised PROJECT SITE and capture all net new employees as required by the annual reporting; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF COLUMBUS:
Section 1. That the Council of Columbus finds that the GRANTEE submitting this proposal is qualified by financial responsibility and business experience to create and preserve employment opportunities and improve the economic climate of the municipal corporation.
Section 2. That the Director of the Department of Development is hereby authorized to amend the Jobs Growth Incentive Agreement with Goosehead Insurance Agency, LLC to revise the PROJECT SITE from “4131 Worth Avenue, Columbus, Ohio 43219, parcel number 010-298178” to “4215 Worth Avenue, Columbus, Ohio 43219, parcel number 010-147168”).
Section 3. That this FIRST AMENDMENT to the City of Columbus Jobs Growth Incentive Agreement be signed by Goosehead Insurance Agency, LLC, within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
Section 4. That the remaining terms of the Jobs Growth Incentive Agreement remain in full effect relative to the Ordinance.
Section 5. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.