Explanation
BACKGROUND: The Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Simonton Windows, Inc. (Simonton) equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees to Columbus for a term of seven (7) years. The company will invest approximately $1.1 million to establish its corporate headquarters at 3948 Townsfair Way, and retain and relocate 49 jobs which are all new full-time permanent jobs to Columbus, and create 46 new full-time permanent positions.
Simonton produces vinyl-replacement and new construction windows and patio doors. The company was founded in 1946 by Fred and Sybil Simonton and was originally called Pen Vent Awning. Simonton now markets its product lines using brand names such as Simonton Impressions, Reflections by Simonton and Prism by Simonton. Its customers include wholesale distributors, builders, architects and home centers such as The Home Depot and Lowe's.
Simonton is proposing to relocate its corporate headquarters from West Virginia to the City of Columbus by leasing and renovating 18,498 square feet at 3948 Townsfair Way to meet its increased growth and consolidate corporate functions. The new corporate facility will house sales, operations staff, finance, human resources, and new product development. Simonton will enter into a ten (10) year lease term.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Jobs Growth Incentive Agreement with Simonton Windows, Inc. equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of seven (7) years in consideration of the company's proposed investment of $1.1 million, the creation of 46 new permanent full-time positions and the relocation and retention of 49 existing jobs, which will be new to the City of Columbus.
Body
WHEREAS, the City desires to increase employment opportunities and encourage the creation of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, the Department of Development has received a completed Jobs Growth Incentive Agreement Application from Simonton; and
WHEREAS, Simonton is proposing to lease and renovate 18,498 square feet, to accommodate the relocation and consolidation of its corporate headquarters; and
WHEREAS, Simonton has indicated that a Jobs Growth Incentive is crucial to its decision to locate aforementioned corporate headquarters in Columbus; and
WHEREAS, the City of Columbus desires to facilitate Simonton's future growth at the project site by providing a Jobs Growth Incentive; and
WHEREAS, in consideration of Simonton's proposed investment of $1.1 million, the creation of 46 new full-time permanent positions and the relocation and retention of 49 existing employees, which will be new to 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 Jobs Growth Incentive Agreement equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of seven (7) years with Simonton Windows, Inc.
Section 2. Each year of the term of the agreement with Simonton, the City's obligation to pay the incentive is expressly contingent upon the passage 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 Jobs Growth Incentive Agreement is signed by Simonton within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.