Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Columbus Downtown Office Incentive with Duncan Simonette, Inc.
Duncan Simonette, Inc. is a law firm that specializes in business, real estate, domestic relations, estate planning, bankruptcy, and additional litigation services. The law firm was created by Brian K. Duncan and David G. Simonette. Legal services are provided to lenders and borrowers, developers and builders, tenants and landlords. Duncan Simonette, Inc. is proposing to relocate its corporate headquarters from South High Street to the Downtown Business District by entering into a 7-year lease agreement on a vacant office space consisting of approximately 7,000 square feet located at 155 E. Broad Street Suite 2200. The company will invest approximately $400,000, which includes leasehold improvements and personal property, create 13 new full-time permanent positions and retain 5 full-time permanent positions. The thirteen (13) new positions, with an annual payroll of $565,000, will provide approximately $14,125 annually in new city income tax revenue.
Duncan Simonette, Inc. qualifies for a Columbus Downtown Office Incentive of an amount equal to fifty percent (50%) of the payroll taxes paid on the new positions or $35,310 over a term of five (5) years. The Development Department recommends granting the Columbus Downtown Office Incentive program to Duncan Simonette, Inc.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Agreement with Duncan Simonette, Inc. 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 the 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 establish 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 Duncan Simonette, Inc.; and,
WHEREAS, Duncan Simonette, Inc. is proposing to relocate its headquarters to the Downtown Business District by entering into a 7-year lease agreement and create 13 new full-time permanent positions located at 155 E. Broad Street Suite 2200, Columbus, Ohio, with an estimated annual payroll of $565,000 generating an estimated City of Columbus income tax revenue of $14,125 annually; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. Columbus City Council authorizes the Director of Development to enter into a Columbus Downtown Office Incentive Agreement with Duncan Simonette, Inc., 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 five (5) years on the estimated job creation of 13 new full-time permanent positions at 155 E. Broad Street Suite 2200, Columbus, Ohio.
Section 2. As provided in the program guidelines, leasing of the project site qualifies Duncan Simonette, Inc. for a five (5) years incentive term. The term beginning in calendar year 2011, 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 3. Each year of the term of the agreement with Duncan Simonette, 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 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.