Explanation
Background: Fitch, Inc. is a Design Services company that has been in business for over 30 years. Fitch, Inc.'s services include architecture, implementation of brand, environmental design and product development. Fitch, Inc.'s customers include Best Buy, Lexmark, Nissan, Starbucks, Dominos, Maytag, Circuit City and Dell. Two recent projects completed were a line of children's spill proof cups for Gerber and a pop-up shop like space for Nokia.
Fitch, Inc.'s Central Ohio location is the North American headquarters of Fitch, Inc. Currently located in Powel Ohio, Fitch, Inc. is proposing to relocate to the Brewery District in Columbus.
Fitch, Inc. is requesting a Jobs Growth Incentive equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of three (3) years in consideration of Fitch, Inc.'s proposed project investment of $500,000 and the relocation of 52 full-time permanent employees, which will be new to Columbus, to assist in the relocation of its North American headquarters to Columbus.
Emergency action is requested in order to allow Fitch, Inc. to begin investing and creating jobs 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 a Jobs Growth Incentive agreement with Fitch, Inc.; and to declare an emergency.
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 application for the Jobs Growth Incentive from Fitch, Inc.; and
WHEREAS, Fitch, Inc. is proposing to relocate its North American Headquarters to Columbus by leasing 20,000 square feet of office space at 585 South Front Street in the Brewery District, to accommodate relocation; and
WHEREAS, Fitch, Inc. has indicated that a Jobs Growth Incentive is crucial to its decision to relocate the North American Headquarters office to Columbus; and
WHEREAS, the City of Columbus desires to facilitate Fitch, Inc.'s future growth at the project site by the creation of new jobs; and
WHEREAS, in consideration of Fitch, Inc.'s proposed investment of $500,000, the relocation of 52 full-time permanent employees with an annual payroll of $3.8 million, which will be new to Columbus; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into said agreement to allow Fitch, Inc. to begin investing and creating jobs as quickly as possible, all 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 Director of the Department of Development is hereby authorized to enter into a Jobs Growth Incentive equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of three (3) years with Fitch, Inc. beginning January 1, 2009.
Section 2. Each year of the term of the agreement with Fitch, Inc., 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 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 passage if the Mayor neither approves nor vetoes the same.