Explanation
BACKGROUND: The City of Columbus entered into a Job Creation Tax Credit Agreement (hereinafter "Agreement") with InfoCision Management Corporation effective November 21, 2005. Columbus City Council approved the Agreement by Ordinance 1471-2005, adopted September 12, 2005 and granted a non-refundable tax credit allowed against the tax imposed under Article 9, Chapter 361 of the Columbus City Codes (the "City Tax Credit") of sixty-five percent (65%) of the new income tax revenue received by the City for a taxable year from new employees, as that term was defined in Section 4 of the Agreement, commencing September 12, 2005 and for ten (10) consecutive years thereafter based on a $1.2 million investment in the project, the leasing of 50,000 square feet within the geographical boundaries of the City, and the creation of 250 new permanent full-time positions.
Annual reporting documents for Report Year 2011 were sent to InfoCision Management Corporation on June 12, 2012. A letter dated July 9, 2012 was received by the City on July 13, 2012 indicating that "the lease of the facility at 200 East Campus View Blvd. was cancelled effective December 31, 2010" and that the location was "no longer in operation." This legislation is to dissolve the Agreement between the City of Columbus and InfoCision Management Corporation.
This legislation is presented as an emergency measure so that the dissolution of the Agreement can be reported to the necessary local and state agencies in as expeditious a manner as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To dissolve the Job Creation Tax Credit Agreement between the City of Columbus and InfoCision Management Corporation; to direct the Director of the Department of Development to notify as necessary the local and state tax authorities; and to declare an emergency.
Body
WHEREAS, Columbus City Council approved a Job Creation Tax Creation Agreement ("Agreement ") with InfoCision Management Corporation by Ordinance 1471-2005 on September 12, 2005; and
WHEREAS, the Agreement grants a non-refundable tax credit allowed against the tax imposed under Article 9, Chapter 361 of the Columbus City Codes (the "City Tax Credit") of sixty-five percent (65%) of the new income tax revenue received by the City for a taxable year from new employees commencing September 12, 2005 and for ten (10) consecutive years thereafter; and
WHEREAS, in the Agreement, InfoCision Management Corporation commits to lease 50,000 square feet, invest $1.2 million in the project and create 250 new permanent full-time jobs; and
WHEREAS, annual reporting documents for Report Year 2011 were sent to InfoCision Management Corporation on June 12, 2012 and a letter dated July 9, 2012 was received by the City on July 13, 2012 indicating that "the lease of the facility at 200 East Campus View Blvd. was cancelled effective December 31, 2010" and that the location was "no longer in operation" which has led to this legislation to dissolve the Agreement between the City of Columbus and InfoCision Management Corporation effective January 1, 2011; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development so that the dissolution of the Agreement can be reported to the necessary local and state agencies in as expeditious a manner as possible, all for the preservation of the public health, property, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Columbus City Council hereby dissolves the InfoCision Management Corporation Job Creation Tax Credit Agreement effective January 1, 2011 thereby effectively eliminating any remaining tax years for the incentive.
Section 2. That the Director of Development is hereby directed to notify the necessary local and state agencies of any changes to the InfoCision Management Corporation Job Creation Tax Credit Agreement.
Section 3. For the reasons stated in the preamble hereto, which is made a part hereof, this Ordinance is 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 (10) days after passage if the Mayor neither approves nor vetoes this Ordinance.