Explanation
BACKGROUND: The City of Columbus entered into a Job Creation Tax Credit Agreement (Agreement) with Safelite Group, Inc. (Grantee) effective July 30, 2013. Columbus City Council approved the Agreement by Ordinance 0989-2013, passed May 6, 2013, and granted a non-refundable tax credit allowed against the tax imposed under Section 361.09, "Net Profits" of the Columbus City Code (the "City Tax Credit") of sixty-five percent (65%) of the new income tax revenue received by the City for a calendar year from New Employees, as defined in Section 4 of the Agreement, commencing January 1, 2014 and for eight (8) consecutive years thereafter, January 1, 2014 through December 31, 2021 based on an investment of approximately $48.4 million in the renovation and reconfiguration of existing office space, the retention of 1,064 permanent full-time positions and the creation of 350 permanent full-time positions at the Grantee's corporate headquarters at 2400 & 2500 Farmers Drive, Columbus, Ohio 43235 (Project Site).
In a letter from the Grantee received by the City in July 2014, the Grantee indicated that the job growth commitment for the project was to include all of the Grantee's facilities in Columbus which would include their contact center at 2231 Schrock Road, Columbus, Ohio 43229, and their warehouse super center at 760 Dearborn Park Lane, Columbus, Ohio 43085, and requested that these additional addresses be added to the description of the Project Site, as per the Agreement. As such, the need exists to amend the Agreement to add 2231 Schrock Road and 760 Dearborn Park Lane to the Project Site, as described in the Agreement.
This legislation is requested to be considered as an emergency in order to add 2231 Schrock Road and 760 Dearborn Park Lane to the Project Site, as described in the Agreement in an expedient manner as possible so as to allow for the inclusion of the employees located at these additional addresses for the reporting process for Report Year 2014.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to amend the Job Creation Tax Credit Agreement with Safelite Group, Inc. to add 2231 Schrock Road and 760 Dearborn Park Lane to the Project Site, as described in the Agreement; and to declare an emergency.
Body
WHEREAS, Columbus City Council approved a Job Creation Tax Credit Agreement (Agreement) with Safelite Group, Inc. (Grantee) by Ordinance 0989-2013 on May 6, 2013 with the Agreement having been made and entered into effective July 30, 2013; and
WHEREAS, the Agreement granted a non-refundable tax credit allowed against the tax imposed under Section 361.09, "Net Profits" of the Columbus City Code (the "City Tax Credit") of sixty-five percent (65%) of the new income tax revenue received by the City for a calendar year from New Employees, as defined in Section 4 of the Agreement, commencing January 1, 2014 and for eight (8) consecutive years thereafter, January 1, 2014 through December 31, 2021; and
WHEREAS, in the Agreement, Grantee committed to investing approximately $48.4 million in the renovation and reconfiguration of existing office space, the retention of 1,064 permanent full-time positions and the creation of 350 permanent full-time positions at the Project Site, the Grantee's corporate headquarters at 2400 & 2500 Farmers Drive, Columbus, Ohio 43235; and
WHEREAS, in a letter from the Grantee received by the City in July 2014, the Grantee indicated that many of the jobs to be created related to the project were associated with additional addresses, namely 2231 Schrock Road and 760 Dearborn Park Lane, and requested that these additional addresses be added to the description of the Project Site as per the Agreement; and
WHEREAS, an amendment is needed to add 2231 Schrock Road and 760 Dearborn Park Lane to the Project Site as described in the Agreement; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to seek an amendment to the Job Creation Tax Credit Agreement with Safelite Group, Inc. to allow for the inclusion of the employees located at these additional addresses for the reporting process for Report Year 2014; thereby preserving the 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 Development is hereby authorized to amend the Job Creation Tax Credit Agreement with Safelite Group, Inc. to add 2231 Schrock Road and 760 Dearborn Park Lane to the Project Site as described in the Agreement.
SECTION 2. That the amendment to the City of Columbus Job Creation Tax Credit Agreement be signed by Safelite Group, Inc. within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
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 the passage if the Mayor neither approves nor vetoes the same.