Explanation
Background: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Ohio Valley Cable Services, Inc. (OVCS) equal to twenty five percent (25%) of the amount of personal income tax withheld on new employees for a term of 5 years.
OVCS is a cable company that reconditions, repairs, sells and distributes fiber optic and digital cable equipment. The company began in 1999 and is currently headquartered in Columbus, Ohio. OVCS services clientele from Central Ohio and the West Coast in repairing cable line equipment, fiber transmission equipment, and test equipment. OVCS has experienced a tremendous amount of sales growth and is currently looking to expand their operations to meet the demand.
Emergency action is necessary in order to allow Ohio Valley Cable Services, 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 Development to enter into a Jobs Growth Incentive agreement with Ohio Valley Cable Services, Inc., equal to twenty five percent (25%) of the amount of personal income tax withheld on new employees for a term of five (5) years in consideration of Ohio Valley Cable Services, Inc.'s proposed investment of $500,000 and the creation of 115 permanent full-time jobs; 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 Ohio Valley Cable Services, Inc.; and
WHEREAS, Ohio Valley Cable Services, Inc. is proposing to lease an additional 60,000 square feet at its current location, 1030 Freeway Dr. North, to accommodate expansion; and
WHEREAS, Ohio Valley Cable Services, Inc. has indicated that a Jobs Growth Incentive is crucial to its decision to locate the aforementioned consolidation/expansion in Columbus; and
WHEREAS, the City of Columbus desires to facilitate Ohio Valley Cable Services, Inc.'s future growth at the project site by the creation of new jobs; and
WHEREAS, in consideration of Ohio Valley Cable Services, Inc.'s creation of 115 new positions with an annual payroll of $3.8 million; and
WHEREAS, emergency action is necessary in order to allow Ohio Valley Cable Services, Inc. to begin investing and creating jobs as quickly as possible; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into a Jobs Growth Incentive Agreement with Ohio Valley Cable Services, Inc., 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 personal income tax withheld on new employees for a term of five (5) years with Ohio Valley Cable Services, Inc. beginning January 1, 2008.
Section 2. Each year of the term of the agreement with Ohio Valley Cable Services, 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.