Explanation
BACKGROUND: The need exists to amend the Job Creation Tax Credit Agreement and the Jobs Growth Incentive Agreement with Express, LLC, Express Holding, LLC, Express Topco, LLC and Express Parent, LLC. Ordinance 0795-2008, approved by Columbus City Council on May 12, 2008, granted a sixty five percent (65%) eight (8) year Jobs Creation Tax Credit and a twenty five percent (25%) five (5) year Jobs Growth Incentive. On December 1, 2008, Columbus City Council passed Ordinance 1915-2008 which approved an amendment to Ordinance 0795-2008. The amendment added two other grantees to the agreement. The added grantees were Express Topco, LLC and Express Parent, LLC. An amendment to the agreement is now needed to add Express Inc., as another grantee to the agreements, and remove Express Parent, LLC from the agreements. Therefore, Express LLC, Express Inc., Express Topco, and Express Holding LLC, (henceforth, all four entities will collectively be referred to herein as "Express"), will become the new grantees for both agreements.
Express has invested approximately $7.9 million to renovate and expand its corporate headquarters at 1 Limited Parkway Columbus, Ohio. The company will retain approximately 368 full-time employees and will create 120 new full-time permanent positions.
The State approved a Jobs Creation Tax Credit of 60% for 8 years for Express.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend the Jobs Creation Tax Credit Agreement and the Job Growth Incentive Agreement with Express, LLC, Express Holdings, LLC, Express Topco, LLC, and Express Parent, LLC for the purpose of adding Express Inc., LLC, and removing Express Parent, LLC; and to declare an emergency.
Body
WHEREAS, pursuant to Ohio Revised Code Section 122.17, the State of Ohio is authorized to establish the Tax Credit Authority and to execute agreements with taxpayers of the State of Ohio for the purpose of granting these tax payers job creation tax credits against their corporate franchise tax or income tax, which tax credits are provided to create new jobs in the State of Ohio; and
WHEREAS, pursuant to Section 718.15 of the Ohio Revised Code (the "City Act") a municipal corporation is authorized to grant local income tax credits to taxpayers who have received tax credits from the State; and
WHEREAS, contingent on the City granting an amendment to the Jobs Creation Tax Credit Agreement and the Jobs Growth Incentive Agreement, Express will expand its corporate headquarters located at 1 Limited Parkway Columbus, Ohio; and
WHEREAS, Express has invested approximately $7,900,000 to established their corporate headquarters; and
WHEREAS, Express plan to hire approximately 120 new full-time employees and retain 368 employees at the project site; and
WHEREAS, on May 12th, 2008, Columbus City Council passed Ordinance 0795-2008 approving an eight (8) year, sixty five percent (65%) Jobs Creation Tax Credit and a five (5) year, twenty five percent (25%) Job Growth Incentive for Express, LLC and Express Holding, LLC in connection with the project; and
WHEREAS, subsequent to approval by council, Express determined that several new employees would be hired by one of four Express affiliates, which include Express LLC, Express Holding, LLC, Express Topco, LLC and Express, Inc; and
WHEREAS, on December 1, 2008, Columbus City Council passed Ordinance 1915-2008 which authorized an amendment to Ordinance 0795-2008; and
WHEREAS, the Ohio Department of Development approved a 60%/8 year Jobs Creation Tax Credit on April 28th, 2008 for Express; 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 Jobs Creation Tax Credit Agreement and the Jobs Growth Incentive Agreement for the purpose of including Express, Inc. to the agreements and removing Express Parent, LLC from the agreements; 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 Jobs Creation Tax Credit Agreement and the Jobs Growth Incentive Agreement are hereby amended to add Express, Inc. as a grantee and remove Express Parent, LLC as a grantee from both agreements.
Section 2. That City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the City of Columbus Job Creation Tax Credit and the Jobs Growth Incentive Agreements are signed by Express and all its affiliates within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 4. 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.