Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Middle West Spirits, LLC equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees to Columbus for a term of up to five (5) years. Middle West Spirits, LLC will invest a total of approximately $2,965,000 related to leasehold improvements, the acquisition of furniture and fixtures, machinery and equipment, stand-alone computers, the retention of 5 full-time permanent positions with an annual payroll of approximately $280,000 and the creation of 25 new full-time permanent positions with an new annual payroll of approximately $957,500.
Located in the historic Short North Arts District, Middle West Spirits, LLC is an established micro-distillery producing small batch craft spirits, vinegars, and syrups under the OYO brand (pronounced “oh-why-oh”). Middle West Spirits, LLC currently distributes its products in 14 states plus the District of Columbia. Prompted by an increase in demand for its lines of whiskey, vodka and bourbon, Middle West Spirits, LLC is proposing to relocate back office operations from 1230 Courtland Ave., Columbus, Ohio 43201 and lease, renovate, and equip approximately 23,000 square feet of existing office and warehouse space located at 470 E. Starr Ave., Columbus, Ohio 43201, in the nearby Milo-Grogan neighborhood, in order to expand distilling operations at their Short North location.
The expansion and renovation of the company’s existing Short North distilling and retail operations at 1230 Courtland Ave. will include a complete renovation of the structure - expected to add more than 40 feet of height to the 18 foot-high structure. The overhaul will include the installation of new higher-capacity distilling and grain handling equipment, construction of a full-service tasting room, bottle shop, and façade improvements. The Milo-Grogan site, 470 E. Starr Ave., will warehouse aging spirits, bottling operations, finished goods management, and expanded back office support. This site will include approximately 2,500 square feet of office space to support sales, marketing, finance, accounting, and production staff.
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 Middle West Spirits, LLC equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of up to five (5) years in consideration of investing approximately $2,965,000 related to leasehold improvements, the acquisition of furniture and fixtures, machinery and equipment, stand-alone computers, retaining 5 full-time permanent positions, and creating 25 new full-time permanent positions.
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 received a completed Jobs Growth Incentive Application from Middle West Spirits, LLC; and
WHEREAS, Middle West Spirits, LLC will relocate back office operations from 1230 Courtland Ave., Columbus, Ohio 43201 and lease, renovate, and equip approximately 23,000 square feet of existing office and warehouse space located at 470 E. Starr Ave., Columbus, Ohio 43201, in the nearby Milo-Grogan neighborhood, in order to expand distilling operations at their Short North location; and
WHEREAS, Middle West Spirits, LLC will invest a total of approximately $2,965,000 related to leasehold improvements, the acquisition of furniture and fixtures, machinery and equipment, stand-alone computers at the two sites, retain 5 full-time permanent positions with an annual payroll of approximately $280,000 and create 25 new full-time permanent positions with a new annual payroll of approximately $957,500; and
WHEREAS, Middle West Spirits, LLC has indicated that a Jobs Growth Incentive is crucial to its decisions to expand their operation within the City of Columbus; and
WHEREAS, the City of Columbus desires to facilitate the future growth of Middle West Spirits, LLC at the project sites by providing a Jobs Growth Incentive; and 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 Agreement with Middle West Spirits, LLC equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees to Columbus for a term of up to five (5) years.
SECTION 2. Each year of the term of the agreement with Middle West Spirits, LLC, 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 the City of Columbus Jobs Growth Incentive Agreement is signed by Middle West Spirits, LLC within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. The City Council hereby extends authority to the Director of Development to amend the Middle West Spirits, LLC City of Columbus Jobs Growth Incentive Agreement for certain modifications to the agreement requested in writing by the company and or the City and deemed appropriate by the Director of Development with these modifications being specifically limited to reductions in length of term, methods of calculating the incentive, or adding or deleting business entities associated with the employment commitments related to this incentive. All other requested amendments must be approved by City Council.
SECTION 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.