Explanation
BACKGROUND: The need exists to amend Ordinance 1208-2008. This ordinance was approved by Columbus City Council on July 14, 2008. The ordinance authorized the Director of the Department of Development to enter into a Job Creation Tax Credit Agreement of sixty percent (60%) for a period of five (5) years with Bardwil Industries, Inc. This amendment will allow Bardwil Industries, Inc. to adjust its projected new full-time jobs from sixty to forty and extend the 90 day period needed to execute the Jobs Creation Tax Credit Agreement. The company is experiencing a twenty percent downturn in its business, but is committed to relocate its distribution center and expand in the Columbus community.
Bardwil Industries, Inc. manufacturers and distributes table linen as well as kitchen textiles. The company was established in the early 1900's by Elias Bardwil. Bardwil Industries, Inc. is the largest and broadest based table linen in the United States importing an assortment of products from various nations: India, China, Taiwan and Spain. Bardwil Industries is headquartered in New York City. The company is proposing to relocate its distribution center to Columbus, Ohio because of the labor pool available as well as the access to the highway transportation system.
Bardwil Industries Inc. is proposing to invest approximately $9.5 million in personal property and create 40 new permanent full-time jobs to relocate its distribution center from Jersey City, New Jersey to Columbus, Ohio.
The State has offered a Job Creation Tax Credit of 45% for 5 years and a $20,000 grant for Bardwil Industries, Inc.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend Ordinance 1208-2008, passed by Columbus City Council on July 14, 2008, to adjust the terms of a Job Creation Tax Credit Agreement with Bardwil Industries, Inc. (AMENDED BY ORD. 1333-2010 PASSED 10/4/2010)
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 ordinance 1208-2008, Bardwil Industries, Inc. will relocate its distribution center from Jersey City, New Jersey to Columbus, Ohio; and
WHEREAS, in connection with the Project, Bardwil Industries, Inc. plan to make an investment of approximately $9,500,000; and
WHEREAS, in connection with the Project, Bardwil Industries, Inc. plans to create approximately 40 new full-time positions at the project site; and
WHEREAS, on July 14, 2008, Columbus City Council passed Ordinance 1208-2008 approving a five year, 60% Job Creation Tax Credit for Bardwil Industries, Inc. in connection with the project; and
WHEREAS, the Ohio Department of Development approved a 45%/5-year Job Creation Tax Credit for Bardwil Industries, Inc. and
WHEREAS, Bardwil Industries, Inc. needs to extend the 90 day period required to execute the Jobs Creation Tax Credit Agreement; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Ordinance 1208-2008 is hereby amended to change the proposed number of new jobs to be created from sixty to forty as previously stated in the Job Creation Tax Credit application of Bardwil Industries, Inc. and to amend the 90 day period of execution of the agreement to 90 days from approval of this legislation.
Section 2. That Bardwil Industries, Inc. shall execute the Jobs Creation Tax Credit Agreement within 90 days of passage of this Ordinance or this Ordinance and the credit authorized herein shall be null and void.
Section 3. That this Ordinance shall take effect at the earliest time allowed by law.