Explanation
The City of Columbus currently has an excessive amount of vacant office space in our downtown market. This high vacancy rate is having a negative impact on all business activity downtown and throughout the city. Ten/Resource is currently exploring expansion of their downtown office. They anticipate the creation of 15 new positions. This job creation is estimated to generate $825,000 of payroll and $16,500 annually in City income tax revenue. Based on this estimate, they would qualify for the Columbus Downtown Office Incentive of an amount equal to 50% of the payroll taxes paid or $8,250 for one year. The Downtown Development Office recommends granting the Downtown Office Incentive Program to Ten/Resource.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Program agreement with Ten/Resource as provide in Columbus City Council Resolution 144X-02 adopted July 22, 2002.
Body
WHEREAS, the City desires to increase employment opportunities and encourage establishment of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, Resolution 144X-02, adopted July 22, 2002, authorized the Department of Development to establish the Columbus Downtown Office Incentive program; and
WHEREAS, the Department of Development has received a completed application for the Columbus Downtown Office Incentive Program from Ten/Resource; and
WHEREAS, Ten/Resource estimates that it will create 15 positions at 343 North Front Street with a projected payroll of $825,000 generating estimated City of Columbus income tax revenue of $16,500 annually; 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 the Columbus Downtown Office Incentive Program agreement pursuant to Columbus City Council Resolution 144X-02, for an annual cash payment equal to 50% of the total income tax withholding paid to the City of Columbus for a one (1) year term based on the estimated addition of 15 jobs at 343 North Front Street.
Section 2. This employment at Ten/Resource is the result of relocating 15 new jobs in the Downtown as defined in Columbus City Code Title 33 Section 3359.03 downtown district boundary.
Section 3. As provide in the program guidelines the addition of 15 new positions qualifies Ten/Resource for a one (1) year incentive term. The term beginning in calendar year 2004, with the incentive payment made in the first quarter of 2005 based on actual employment figures for the preceding year.
Section 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.