Explanation
BACKGROUND:
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. Shaw & Shaw CPA's, Inc. is currently exploring downtown Columbus as a potential site for their relocation. They anticipate relocating 13 positions downtown. This job creation is estimated to generate $1,050,000 of payroll and $21,000 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 $10,500 each year for four (4) years. The Downtown Development Office recommends granting the Columbus Downtown Office Incentive Program to Shaw & Shaw CPA's, Inc.
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 Shaw & Shaw CPA's, Inc. as provided in Columbus City Council Resolution 075X-2004, adopted March 29, 2004.
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 075X-2004 adopted March 29, 2004, authorizing 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 Shaw & Shaw CPA's, Inc.; and
WHEREAS, Shaw & Shaw CPA's, Inc. estimates that it will create 13 new jobs at 10 West Broad Street, with a projected payroll of $1,050,000 generating estimated City of Columbus income tax revenue of $20,500 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 a Columbus Downtown Office Incentive Program agreement with Shaw & Shaw CPA's, Inc., pursuant to Columbus City Council Resolution 075X-2004, for an annual cash payment equal to 50% of the total income tax withholding for the new positions located in downtown Columbus for a term of four (4) years based on the estimated addition of 13 jobs at 10 West Broad Street.
Section 2. This employment at Shaw & Shaw CPA's, Inc. is the result of relocating 13 new jobs to the Downtown as defined in Columbus City Code Title 33 Section 3359.03 downtown district boundary.
Section 3. As provided in the program guidelines the proposed 6.5-year lease at 10 West Broad Street qualifies Shaw & Shaw CPA's, Inc. for a four (4) year incentive term. The term beginning in calendar year 2006, with the incentive payment made in the first quarter of the following year based on actual City of Columbus income tax withholding paid by employees for the preceding year.
Section 4. Each year of the term of the agreement with Shaw & Shaw CPA's, Inc. that a payment is due, the City's obligation to pay the incentive is expressly contingent upon the passing 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 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.