Explanation
BACKGROUND: The need exists to amend Ordinance 0080-2011. This ordinance was approved by Columbus City Council on January 31, 2011. The ordinance authorized the Director of the Department of Development to enter into a Job Creation Tax Credit Agreement of sixty-five percent (65%) for a period of six (6) years and a Jobs Growth Incentive of twenty-five percent (25%) for a period of five (5) years with Citi Fund Services Ohio, Inc. An amendment is now required to add the following affiliates of Citi Fund Services Ohio, Inc. as grantees to the Agreements: Citicorp North America, Citigroup Technology and Citigroup Management Corp. Henceforth, all four entities will collectively be referred to herein as "Citi".
Citi Fund Services Ohio, Inc. is a privately-owned company that was incorporated in 1988 and based in Columbus, Ohio. Citi offers fund services, which include administration and accounting, transfer agency and shareholder services, compliance and regulatory support, and marketing and distribution solutions. The company, using its fund services platform, supports separately managed accounts, college savings plans, registered hedge funds, and variable annuity and variable life insurance products. It operates offshore platforms located in Dublin, London, Luxembourg, and Guernsey. Citi Fund was formerly known as BISYS Fund Services Ohio, Inc. and changed its name to Citi Fund Services Ohio, Inc. in August 2007. Citi operates as a subsidiary of Citi Investor Services, Inc.
The project, located in the City of Columbus, includes the improvement of their leased facility for the support and administration of new and current business. The company is proposing to expand its current facility by adding new lines of business from other Citi Fund locations. Citi will make a fixed-asset investment of at least $2.8 million including, $2.25 million in new machinery and equipment and $610,000 in renovation and leasehold improvements, and create 300 new permanent full-time positions.
The State of Ohio has approved a 60%/7-year Jobs Creation Tax Credit for Citi.
This legislation is requested to be considered as an emergency in order to allow "Citi" to begin investing and creating jobs as quickly as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend Ordinance 0080-2011, passed by Columbus City Council on January 31, 2011, for the purpose of including the specified Citi Fund affiliates as grantees to the Job Creation Tax Credit Agreement and the Jobs Growth Incentive Agreement; 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 Ordinance 0080-2011, Citi Fund Services Ohio, Inc. will expand its corporate headquarters located at 3435 Stelzer Road Columbus, Ohio; and
WHEREAS, Citi plan to make an investment equal to $2.86 million; and
WHEREAS, Citi plan to create approximately 300 new full-time jobs and retain 715 full-time positions at the project site; and
WHEREAS, on January 31, 2011, Columbus City Council passed Ordinance 0080-2011 approving a six year, sixty-five percent (65%) Job Creation Tax Credit and a five year, twenty-five percent (25%) Jobs Growth Incentive for Citi Fund Services Ohio, Inc.; and
WHEREAS, the Ohio Department of Development approved a 60%/7-year Job Creation Tax Credit on December 6, 2010 for Citi; and
WHEREAS, subsequent to approval by Columbus City Council, Citi Fund Services Ohio, Inc. determined that several new employees would be hired by one of four Citi's affiliates, which include Citi Fund Services Ohio, Inc. Citicorp North America, Citigroup Technology and Citigroup Management; and
WHEREAS, Citi Fund Services Ohio, Inc. seeks to have the specified Citi's affiliates added as grantees to the Job Creation Tax Credit Agreement and the Jobs Growth Incentive Agreement; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to amend Ordinance 0080-2011 in order to allow Citi to begin investing and creating jobs as quickly as possible, 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 Ordinance 0080-2011 is hereby amended to add Citicorp North America, Citigroup Technology and Citigroup Management to Citi Fund Services Ohio, Inc. as grantees to the Job Creation Tax Credit and the Jobs Growth Incentive Agreements (collectively referred herein as "Citi").
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 Agreement and the Jobs Growth Incentive Agreement are signed by Citi 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.