Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with La Senza, Inc. equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term of five (5) years. The company will invest approximately $1.2 in leasehold improvements and personal property and create 80 new full-time permanent positions.
La Senza, Inc. (La Senza) is a Canadian fashion retailer headquartered in Dorval, Quebec, Canada. In 2007, La Senza was purchased by, and is now a subsidiary of Limited Brands, Inc. and sells women's clothing. The company's first store opened in 1990 and has grown to include more than 320 Le Senza Lingerie, La Senza Express, La Senza Spirit and La Senza Girl stores throughout Canada. In addition, La Senza and La Senza Girl stores are operated internationally in 45 other countries through its franchise-operated stores. The company currently has no employees or operations in the U.S.
La Senza, Inc. is proposing to relocate its corporate headquarters from Dorval, Quebec, Canada to the City of Columbus by entering into a 15-year lease agreement with Limited Brands to meet its increased growth and demand as well as consolidate operations.
FISCAL IMPACT: No funding is required for this ordinance.
Title
To authorize the Director of Development to enter into a Jobs Growth Incentive Agreement with La Senza, Inc. equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years in consideration of the company's proposed investment of $1.2 million and the creation of 80 new permanent full-time jobs.
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 has received a completed Jobs Growth Incentive Agreement Application from La Senza, Inc.; and
WHEREAS, La Senza, Inc. is proposing to enter into a 15-year lease located at 3 Limited Parkway, to accommodate the relocation of its corporate headquarters; and
WHEREAS, La Senza, Inc. has indicated that a Jobs Growth Incentive is crucial to its decision to locate the aforementioned corporate headquarters in Columbus; and
WHEREAS, the City of Columbus desires to facilitate La Senza, Inc.'s future growth at the project site by the creation of new jobs; and
WHEREAS, in consideration of La Senza's proposed investment of $1.2 million and the creation of 80 new permanent full-time jobs; 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 equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years with La Senza, Inc.
Section 2. Each year of the term of the agreement with La Senza, Inc. 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 La Senza, Inc. within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.