Explanation
BACKGROUND: The Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with ExpressPoint Technology Services, Inc. (ExpressPoint) equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees to Columbus for a term of five (5) years. The company will invest approximately $125,000 to establish a new service center operation in Columbus and to create 30 new full-time permanent positions.
ExpressPoint Technology Services, Inc. (ExpressPoint) was founded in 1996 and provides PC-based depot and point-of-sale repairs, along with inventory management services. The company offers repair services for computers, laptops, servers, wireless and network products, monitors, printers, and point-of-sale equipment. It also provides logistics services, including packaging, inbound receipt and outbound shipment processes. The company delivers high service solutions that enable its customers to grow their service revenue by expanding the diversity of their products. ExpressPoint is headquartered in Golden Valley, MN and has a repair depot in Juarez, MX and a parts distribution facility in El Paso, TX.
ExpressPoint conducted an extensive search for the site of its next operation. The project in Columbus involves the lease of 75,000 square feet of operational space. Leasehold improvements will be made to the facility by the landlord and the company will enter into a lease for a minimum of seven (7) years at the project site. ExpressPoint will invest $125,000 in machinery, equipment, furniture and fixtures. A total of 30 new full-time permanent jobs will be created as a result of the project.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Jobs Growth Incentive Agreement with ExpressPoint 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 $125,000.00 and the creation of 30 new full-time permanent positions within the City of Columbus.
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 ExpressPoint; and
WHEREAS, ExpressPoint is proposing to lease and equip 75,000 square feet to accommodate a new service center operation; and
WHEREAS, ExpressPoint will enter into a seven (7) year lease term at the site; and
WHEREAS, ExpressPoint has indicated that a Jobs Growth Incentive is crucial to its decision to locate the aforementioned service center operation in Columbus; and
WHEREAS, the City of Columbus desires to facilitate ExpressPoint's future growth at the project site by providing a Jobs Growth Incentive; and
WHEREAS, in consideration of ExpressPoint's proposed investment of $125,000 and the creation of 30 new full-time permanent positions within the City of Columbus; 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 ExpressPoint.
Section 2. Each year of the term of the agreement with ExpressPoint, 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 ExpressPoint 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.