Explanation
BACKGROUND: The City of Columbus (“CITY”) entered into a Job Creation Tax Credit Agreement (hereinafter the “AGREEMENT”) with NBBJ LLC (GRANTEE) effective July 14, 2014. Columbus City Council (COUNCIL) approved the AGREEMENT by Ordinance No. 0662-2014, adopted April 7, 2014, and granted a non-refundable tax credit in an amount of sixty-five percent (65%) of the new municipal income tax revenues generated by new employees at the project site for six (6) years, commencing January 1, 2016 and for six (6) consecutive years thereafter in consideration of an investment of approximately $2 million in leasehold improvements and new furniture and fixtures, the relocation and retention of 100 full-time jobs and the creation of 16 full-time permanent positions related to the establishment of a new office in the city’s southern downtown office district by entering into a long-term lease agreement on approximately 20,000 square feet of newly constructed office space at 250 South High Street, Columbus, Ohio 43215 (the “PROJECT SITE”).
In a letter from the GRANTEE dated February 18, 2020, the GRANTEE requested that the CITY “cancel the Job Creation Tax Credit Agreement between City of Columbus and NBBJ effective for the report year of 2019” and also requested that no reporting materials be distributed for Report Year 2019. This legislation is to dissolve the AGREEMENT between the City of Columbus and NBBJ LLC.
This legislation is presented as an emergency measure in order for this dissolution to be legislated in the most expedient manner as possible so that this dissolution of the AGREEMENT can be reported to the necessary local and state agencies without further delay.
FISCAL IMPACT: No funding is required for this legislation.
Title
To dissolve the Job Creation Tax Credit Agreement between the City of Columbus and NBBJ LLC, and to declare an emergency.
Body
WHEREAS, Columbus City Council approved a Job Creation Tax Credit Agreement (the “AGREEMENT”) with NBBJ LLC (GRANTEE) by Ordinance No. 0662-2014 on April 7, 2014 with the AGREEMENT having been made and entered into effective July 14, 2014; and
WHEREAS, the AGREEMENT granted a non-refundable tax credit in an amount of sixty-five percent (65%) of the new municipal income tax revenues generated by new employees at the project site for six (6) years, commencing January 1, 2016 and for six (6) consecutive years thereafter; and
WHEREAS, in the AGREEMENT, GRANTEE committed to relocate and retain 100 full-time jobs, create 16 full-time permanent positions and invest approximately $2 million in leasehold improvements and furniture and fixtures related to the establishment of a new office in the city’s southern downtown office district by entering into a long-term lease agreement on approximately 20,000 square feet of newly constructed office space at 250 South High Street, Columbus, Ohio 43215 (the “PROJECT SITE”); and
WHEREAS, in a letter from the GRANTEE dated February 18, 2020, the GRANTEE requested that the CITY “cancel the Job Creation Tax Credit Agreement between City of Columbus and NBBJ effective for the report year of 2019” and also requested that no reporting materials be distributed for Report Year 2019; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, in that it is immediately necessary to dissolve the AGREEMENT between the City of Columbus and NBBJ LLC in the most expedient manner as possible, to report the dissolution to the necessary local and state agencies and to preserve the public health, property, safety and welfare;
NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS
SECTION 1. That Columbus City Council hereby dissolves the NBBJ LLC Job Creation Tax Credit Agreement (authorized by Ordinance Number 0662-2014; adopted April 7, 2014; made and entered into effective July 14, 2014) effective January 1, 2019 thereby making calendar year 2018 having been the final reporting tax year for the incentive and effectively eliminating any remaining tax years for the incentive.
SECTION 2. That the Director of Development is hereby directed to notify the necessary local and state agencies of any changes to the NBBJ LLC Job Creation Tax Credit Agreement.
SECTION 3. For the reasons stated in the preamble hereto, which is made a part hereof, this Ordinance is 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 (10) days after passage if the Mayor neither approves nor vetoes this Ordinance.