Explanation
BACKGROUND: The Department of Development is proposing to enter into a Columbus Downtown Office Incentive with Turner Construction Company (Turner Construction).
Turner Construction Company was founded by Henry Turner in 1902 and quickly earned a reputation for teamwork, integrity and commitment. The company has been serving Central Ohio since 1964 and is one of the leading general builders in Columbus. Turner Construction provides building services to developers, government agencies, institutions and businesses in the areas of: preconstruction consulting, program management, project management, design-build, general construction, and building maintenance.
Turner Construction is proposing to relocate its Central Ohio office from Worthington to the Columbus Downtown Business District. The company will enter into a seven (7) year lease agreement on vacant warehouse/office space consisting of approximately 20,000 square feet located at 262 Hanover Street. The company will invest approximately $1,250,000 toward improvements and fixtures to adapt the unused warehouse into new office space. The project will involve the relocation of 36 full-time permanent positions, which will be new to Columbus.
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 Agreement with Turner Construction Company as provided in Columbus City Council Resolution Number 0088X-2007, adopted June 4, 2007.
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 Number 0088X-2007, adopted June 4, 2007, authorized the Department of Development to establish the Columbus Downtown Office Incentive program as amended; and
WHEREAS, the Department of Development has received a completed application for the Columbus Downtown Office Incentive program from Turner Construction Company; and
WHEREAS, Turner Construction Company is proposing to relocate its Central Ohio office into the Downtown Business District by entering into a ten (10) year lease agreement and relocating 36 full-time permanent positions to 262 Hanover Street, Columbus, Ohio, with an estimated annual payroll of $3,750,000 generating an estimated City of Columbus income tax revenue of $468,750 annually; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. Columbus City Council authorizes the Director of Development to enter into a Columbus Downtown Office Incentive Agreement pursuant to Columbus City Council Resolution Number 0088X-2007, for an annual cash payment equal to fifty percent (50%) of the amount of City withholding tax on new employees for a term of five (5) years for the relocation of 36 full-time permanent positions to 262 Hanover Street, Columbus, Ohio.
Section 2. As provided in the program guidelines, leasing of the project site qualifies Turner Construction Company for a five (5) year incentive term. The term beginning in calendar year 2012, with the incentive payment made in the second quarter of the following year based on actual City of Columbus income tax withholding paid by the new positions for the preceding year.
Section 3. Each year of the term of the agreement with Turner Construction Company 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 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.