Explanation
BACKGROUND: The need exists to enter into a Municipal Jobs Creation Tax Credit Agreement with BH Thermal Corporation (BriskHeat®). The Ohio Jobs Creation Tax Credit law (O.R.C. Section 718.158) requires the City to enter into a Council-approved agreement between the City and participating companies.
BriskHeat® was founded as Briscoe Manufacturing by retired Major General Earnest Briscoe following the Second World War and serviced the U.S. military and government with the firm's very durable and flexible multi-stranded knit and braided heating element. BriskHeat® quickly gained the reputation in numerous industries as the top heating solutions provider. Their proven knit and braid technology, state-of-the-art CNC machines and three-dimensional computer aided design software, along with their experience, production flexibility, and durable product allow BriskHeat® to provide top heating solutions. Applications include flow/viscosity control, freeze protection, gas/vacuum bake out, condensation for heating any surface including pipes, valves, tanks, hoppers, tubes, troughs, drums, pumps, and industries such as semiconductor, food processing, petrochemical, laboratory, plastics injection and molding, and original equipment manufacturers.
Due to business growth, the company is proposing to expand their operations at a nearby leased facility. The leased facility will be located at 460 East Starr Avenue. The corporate headquarters and current production facility will be maintained at 1055 Gibbard Avenue.
The project will result in a total investment of $1,189,000, the retention of 155 (one-hundred fifty-five) full-time employees, and the creation of 75 (seventy-five) new full time permanent positions.
The Department of Development recommends a 65%/8 year Jobs Creation Tax Credit.
This legislation is requested to be considered as an emergency in order to allow BriskHeat® to begin investing and creating jobs as quickly as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into an agreement with BH Thermal Corporation for a Jobs Creation Tax Credit of 65% for a period of 8 years in consideration of the company's total investment of $1,189,000, the retention of 155 full-time employees and the creation of 75 new full time permanent positions; and to declare an emergency.
Body
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code, 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 taxpayers 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, the Ohio Department of Development will be offering a 30%/7 year Jobs Creation Tax Credit for BH Thermal Corporation; 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 a Jobs Creation Tax Credit, BH Thermal Corporation will expand within Columbus, retain 155 (one-hundred fifty-five) full-time jobs with an annual payroll of $1,800,000, create 75 (seventy-five) new full time permanent jobs with an annual payroll of $1,602,588, invest $1,189,000; and
WHEREAS, receiving these tax credits from the State and the City is a critical factor in BH Thermal Corporation's decision to go forward with the project in the City of Columbus; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to enter into an agreement with BH Thermal Corporation in order to allow BriskHeat® to begin investing and creating jobs as quickly as possible, all for the preservation of public health, peace, property and safety; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the City hereby finds and determines that the project will (1) create jobs in the State and City; (2) the project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) receiving the aforementioned tax credit is a critical factor in the decision by BH Thermal Corporation to go forward with the project.
Section 2. That the City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the Director of the Department of Development is hereby authorized and directed to enter into and execute an 8-year, 65% Jobs Creation Tax Credit Agreement with BH Thermal Corporation.
Section 4. That the City of Columbus Jobs Creation Tax Credit Agreement be signed by BH Thermal Corporation within 90 days of passage of this ordinance, or the credit, authorized herein is null and void.
Section 5. 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.