Explanation
BACKGROUND: The need exists to amend Ordinance No. 2658-2021 (the “Ordinance”), approved by Columbus City Council on November 15, 2021. The Ordinance authorized the Director of the Department of Development to enter into a City of Columbus Jobs Growth Incentive Agreement (“the Agreement”) with NetJets Inc. (the “Grantee”). An amendment is now required to revise the 90-day window needed to execute the City of Columbus Jobs Growth Incentive Agreement, revise the project site and add three additional entities as grantees to the Agreement.
The Ordinance authorized the Director of the Department of Development to enter into a City of Columbus Jobs Growth Incentive Agreement for an annual cash payment equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on the Columbus payroll of new employees and (ii) thirty percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of new employees, who are also City of Columbus residents for a term of up to five (5) consecutive years on the estimated job creation of 154 net new full-time permanent positions with an annual payroll of $12,735,000 and the retention of 1,516 full-time permanent positions with an annual payroll of $126,231,635 to be located at 4111 Bridgeway Park, Columbus, Ohio 43219, parcel number 010-290126 (the “Project Site”).
Prior to the execution of the Agreement, in written communications received from the Grantee dated February 8, 2022 and March 10, 2022, the Department of Development was notified that the Project Site was incorrectly legislated with the wrong site address. The correct Project Site address should have been 4111 Bridgeway Avenue not 4111 Bridgeway Park, and that an additional location on the Grantee’s campus needs to be added to the Project Site. The Grantee will create and retain employees in two separate facilities that are jointly connected, but have two different addresses. Furthermore, three additional entities will partake in employing people at the Project Site - NetJets Aviation, Inc., NetJets Services, Inc. and NJS145 LLC. The Grantee is requesting the Ordinance be amended to replace 4111 Bridgeway Park, Columbus, Ohio 43219, parcel number 010-290126 with 4111 and 4151 Bridgeway Avenue, Columbus, Ohio 43219, parcel numbers 010-290126, 010-290128 and 010-290129 collectively known as the Project Site associated with the Agreement and to add NetJets Aviation, Inc., NetJets Services, Inc., and NJS145 LLC as additional Grantees to the Agreement. This change will not impact the scope of the project as authorized by Columbus City Council. All job retention, job creation, and investment commitments remain unchanged.
This legislation is requested to be considered as an emergency in order to (i) revise the 90-day period needed to execute the City of Columbus Jobs Growth Incentive Agreement to 90-days after passage from this ordinance, (ii) to revise the Project Site from 4111 Bridgeway Park, Columbus, Ohio 43219, parcel number 010-290126 to 4111 and 4151 Bridgeway Avenue, Columbus, Ohio 43219, parcel numbers 010-290126, 010-290128 and 010-290129 and (iii) add three additional entities as grantees to the Agreement in as expedient a manner as possible so as to allow for the inclusion of the employees located at these additional entities for the reporting and compliance purposes.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To amend Ordinance 2658-2021, approved by Columbus City Council on November 15, 2021, for the purposes of (i) revising the 90-day period needed to execute the City of Columbus Jobs Growth Incentive Agreement to 90 days after passage from this ordinance, (ii) to revise the Project Site from 4111 Bridgeway Park, Columbus, Ohio 43219, parcel number 010-290126 to 4111 and 4151 Bridgeway Avenue, Columbus, Ohio 43219, parcel numbers 010-290126, 010-290128 and 010-290129 and (iii) add NetJets Aviation, Inc., NetJets Services, Inc., and NJS145 LLC as additional Grantees to the Agreement; and to declare an emergency. (AMENDED BY ORD 1220-2022 PASSED 5/9/2022)
Body
WHEREAS, the need exists to amend Ordinance 2658-2021, which was approved by Columbus City Council on November 15, 2021; and
WHEREAS, the Ordinance authorized the Director of the Department of Development to enter into a City of Columbus Jobs Growth Incentive Agreement with NetJets Inc. for an annual cash payment equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on the Columbus payroll of new employees and (ii) thirty percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of new employees for a term of up to five (5) consecutive years on the estimated job creation of 463 new full-time permanent positions to be located at 4111 Bridgeway Park, Columbus, Ohio 43219, parcel number 010-290126 (the “Project Site”); and
WHEREAS, prior to the execution of the Agreement, in written communications received from the Grantee dated February 8, 2022 and March 10, 2022, the Department of Development was notified that the Project Site was incorrectly legislated with the wrong site address. The correct Project Site address should have been 4111 Bridgeway Avenue not 4111 Bridgeway Park, and that an additional location on the Grantee’s campus needs to be added to the Project Site. The Grantee will create and retain employees in two separate facilities that are jointly connected, but have two different addresses. Furthermore, three additional entities will partake in employing people at the Project Site - NetJets Aviation, Inc., NetJets Services, Inc., and NJS145 LLC. The Grantee is requesting the Ordinance be amended to replace 4111 Bridgeway Park, Columbus, Ohio 43219, parcel number 010-290126 with 4111 and 4151 Bridgeway Avenue, Columbus, Ohio 43219, parcel numbers 010-290126, 010-290128 and 010-290129 collectively known as the Project Site associated with the Agreement and to add NetJets Aviation, Inc., NetJets Services, Inc., and NJS145 LLC as additional Grantees to the Agreement; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to seek an amendment from Columbus City Council for Ordinance No. 2658-2021to (i) revise the window to execute the Agreement to 90 days after passage from this ordinance, (ii) to revise the Project Site from 4111 Bridgeway Park, Columbus, Ohio 43219, parcel number 010-290126 to 4111 and 4151 Bridgeway Avenue, Columbus, Ohio 43219, parcel numbers 010-290126, 010-290128 and 010-290129, and (iii) add NetJets Aviation, Inc., NetJets Services, Inc., and NJS145 LLC as additional Grantees to the Agreement, thereby preserving the public health, property, safety and welfare; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Section 4 of Ordinance No. 2658-2021 is hereby amended to revise the 90-day window needed to execute the City of Columbus Jobs Growth Incentive Agreement to 90 days after the passage of this proposed ordinance.
SECTION 2. That the Project Site as originally defined in Ordinance No. 2658-2021 is hereby amended to change the Project Site address from 4111 Bridgeway Park, Columbus, Ohio 43219, parcel number 010-290126 to 4111 Bridgeway Avenue, Columbus, Ohio 43219, parcel number 010-290126 and 4151 Bridgeway Avenue, Columbus, Ohio 43219, parcel numbers 010-290128 and 010-290129.
SECTION 3. That Ordinance No. 2658-2021 is hereby amended to add NetJets Aviation, Inc., NetJets Services, Inc., and NJS145 LLC as additional Grantees to the Agreement.
SECTION 4. That the City of Columbus Jobs Growth Incentive Agreement be signed by NetJets Inc., NetJets Aviation, Inc., NetJets Services, Inc., and NJS145 LLC within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 5. For the reasons stated in the preamble hereto, which is made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after passage and approval by the Mayor, or ten (10) days after passage if the Mayor neither approves nor vetoes the same.