Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Total Quality Logistics, LLC equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term of five (5) years. Total Quality Logistics, LLC will make an investment of approximately $125,000.00, including renovations, furniture and fixtures, create 40 new full-time permanent positions and retain 40 existing jobs in the City of Columbus.
Total Quality Logistics, LLC was founded in 1997 by Ken Oaks and is the nation's 3rd largest freight brokerage firm. For over 14 years, Total Quality Logistics, LLC has specialized in arranging the transportation of full truck load shipments for thousands of companies across the country and various industry segments. The company has more 1,500 logistics professionals that facilitate the movement of over 500,000 truckload shipments each year for more than 7,000 shipping customers. Total Quality Logistics, LLC is headquartered in Cincinnati, Ohio with satellite offices in Charleston, Chicago, Cleveland, Columbus, Dayton, Denver, Erlanger, Indianapolis, Lexington, Louisville and Tampa.
Total Quality Logistics, LLC is proposing to expand its current business operation by entering into a long-term lease agreement on a vacant office space consisting of approximately 12,815 square feet, located at 640 S. Front Street, to meet its increased growth and consumer demand.
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 Total Quality Logistic, LLC 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 the creation of 40 new full-time permanent positions and the retention of 40 full-time jobs. (AMENDED BY ORD. 0914-2013 PASSED 4/22/2013)
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 Application from Total Quality Logistics, LLC; and
WHEREAS, Total Quality Logistics, LLC is proposing to enter into a long-term lease agreement on a vacant office space located at 640 S. Front Street to expand its operations; and
WHEREAS, Total Quality Logistics, LLC has indicated that a Jobs Growth Incentive is crucial to its decision to expand the aforementioned office facility in Columbus; and
WHEREAS, the City of Columbus desires to facilitate Total Quality Logistics, LLC's future growth at the project site; and
WHEREAS, in consideration of Total Quality Logistics, LLC's proposed investment of $125,000, the creation of 40 new full-time permanent positions and the retention of 40 existing jobs; 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 with Total Quality Logistics, LLC equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years.
Section 2. Each year of the term of the agreement with Total Quality Logistics, LLC 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 Total Quality Logistics, LLC 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.