Explanation
BACKGROUND: The need exists to amend the City of Columbus Jobs Growth Incentive Agreement (the “JGI Agreement”) between the City of Columbus (“City”) and FlightSafety International, Inc. Columbus City Council (“Council”), per Ordinance No. 1987-2021, passed July 26, 2021, authorized the Director of the Department of Development of the City to enter into a dual-rate Jobs Growth Incentive Agreement with FlightSafety International, Inc. equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on 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 at the end of each calendar year, both for a term up to five (5) consecutive years, based on a total project investment of approximately $900,000.00 to relocate their headquarters (“HQ”). The proposed HQ would be located at 3100 Easton Square Place, Columbus, Ohio 43219, parcel number 010-282381 (the Project Site”). Additionally, FlightSafety proposed to create approximately one hundred and thirteen (113) net new full-time permanent positions with an annual payroll of approximately $10,130,000.00 and retain thirty-two (32) full-time positions with an annual payroll of approximately $6,784,416.00 at the Project Site. The JGI Agreement was made and entered into effective December 10, 2022 with the incentive term to begin in 2022 through January 1, 2026.
Prior to the execution of the Agreement, the Department of Development was notified that the Project Site had changed to 3100 Easton Square Place, Columbus, Ohio 43219, parcel number 010-282381. Ordinance No. 0825-2022, passed March 28, 2022, amended the Project Site.
Paragraph four within Section 15 (Miscellaneous) of the JGI Agreement states, “No amendment or modification shall be effective unless in writing and signed by both parties to this agreement. Any requested amendment or modification to any terms of Agreement made to the City by the Grantee shall require the payment to the City by the Grantee of an Amendment Fee in the amount of $250”.
Subsequently, the City was informed of FlightSafety’s growth plans on May 10, 2024, and through ensuing correspondence, confirmed that FlightSafety planned to expand their existing Learning Center facility at 4010 Bridgeway Avenue, Columbus Ohio 43219, parcel number 010-293794 (the “Project Site”). This expansion would add thirty-five (35) new employees. Additionally, FlightSafety, alongside TRU Simulation and Training Inc., created FlightSafety Textron Aviation Training LLC, (hereinafter referred to as “Grantee”) to administer training. FlightSafety Textron Aviation Training LLC (FSTAT) will be partnering with FlightSafety on this expansion. Therefore, the Grantee is requesting the incentive term in the JGI Agreement be extended two additional years, culminating January 1, 2028 instead of January 1, 2026, which will allow the Grantee to complete the expansion project and add the new jobs. Additionally, the Grantee is requesting that the original Project Site be added back to the JGI Agreement, the agreement would include both 3100 Easton Square Place, Columbus, Ohio 43219, parcel number 010-282381 and 4010 Bridgeway Avenue, Columbus Ohio 43219, parcel number 010-293794 to account for these new jobs. The Grantee is also requesting that FSTAT be added as an additional Grantee to the Agreement. The Grantee is now requesting the JGI Agreement be amended to (i) extend the incentive term two additional years, now culminating on January 1, 2028 instead of January 1, 2026, (ii) to add 4010 Bridgeway Avenue, Columbus, Ohio 43219, parcel number 010-293794 as additional Project Site to the JGI Agreement, and (iii) to add FlightSafety Textron Aviation Training LLC as an additional Grantee to the JGI Agreement.
This legislation is to authorize the Director of the Department of Development to amend the JGI Agreement to (i) extend the incentive term two additional years, now culminating on January 1, 2028 instead of January 1, 2026, (ii) to add 4010 Bridgeway Avenue, Columbus, Ohio 43219, parcel number 010-293794 as additional Project Site to the JGI Agreement and (iii) to add FlightSafety Textron Aviation Training LLC as an additional Grantee to the JGI Agreement.
This legislation is presented as 30-day legislation.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the City of Columbus Jobs Growth Incentive Agreement with FlightSafety International, Inc. to (i) extend the incentive term two additional years, now culminating on January 1, 2028 instead of January 1, 2026, (ii) to add 4010 Bridgeway Avenue, Columbus, Ohio 43219, parcel number 010-293794 as additional Project Site to the JGI Agreement and (iii) to add FlightSafety Textron Aviation Training LLC as an additional Grantee to the JGI Agreement.
Body
WHEREAS The need exists to amend the City of Columbus Jobs Growth Incentive Agreement (the “JGI Agreement”) between the City of Columbus (“City”) and FlightSafety International, Inc. Columbus City Council (“Council”), per Ordinance No. 1987-2021, passed July 26, 2021, authorized the Director of the Department of Development of the City to enter into a dual-rate Jobs Growth Incentive Agreement with FlightSafety International, Inc. equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on 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 at the end of each calendar year, both for a term up to five (5) consecutive years. The JGI Agreement was made and entered into December 10, 2022 with the incentive term to begin in 2022 through January 1, 2026.
WHEREAS, the financial incentive was granted in consideration of a total investment of approximately $900,000.00 to relocate their headquarters (“HQ”). The proposed HQ would be located at 3100 Easton Square Place, Columbus, Ohio 43219, parcel number 010-282381 (the “Project Site”); and
WHEREAS, additionally, the FlightSafety International, Inc created approximately one hundred and thirteen (113) net new full-time permanent positions with an annual payroll of approximately $10,130,000.00 and retain thirty-two (32) full-time positions with an annual payroll of approximately $6,784,416.00 at the Project Site; and
WHEREAS, prior to the execution of the Agreement, the Department of Development was notified that the Project Site had changed to 3100 Easton Square Place, Columbus, Ohio 43219, parcel number 010-282381. Ordinance No. 0825-2022, passed March 28, 2022, amended the Project Site; and
WHEREAS, paragraph four within Section 15 (Miscellaneous) of the JGI Agreement states, “No amendment or modification shall be effective unless in writing and signed by both parties to this agreement. Any requested amendment or modification to any terms of Agreement made to the City by the Grantee shall require the payment to the City by the Grantee of an Amendment Fee in the amount of $250”; and
WHEREAS, subsequently, the City was informed of FlightSafety’s growth plans on May 10, 2024, and through ensuing correspondence, confirmed that FlightSafety planned to expand their existing Learning Center facility at 4010 Bridgeway Avenue, Columbus Ohio 43219, parcel number 010-293794 (the “Project Site”). This expansion would add thirty-five (35) new employees. Additionally, FlightSafety, alongside TRU Simulation and Training Inc., created FlightSafety Textron Aviation Training LLC (hereinafter referred to as “Grantee”) to administer training. FlightSafety Textron Aviation Training LLC (FSTAT) will be partnering with FlightSafety on this expansion. Therefore, the Grantee is requesting the incentive term in the JGI Agreement be extended two additional years, culminating January 1, 2028 instead of January 1, 2026, which will allow the Grantee to complete the expansion project and add the new jobs. Additionally, the Grantee is requesting that the original Project Site be added back to the JGI Agreement, the agreement would include both 3100 Easton Square Place, Columbus, Ohio 43219, parcel number 010-282381 and 4010 Bridgeway Avenue, Columbus Ohio 43219, parcel number 010-293794 to account for these new jobs. The Grantee is also requesting that FSTAT be added as an additional Grantee to the Agreement; and
WHEREAS, the Grantee is now requesting the JGI Agreement be amended to (i) extend the incentive term two additional years, now culminating on January 1, 2028 instead of January 1, 2026, (ii) to add 4010 Bridgeway Avenue, Columbus, Ohio 43219, parcel number 010-293794 as additional Project Site to the JGI Agreement and (iii) to add FlightSafety Textron Aviation Training LLC as an additional Grantee to the JGI Agreement; and
WHEREAS, this legislation is to authorize the Director of the Department of Development to amend the JGI Agreement to (i) extend the incentive term two additional years, now culminating on January 1, 2028 instead of January 1, 2026, (ii) to add 4010 Bridgeway Avenue, Columbus, Ohio 43219, parcel number 010-293794 as additional Project Site to the JGI Agreement and (iii) to add FlightSafety Textron Aviation Training LLC as an additional Grantee to the JGI Agreement; and
WHEREAS, a First Amendment to the JGI Agreement is now needed to (i) extend the incentive term two additional years, now culminating on January 1, 2028 instead of January 1, 2026, (ii) to add 4010 Bridgeway Avenue, Columbus, Ohio 43219, parcel number 010-293794 as additional Project Site to the JGI Agreement and (iii) to add FlightSafety Textron Aviation Training LLC as an additional Grantee to the JGI Agreement; and
WHEREAS, the need exists to amend Ordinance No. 0825-2022, passed March, 28, 2022, to (i) extend the incentive term two additional years, now culminating on January 1, 2028 instead of January 1, 2026, (ii) to add 4010 Bridgeway Avenue, Columbus, Ohio 43219, parcel number 010-293794 as additional Project Site to the JGI Agreement and (iii) to add FlightSafety Textron Aviation Training LLC as an additional Grantee to the JGI Agreement, thereby preserving the public health, peace, property and safety; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF COLUMBUS:
Section 1. That Section 1 of Ordinance No. 1987-2021 is hereby amended to extend the incentive term two additional years, now culminating on January 1, 2028 instead of January 1, 2026, and add FlightSafety Textron Aviation Training LLC as an additional Grantee to the JGI Agreement, as follows, with additions in underline and deletions in strikethrough:
SECTION 1. That the Director of the Department of Development is hereby authorized to enter into a dual-rate Jobs Growth Incentive Agreement with FlightSafety International Inc. and FlightSafety Textron Aviation Training LLC 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 at the end of each calendar year for a term of up to five (5) seven (7) consecutive years.
Section 2. That existing Section 1 of Ordinance No. 1987-2021 and all Background information and recitals of Ordinance No. 1987-2021 inconsistent with this ordinance are hereby repealed.
Section 3. That Section 2 of Ordinance No. 0825-2022 is hereby amended to add 4010 Bridgeway Avenue, Columbus, Ohio 43219, parcel number 010-293794 as additional Project Site, as follows, with additions in underline and deletions in strikethrough.
SECTION 2. That the Project Site as originally defined in Ordinance No. 1987-2021 is hereby amended to change the Project Site address from 4010 Bridgeway Avenue, Columbus, Ohio 43219, parcel number 010-293794 to 3100 Easton Square Place, Columbus, Ohio 43219, parcel number 010-282381 and 4010 Bridgeway Avenue, Columbus, Ohio 43219, parcel number 010-293794
Section 4. That existing Section 2 of Ordinance No. 0825-2022 and all Background information and recitals of Ordinance No. 0825-2022 inconsistent with this ordinance are hereby repealed.
Section 5. That the First Amendment to the City of Columbus Job Creation Tax Credit Agreement be signed by FlightSafety International, Inc. within ninety (90) days of passage of this ordinance, or this ordinance and incentive authorized herein shall be null and void.
Section 6. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.