Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with ROSEN USA, Inc. (ROSEN) equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term up to five (5) years. ROSEN will make an investment of approximately $733,000, which includes leasehold improvements, machinery, equipment, furniture and fixtures to establish an office warehouse facility in the City of Columbus.
ROSEN is a privately-held and family-owned company established in 1981 by Hermann Rosen, headquartered in Houston, Texas. Immediately after finishing his studies, Mr. Rosen started an engineering and consultancy firm for electric design and home automation in Lingen, Germany. In 1981, he founded Rosen Engineering GmbH in Germany, today known as the ROSEN Group. ROSEN USA, Inc. is a subsidiary of the ROSEN Group, which provides a range of services for the mining, oil and gas industries. In addition, the company offers inspection services, such as cleaning, in-line inspection, plant and terminal inspection, robotic inspection, and hydrostatic testing and commissioning. The company also provides data services, which include ROSOFT for Pipelines, client software that summarizes the inspection survey of a pipeline structure; and ROSOFT for Tanks, client software that summarizes the inspection survey of a tank's structure. ROSEN offers asset integrity management solutions, such as integrity support and software solutions.
ROSEN USA, Inc. is proposing to invest approximately $733,000.00, which includes leasehold improvements, machinery, equipment, furniture, and fixtures to establish an office warehouse facility in the City of Columbus. The company will enter into a long term lease agreement on a vacant commercial property consisting of approximately 19,000 square feet and create 15 new full-time permanent positions with an estimated annual payroll of approximately $975,000.00.
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 ROSEN USA, Inc. equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term up of five (5) years in consideration of the company's proposed investment of approximately $975,000.00 and the creation of 15 new full-time permanent positions.
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 ROSEN USA, Inc.; and
WHEREAS, ROSEN USA, Inc. is proposing to establish an office warehouse facility on parcel number 010-013834 further known as 755 Kaderly Drive, Columbus, Ohio 43228; and
WHEREAS, ROSEN USA, Inc. has indicated that a Jobs Growth Incentive is crucial to its decision to establish the aforementioned office warehouse in the City of Columbus; and
WHEREAS, the City of Columbus desires to facilitate ROSEN USA, Inc.'s future growth at the project site; and
WHEREAS, ROSEN USA, Inc.'s proposed an investment of $733,000 and the creation of 15 new full-time permanent positions with an estimated annual payroll of approximately $975,000; 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 ROSEN USA, Inc. equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term up to five (5) years.
SECTION 2. Each year of the term of the agreement with ROSEN USA Inc. 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 ROSEN USA, Inc. within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. The City Council hereby extends authority to the Director of the Department of Development to amend the ROSEN USA, Inc. City of Columbus Jobs Growth Incentive Agreement for non-substantive modifications to the agreement requested in writing by the company and or the City and deemed appropriate by the Director of the Department of Development with these non-substantive modifications being specifically limited to reductions in length of term, methods of calculating the incentive, or adding or deleting business entities associated with the employment commitments related to this incentive. All other requested amendments must be approved by City Council.
SECTION 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.