Explanation
BACKGROUND: The need exists to amend Ordinance 1544-2008, passed October 20, 2008, that authorized the Director of Development to enter into a Downtown Office Incentive Agreement with Motorists Insurance Group. This amendment will change the names of the parties to the agreement from Motorists Insurance Group to Motorists Mutual Insurance Company and its affiliates; MICO, Motorists Life, American Hardware Mutual, Wilson Mutual, Iowa Mutual and Iowa American Insurance Companies and Motorists Service Corporation and Broad Street Brokerage.
Motorists sells insurance products to cover drivers, homes and businesses and is expanding and creating additional positions in its property casualty business at its headquarters located at 471 E. Broad Street. With passage of Ordinance 1544-2008, the company was granted a Downtown Office Incentive equal to fifty percent (50%) of the amount of City withholding tax withheld on new employees for a term of three (3) years in consideration of a proposed investment of $200,000, the retention of 593 full-time positions and the creation of 53 new full-time jobs. Sites that were in contention for this expansion were located in other states such as Arizona, Nebraska or Colorado, where the company has affiliates.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend Ordinance 1544-2008, passed by Columbus City Council on October 20, 2008, for the purpose of changing the names of the parties to a Columbus Downtown Office Incentive Agreement from Motorists Insurance Group to Motorists Mutual Insurance Company and its affiliates.
Body
WHEREAS, Columbus City Council approved Ordinance 1544-2008 authorizing a Downtown Office Incentive Agreement with Motorists Insurance Group on October 20, 2008; and
WHEREAS, this amendment will change the names of the parties to the agreement from Motorists Insurance Group to Motorists Mutual Insurance Company and its affiliates; MICO, Motorists Life, American Hardware Mutual, Wilson Mutual, Iowa Mutual and Iowa American Insurance Companies and Motorists Service Corporation and Broad Street Brokerage; and
WHEREAS, Motorists Insurance Group estimates they will create 53 new positions at 471 East Broad Street, Columbus, Ohio, with a projected additional payroll of $2.3 million generating estimated City of Columbus income tax revenue of $46,000 annually; and
WHEREAS, the need exists to amend the name of the parties entering into the agreement in order for parties to receive the Downtown Office Incentive that City Council intended; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Ordinance 1544-2008 is hereby amended to change the names of the parties to a Columbus Downtown Office Incentive Agreement from Motorists Insurance Group to Motorists Mutual Insurance Company and its affiliates; MICO, Motorists Life, American Hardware Mutual, Wilson Mutual, Iowa Mutual and Iowa American Insurance Companies and Motorists Service Corporation and Broad Street Brokerage.
Section 2. That this ordinance shall take effect and be in force from and after the earliest period provided by law.