Explanation
BACKGROUND: The Department of Development is proposing to enter into a Columbus Downtown Office Incentive agreement with Rampart Hosting, LLC.
Rampart Hosting, LLC was created on March 14, 2005 by Leo L. Daugherty III, the current Chief Financial Officer. Rampart Hosting, LLC is an information technology management and services company providing solutions in the following areas: Website Hosting, Microsoft Exchange Server Hosting, Website Design and Development, Search Engine Optimization, Content Writing, LAN, WAN, Workstation Technical Support, Security (Firewall, Virus and Spyware protection), Information Technology/Telephony Analysis and Integration Assistance. Rampart Hosting, LLC acts as a virtual information technology department for companies that do not have internal information technology or whose information technology needs are often greater than its department can deliver, providing 24-hour, 7 days per week, 365 days of managed tech services.
Rampart Hosting, LLC is proposing to expand corporate headquarters and workforce in the Arena District by entering into a 7-year lease agreement, investing approximately $500,000 in new machinery and equipment, retaining thirteen (13) full-time jobs and creating twenty-six (26) new full-time permanent positions with an annual payroll totaling approximately $2.89 million. Based on this estimate, Rampart Hosting, LLC would qualify for the Columbus Downtown Office Incentive of an amount equal to fifty percent (50%) of the payroll taxes paid on the new positions or $122,185 over a term of five (5) years. The Development Department recommends granting the Columbus Downtown Office Incentive program to Rampart Hosting, LLC.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Agreement with Rampart Hosting, LLC as provided in Columbus City Council Resolution 0088X-2007, adopted June 4, 2007.
Body
WHEREAS, the City desires to increase employment opportunities and encourage establishment of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, Resolution Number 0088X-2007, adopted June 4, 2007, authorized the Department of Development to establish the Columbus Downtown Office Incentive program as amended; and
WHEREAS, the Department of Development has received a completed application for the Columbus Downtown Office Incentive program from Rampart Hosting, LLC.; and
WHEREAS, Rampart Hosting, LLC is proposing to expand its corporate headquarters by entering into a 7-year lease agreement, investing approximately $500,000 in new machinery and equipment, and creating 26 new full-time permanent positions located at 330 West Spring Street, Suite 260,Columbus, Ohio, with an estimated annual payroll of $1,955,000 generating an estimated new City of Columbus income tax revenue of $48,875 annually; 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 Columbus Downtown Office Incentive Agreement with Rampart Hosting, LLC, pursuant to Columbus City Council Resolution 0088X-2007, for an annual cash payment equal to fifty percent (50%) of the amount of City withholding tax withheld on new employees for a term of five (5) years on the estimated job creation of 26 new full-time permanent positions located at 330 West Spring Street, Suite 260 Columbus, Ohio 43215.
Section 2. As provided in the program guidelines, leasing of the project site qualifies Rampart Hosting, LLC for a five (5) year incentive term. The term beginning in calendar year 2013, with the incentive payment made in the second quarter of the following year based on actual City of Columbus income tax withholding paid by the new positions for the preceding year.
Section 3. Each year of the term of the agreement with Rampart Hosting, LLC that a payment is due, the City's obligation to pay the incentive is expressly contingent upon the passing 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 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.