Explanation
BACKGROUND: The Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with 2Checkout.com, Inc. (2CO) equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term of five (5) years. 2CO will make a fixed-asset investment of approximately $390,000 including, $240,000 in new machinery and equipment and $150,000 in renovation and leasehold improvements, create 100 new full-time permanent positions and retain 89 existing jobs in the City of Columbus.
2Checkout.com, Inc. was founded by current Chief Executive Officer Alan Homewood in 2000 and is headquartered in Columbus, Ohio. 2CO is a worldwide leader in payment services. 2CO is a global payments solutions provider servicing approximately 100,000 on-line retailers. The company has five primary lines of business which are recurring billing, consumer care, fraud protection, global affiliates and hosted payments. The company provides web-based businesses merchant account alternative and a fully automated suite of backend services, including fraud protection, customer care, PCI data storage, and multiple payment methods in multiple currencies and languages.
2CO is proposing to expand its corporate headquarters by entering into a 10-year lease agreement, expanding from 18,500 square feet to 25,000 square feet of office space located at 1785 O'Brien Road to meet its increased growth and consumer demand.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Jobs Growth Incentive Agreement with 2Checkout.com, Inc. 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 $390,000.00, the creation of 100 new full-time permanent positions and the retention of 89 full-time jobs. ($390,000.00)
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 Agreement Application from 2Checkout.com, Inc. (2CO); and
WHEREAS, 2CO is proposing to enter into a 10-year lease agreement on its' existing office facility located at 1785 O'Brien Road, to accommodate the expansion of its corporate headquarters and client support operation; and
WHEREAS, 2CO has indicated that a Jobs Growth Incentive is crucial to its decision to expand the aforementioned corporate headquarters in Columbus; and
WHEREAS, the City of Columbus desires to facilitate 2CO's future growth at the project site; and
WHEREAS, in consideration of 2CO's proposed investment of $390,000, the creation of 100 new full-time permanent positions and the retention of 89 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 equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years with 2Checkout.com, Inc.
Section 2. Each year of the term of the agreement with 2Checkout.com, 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 with 2Checkout.com, Inc. 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.