Explanation
Background: The Department of Development is proposing to enter into a Job Creation Tax Credit Agreement of sixty percent (60%) for six (6) years and a Jobs Growth Incentive Agreement with Manta Media, Inc., equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of 5 years, in consideration of Manta Media, Inc. proposed investment of $1million and the creation of 130 new permanent full-time jobs.
Manta Media, Inc ("Manta"), a privately held company, was launched in September of 2005 and currently has its operations located in Columbus, Ohio. Manta is an online destination for small businesses to promote their companies and connect with other professionals. Today, Manta has 27 million visitors per month, with 2 thousand small business owners joining every day. As a result, Manta has achieved great success in operating its site and garnering attention worldwide. Manta's site is now ranked as a Top 5 Business Information Site.
Manta is now in the position for unprecedented growth opportunities. Based on their current success and projected growth, Manta is preparing to expand its operations. Manta not only needs to grow to meet its rising demands, but also to implement plans to enhance its site to capitalize on the growing demand for social media.
Manta Media, Inc. is requesting a Job Creation Tax Credit and a Jobs Growth Incentive.
Fiscal Impact: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Job Creation Tax Credit Agreement of sixty percent (60%) for six (6) years and a Jobs Growth Incentive Agreement with Manta Media, Inc., to pay annually an amount equal to twenty-five percent (25%) of the personal income tax withheld on new employees for a term of 5 years, in consideration of a proposed investment of $1 million and the creation of 130 permanent full-time jobs.
Body
WHEREAS, pursuant to Ohio Revised Code Section 122.17, the State of Ohio is authorized to establish the Tax Credit Authority and to execute agreements with taxpayers of the State of Ohio for the purpose of granting these tax payers job creation tax credits against their corporate franchise tax or income tax, which tax credits are provided to create new jobs in the State of Ohio; and
WHEREAS, pursuant to Section 718.05 of the Ohio Revised Code ("the City Act") a municipal corporation is authorized to grant local income tax credits to taxpayers who have received tax credits from the State; and
WHEREAS, the Ohio Department of Development approved a Jobs Creation Tax Credit on June 27, 2011 for Manta Media, Inc.; and
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 application for a Job Creation Tax Credit and a Jobs Growth Incentive from Manta Media, Inc.; and
WHEREAS, Manta Media, Inc. is proposing to invest $1 million to accommodate expansion; and
WHEREAS, Manta Media, Inc. will retain 63 full-time jobs and create 130 new positions with an approximate annual payroll of $11.6 million; and
WHEREAS, the City of Columbus desires to facilitate Manta Media, Inc.'s future growth at the project site; and
WHEREAS, Manta Media, Inc. has indicated that a Job Creation Tax Credit and a Jobs Growth Incentive is crucial to its decision to locate the aforementioned expansion and retention in Columbus; 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 Job Creation Tax Credit Agreement of sixty percent (60%) for six (6) years and a Jobs Growth Incentive Agreement with Manta Media, Inc. to pay annually an amount equal to twenty-five percent (25%) of the personal income tax withheld on new employees for a term of 5 years, in consideration of Manta Media, Inc.'s proposed investment of $1 million and the creation of 130 full-time permanent positions, and the retention of 63 full-time permanent positions.
Section 2. Each year of the term of the agreement with Manta Media, Inc., the 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 Job Creation Tax Credit Agreement and Jobs Growth Incentive Agreement is signed by Manta Media, 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.