Explanation
BACKGROUND: The Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Safelite Group, Inc. equal to thirty-five percent (35%) of the amount of personal income tax withheld on new employees to Columbus for a term of five (5) years. The company will invest approximately $48,400,000, create 350 new full-time permanent positions and retain 1,064 existing employees.
Safelite Group, Inc. was established in Delaware in 1947 and has become a provider of auto glass repair and replacement services nationwide. Safelite Group, Inc. has experienced significant growth in recent years and their current facility no longer meets their long-term growth requirements. The company conducted a multi-state search and determined their Columbus site to be viable for expansion with significant reconfiguration and improvement.
Safelite Group, Inc.'s proposed plan in the City of Columbus would include the renovation and reconfiguration of existing office space at the current site (2400 Farmers Drive) and an adjacent building (2500 Farmers Drive). Total project investment of $48,400,000 including $14,400,000 in machinery & equipment, $14,000,000 for furniture & fixtures, $14,000,000 for computers, and $6,000,000 in leasehold improvements. A total of 1,414 employees will occupy the new space of which 1,064 will be retained and 350 will be new full-time employees.
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 Safelite Group, Inc. equal to thirty-five percent (35%) 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 $48,400,000.00, the creation of 350 new full-time permanent positions and the retention of 1,064 full-time permanent existing jobs.
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 Safelite Group, Inc.; and
WHEREAS, Safelite Group, Inc. will expand operations at 2400 Farmers Drive and 2500 Farmers Drive in order to facilitate growth and new employees; and
WHEREAS, Safelite Group, Inc. has indicated that a Jobs Growth Incentive is crucial to its decision to expand its operational capacity with a total investment of $48,400,000.00 in building improvements, machinery, equipment, furniture and fixtures in Columbus; and
WHEREAS, the City of Columbus desires to facilitate Safelite Group, Inc.'s future growth at the project site by providing a Jobs Growth Incentive; and
WHEREAS, in consideration of Safelite Group, Inc.'s proposed project and the creation of 350 new full-time permanent positions with a payroll of $14,400,000 and the retention of 1,064 existing full-time employees; 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 thirty-five percent (35%) of the amount of new income tax withheld on employees for a term of five (5) years with Safelite Group, Inc.
Section 2. Each year of the term of the agreement with Safelite Group, 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 Safelite Group, 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.