Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Homage, LLC equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees to Columbus for a term of up to five (5) years. Homage, LLC will invest a total of approximately $400,000 related to the acquisition of furniture and fixtures, stand-alone computers, and leasehold improvements, retain 42 full-time permanent positions with an estimated annual payroll of approximately $2.1 million, and create 28 new full-time permanent positions with an estimated new annual payroll of approximately $1.68 million.
Locally-owned and operated, Homage, LLC began designing and selling vintage inspired sportswear through wholesale relationships in 2007. In subsequent years, company executives sought licensing agreements from colleges, universities, and professional sports teams to expand their product offering. Homage, LLC began selling apparel to boutique stores and crafted a web portal from which e-commerce sales could be supported. Today, e-commerce sales represent the majority of company revenue and 80% of sales are derived from outside of Ohio. In addition to a growing e-commerce presence, Homage Retail, LLC, a wholly-owned subsidiary of Homage, LLC operates two, soon to be three, retail locations.
Homage, LLC is proposing to expand and relocate their existing headquarters and e-commerce operations from their current 20,000-square-foot facility located at 5717 Westbourne Ave., Columbus Ohio, 43213 to a build-to-suit office and warehouse of approximately 35,000 square feet to be located on Bridgeway Ave., Columbus, Ohio 43219.
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 with Homage, LLC equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of up to five (5) years in consideration of investing approximately $400,000.00 related to the acquisition of furniture and fixtures, stand-alone computers, and leasehold improvements, retaining 42 full-time permanent positions, and creating 28 new full-time permanent positions.
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 received a completed Jobs Growth Incentive Application from Homage, LLC; and
WHEREAS, Homage, LLC will expand and relocate their existing headquarters and e-commerce operations from their current 20,000-square-foot facility located at 5717 Westbourne Ave., Columbus Ohio, 43213 to a build-to-suit office and warehouse of approximately 35,000 square feet to be located on Bridgeway Ave., Columbus, Ohio 43219; and
WHEREAS, Homage, LLC will invest approximately $400,000 related to the acquisition of furniture and fixtures, stand-alone computers, and leasehold improvements, retain 42 full-time permanent positions with an estimated annual payroll of approximately $2.1 million, and create 28 new full-time permanent positions with an estimated new annual payroll of approximately $1.68 million; and
WHEREAS, Homage, LLC has indicated that a Jobs Growth Incentive is crucial to its decisions to expand their operation within the City of Columbus; and
WHEREAS, the City of Columbus desires to facilitate the future growth of Homage, LLC at the project site by providing a Jobs Growth Incentive; 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 with Homage, LLC equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees to Columbus for a term of up to five (5) years.
SECTION 2. Each year of the term of the agreement with Homage, LLC, 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 Homage, LLC within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. That the Director of Development is further authorized to make subsequent amendments to the Homage, LLC City of Columbus Jobs Growth Incentive Agreement in order to make modifications to the agreement requested in writing by the company and/or the City and deemed appropriate by the Director of Development with such authorized modifications being specifically limited to reductions in length of term, methods of calculating the incentive, or adding or deleting business entities associated with the employment commitments related to this incentive. All other requested amendments must be approved by City Council.
SECTION 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.