Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Ventech Solutions equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term up to five (5) years for the purposes of job creation and retention of an emerging business located at 8425 Pulsar Place in the Northeast business corridor.
Founded by Ravi Kunduru in 1993, Ventech Solutions is an IT Software Development and System Integration consulting services company. Ventech Solutions is a world class, SBA 8(A) certified, SEI CMMI Level 3 Software Company that offers IT services to US Federal, State and Local government agencies. The company specializes in Application Modernization, Development and Integration services. Ventech was started as a book publishing company Balaji Publications in Chennai (Potheri, India). The company successfully published Advance Microprocessor and Design II, custom printing thousands of copies to cater the needs of engineering students for the academic year. Soon after this success, Ravi founded Master Minds, Inc. with the sole aim to create a world class global enterprise. Master Minds, Inc. was a desktop publishing, computer sales and support company. The company had offices in Atlanta, Georgia, Columbus, Ohio and Sydney, Australia. Master Minds, Inc. grew into a large business by 1997, and celebrated record annual revenues of over $14 million. Ventech Solutions is the successor to Master Minds, Inc. and was formed based on three core principles: Votivus (Honesty), Exertus (Experience) and Nexuses (Competence). Ventech's clients span over 14 states with physical presence in Louisiana, New Mexico, Ohio, Virginia, and Washington, DC.
Ventech Solutions is proposing to invest approximately $425,000 in stand-alone computers, inventory, furniture and fixtures to expand its corporate headquarters. The company will enter into a lease agreement on a vacant commercial office space consisting of approximately 12,900 square feet, retain 13 full-time jobs and create 65 new full-time permanent positions with an estimated annual payroll of approximately $6.63 million to meet its increased sales growth and consumer demands.
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 Ventech Solutions equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term up to five (5) years in consideration of the company's proposed investment of $425,000.00 and the creation of 65 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 has received a completed Jobs Growth Incentive Application from Ventech Solutions; and
WHEREAS, Ventech Solutions is proposing to invest approximately $425,000 in stand-alone computers, inventory, furniture and fixtures to expand its corporate headquarters by entering into a new lease agreement on a vacant commercial office space comprising of approximately 12,900 square feet at 8425 Pulsar Place; and
WHEREAS, the company will create 65 new full-time permanent positions with an estimated annual payroll of approximately $6.63 million and retain 13 full-time jobs; and
WHEREAS, Ventech Solutions has indicated that a Jobs Growth Incentive is crucial to its decision to expand its corporate headquarters in the City of Columbus; and
WHEREAS, the City of Columbus desires to facilitate Ventech Solutions's future growth at the project site; 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 Ventech Solutions equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term up to five (5) years.
SECTION 2. Each year of the term of the agreement with Ventech Solutions 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 Ventech Solutions within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. That City Council hereby extends authority to the Director of the Department of Development to amend Ventech Solutions's City of Columbus Jobs Growth Incentive Agreement for certain modifications to the agreement requested in writing by the company and or the City and deemed appropriate by the Director of Development with these 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.