Explanation
BACKGROUND:
The City of Columbus currently has an excessive amount of vacant office space in our downtown market. This high vacancy rate is having a negative impact on all business activity downtown and throughout the city. Cornerstone Home Financial, a regional leader in the mortgage industry, is currently exploring downtown Columbus as a potential site for their relocation. They anticipate the creation of 10 new positions downtown. This job creation is estimated to generate $350,000 of payroll and $7,000 annually in City income tax revenue. Based on this estimate, they would qualify for the Columbus Downtown Office Incentive of an amount equal to 50% of the payroll taxes paid or $3,500 each year for three years. The Downtown Development Office recommends granting the Columbus Downtown Office Incentive Program to Cornerstone Home Financial.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Program agreement with Cornerstone Home Financial as provided in Columbus City Council Resolution 144X-02 adopted July 22, 2002.
Body
WHEREAS, the City desires to increase employment opportunities and encourage establishment of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, Resolution 144X-02, adopted July 22, 2002, authorizing the Department of Development to establish the Columbus Downtown Office Incentive Program; and
WHEREAS, The Department of Development has received a completed application for the Columbus Downtown Office Incentive Program from Cornerstone Home Financial; and
WHEREAS, Cornerstone Home Financial estimates that it will create 10 new jobs at 471 East Broad Street, with a projected payroll of $350,000 generating estimated City of Columbus income tax revenue of $7,000 annually; 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 the Columbus Downtown Office Incentive Program agreement with Cornerstone Home Financial, pursuant to Columbus City Council Resolution 144X-02, for an annual cash payment equal to 50% of the total income tax withholding for the new positions located in downtown Columbus for a term of three (3) years based on the estimated addition of 10 jobs at 471 East Broad Street.
Section 2. This employment at Cornerstone Home Financial is the result of relocating 10 new jobs to the Downtown as defined in Columbus City Code Title 33 Section 3359.03 downtown district boundary.
Section 3. As provided in the program guidelines the proposed five and one half (5.5) year lease qualifies Cornerstone Home Financial for a three (3) year incentive term. The term beginning in calendar year 2004, with the incentive payment made in the first quarter of the following year based on actual City of Columbus income tax withholding paid by employees for the preceding year.
Section 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.