Explanation
BACKGROUND: The City of Columbus (City) entered into a Jobs Growth Incentive Agreement (hereinafter “Agreement”) with Simonton Windows, Inc., (also referred to as the “Grantee”) effective May 23, 2011. Columbus City Council approved the Agreement by Ordinance 0348-2011, approved March 14, 2011, and granted a financial incentive based on an amount equal to twenty-five percent (25%) of the new Columbus withholding tax paid by the new employees at the project site, to commence on January 1, 2011 for a period of seven (7) consecutive taxable years based on an investment of approximately $1.1 million in leasehold improvements and personal property, the relocation of 49 full-time positions to the City of Columbus and the creation of 46 new permanent full-time positions at 3948 Townsfair Way, Columbus, OH 43219. The Agreement was subsequently authorized to be amended for the first time to add Simonton Building Products, Incorporated as an additional Grantee to the Agreement by Ordinance 2284-2012, passed October 29, 2012, with this First Amendment entered into effective as of the date and year first written in the Agreement.
In a letter from the Grantee received by the City on May 19, 2015, the Grantee indicated that “Simonton Building Products, Inc. was merged into Simonton Building Products, LLC on the date of August 24, 2014” and that “the reorganization was a change in the legal entity form from a corporation to Limited Liability Company” and that “Simonton Building Products, LLC has the same attributes and operations from Simonton Building Products, Inc.” As such, the need exists to amend the Agreement remove Simonton Building Products, Incorporated as the additional Grantee to the Agreement and to add Simonton Building Products, LLC as the additional Grantee to the Agreement.
This legislation is requested to be considered as an emergency in order to remove Simonton Building Products, Incorporated as a Grantee to the Agreement and to add Simonton Building Products, LLC as a Grantee to the Agreement prior to the end of calendar year 2015 so that the Agreement will be amended prior to the start of the reporting season for Report Year 2015.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to amend the Jobs Growth Incentive Agreement with Simonton Windows, Inc. & Simonton Building Products, Incorporated to remove Simonton Building Products, Incorporated as a Grantee to the Agreement and to add Simonton Building Products, LLC as a Grantee to the Agreement; and to declare an emergency.
Body
WHEREAS, Columbus City Council approved a Jobs Growth Incentive Agreement (the “Agreement”) with Simonton Windows, Inc. (also referred to as the “Grantee”) by Ordinance 0348-2011 on March 14, 2011, made and entered into effective May 23, 2011; and
WHEREAS, the Agreement granted a financial incentive based on an amount equal to twenty-five percent (25%) of the new Columbus withholding tax paid at the project site, to commence on January 1, 2011 for a period of seven (7) consecutive taxable years; and
WHEREAS, in the Agreement, Grantee committed to making an investment of approximately $1.1 million in leasehold improvements and personal property, relocating 49 full-time positions to the City of Columbus and creating 46 new permanent full-time positions at 3948 Townsfair Way, Columbus, OH 43219; and
WHEREAS, the Agreement was subsequently authorized to be amended for the first time to add Simonton Building Products, Incorporated as an additional Grantee to the Agreement by Ordinance 2284-2012, passed October 29, 2012, with this First Amendment entered into effective as of the date and year first written in the Agreement; and
WHEREAS, a letter from the Grantee received by the City on May 19, 2015 indicated that “Simonton Building Products, Inc. was merged into Simonton Building Products, LLC on the date of August 24, 2014” and that “Simonton Building Products, LLC has the same attributes and operations from Simonton Building Products, Inc.”; and
WHEREAS, an amendment is needed to remove Simonton Building Products, Incorporated as a Grantee to the Agreement and to add Simonton Building Products, LLC as a Grantee to the Agreement; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to seek an amendment to the Jobs Growth Incentive Agreement with Simonton Windows, Inc. & Simonton Building Products, Incorporated for the purpose of removing Simonton Building Products, Incorporated as an additional Grantee to the Agreement and adding Simonton Building Products, LLC as an additional Grantee to the Agreement; thereby preserving the public health, peace, property and safety, NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Development is hereby authorized to amend the Jobs Growth Incentive Agreement with Simonton Windows, Inc. & Simonton Building Products, Incorporated to remove Simonton Building Products, Incorporated as a Grantee to the Agreement and to add Simonton Building Products, LLC as a Grantee to the Agreement.
SECTION 2. That the amendment to the City of Columbus Jobs Growth Incentive Agreement be signed by Simonton Windows, Inc. and Simonton Building Products, LLC within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
SECTION 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, the ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after the passage if the Mayor neither approves nor vetoes the same.