Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with American School of Technology equal to twenty-five percent (25%) 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 $300,000 to increase capacity at 4599 Morse Centre Road, and to create 8 new full-time permanent positions and retain 18 full-time employees.
American School of Technology is a postsecondary proprietary school established in 1978. The business is an S-corporation, providing educational programs and career training. It is approved by the Ohio State Board of Career Colleges and Schools, as well as being accredited by the Commission of Accreditation of Allied Health Education Programs.
American School of Technology offers study programs in medical billing, coding and assisting and in heating, ventilation and air conditioning. Its job placement department assists students in finding positions within their area of specialization. The business is now in a position to offer additional training programs and to further its efforts toward fostering workforce readiness. This will require additional square footage of 9,000 square feet of leased space at its existing site for training rooms and for new staff.
The company will invest approximately $150,000 in building improvements and an additional $150,000 in machinery, equipment, furniture and fixtures. A total of 8 new permanent full-time positions will be created in Columbus and 18 existing full-time jobs retained, as a result of the project.
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 American School of Technology equal to twenty-five percent (25%) 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 $300,000, the creation of 8 new permanent full-time positions and the retention of 18 full-time 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 Agreement Application from American School of Technology; and
WHEREAS, American School of Technology will extend its current lease for seven years - through 2017 at the facility at 4599 Morse Centre Road; and
WHEREAS, American School of Technology has indicated that a Jobs Growth Incentive is crucial to its decision to expand its operational capacity with new leased space, machinery, equipment, furniture and fixtures in Columbus; and
WHEREAS, the City of Columbus desires to facilitate American School of Technology's future growth at the project site by providing a Jobs Growth Incentive; and
WHEREAS, in consideration of American School of Technology's proposed investment of $300,000, the creation of 8 new full-time permanent positions and the retention of 18 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 twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years with American School of Technology.
Section 2. Each year of the term of the agreement with American School of Technology, 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 American School of Technology 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.