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File #: 1694-2003    Version: 1
Type: Ordinance Status: Passed
File created: 6/25/2003 In control: Development Committee
On agenda: 7/7/2003 Final action: 7/16/2003
Title: To authorize the Director of the Department of Development to enter into a Columbus Downtown Office Incentive agreement with Residential Financial Corporation as provide in Columbus City Council Resolution 144X-02 adopted July 22, 2002.

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.  Residential Financial Corporation is currently exploring expansion of their downtown offices.  They anticipate the creation of 48 new positions downtown.  This job creation is estimated to generate $2,400,000 of payroll and $48,000 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 $24,000 for one year.  The Downtown Development Office recommends granting the Downtown Office Incentive Program to Residential Financial Corporation. 

 

 

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 agreement with Residential Financial Corporation as provide 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, authorized 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 Residential Financial Corporation; and

 

WHEREAS, The Residential Financial Corporation estimates that it will create 48 new jobs at 401 North Front Street, with a projected payroll of $2,400,000 generating estimated City of Columbus income tax revenue of $48,000 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 Residential Financial Corporation, 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 in the City of Columbus for a one (1) year term based on the estimated addition of 48 jobs at 401 North Front Street.

 

Section 2.                     This employment at Residential Financial Corporation is the result of relocating 48 new jobs in the Downtown as defined in Columbus City Code Title 33 Section 3359.03 downtown district boundary.

 

Section 3.                     As provide in the program guidelines, the addition of 48 new positions qualifies Residential Financial Corporation for a one (1) year incentive term. The term beginning in calendar year 2004, with the incentive payment made in the first quarter of 2005 based on actual employment figures 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.