Explanation
BACKGROUND: The need exists to enter into a Job Creation Tax Credit Agreement with CallCopy, Inc. (CallCopy). The Ohio Tax Credit Legislation (Section 718.15 of the Ohio Revised Code) authorizing such City agreements became effective January 14, 1993, and requires the City to enter a Council-approved agreement between the City and a participating company.
The Development Department proposes to enter into a Job Creation Tax Credit Agreement with CallCopy for 65% for a period of 8 years in consideration of the company's investment of $450,000 in machinery and equipment, retention of 21 positions and the creation of 50 full- time permanent positions. The proposed project involves the relocation of the company from its current facility located at 1177 Olentangy River Road, to 530 W. Spring Street. CallCopy is also considering the Florida, California and India on the basis of access to customers, complementary business and talent pool.
Founded in 2004, CallCopy is one of the fastest growing companies in the call recording quality monitoring industry and is a leading provider of innovative performance management solutions. The company provides services that assist contact centers to monitor agent-customer voice and desktop recordings to ensure a high level of customer service and communication processes.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Job Creation Tax Credit Agreement with CallCopy, Inc. for 65% for a period of 8 years in consideration of the company's investment of $450,000, retention of 21 positions and the creation of 50 full- time permanent positions.
Body
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code, the State of Ohio is authorized to establish the Tax Credit Authority and to execute agreement with taxpayers of the State for the purpose of granting taxpayers a job creation tax credit (the "State Credit") to be applied against their corporation franchise tax and commercial activity tax liability, which tax credits are provided to create new jobs in the State; and
WHEREAS, pursuant to Section 718.15 of the Ohio Revised Code (the "City Act") a municipal corporation is authorized to grant local income tax credits to tax payers who have received tax credits from the State; and
WHEREAS, contingent on the City granting a Job Creation Tax Credit, CallCopy, Inc. "CallCopy") will invest approximately $450,000 in machinery and equipment, retain 21 full-time positions, create 50 new permanent full-time jobs with an annual payroll of $3.0 million and strengthen the economy of the City; and
WHEREAS, on June 29, 2009, the Ohio Department of Development approved a 50%/7 year Jobs Creation Tax Credit for CallCopy, Inc.; and
WHEREAS, the City Act requires the City to enter into a formal and binding agreement in order to provide a local credit to CallCopy; and
WHEREAS, receiving these tax credits from the State and the City is a critical factor in CallCopy's decision to go forward with the project in Columbus; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the City hereby finds and determines that the project will (1) create jobs in the State and City; (2) the project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) receiving the aforementioned tax credits is a critical factor in CallCopy, Inc's decision to go forward with the project.
Section 2. That the City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the Director of the Department of Development is hereby authorized and directed to enter into and execute an 8-year, 65%, Jobs Creation Tax Credit Agreement with CallCopy, Inc.
Section 4. That the City of Columbus Jobs Creation Tax Credit Agreement must be signed by CallCopy, Inc. within 90 days of passage of this ordinance, or this ordinance shall be null and void.
Section 5. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.