Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with PRIME AE Group, Inc. equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term up to five (5) years for the purposes of job retention and the creation of employment opportunities for the citizens of the Columbus community.
PRIME AE Group, Inc. has expanded rapidly in the past few years. Formerly known as Prime Engineering, Inc. (PEI), the company was founded in 2007 as a spin-off of the Maryland and Pennsylvania Offices of Prime Engineering & Architecture, Inc. (PEA), which was founded in 1992 in Ohio. PEI grew quickly through strategic acquisitions and expansion into new markets and organic growth. In 2010, PEI acquired United International Corporation (UIC), a well-established engineering firm with offices in Connecticut, Massachusetts, and Rhode Island. As a result of these acquisitions, strong internal growth and the increasing depth and breadth of services provided, PEI became PRIME AE Group, Inc. In November of 2013, PRIME AE Group, Inc. acquired 3SG, a successful provider of technology solutions headquartered in Dublin, Ohio, now known as PRIME Technology Group (PRIME Tech), the firm provides implementation and customization services for Enterprise Content Management, GIS and document imaging. Today, PRIME AE Group, Inc. has more than 200 professional employees with 65 licensed architects and engineers with an average of 25 years of experience and two of only 300 Registered Roof Consultants in the US.
PRIME AE Group, Inc. is proposing to invest approximately $1.29 million in leasehold improvements, which includes stand-alone computers, furniture and fixtures to expand its Water Resources, CM/CI, Transportation and Technology divisions. The company will concentrate on expanding its' Geographic Information Systems (GIS) and Enterprise Content Management departments. PRIME AE Group, Inc. will enter into a lease agreement on a vacant commercial office space consisting of roughly 30,000 square feet at 8415 Pulsar Place, retain 68 full-time jobs (of which, 26 will be relocated from Dublin, Ohio) and create 68 new full-time permanent positions with an estimated annual payroll of approximately $6.0 million to consolidate its' two Ohio offices, and to concentrate on expanding its technology division to meet its increased growth and consumer demand.
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 PRIME AE Group, Inc. equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term up to five (5) years in consideration of the company's proposed investment of $1.29 million, the creation of 68 new full-time permanent positions and the retention of 68 full-time 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 Application from PRIME AE Group, Inc.; and
WHEREAS, PRIME AE Group, Inc. is proposing to invest approximately $1.29 million to expand its Water Resources, CM/CI, Transportation and Technology divisions by entering into a lease agreement on a vacant commercial office space consisting of roughly 30,000 square feet at 8415 Pulsar Place; and
WHEREAS, the company will create 68 new full-time permanent positions with an estimated annual payroll of approximately $6.0 million and retain 68 full-time jobs (of which, 26 will be relocated from Dublin, Ohio); and
WHEREAS, PRIME AE Group, Inc. has indicated that a Jobs Growth Incentive is crucial to its decision to expand the aforementioned operation in Columbus; and
WHEREAS, the City of Columbus desires to facilitate PRIME AE Group, Inc.'s future growth at the project site; 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 with PRIME AE Group, Inc. equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term up to five (5) years.
SECTION 2. Each year of the term of the agreement with PRIME AE Group, Inc., 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 PRIME AE Group, Inc. within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. The City Council hereby extends authority to the Director of the Department of Development to amend PRIME AE Group, Inc.'s City of Columbus Jobs Growth Incentive Agreement for certain modifications to the agreement requested in writing by the company and or the City and deemed appropriate by the Director of Development with these modifications being specifically limited to reductions in length of term, methods of calculating the incentive, or adding or deleting business entities associated with the employment commitments related to this incentive. All other requested amendments must be approved by City Council.
SECTION 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.