Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with Safe Auto Services, Inc. a subsidiary of parent company Safe Auto Insurance Company. The Ohio Tax Credit Legislation (Section 718.08 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter a Council-approved agreement between the City and a participating company.
In order to accommodate increased business operations, Safe Auto Services, Inc. was created to facilitate the relocation of Safe Auto's Claim Center consisting of 60 full-time employees and create an additional 60 full time jobs at the new site within three years. Safe Auto Service, Inc. will invest $653,000 in furniture and fixtures.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Jobs Creation Tax Credit Agreement with Safe Auto Services, Inc. at sixty percent (60%) for a period of five (5) taxable years in consideration of Safe Auto Services, Inc. creating 60 (sixty) new full-time jobs, relocating and retaining 60 (sixty) full-time jobs in the City of Columbus.
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 agreements with taxpayers of the State of Ohio for the purpose of granting these taxpayers job creation tax credits against their corporate franchise or income tax, which tax credits are provided to create new jobs in the State of Ohio; and
WHEREAS, the State of Ohio Tax Credit Authority has granted Safe Auto Services, Inc. a 65% 6 year Jobs Creation Tax Credit; and
WHEREAS, pursuant to Section 718.08 of the Ohio Revised Code (the "City Act") a municipal corporation is authorized to grant local income tax credits to taxpayers who have received tax credits from the State; and
WHEREAS, the granting of the tax credit by the City for the proposed relocation
project by Safe Auto Services, Inc. will create 60 (sixty) full-time permanent jobs; relocate and retain 60 (sixty) full-time positions; increase opportunities for employment and strengthen the economy of the city; and
WHEREAS, receiving these tax credits from the State and the City is a critical factor in Safe Auto Services, Inc.'s decision to go forward with the project; 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 forementioned tax credits is a critical factor in the decision by Safe Auto Services, Inc. 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 a 5-year, 60% Jobs Creation Tax Credit Agreement with Safe Auto Services, Inc.
Section 4. That the ordinance shall take effect and be in force from and after the earliest period allowed by law.