Explanation
Background: The Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with FineLine Graphics, Corp. (FineLine Graphics) 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 FineLine Graphics' proposed investment of $5.1 million and the relocation of 58 full-time permanent positions, which will be new to Columbus, and the creation of 25 new permanent full-time jobs.
FineLine Graphics, a privately held corporation, was established in 1978. FineLine Graphics is a one of a kind printing, mailing and fulfillment company. The company can transform the client's art and words into printed documents. The latest proofing and imaging solutions are used to ensure predictable color management and color accuracy.
FineLine Graphics must move to grow and survive in an economy that has seen more than half of its competitors loose their business to foreign competition and the electronic world of marketing. The company is currently land locked. In order to sustain their current client list and take on new customers, the company must move to a larger facility and purchase new machinery and equipment.
Fiscal Impact: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Jobs Growth Incentive Agreement with FineLine Graphics, Corp. to pay annually an amount equal to twenty-five percent (25%) of the personal income tax withheld on new employees for a term of five (5) years, in consideration of a proposed investment of $5.1 million, the relocation of 58 jobs, which will be new to Columbus, and the creation of 25 new permanent full-time jobs; and to declare an emergency.
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 FineLine Graphics; and
WHEREAS, FineLine Graphics is proposing to invest $5.1 million to accommodate expansion; and
WHEREAS, FineLine Graphics will retain 58 jobs which will be new to Columbus, and create 25 new full-time permanent positions with an approximate annual payroll of $3.8 million; and
WHEREAS, the City of Columbus desires to facilitate FineLine Graphics' future growth at the project site by the creation of new jobs; and
WHEREAS, FineLine Graphics has indicated that a Jobs Growth Incentive is crucial to its decision to go forward with the project in Columbus; and
WHEREAS, an emergency exist in the usual daily operations of the Department of Development in that it is immediately necessary to enter into an agreement with Fineline Graphics in order to facilitate a project start date, all for the preservation of the public health, peace, property and safety, 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 FineLine Graphics to pay annually an amount equal to twenty-five percent (25%) of the personal income tax withheld on new employees for a term of five (5) years, in consideration of FineLine Graphic's proposed investment of $5.1 million, the creation of 25 new permanent full-time positions, and the retention of 58 full-time permanent positions, which will be new to the City of Columbus.
Section 2. Each year of the term of the agreement with FineLine Graphics, the 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 FineLine Graphics within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 4. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.