Explanation
BACKGROUND: The Columbus Department of Development is proposing enter into a Columbus Downtown Office Incentive Agreement with Burns & McDonnell Engineering Company, Inc.
Established in 1988, Burns & McDonnell is a 100% employee-owned multinational construction, architecture, and engineering firm. The company’s primary lines of business focus on providing integrated design-build and engineer-procure-construct services for critical infrastructure. The services are delivered across a diverse range of markets, including but not limited to the power, aviation, water, and federal sectors.
Burns & McDonnell Engineering Company, Inc. is proposing to invest a total capital expenditure of approximately $2,000,000.00 to relocate and expand from their current location and establish a new location in a 33,000 square foot downtown vacant office space located at 2 Miranova Pl. Columbus, OH 43215, Parcel No. 010-248905 (“Project Site”). Additionally, the company will create forty-five (45) net new full-time permanent positions with an associated estimated annual payroll of approximately $3,600,000.00 and retain and relocate one-hundred twenty (120) full-time permanent positions with an estimated associated payroll of approximately $18,500,000.00 at the Project Site.
Burns & McDonnell Engineering Company, Inc. is requesting a Downtown Office Incentive from the City of Columbus to assist in the relocation and expansion of their Columbus location.
This legislation is presented as 30-day legislation.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Downtown Office Incentive Agreement with Burns & McDonnell Engineering Company, Inc. for a term of up to five (5) consecutive years in the consideration of the creation of forty-five (45) net new full-time permanent positions with an estimated associated annual payroll of approximately $3,600,000.00 and the retention and relocation of one-hundred twenty (120) full-time permanent positions with an estimated annual payroll of approximately $18,500,000.00 as provided in Columbus City Council Resolution Number 0088X-2007, adopted June 4, 2007. ($0.00)
Body
WHEREAS, the City desires to increase employment opportunities and encourage the creation of new jobs in the City in order to improve overall economic climate of the City and its citizens; and
WHEREAS, Resolution Number 0088X-2007, adopted June 4, 2007, authorized the Department of Development to establish the Columbus Downtown Office Incentive program as amended; and
WHEREAS, the Department of Development has received a completed application for the Downtown Office Incentive program from Burns & McDonnell Engineering Company, Inc.; and
WHEREAS, Established in 1988, Burns & McDonnell is a 100% employee-owned multinational construction, architecture, and engineering firm. The company’s primary lines of business focus on providing integrated design-build and engineer-procure-construct services for critical infrastructure. The services are delivered across a diverse range of markets, including but not limited to the power, aviation, water, and federal sectors; and
WHEREAS, Burns & McDonnell Engineering Company, Inc. is proposing to invest a total capital expenditure of approximately $2,000,000.00 to relocate and expand from their current location and establish a new location in a 33,000 square foot downtown vacant office space at 2 Miranova Pl., Columbus, OH 43215, Parcel No. 010-248905 (“Project Site”); and
WHEREAS, additionally, the company will create forty-five (45) net new full-time permanent positions with an associated estimated annual payroll of approximately $3,600,000.00 and retain and relocate one-hundred twenty (120) full-time permanent positions with an estimated associated annual payroll of approximately $18,500,000.00 at the Project Site; and
WHEREAS, Burns & McDonnell Engineering Company, Inc. has indicated that a Downtown Office Incentive is crucial to its decision to expand and relocate operations within City of Columbus Downtown; and
WHEREAS, it has become necessary in the usual daily operation the City of Columbus desires to facilitate the future growth of Burns & McDonnell Engineering Company, Inc. at the Project Site by providing a Downtown Office Incentive, and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Columbus City Council authorizes the Director of the Department of Development to enter into a City of Columbus Downtown Office Incentive Agreement and Burns & McDonnell Engineering Company, Inc. pursuant to Columbus City Council Resolution Number 0088X-2007, for an annual cash payment equal to fifty percent (50%) of the amount of City withholding tax withheld on new employees for a term up to five (5) consecutive years on the estimated job creation of forty-five (45) net new full-time permanent positions with an associated estimated annual payroll of approximately $3,600,000.00 and the retention one-hundred twenty (120) full-time permanent positions with an estimated associated payroll of approximately $18,500,000.00 at the Project Site.
SECTION 2. That each year of the term of the agreement with Burns & McDonnell Engineering Company, 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 Downtown Office Incentive Agreement is signed by Burns & McDonnell Engineering Company, Inc. within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. That the City Council hereby extends authority to the Director of the Department of Development to amend the Burns & McDonnell Engineering Company, Inc. City of Columbus Downtown Office Incentive Agreement for certain modifications to the agreement requesting in writing by the company and/or the City and deemed appropriate by the Director of Development with these certain 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.