Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Electronic Classroom of Tomorrow equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees to Columbus for a term of five (5) years. The company will invest approximately $3 million to increase capacity at 3700 S. High Street, and to create 90 new full-time permanent positions and retain 277 full-time permanent employees.
Electronic Classroom of Tomorrow, also known as ECOT, was started in 2000 and is headquartered in Columbus. The school provides fully accredited, tuition free public schooling for K-12 students. It is the largest online school in the nation with more than 15,000 students enrolled. The online school graduates more students than any in the US and more than many of the Ohio districts combined.
The Electronic Classroom of Tomorrow graduated 21 students in 2001 and over 1700 students in 2011. The school provides academic flexibility to suit a wide variety of learning styles, interests and special circumstances. The students that enroll at online schools range from exceptional students to "at-risk" students that have not been successful in traditional schools for a number of reasons. As in a traditional public school, the students attend one of three divisions that are each supervised by a principal.
Electronic Classroom of Tomorrow has acquired its existing facility at 3700 S. High Street for $2.95 million and will invest $125,000 in building improvements. A total of 90 new permanent full-time positions will be created in Columbus and 277 permanent full-time jobs will be retained, as a result of the project.
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 Electronic Classroom of Tomorrow 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 the company's investment of $3 million, the creation of 90 new permanent full-time positions and the retention of 277 full-time permanent 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 Agreement Application from Electronic Classroom of Tomorrow; and
WHEREAS, Electronic Classroom of Tomorrow has acquired the property at 3700 S. High Street for $2.95 million and proposes to renovate the facility with an additional $125,000; and
WHEREAS, Electronic Classroom of Tomorrow has indicated that a Jobs Growth Incentive is crucial to its decision to further expand its operational capacity at the site with improvements to the property in Columbus; and
WHEREAS, the City of Columbus desires to facilitate Electronic Classroom of Tomorrow's future growth at the project site by providing a Jobs Growth Incentive; and
WHEREAS, in consideration of Electronic Classroom of Tomorrow's investment of $3 million, the creation of 90 new full-time permanent positions and the retention of 277 full-time permanent employees; and 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 equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years with Electronic Classroom of Tomorrow.
Section 2. Each year of the term of the agreement with Electronic Classroom of Tomorrow, 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 Electronic Classroom of Tomorrow within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.