Explanation
BACKGROUND: The Department of Development is proposing to enter into a Columbus Downtown Office Incentive with Manpower Professional.
Manpower Professional is a world leader in the employment services industry. Their global network of nearly 4,000 offices in 82 countries and territories allows them to meet the needs of their clients in all industry segments, whether they are global, multinational or local companies. Their main office is located in downtown Columbus at 175 S. Third Street. Manpower Professional is expanding the Columbus location for a total of 4,250 square feet. The 17 new positions will create approximately $1.55 million in additional payroll and approximately $38,875 annually in City income tax revenue. Based on this estimate, Manpower Professional would qualify for the Columbus Downtown Office Incentive of an amount equal to fifty percent (50%) of the payroll taxes paid on the new positions or $58,311 for three (3) years.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Columbus Downtown Office Incentive Agreement with Manpower Professional, as provided in Columbus City Council Resolution Number 0088X-2007, adopted June 4, 2007. (AMENDED BY ORD. 2223-2012 PASSED 10/22/2012)
Body
WHEREAS, the City desires to increase employment opportunities and encourage establishment 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 application for the Columbus Downtown Office Incentive program from Manpower Professional; and
WHEREAS, Manpower Professional is proposing to consolidate their Ohio offices by entering into a 5-year lease agreement and create 17 new positions at 175 S. Third Street, Columbus, Ohio, with a projected additional payroll of $1.55 million generating estimated City of Columbus income tax revenue of $38,375 annually; 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 Columbus Downtown Office Incentive Agreement with Manpower Professional, pursuant to Columbus City Council Resolution 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 of three (3) year on the estimated addition of 17 new positions at 175 S. Third Street, Columbus, Ohio.
Section 2. As provided in the program guidelines leasing of the project site qualifies Manpower Professional for a three (3) year incentive term. The term beginning in calendar year 2011, with the incentive payment made in the second quarter of the following year based on actual City of Columbus income tax withholding paid by the new positions for the preceding year.
Section 3. Each year of the term of the agreement with Manpower Professional that a payment is due, the City's obligation to pay the incentive is expressly contingent upon the passing 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 4. That the City of Columbus Downtown Office Incentive Agreement is signed by Manpower Professional within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.