Explanation
BACKGROUND:
The City of Columbus currently has an excessive amount of vacant office space in our downtown market. This high vacancy rate is having a negative impact on all business activity downtown and throughout the city. Brady, Ware & Schoenfeld, Inc is currently exploring downtown Columbus as a potential site for their Central Ohio Office. They are a CPA Firm based in Richmond, Indiana with interest in growing their business in the Columbus market. They anticipate creating 14 positions with an estimated payroll of $1.2 million in Columbus. This new job creation will generate $24,000 annually in City income tax revenue. Based on this estimate, they would qualify for the Columbus Downtown Office Incentive of an amount equal to 50% of the payroll taxes paid or $12,000 each year five (5) years. The Downtown Development Office recommends granting the Columbus Downtown Office Incentive program to Brady, Ware & Schoenfeld, Inc.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Program agreement with Brady, Ware & Schoenfeld, Inc. as provided in Columbus City Council Resolution 0088-2007 adopted June 4, 2007.
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, Resolution 0088-2007 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 Columbus Downtown Office Incentive Program from Brady, Ware & Schoenfeld, Inc.; and
WHEREAS, Brady, Ware & Schoenfeld, Inc. estimates they will create 14 new positions in the One Columbus Building 10 West Broad Street, Columbus, Ohio, with a projected payroll of $1.2 million generating estimated City of Columbus income tax revenue of $24,000 annually; NOW, THEREFORE:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. To authorize the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Program agreement with Brady, Ware & Schoenfeld, Inc., pursuant to Columbus City Council Resolution 0088-2007, for an annual cash payment equal to 50% of the total income tax withholding for the new positions located in downtown Columbus for a term of five (5) years based on the estimated addition of 14 new positions in the One Columbus Building 10 West Broad Street, Columbus, Ohio.
Section 2. This employment at Brady, Ware & Schoenfeld, Inc. is the result of creating 14 new positions in the Downtown as defined in Columbus City Code Title 33 Section 3359.03 downtown district boundary.
Section 3. As provided in the program guidelines the seven (7) year lease at 10 West Broad Street, Columbus, Ohio qualifies Brady, Ware & Schoenfeld, Inc. for a five (5) year incentive term. The term beginning in calendar year 2008, with the incentive payment made in the first quarter of the following year based on actual City of Columbus income tax withholding paid by the new positions for the preceding year.
Section 4. Each year of the term of the agreement with Brady, Ware & Schoenfeld, Inc. 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 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.