Explanation
BACKGROUND: The need exists to amend Ordinance 0080-2011 approved by Columbus City Council on January 31, 2011. The ordinance authorized the Director of the Department of Development to enter into a Job Creation Tax Credit agreement of 65% for a period of six years and a Jobs Growth Incentive agreement of 25% for a period of five years with Citi Fund Services Ohio, Inc. This amendment will allow Citi Fund to extend the 90 day period needed to execute the Job Creation Tax Credit and Jobs Growth Incentive Agreements.
Citi Fund Services Ohio, Inc. is a privately-owned company that was incorporated in 1988 and based in Columbus, Ohio. The company offers fund services, which include administration and accounting, transfer agency and shareholder services, compliance and regulatory support, and marketing and distribution solutions. Citi Fund was formerly known as BISYS Fund Services Ohio, Inc. and changed its name to Citi Fund Services Ohio, Inc. in August 2007. Citi Fund operates as a subsidiary of Citi Investor Services, Inc.
The company is proposing to expand its current facility by adding new lines of business from other Citi Fund locations by investing approximately $2.8 million to renovate and expand its corporate facility located at 3435 Stelzer Road Columbus, Ohio. The company will retain 715 full-time permanent employees and create 300 new full-time permanent positions.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend Ordinance 0080-2011, passed by Columbus City Council on January 31, 2011, for the purpose of extending the deadline to execute the Job Creation Tax Credit and the Jobs Growth Incentive Agreements with Citi Fund Services Ohio, Inc.; and to declare an emergency.
Body
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code, the State of Ohio is authorized to establish the Tax Credit Authority and to execute agreements with taxpayers of the State of Ohio for the purpose of granting these tax payers job creation tax credits against their corporate franchise tax or income tax, which tax credits are provided to create new jobs in the State of Ohio; and
WHEREAS, the Ohio Department of Development approved a 60%/7-year Job Creation Tax Credit on December 7, 2010 for Citi Fund; and
WHEREAS, pursuant to Section 718.15 of the Ohio Revised Code (the "City Act") a municipal corporation is authorized to grant local income tax credits to taxpayers who have received tax credits from the State; and
WHEREAS, contingent on the City granting a Job Creation Tax Credit and a Jobs Growth Incentive, Citi Fund will expand its corporate headquarters located at 3435 Stelzer Road Columbus, Ohio, retain 715 jobs and create 300 new permanent full-time positions, with a total annual payroll of approximately $60.3 million, will make a fixed-asset investment of approximately $2.8 million including, $2.25 million in new machinery and equipment, and $610,000 in renovation and leasehold improvements and increase job opportunities and strengthen the economy of the city; and
WHEREAS, receiving these tax credits from the State and the City is a critical factor in Citi Fund's decision to go forward with the project in Columbus; and
WHEREAS, on January 31, 2011 Columbus City Council passed Ordinance Number 0080-2011 approving a six (6) year, sixty-five percent (65%) Job Creation Tax Credit and a five (5) year, twenty-five percent (25%) Jobs Growth Incentive for Citi Fund Services Ohio, Inc.; and
WHEREAS, subsequent to approval by council, Citi Fund determined that several new employees would be hired by one of four Citi Fund affiliates, which include Citi Fund Services Ohio, Inc., Citicorp North America, Citigroup Technology and Citigroup Management Corp.; and
WHEREAS, on June 6, 2011, Columbus City Council passed Ordinance Number 0803-2011 which authorized an amendment to Ordinance Number 0080-2011; and
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 completed applications for a Job Creation Tax Credit and a Jobs Growth Incentive from Citi Fund; and
WHEREAS, Citi Fund has indicated that a Jobs Growth Incentive and a Jobs Creation Tax Credit is crucial to its decision to locate the aforementioned expansion and retention in Columbus; and
WHEREAS, the City of Columbus desires to facilitate Citi Fund's future growth at the project site; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus, Department of Development in that it is immediately necessary to amend Ordinance 0080-2011 to extend the deadline to execute the Job Creation Tax Credit Agreement and Jobs Growth Incentive Agreement with Citi Fund Services Ohio, Inc. in order to allow the company to begin creating jobs as quickly as possible, all for the preservation of public health, peace, prosperity and safety; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the City hereby finds and determines that the project will (1) create jobs in the State and City (2) the project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) receiving the aforementioned tax credit and cash incentive is a critical factor in the decision by Citi Fund to go forward with the project expansion.
Section 2. That the City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That Ordinance 0080-2011 is hereby amended to extend the 90 day period of execution of the Job Creation Tax Credit and the Jobs Growth Incentive Agreements with Citi Fund Services Ohio, Inc. to 90 days from approval of this legislation.
Section 4. That the Job Creation Tax Credit and the Jobs Growth Incentive Agreements are signed by Citi Fund Services Ohio, Inc. within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 5. 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 the passage if the Mayor neither approves nor vetoes the same.