Explanation
Background: The Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Progressive Casualty Insurance Company, equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of 5 years, in consideration of Progressive Casualty Insurance Company's proposed investment of $4.7 million and the relocation of 75 full-time permanent positions which will be new to Columbus.
Progressive Casualty Insurance Company began in 1937 with the first drive-in claims office and became the first to introduce reduced rates for low-risk drivers. After several years Progressive Casualty Insurance Company then changed the insurance shopping experience by offering comparison rates on the Web. Progressive Casualty Insurance Company, is now one of the nation's largest auto insurance groups, and is the largest writer of private passenger auto insurance through independent agents in the country.
Progressive Casualty Insurance Company is requesting a Jobs Growth Incentive.
Fiscal Impact: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Jobs Growth Incentive Agreement with Progressive Casualty Insurance Company to pay annually an amount equal to twenty-five percent (25%) of the personal income tax withheld on new employees for a term of 5 years, in consideration of a proposed investment of $4.7 million and the creation of 75 permanent full-time jobs which will be new to Columbus.
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 application from Progressive Casualty Insurance Company; and
WHEREAS, the Progressive Casualty Insurance Company is proposing to invest $4.7 million to accommodate the construction at the project site; and
WHEREAS, the Progressive Casualty Insurance Company will retain 75 jobs which will be new to Columbus, with an approximate annual payroll of $4.7 million; and
WHEREAS, the City of Columbus desires to facilitate Progressive Casualty Insurance Company's future growth at the project site by the creation of new jobs; and
WHEREAS, the Progressive Casualty Insurance Company has indicated that a Jobs Growth Incentive is crucial to its decision to go forward with the project in Columbus; 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 with Progressive Casualty Insurance Company to pay annually an amount equal to twenty-five percent (25%) of the personal income tax withheld on new employees for a term of 5 years, in consideration of Progressive Casualty Insurance Company's proposed investment of $4.7 million and the retention of 75 full-time permanent positions which will be new to the City of Columbus.
Section 2. Each year of the term of the agreement with Progressive Casualty Insurance Company, the 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 Progressive Casualty Insurance Company, 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.