Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with FIMM USA, Inc. (FIMM) equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term of five (5) years. FIMM USA, Inc. will make a fixed-asset investment of approximately $1.1 million including new machinery, equipment, leasehold improvements, furniture and fixtures, and create 20 new full-time permanent positions in the City of Columbus.
FIMM USA, Inc. is a family owned business and is a subsidiary of FIMM ITALIA SPA, which specializes in the production of metallic handles for brooms, mops, tools, and snow shovels. FIMM USA, Inc. was created in 2010 to purchase the business of Handles USA, a company of the Thomas Monahan group operating in Arcola, Illinois that also produced metallic broom and mop handles. FIMM USA, Inc. is the only manufacturer of its products for third parties in all of the USA and Canada. The company uses the most modern technology and equipment (CAD-CAM technology, CNC machines, electronic board assembling and programming, spark-erosion, injection molding and extrusion of polymers and high frequency welding, to produce its products for local and abroad customers.
FIMM USA, Inc. is proposing to relocate its corporate headquarters from Arcola, Illinois to the City of Columbus by entering into a 7-year lease agreement with Cospin USA, LLC (FIMM USA, Inc.'s real estate holding company) on a vacant commercial building consisting of approximately 80,000 square feet located at 5454 Alkire Road to meet its consumer demand.
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 FIMM USA, Inc. 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 proposed investment of $1.1 million and the creation of 20 new full-time permanent positions.
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 FIMM USA, Inc.; and
WHEREAS, FIMM USA, Inc. is proposing to enter into a 7-year lease agreement with Cospin USA, LLC on a vacant commercial building located at 5454 Alkire Road, to accommodate the relocation of its corporate headquarters and manufacturing facility; and
WHEREAS, Cospin USA, LLC (FIMM USA, Inc.'s real estate holding company) will invest, redevelop and own the property, while FIMM USA, Inc. will create 20 new full-time permanent positions with an estimated annual payroll of approximately $630,000; and
WHEREAS, FIMM USA, Inc. has indicated that a Jobs Growth Incentive is crucial to its decision to relocate the aforementioned corporate headquarters in Columbus; and
WHEREAS, the City of Columbus desires to facilitate FIMM USA, Inc.'s future growth at the project site; and
WHEREAS, in consideration of FIMM USA, Inc.'s proposed investment of $1.1 million and the creation of 20 new full-time permanent positions; 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 FIMM USA, Inc. equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years.
Section 2. Each year of the term of the agreement with FIMM USA, Inc., 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 FIMM USA, Inc. 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.