Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Copper Run Capital LLC in an amount equal to twenty-five percent (25%) of the City of Columbus income tax withheld on the Columbus payroll of new employees for a term up to five (5) consecutive years.
Founded in 2008 by Andy Hays and Scott Chapman, Copper Run Capital LLC (“Copper Run”) was established to provide mergers and acquisitions (M&A) advisory services to underserved middle market firms in the Midwest. With a national footprint, Copper Run is known for its exceptional buy-side process and tenacious sell-side deal making. Headquarters in the City of Columbus, Copper Run is a different kind of investment bank that focuses exclusively on middle market transactions, providing buy-side and sell-side M&A advisory services on transactions between $10 million and $250 million. Their clients consist of top-tier private equity firms, sponsor-backed companies, and middle market businesses.
Copper Run Capital LLC is proposing to relocate and expand its corporate HQ by entering into a new lease agreement on a vacant office space consisting of approximately 21,000 square feet at 1165 Dublin Rd. Columbus, OH 43215, parcel number 010-129532 (the “Project Site”). The proposed project will allow Copper Run Capital LLC to expand into the Columbus region, create thirty (30) net new full-time permanent positions with a cumulative associated estimated annual payroll of approximately $6,000,000.00 and retain eighteen (18) full-time permanent positions with an associated estimated annual payroll of approximately $2,952,000.00 at the proposed Project Site.
This legislation is presented as 30-day legislation.
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 Copper Run Capital LLC for a term of up to five (5) consecutive years in consideration of the company’s proposed expansion, the creation of thirty (30) net new full-time permanent positions with an estimated annual payroll of approximately $6,000,000.00 and the retention of eighteen (18) full-time permanent positions with an associated estimated annual payroll of approximately $2,952,000.00 at the proposed Project Site. ($0.00)
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 received a completed Jobs Growth Incentive Application from Copper Run Capital LLC; and
WHEREAS, Copper Run Capital LLC proposes to expand and enter into a lease agreement on a vacant office space consisting of approximately 21,000 square feet at 1165 Dublin Rd. Columbus, OH 43215, parcel number 010-129532 (the “Project Site”); and
WHEREAS, Copper Run Capital LLC proposes to create thirty (30) net new full-time permanent positions with a cumulative associated estimated annual payroll of approximately $6,000,000.00 and retain eighteen (18) full-time permanent positions with an associated estimated annual payroll of approximately $2,952,000.00 at the proposed Project Site; and
WHEREAS, Copper Run Capital LLC has indicated that a Jobs Growth Incentive is crucial to its decision to establish new distribution facility operations within the City of Columbus; and
WHEREAS, it has become necessary in the usual daily operation the City of Columbus desires to facilitate the future growth of Copper Run Capital LLC at the proposed Project Site by providing a Jobs Growth Incentive; 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 Copper Run Capital LLC equal to twenty-five percent (25%) of the City of Columbus income tax withheld on the Columbus payroll of new employees at the end of each calendar year, for a term up to five (5) consecutive years.
SECTION 2. Each year of the term of the agreement with Copper Run Capital LLC 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 Copper Run Capital LLC within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. The Columbus City Council hereby extends authority to the Director of the Department of Development to amend Copper Run Capital LLC’s City of Columbus Jobs Growth Incentive Agreement for certain modifications to the agreement requested in writing by the company and or the City and deemed appropriate by the Director of Development with these certain modifications being specifically limited to reductions in length of term, methods of calculating the incentive, or adding or deleting business entities associated with the employment commitments related to this incentive. Columbus City Council must approve all other requested amendments.
SECTION 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.