Explanation
BACKGROUND: The Columbus Department of Development is proposing a Jobs Growth Incentive Agreement with Hyperion Companies, Inc.
Hyperion Companies, Inc. (“Hyperion”) is a hydrogen technology company founded in 2011 and currently headquartered in Orange, California. Hyperion focuses on manufacturing hydrogen fuel cells for both mobile and stationary applications along with manufacturing hydrogen vehicles, refueling stations, and home chargers. Hyperion's advanced fuel cell stacks are cutting edge with technology validation from NASA, Shell, Department of Energy (DOE), and National Renewable Energy Lab (NREL). Hyperion has formally engaged with Barclays Capital, Inc. to bring over $500M towards mass production of its products and sees Columbus, Ohio as a favorable climate for a manufacturing/HQ operation.
Hyperion is proposing to invest a total project cost of approximately $296,900,000 to build out a manufacturing facility, which includes $6,400,000 in improvements to existing buildings, $289,500,000 in machinery and equipment, and $1,000,000 in furniture and fixtures to renovate an approximately 500,000 square-foot manufacturing space at 5300 Crosswinds Drive, Columbus, Ohio 43228, parcel number 570-109437 (“Project Site”), to accommodate its increased business growth and to meet its consumer demands. The company will create 687 net new full-time permanent positions with an annual payroll of $58,293,012 and relocate 10 out-of-state full-time positions with an estimated annual payroll of approximately $1.3 million 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 dual-rate Jobs Growth Incentive Agreement with Hyperion Companies, Inc. for a term of up to six (6) consecutive years in consideration of the company’s proposed capital investment of $296,900,000.00, the relocation of 10 out-of-state jobs with an estimated an payroll of approximately $1.3 million and creation of 687 net new full-time permanent positions with an estimated payroll of approximately $58,293,012.00.
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 Hyperion Companies, Inc.; and
WHEREAS, Hyperion Companies, Inc. proposes to expand its operations by investing a total project cost of approximately $296,900,000, which includes $6,400,000 in improvements to existing buildings, $289,500,000 in machinery and equipment, and $1,000,000 in furniture and fixtures to renovate an approximately 500,000 square-foot manufacturing space at 5300 Crosswinds Drive, Columbus, Ohio 43228, parcel number 570-109437 (“Project Site”), to meet its increased sales growth and consumer demands; and
WHEREAS, Hyperion Companies, Inc. will relocate 10 out-of-state full-time jobs with an estimated annual payroll of approximately $1.3 million and create 687 net new full-time permanent positions with a cumulative estimated annual payroll of approximately $58,293,012 at the proposed Project Site to support its strategic growth initiative; and
WHEREAS, Hyperion Companies, Inc. has indicated that a Jobs Growth Incentive is crucial to its decision to establish administrative operations within the City of Columbus; and
WHEREAS, the City of Columbus desires to facilitate the future growth of Hyperion Companies, Inc. at the 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 dual-rate Jobs Growth Incentive Agreement with Hyperion Companies, Inc. equal to (i) thirty percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of new employees and (ii) thirty-five percent (35%) of the City of Columbus income tax withheld on the Columbus payroll of new employees, who are also City of Columbus residents at the end of each calendar year, for a term of up to six (6) consecutive years.
SECTION 2. Should Hyperion Companies, Inc. not be able to sufficiently document residency for an employee associated with this project during a calendar year of the term of the agreement, the default rate of the Jobs Growth Incentive to be applied that calendar year for that new employee shall be thirty percent (30%).
SECTION 3. Each year of the term of the agreement with Hyperion Companies, 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 4. That the City of Columbus Jobs Growth Incentive Agreement is signed by Hyperion Companies, Inc. within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 5. The City Council hereby extends authority to the Director of the Department of Development to amend Hyperion Companies, Inc. 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. All other requested amendments must be approved by City Council.
SECTION 6. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.