Explanation
BACKGROUND: The need exists to enter a Job Creation Tax Credit Agreement with Safelite Group, Inc. (“Safelite”). The Ohio Tax Credit Legislation (Section 718.15 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter a Council-approved agreement between the City and a participating company.
Safelite Group, a subsidiary of Belron group SCA, is a multifaceted auto glass and claims management service organization with their national headquarters based in Columbus, Ohio. The company was founded in Wichita, Kansas in 1947 and is composed of two major business operations: Safelite Fulfillment, LLC and Safelite Solutions LLC. Safelite Fulfillment, LLC operates under the trade name Safelite AutoGlass and specializes in auto glass repair and replacement and vehicle sensor and safety systems recalibration. Safelite Solutions LLC is Safelite Group's claims management operation and provides complete claims management solutions for the nation's leading fleet and insurance companies.
Safelite is proposing to invest a total capital expenditure of approximately $19,200,000.00 in real property improvements which include $5,400,000.00 in additions/new construction, $12,000,000.00 in improvements to existing buildings, and $1,800,000.00 in furniture & fixtures in order to make the facilities ready for its associates to return to the office, including, among other things, the construction of an inter-building connecting structure between the existing structures in the City of Columbus. With this investment, The Developer is modernizing two buildings located at 2500 Farmers Drive, also identified as Franklin County Tax Parcel 590-192107 and 7400 Safelite Way, also identified as Franklin County Tax Parcels 590-189916 and 590-189915 (the “Project Site”). The proposed project will allow Safelite to modernize and expand their current facility in the Columbus region by creating twenty-five (25) net new full-time permanent positions with a cumulative associated estimated annual payroll of approximately $1,040,000.00 and retain three-hundred twenty-nine (329) full-time permanent positions with an associated estimated annual payroll of approximately $37,917,250.00 at the proposed Project Site.
Safelite Group, Inc. is requesting a Job Creation Tax Credit from the City of Columbus to assist in the development of the aforementioned project.
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 Job Creation Tax Credit Agreement granting a tax credit of sixty percent (60%) for a term of up to five (5) consecutive years with Safelite Group, Inc., in consideration of the company’s proposed total capital investment of $19,200,000.00 and the creation of twenty-five (25) net new full-time permanent positions with an estimated annual payroll of approximately $1,040,000.00 and the retention of three-hundred twenty-nine (329) full-time permanent positions with an associated estimated annual payroll of approximately $37,917,250.00.
Body
WHEREAS, Safelite Group, a subsidiary of Belron group SCA, is a multifaceted auto glass and claims management service organization with their national headquarters based in Columbus, Ohio. The company was founded in Wichita, Kansas in 1947 and is composed of two major business operations: Safelite Fulfillment, LLC and Safelite Solutions LLC. Safelite Fulfillment, LLC operates under the trade name Safelite AutoGlass and specializes in auto glass repair and replacement and vehicle sensor and safety systems recalibration. Safelite Solutions LLC is Safelite Group's claims management operation and provides complete claims management solutions for the nation's leading fleet and insurance companies; and
WHEREAS, the company is proposing to invest a total capital expenditure of approximately $19,200,000.00 in real property improvements which include $5,400,000.00 in additions/new construction, $12,000,000.00 in improvements to existing buildings, and $1,800,000.00 in furniture & fixtures in order to make the facilities ready for its associates to return to the office, including, among other things, the construction of an inter-building connecting structure between the existing structures in the City of Columbus. With this investment, The Developer is modernizing two buildings located at 2500 Farmers Drive, also identified as Franklin County Tax Parcel 590-192107 and 7400 Safelite Way, also identified as Franklin County Tax Parcels 590-189916 and 590-189915 (the “Project Site”); and
WHEREAS, Safelite proposes to create twenty-five (25) net new full-time permanent positions with a cumulative associated estimated annual payroll of approximately $1,040,000.00 and retain three-hundred twenty-nine (329) full-time permanent positions with an associated estimated annual payroll of approximately $37,917,250.00 at the proposed at the proposed Project Site; and
WHERESAS, 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, Safelite has indicated that a Job Creation Tax Credit is crucial to its decision to establish the aforementioned project in the City of Columbus; and
WHEREAS, the City of Columbus desires to facilitate the future growth of Safelite at the proposed Project Site by providing a Job Creation Tax Credit; 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 credits is a critical factor in the decision for Safelite Group, Inc. to go forward with the project.
SECTION 2. That the Director of the Department of Development is hereby authorized to enter into a Job Creation Tax Credit Agreement with Safelite Group, Inc. granting a tax credit of sixty percent (60%) of the amount of City income tax withheld on new employees for a term up to five (5) consecutive years with Safelite Group, Inc.
SECTION 3. That the City of Columbus Job Creation Tax Credit Agreement is signed by Safelite Group, Inc. within 90 days of the passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. That the Columbus City Council hereby extends authority to the Director of the Department of Development to amend Safelite Group, Inc., City of Columbus Job Creation Tax Credit Agreement for certain modifications to the agreement requested in writing by the company and or the City and deemed appropriate by the Director of the Department 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.