Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Columbus Downtown Office Incentive Agreement with Adept Marketing Outsourced LLC (“Adept Marketing”).
Adept Marketing was founded in 2008 by two co-founders, Danielle Walton and Justine Spring, in Columbus, Ohio. Adept Marketing is a marketing and communications firm specializing in digital marketing for various industries including healthcare, retail, education, finance, real estate, insurance, accounting and professional services. The organization has been operating for only 11 years and has won many accolades including: Columbus Business First Fast 50 in 2014, 2016 and 2017, Columbus Business First Best Places to Work in 2012 and 2013, Inc.’s 5000 in 2015, 2016, 2017 and 2018. Adept Marketing has a wide range of clients including AEP, Battelle, Columbus Chamber of Commerce, Buckeye Power Sales, Cold Jet, The Columbus Foundation, Franklin University, City of Dublin, Pet Palace and many others.
Adept Marketing is proposing to invest a total project cost of approximately $150,000, which includes $100,000 in leasehold improvements and $50,000 in furniture and fixtures to expand its corporate headquarters (HQ) in the newly constructed commercial office facility at the redeveloped White Castle site. The company proposes to enter into a new lease agreement on an office space consisting of approximately 12,000 square feet at 555 Edgar Waldo Way, Columbus, Ohio 43215 (the “Project Site”), to accommodate its increased sales growth and consumer demands. Additionally, Adept Marketing will create 35 net new full-time permanent positions with an annual payroll of approximately $2,100,000 and retain 30 full-time positions with an annual payroll of approximately $2,734,990 at the proposed Project Site.
Adept Marketing is requesting a Downtown Office Incentive from the City of Columbus to assist in the expansion of this 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 Columbus Downtown Office Incentive Agreement with Adept Marketing Outsourced LLC.
Body
WHEREAS, the City desires to increase employment opportunities and encourage establishment of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and,
WHEREAS, Resolution Number 0088X-2007, adopted June 4, 2007, authorized the Department of Development to establish the Columbus Downtown Office Incentive program as amended; and,
WHEREAS, the Department of Development has received a completed application for the Columbus Downtown Office Incentive program from Adept Marketing; and,
WHEREAS, the company is proposing to invest a total project cost of approximately $150,000, which includes $100,000 in leasehold improvements and $50,000 in furniture and fixtures to expand its existing corporate HQ in the newly construct commercial office facility located at 555 Edgar Waldo Way, Columbus, Ohio 43215, (the “Project Site”), located in the Central Business District; and
WHEREAS, with this expansion, Adept Marketing will retain 30 full-time jobs with an annual payroll of approximately $2,734,990 and create 35 net new full-time permanent positions with a cumulative estimated annual payroll of approximately $2,100,000 at the Project Site; and
WHEREAS, the company has indicated that a Downtown Office Incentive is crucial to its decision to move forward with the expansion of its corporate HQ within the City; and
WHEREAS, the City of Columbus desires to facilitate the future growth of Adept Marketing at the Project Site by providing a Downtown Office Incentive; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. Columbus City Council authorizes the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Agreement with Adept Marketing Outsourced LLC pursuant to Columbus City Council Resolution Number 0088X-2007, for an annual cash payment equal to fifty percent (50%) of the amount of City withholding tax withheld on new employees for a term up to five (5) consecutive years on the estimated job creation of 35 net new full-time permanent positions with an annual payroll of approximately $2,100,000 to be located at 555 Edgar Waldo Way, Columbus, Ohio 43215.
SECTION 2. Each year of the term of the agreement with Adept Marketing Outsourced LLC that a payment is due, the City's obligation to pay the incentive is expressly contingent upon the passing 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 Downtown Office Incentive Agreement is signed within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. The City Council hereby extends authority to the Director of the Department of Development to amend the Adept Marketing Outsourced LLC City of Columbus Downtown Office 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 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 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.