Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with Value Recovery Group, Inc. The Ohio Tax Credit Legislation (Section 718.08 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.
Value Recovery Group, Inc. plans to expand their business. The project will include an investment of $147,500, the retention of 8 (eight) full-time jobs and the creation of 15 (fifteen) full-time jobs.
The Department of Development recommends a 50%/5 year jobs creation tax credit.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into an agreement with Value Recovery Group, Inc. for a Jobs Creation Tax Credit of fifty percent (50%) for a period of five (5) years in consideration of a proposed $147,500 investment, the retention of eight (8) new full-time jobs and the creation of fifteen (15) new full-time jobs.
Body
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code, the State of Ohio is
authorized to establish the Tax Credit Authority and to execute agreements
with taxpayers of the State of Ohio for the purpose of granting these
taxpayers job creation tax credits against their corporate franchise or
income tax, which tax credits are provided to create new jobs in the State
of Ohio; and
WHEREAS, the State of Ohio Tax Credit Authority has granted Value Recovery Group, Inc. a 55% /6 year Jobs Creation Tax Credit; and
WHEREAS, pursuant to Section 718.08 of the Ohio Revised Code (the "City Act") a municipal corporation is authorized to grant local income tax credits to taxpayers who have received tax credits from the State; and
WHEREAS, the granting of the tax credit by the City for the proposed expansion project by Value Recovery Group, Inc. will create fifteen (15) full-time permanent jobs and increase opportunities for employment and strengthen the economy of the city; and
WHEREAS, receiving these tax credits from the State and the City is a critical factor in Value Recovery Group, Inc.'s decision to go forward with the project; and
WHEREAS, Value Recovery Group, Inc. plans to expand their business; and
WHEREAS, the expansion will add approximately $147,500 in investment within the City; and
WHEREAS, the City desires to enter into such a binding, formal agreement in order to foster economic growth; 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 by Value Recovery Group, Inc. to go forward with the project.
Section 2. That the City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the Director of the Department of Development is hereby authorized and directed to enter into and execute a 5-year, 50% Jobs Creation Tax Credit Agreement with Value Recovery Group, Inc.
Section 4. That the ordinance shall take effect and be in force from and after the earliest period allowed by law.