Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with AAA Cooper Transportation in an amount equal to twenty-five percent (25%) of the City of Columbus income tax withheld on the Columbus payroll of new employees each calendar year, for a term up to five (5) consecutive years.
Founded in 1956, AAA Cooper Transportation is an independent subsidiary of Knight-Swift Transportation Holdings, providing extended direct coverage and resources across the United States. AAA Cooper Transportation is an asset-based multi-regional transportation solutions provider offering less-than-truckload, dedicated contract carriage, fleet maintenance, truckload brokerage, and international services.
AAA Cooper Transportation is proposing to invest a total project cost of approximately $3,300,000.00, which includes $3,200,000.00 in acquisition costs and $100,000.00 in machinery and equipment to establish a new distribution facility. With this investment, the company proposes to purchase and renovate an existing vacant industrial distribution facility consisting of approximately 23,000 square feet at 1720 Joyce Ave. Columbus, OH 43219, parcel number 010-027081 (the “Project Site”). The proposed project will allow AAA Cooper Transportation to expand into the Columbus region by creating fifty-five (55) net new full-time permanent positions with a cumulative associated estimated annual payroll of approximately $3,850,000.00 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 AAA Cooper Transportation for a term of up to five (5) consecutive years in consideration of the company’s proposed total capital investment of $3,300,000.00 and the creation of fifty-five (55) net new full-time permanent positions with an estimated annual payroll of approximately $3,850,000.00. ($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 AAA Cooper Transportation; and
WHEREAS, AAA Cooper Transportation proposes to invest a total project cost of approximately $3,300,000.00, which includes $3,200,000.00 in acquisition costs and $100,000.00 in machinery and equipment to establish a new distribution facility. With this investment, the company proposes to purchase and renovate an existing vacant industrial distribution facility consisting of approximately 23,000 square feet at 1720 Joyce Ave. Columbus, OH 43219, parcel number 010-027081 (the “Project Site”); and
WHEREAS, AAA Cooper Transportation will create fifty-five (55) net new full-time permanent positions with a cumulative associated estimated annual payroll of approximately $3,850,000.00 at the proposed Project Site; and
WHEREAS, AAA Cooper Transportation 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 AAA Cooper Transportation 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 AAA Cooper Transportation 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, both for a term up to five (5) consecutive years.
SECTION 2. Each year of the term of the agreement with AAA Cooper Transportation 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 AAA Cooper Transportation 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 AAA Cooper Transportation’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.