Explanation
BACKGROUND: The City of Columbus entered into a Job Creation Tax Credit Agreement and a Jobs Growth Incentive Agreement (hereinafter "Agreements") with Nexergy, Inc. effective November 14, 2008. Columbus City Council approved the Agreements by Ordinance 0838-2008, adopted June 9, 2008. The Job Creation Tax Credit Agreement granted a non-refundable tax credit allowed against the tax imposed under Article 9, Chapter 361 of the Columbus City Codes (the "City Tax Credit") of sixty-five percent (65%) of the new income tax revenue received by the City for a taxable year from New Employees, as that term was defined in Section 4 of the Agreements, commencing January 1, 2009 and for six (6) consecutive years. The Jobs Growth Incentive Agreement granted a cash incentive equal to an amount of twenty percent (20%) of the City of Columbus income tax withheld on the new payroll of employees for three (3) consecutive years based on an investment of $2.3 million in lease-hold improvements, including machinery and equipment, within the geographical boundaries of the City, the retention of 135 employees, and the creation of 75 (only those jobs paying over $12.00 an hour qualified for the incentive) new permanent full-time positions.
On October 28, 2010 International Components Corporation (ICC) and Nexergy, Inc. announced the merger of the two companies. On March 23, 2011, a letter was received from Nexergy, Inc's Chief Financial Officer indicating the intent to close the Columbus facility by the end of 2011 and relocate to Chicago. As a result of the merger and the relocation to Chicago, Nexergy is not eligible for the Job Creation Tax Credit and the Jobs Growth Incentive. This legislation is to dissolve the Agreements between the City of Columbus and Nexergy, Inc.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to dissolve the Job Creation Tax Credit and Jobs Growth Incentiv...
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