Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with Ohio Valley Cable Services, Inc. (Ohio Valley Cable). 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.
Ohio Valley Cable reconditions, repairs, sells and distributes fiber optic and digital cable equipment. The company began in 1999 and is currently headquartered in Westerville, Ohio. It started by repairing line equipment for cable companies. Increased demand allowed expansion into power supply, fiber transmission equipment and test equipment. The company has experienced 100% sales increases every year since its inception. Ohio Valley Cable's largest customers are Motorola and Scientific Atlanta. Due to its rapid growth, Ohio Valley Cable's existing facility no longer serves its needs and the company must move to a larger facility.
Ohio Valley Cable is proposing to lease 60,000 square feet of a facility located at 1030 Freeway Dr. North, previously occupied by the State Department of Taxation. Contingent on the City granting a Jobs Creation Tax Credit, Ohio Valley Cable Services, Inc. will relocate & retain 46 full-time positions with an annual payroll of $2.3 million (which will be new to Columbus) and create 25 full-time permanent jobs with an annual payroll of $780,000, investing $700,000 in new personal property and increasing job opportunities and strengthening the economy of the city.
This legislation is considered to be an emergency in order to allow Ohio Valley Cable Services, Inc. to make a decision on the location of their proposed relocation/expansion as quickly as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into an agreement with Ohio Valley Cable Services,...
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