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File #: 1492-2014    Version: 1
Type: Ordinance Status: Passed
File created: 6/16/2014 In control: Development Committee
On agenda: 7/21/2014 Final action: 7/23/2014
Title: To authorize the Director of the Department of Development to enter into a Job Creation Tax Credit Agreement of sixty-five percent (65%) for a period of ten (10) years with ADS Alliance Data Systems, Inc. in consideration of the company’s proposed total investment of $80.5 million and the creation of 700 new full-time permanent positions.
Attachments: 1. ORD1492-2014 ADS - Fact Sheet JCTC, 2. ORD1492-2014 ADS - Project Site Map
Explanation

BACKGROUND: The need exists to enter into a Job Creation Tax Credit Agreement with ADS Alliance Data Systems, Inc. (ADS). 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.

Headquartered in Plano, Texas, ADS Alliance Data Systems (ADS) is a leading provider of marketing, loyalty and credit solutions that uses the power of data to achieve results for its clients. Together, ADS three lines of business manage more than 100 million consumer relationships for some of the world’s leading brands. The company was started in 1986 as a part of The Limited, and became ADS as result of a merger with BSI Business Services, an electronic network transaction processing and credit services’ company, in 1996. ADS consists of three businesses: Alliance Data Retail Services, Know More Sell More, it’s our commitment to helping our partners better understand their customer, and to driving more sales through our branded card programs; Epsilon®, a global leader in delivering direct-to-consumer connections that drive business performance and LoyaltyOne®, a global leader in the design and implementation of coalition loyalty programs, customer analytics and loyalty management solutions

ADS Alliance Data Systems, Inc. is proposing to invest approximately $80.5 million, which includes real property improvements, leasehold improvements, machinery, equipment, furniture and fixtures, to construct a three-building campus to house its corporate associates for its Alliance Data Retail Services business. In addition, ADS is proposing to create 700 new full-time permanent positions with an annual payroll of approximately $52.5 million and retain 1,300 full-time associate with an estimated annual payroll of $124.4 million.

FISCAL IMPACT: No funding is required for this legislation.

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