Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement and a Jobs Growth Incentive Agreement with Nexergy, Inc. (Nexergy). 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 into a Council-approved agreement between the City and a participating company.
Nexergy began in 1974 and is the leading designer and manufacturer of custom battery packs and battery chargers that enable portable electronic products to be more dependable, smaller, and longer running.
The company has manufacturing and design centers in Columbus, Ohio, Escondido, California, Denver and Canon City, Colorado. All of the centers are ISO-9001 certified. Nexergy is proposing to consolidate and relocate its two operation facilities in Colorado to its Columbus facility located at 1909 Arlingate Lane. The company is proposing to invest approximately $2.3 million to expand its corporate headquarters, retain 135 employees and create 75 new full-time positions.
The Department of Development recommends a Jobs Creation Tax Credit of 65% for a period of 6 years and a Jobs Growth Incentive Agreement for an amount equal to 20% for 3 years of employees withholding in consideration of the company's investment of $2.3 million, the retention of 135 full-time permanent jobs, and the creation of 75 new permanent full-time jobs, of which only those paying over $12.00 per hour will receive an incentive.
The State has offered a Jobs Creation Tax Credit of 40% for 6 years to Nexergy for this expansion project.
Emergency action is requested in order to allow Nexergy to begin investing and creating jobs as quickly as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Jobs Creation Tax Credit Agreement and a Jobs Growth Incentive Agreement w...
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