Explanation
BACKGROUND: The need exists to amend the Job Growth Incentive Agreement with Red Roof Inns, Inc. and Red Roof Franchising, LLC, (Red Roof Inns). Ordinance 1691-2007, approved by Columbus City Council on November 5, 2007, granted a 30%, four year Jobs Growth Incentive to Red Roof Inns. An amendment to the agreement is needed to add RRI Reservations, LLC and RRI West Management, LLC, as additional grantees to the agreement. Red Roof Inns, Inc., Red Roof Franchising, LLC, RRI Reservations, LLC and RRI West Management, LLC, will collectively be referred to as Red Roof Inns and the grantees to the agreement.
The Red Roof Inn chain began in Columbus in 1972. Today there are over 325 Red Roof locations, including 34 in Ohio, employing over 6,000 people.
In 1999, Accor North America acquired Red Roof Inn and moved its headquarters to Carrollton, Texas. Recently Red Roof was purchased by a consortium made up of Citigroup Global Markets Holdings Inc.’s Global Special Situations Group and Canada-based Westbridge Hospitality Fund II LP.
Red Roof Inns has invested approximately $500,000 to renovate and expand its corporate headquarters at 605 S. Front Street, Columbus, Ohio 43215. The company has also retained 27 full-time permanent positions and created 92 full-time permanent positions.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend the Jobs Growth Incentive Agreement with Red Roof Inns, Inc. and Red Roof Franchising, LLC for the purpose of adding RRI Reservations, LLC and RRI West Management, LLC as grantees; and to declare an emergency.
Body
WHEREAS, on November 5, 2007, Columbus City Council passed Ordinance 1691-2007 approving a four (4) year, thirty percent (30%) Jobs Growth Incentive for Red Roof Inns, Inc. and Red Roof Franchising, LLC in connection with the project; and
WHEREAS, Red Roof Inns planned to invest $500,000 in leasehold improvements, retain 37 full-time permanent positions and create 80 full...
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