Explanation
BACKGROUND: The need exists to amend and restate the Jobs Growth Incentive Agreement (JGI AGREEMENT) between the City of Columbus (CITY) and Northwest Bank (GRANTEE). The JGI AGREEMENT was entered into under Ordinance 0442-2020, which was approved by Columbus City Council on March 2, 2020. The Ordinance authorized the Director of the Department of Development to enter into a JGI AGREEMENT with the GRANTEE for an annual cash payment equal to twenty-five percent (25%) of the new Columbus resident or thirty percent (30%) of new non-Columbus resident tax withheld on new employees for a term of up to five (5) consecutive years on the estimated job creation of 50 new full-time permanent positions to be located at 1 Easton Oval, Columbus, Ohio 43219 (JGI PROJECT SITE).
Additionally, the CITY entered into a Downtown Office Incentive Agreement (DOI AGREEMENT) with the GRANTEE effective June 30, 2020. Columbus City Council approved the DOI AGREEMENT by Ordinance No. 0443-2020, passed March 2, 2020, and granted a financial incentive based on an amount equal to fifty percent (50%) of new employee withholding tax paid at the project site, to commence on January 1, 2021 for a period of five (5) consecutive taxable years based on an investment of approximately $50,000 and the creation of 10 new full-time permanent positions with a cumulative estimated annual payroll of approximately $1,385,000 and retain 1 full-time permanent position with an annual payroll of $310,000 at 401 N. Front Street, Columbus Ohio 43215 (DOI PROJECT SITE).
Per an offer letter from the CITY dated October 29, 2020 and an acceptance letter to the CITY from the GRANTEE dated January 7, 2021 and through additional correspondence, the GRANTEE indicated they planned to expand their original commitment by moving their full headquarters operations from Warren, PA to the JGI PROJECT SITE location, dissolve the DOI AGREEMENT and consolidate to the JGI PROEJCT SITE.
Under the JGI AGREEMENT, the...
Click here for full text