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File #: 2876-2018    Version: 1
Type: Ordinance Status: Passed
File created: 10/10/2018 In control: Economic Development & Small and Minority Business Committee
On agenda: 11/5/2018 Final action: 11/7/2018
Title: To authorize the Director of the Department of Development to enter into a dual-rate Jobs Growth Incentive Agreement with CKE Management, LLC for a term of up to five (5) consecutive years in consideration of the company’s proposed capital investment of $2,780,000.00, the retention of 12 jobs and the creation of 20 new full-time permanent positions with an estimated annual payroll of approximately $1,085,000.00.
Attachments: 1. ORD2876-2018 CKE Management - Site Map, 2. ORD2876-2018 CKE Management - Fact Sheet
Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a dual-rate Jobs Growth Incentive Agreement with CKE Management, LLC in an amount equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on the Columbus payroll of new employees and (ii) thirty percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of new employees, who are also City of Columbus residents at the end of each calendar year, for a term of up to five (5) consecutive years.

Founded in 2017, CKE Management, LLC was established to deliver unparalleled cookies, gifts, and experiences to corporate and retail customers. The founding team, led by Cheryl Krueger, has more than 50 years of experience in manufacturing and baked goods. The company will sell a variety of baked goods and gifts manufactured at the project site through select retail locations, online sales, and direct corporate sales.

CKE Management, LLC is proposing to invest approximately $250,000 in real property improvements, $500,000 in machinery and equipment, $20,000 in furniture and fixtures, $10,000 in technology, and $2,000,000 in inventory to further establish and renovate its manufacturing and headquarters operation at 6845 Commerce Court Drive, Columbus, Ohio 43004, parcel number 010-229132. At this location, the company plans to renovate an approximately 30,182 sq. ft. facility into a food grade manufacturing facility and headquarters. Additionally, CKE Management, LLC will retain 12 full-time jobs with an annual payroll of approximately $1,015,000 and create 20 new full-time permanent positions with a cumulative estimated annual payroll of approximately $1,098,240 to support its growth.

CKE Management, LLC is requesting a dual-rate Jobs Growth Incentive from the City of Columbus to assist in the expansion of this project. This legislation is presented as 30 day legislation.

FISCAL IMPACT: No funding is required for this legislatio...

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