Explanation
BACKGROUND: The Department of Development is proposing to enter into a Columbus Downtown Office Incentive Agreement with State Automobile Mutual Insurance Company (State Auto) equal to fifty percent (50%) of the amount of City withholding tax withheld on new employees for a term of five (5) years. The company will invest approximately $350,000 in new furniture and fixtures, retain 809 full-time jobs and create 46 new full-time permanent positions.
State Auto is proposing to expand its corporate headquarters in the Downtown Business District by entering into a 7-year lease agreement on vacant office spaces consisting of approximately 54,000 square feet located at 175 S. Third Street and to assist in the expansion of its corporate offices located at 518 E. Broad Street. State Auto is proposing to relocate 159 employees from the Smith Brothers Hardware building and move 100 existing employees from its corporate headquarters (at 518 E. Broad Street) to accommodate the company's overall strategic expansion goals. These employees will occupy the vacant office spaces located at 175 S. Third Street. The expansion will allow State Auto to consolidate their operation from other locations in Cleveland, Cincinnati, South Dakota, Texas, Connecticut and Iowa while opening up space for new full-time permanent positions. Based on this estimate, State Auto would qualify for the Columbus Downtown Office Incentive of an amount equal to fifty percent (50%) of the amount of City withholding tax withheld on new positions or $233,500 over a term of five (5) years. The Development Department recommends granting the Columbus Downtown Office Incentive program to State Auto.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Agreement with State Auto Mutual Insurance Company as provided in Columbus City Council Resolution Number 0088X-2007...
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