Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with Knight Transportation. 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 a Council-approved agreement between the City and a participating company.
Knight Transportation (Knight) is a trucking company founded in 1990 and headquartered in Phoenix, Arizona. The company has a fleet of 3,500 tractors and more than 8,000 trailers operating from 24 service centers nationwide. Knight has grown to over 4,000 employees and is publicly traded on the New York Stock Exchange. Knight's services include dry van truckload, temperature controlled truckload services, truckload brokerage services and truck and trailer sales.
Knight is expanding and has recently leased a facility in Columbus on a month-to-month basis with an option to buy, while examining the potential market. Knight is proposing an expansion project that would include the purchase of its currently leased facility, renovations and the addition of employees. Knight is also considering its Richmond, Virginia facility as a potential expansion site.
The State of Ohio has offered a Jobs Creation Tax Credit of 45% for 5 years for Knight.
Emergency action is requested in order to allow Knight 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 Development to enter into an agreement with Knight Transportation for a Jobs Creation Tax Credit of 65% for a period of 8 years in consideration of the company's investment of $135,000 in leasehold improvements and personal property, the retention of 7 full-time positions and the creation of 21 new permanent full-time jobs; and to declare an emergency.
Body
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code, the State...
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