Explanation
BACKGROUND: The need exists to enter into a Jobs Creations Tax Credit agreement and a Jobs Growth Incentive agreement with International Technical Coatings, Inc. (ITC). Section 718.15 of the Ohio Revised Code requires the City to enter into a Council-approved agreement between the City and a participating company.
The Department of Development proposes to enter into a Jobs Creation Tax Credit agreement of 65% for 6 years and a Jobs Growth Incentive agreement of 25% for 5 years with ITC in consideration of the expansion of its manufacturing operations to 805-845 Markison Avenue in Columbus, creation of 120 new permanent full-time jobs, and investment of $17.3 million.
International Technical Coating, Inc. (ITC), founded over 17 years ago, is one of the largest producers of wire mesh shelving in the United States. Currently headquartered in Phoenix Arizona, ITC is a supplier to stores such as Home Depot, Wal-Mart, Lowes, Sam's Club, Ikea and Costco. ITC also has a distribution facility in Dayton, Ohio.
ITC has annual sales of $50 million and supplies 25% of the $250 million wire mesh shelving market. In an effort to remain competitive and provide quality service, the company will expand its product line to include heavy duty wire mesh fencing. This product will replace the chain-link fencing. Some of the other products and services offered by ITC include the following: customer wire & steel products, dividers & flue spacers, fencing, gridwall/slatwall, heavy & light duty wire mesh decking, industrial and specialty drawn wire, laser cutting, mine mesh, patented performance panel, pop displays, re-inforcing mesh and roll formed products.
The State of Ohio has offered a Job Creation Tax Credit of 50% for 7 years to ITC.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Jobs Creation Tax Credit of 65% for 6 years and a Jobs Growth Incentive of 25% ...
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