Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with Exel Inc. 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.
Exel Inc. (Exel) is a leading provider of contract logistics and freight management services. The company is headquartered in Westerville, Ohio and has 25,000 employees in the United States and Canada. Exel is part of the Deutsche Post World Net group and a sister company of DHL.
Exel services a variety of markets including consumer packaged goods manufacturers, technology, automotive, healthcare and chemical. Their portfolio of services spans the entire chain from international logistics management and distribution, to store-to-store logistics and home delivery.
Exel is proposing to expand by leasing 11,500 square feet in Columbus at 1650 Watermark Drive. This operation will support transportation and warehouse logistics being performed in the United States and Canada. These services include arranging for delivery of orders, routing of orders, billing customers and customer support.
The State has approved a Jobs Creation Tax Credit of 45% for 5 years for Exel.
This legislation is requested to be considered as an emergency in order to allow Exel 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 Exel Inc. for a Jobs Creation Tax Credit of 65% for a period of 8 years in consideration of the company's investment of $600,500 in leasehold improvements and personal property, the relocation and retention of 22 full-time positions, which will be new to Columbus, and the creation of 45 new permanent full-time jobs; and to declare an emergency. ...
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