Explanation
BACKGROUND: The need exists to amend Ordinance 1552-2007. This ordinance was approved Columbus City Council on October 15, 2007. The ordinance authorized the Director of the Department of Development to enter into a Jobs Creation Tax Credit Agreement of sixty five percent (65%) for a period of seven (7) years with DSW Inc. and Ozburn Hessey Logistics, LLC (OHL) in consideration of an investment of $36,500,000 and the creation of 199 new full time permanent positions. An amendment is now needed to add several DSW affiliates as grantees in the Agreement. These affiliates include Brand Card Services LLC, Brand Technology Services, DSW Shoe Warehouse, Inc. and eTailDirect LLC. (collectively referred to herein as "DSW").
OHL and DSW are seeking to develop an e-commerce business channel whereby DSW would sell products over the internet (the "Project"). DSW, by itself or through OHL, anticipates making an investment of approximately $36,500,000. The investment includes $8,000,000 to $9,000,000 for machinery and equipment, $800,000 to $900,000 in tenant improvements and $27,000,000 in new inventory. DSW plans to hire, or cause OHL to hire, approximately 199 new full-time employees in connection with the project. The average wage of the new employees would be approximately $14.00 per hour.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend Ordinance 1552-2007, passed by Columbus City Council on October 15, 2007, for the purpose of including the specified DSW affiliates as grantees to the Jobs Creation Tax Credit Agreement; and to declare an emergency.
Body
WHEREAS, pursuant to Ohio Revised Code Section 122.17, the State of Ohio is authorized to establish the Tax Credit Authority and to execute agreements with taxpayers of the State for the purpose of granting those taxpayers a job creation tax credit to be applied against their corporation franchise tax and commercial activity tax liability, which State...
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