Explanation
BACKGROUND:
The City of Columbus currently has an excessive amount of vacant office space in our downtown market. This high vacancy rate is having a negative impact on all business activity downtown and throughout the city. Hexion Specialty Chemicals is the world's largest producer of binders, adhesives, coatings and ink resins for industrial applications employing over 7000 people worldwide. The world headquarters for this large multinational company is located in the Borden Building at 180 East Broad Street. Their net sales grew to over $4 billion in 2005. They are currently exploring downtown Columbus for substantial expansion in the corporate headquarters workforce. They anticipate nearly doubling their downtown employment from 155 to an estimated 300 people by 2008 with an estimated annual payroll of $25 million. This expansion will result in annual City income tax revenue growing from $275,000 to $500,000 by 2008. Based on this anticipated expansion and the signing of a twelve year lease for space in the Borden Building (180 East Broad Street), the Downtown Development Office recommends granting a Columbus Downtown Office Incentive (CDOI) of an amount equal to 50% of the payroll taxes paid on the new to Columbus employees located in the Borden Building (180 East Broad Street) each year for eight (8) years.
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 Program agreement with Hexion Specialty Chemical, Inc. as provide in Columbus City Council Resolution 075X-2004 adopted March 29, 2004.
Body
WHEREAS, the City desires to increase employment opportunities and encourage establishment of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, Resolution 075X-2004, adopted March 29, 2004, authorized the Department of Development...
Click here for full text