Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Columbus Downtown Office Incentive with Exel Freight Connect Inc. and Exel Inc.
Incorporated in 1983, Exel Inc. has a long history of providing third party logistics services across the United States, including Central Ohio. In order to expand its transportation offerings for its customers, Exel Inc. created a transportation brokerage operation in North America - Exel Freight Connect Inc. Exel Freight Connect Inc. was incorporated in 2013 and is fully backed by Exel Inc. The brokerage operation will leverage Exel Inc.’s existing managed transportation operation, dedicated fleet routes, and its base of warehouse customers. The service offerings include freight brokering, fulfillment, and administration.
Exel Inc. is proposing to lease approximately 26,000 square feet of office space located at 226 N. 5th Street, Suite 400 Columbus, Ohio 43215 to create a centralized brokerage operation near their corporate office in Central Ohio. Exel Inc. will accomplish an expansion of transportation service offerings as provided by Exel Freight Connect Inc., an affiliated company, which will occupy and equip the leased office space. Exel Freight Connect Inc. will invest approximately $524,000 related to the acquisition of furniture and fixtures, stand-alone computers, and improvements to the existing facility. Exel Freight Connect Inc. will create 117 new full-time permanent positions with an associated annual payroll of approximately $7.22 million to meet customer demands.
Exel Freight Connect Inc. and Exel Inc. would qualify for the Columbus Downtown Office Incentive in an amount equal to fifty percent (50%) of the amount of new employee city income tax withholding, or approximately $361,000, over the incentive term of four (4) years with the possibility of receiving an additional cash payment of $90,250 (total of $451,250), should Exel Inc. exercise its lease renewal option to exte...
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