Explanation
BACKGROUND: The City of Columbus entered into a Job Creation Tax Credit Agreement (hereinafter “Agreement”) with Citi Fund Services Ohio, Inc., Citicorp North America, Inc., Citigroup Technology, Inc. and Citigroup Management Corp. (together also referred to as “Grantee”) effective May 11, 2012. Columbus City Council approved the Agreement by Ordinance 0080-2011, adopted January 31, 2011, as amended by Ordinance 0803-2011, adopted June 6, 2011 and Ordinance 1388-2011, adopted September 12, 2011, and granted a non-refundable tax credit (the “City Tax Credit”) allowed against the tax imposed under Section 361.09 of the Columbus City Codes (the “City Tax Credit”) of sixty-five percent (65%) of the new income tax revenue received by the City for a calendar year from New Employees, as that term was defined in Section 4 of the Agreement, commencing January 1, 2011 and for six (6) consecutive years thereafter based on an investment of approximately $2.8 million, including $2.25 million in new machinery and equipment, and $610,000 in renovations and leasehold improvements at 3435 Stelzer Road in Columbus, the creation of 300 new permanent full-time positions and the retention of 715 full-time employees.
As the term was set to begin January 1, 2011 but the Agreement was not executed until May 15, 2012, annual reporting documents for Report Year (RY) 2011 and RY 2012 were sent to Grantee on April 1, 2013 but no annual report documents were submitted. Annual report materials for RY 2013 were sent to Grantee on April 2, 2013 with a request for full reporting for all years to-date. No annual report submissions have been received by the City. A letter dated April 11, 2014 was received by the City via regular mail on April 18, 2014 from the Corporate Tax Department at Citigroup, Inc. indicating that Grantee has requested that their Job Creation Tax Credit agreement with the State of Ohio be terminated and with their letter to the City they indicated that they “are ...
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