Explanation
BACKGROUND: The need exists to amend Ordinance 1343-2006. This ordinance was approved by Columbus City Council on July 31, 2006. The ordinance authorized the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Agreement of fifty percent (50%) for a period of eight (8) years with Hexion Specialty Chemicals, Inc. related to the expansion of its corporate office and the creation of new jobs at 180 E. Broad Street. An amendment is now required to change the name of the company to Momentive Specialty Chemicals, Inc. (Momentive). The start date of the incentive is being amended from calendar year 2006 to calendar year 2011.
Momentive (formerly Hexion Specialty Chemicals, Inc.) is headquartered in downtown Columbus at 180 E. Broad St., where it leases seven floors of office space. The company is the largest thermosetting resins maker in the world. Thermosets improve product qualities such as: adhesion, gloss, heat resistance, etc., to many paints and adhesive products. Momentive merged with Momentive Performance Materials at the end of 2010 through an acquisition by Apollo Advisors LP. The merger will create one of the world's largest specialty chemical companies with annualized sales of approximately $7.5 million and 10,000 employees. This merger resulted in the change of name for Hexion Specialty Chemicals, Inc. to Momentive. As a result of the merger, synergies can be created through the consolidation of corporate office functions and the scope of the project has been increased.
Additional changes to the project scope are as follows: The original commitment involved 155 retained and 145 new full-time permanent positions. The retained positions now total 243 jobs and a total of 89 new full-time permanent positions will be created. Momentive will make an additional investment in leasehold improvements of $1.36 million. The start date of the incentive will change from calendar year 2006 to calendar year...
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