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File #: 1171-2024    Version: 1
Type: Ordinance Status: Passed
File created: 4/16/2024 In control: Economic Development & Small and Minority Business Committee
On agenda: 6/3/2024 Final action: 6/5/2024
Title: To authorize the Director of the Department of Development to amend the City of Columbus Job Creation Tax Credit Agreement with ADS Alliance Data Systems, Inc. to remove ADS Alliance Data Systems, Inc. as the Grantee to be replaced with Bread Financial Payments, Inc. as Grantee; and to revise the Project Site; and to amend Ordinance No. 1492-2014.
Explanation

BACKGROUND: The need exists to amend the City of Columbus Job Creation Tax Credit Agreement (the “Agreement”) between the City of Columbus (“City”) and ADS Alliance Data Systems, Inc. (hereinafter referred to as “Grantee”). Columbus City Council (“Council”), by Ordinance No. 1492-2014, passed on July 21, 2014, authorized the Director of the Department of Development to enter into an Agreement with the Grantee that granted a non-refundable tax credit allowed against the tax imposed under Section 362.06, “Income Subject to Net Profit Tax” of the Columbus City Codes of sixty-five percent (65%) of the new income tax revenue received by the City for a calendar year from New Employees, commencing January 1, 2015 and for ten (10) consecutive years thereafter (i.e., January 1, 2015 through December 31, 2024 for a 10-year credit). The Grantee committed to invest a total capital expenditure of approximately $80.5 million, which included $42 million in new construction, $15 million in leasehold improvements, $11.6 million in furniture and fixtures, $10.8 million in machinery and equipment, and $1.1 million in stand-alone computers to construct a three-building campus to house its corporate associates for its Alliance Data Retail Services. Additionally, the Grantee committed to create 700 net new full-time permanent positions with an annual payroll of approximately $52.5 million, and retain 1,300 full-time associates with an estimated payroll of $124.4 million (the “Project”) at an undeveloped site near Easton Square Place, Columbus, Ohio 43219 (the “Project Site”). The Agreement was made and entered into effective November 4, 2014.

In a letter from the Grantee received by the City on February 16, 2024, and through additional correspondence, the Grantee confirmed that its legal name changed from ADS Alliance Data Systems, Inc. to Bread Financial Payments, Inc. noting that the company had changed their name effective March 23, 2022. Additionally, the Grantee...

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