Explanation
BACKGROUND:
This ordinance authorizes the Director of the Department of Development to enter into a Columbus Downtown Office Incentive agreement with the Ohio Credit Union League & Affiliate as provide in Columbus City Council Resolution 0088-2007, adopted June 4, 2007. The Ohio Credit Union League & Affiliate is currently exploring sites for relocation. They are currently located at 5815 Wall Street, Dublin Ohio. They anticipate relocating an estimated 23 positions to Downtown Columbus. These new jobs are estimated to generate $1,930,000 of payroll and $38,600 annually in City income tax revenue. The City has proposed the Columbus Downtown Office Incentive (CDOI) for a term of five (5) years. Based on the above estimates, the incentive will be an amount equal to 50% of the payroll taxes paid each year, or an estimated $19,300 each year for five (5) years. The Downtown Development Office recommends granting the Columbus Downtown Office Incentive program to the Ohio Credit Union League & Affiliate.
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 agreement with the Ohio Credit Union League & Affiliate.
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 0088-2007, adopted June 4, 2007, authorized the Department of Development to establish the Columbus Downtown Office Incentive program; and
WHEREAS, the Department of Development has received a completed application for the Columbus Downtown Office Incentive program from the Ohio Credit Union League & Affiliate; and,
WHEREAS, Ohio Credit Union League & Affiliate estimates they will create 50 new positions at 65 East State Street, with a projected payroll of $3,141,000 generating estimated City of Columbus income tax revenue of $63,000 annually; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development is hereby authorized to enter a Columbus Downtown Office Incentive agreement with Ohio Credit Union League & Affiliate, pursuant to Columbus City Council Resolution 0088-2007 adopted June 4, 2007, for an annual cash payment equal to 50% of the total income tax withholding for the new positions located in downtown Columbus for a term of five (5) years.
Section 2. This employment at the Ohio Credit Union League & Affiliate is the result of creating 23 new positions at the Downtown site as defined in Columbus City Code Title 33 Section 3359.03 downtown district boundary.
Section 3. As provided in the program guidelines the proposed 10-year lease at 10 West Broad Street qualifies the Ohio Credit Union League & Affiliate for a five (5) year incentive term. The term beginning in calendar year 2009, with the incentive payment made in the first quarter of the following year based on actual City of Columbus income tax withholding paid by eligible employees for the preceding year.
Section 4. Each year of the term of the agreement with the Ohio Credit Union League & Affiliate that a payment is due, the City's obligation to pay the incentive is expressly contingent upon the passing of an ordinance appropriating and authorizing the expenditure of monies sufficient to make such payment and the certification of the City Auditor pursuant to Section 159 of the Columbus City Codes.
Section 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.