Explanation
Background: The Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with JD Equipment, Inc. equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term of five (5) years in consideration of JD Equipment, Inc.'s proposed investment of $3.8 million, the relocation/retention of 17 full-time permanent employees, which will be new to Columbus and the creation of 23 permanent full-time jobs.
JD Equipment, Inc. (JD Equipment) is a full service dealership dealing mainly in large farm equipment. The company was founded in 1982 in Plain City, Ohio, and is currently located in London, Ohio with 7 locations throughout Ohio and Michigan.
In 2005, JD Equipment entered into the power generation field providing and servicing industrial, agricultural and residential applications. Experiencing a 30% annual growth, JD Equipment's customers for the power generator market include Honda, Huntington Bank, London Correctional Facility, the City of Mansfield, as well as the City of Columbus.
JD Equipment is proposing to relocate from London, Ohio, and expand its administrative offices by purchasing and renovating through its real estate arm, a building and adjacent land at Wilson Rd. and I-70 to house its administrative offices, storage for its growing Power Systems and Construction Products Divisions.
JD Equipment International is requesting a Jobs Growth Incentive to assist in the relocation of its branch operation.
Fiscal Impact: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Jobs Growth Incentive agreement with JD Equipment, Inc., equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years; and to declare an emergency.
Body
WHEREAS, the City desires to increase employment opportunities and encourage the creation of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, the Department of Development has received a completed application for the Jobs Growth Incentive from JD Equipment, Inc.; and
WHEREAS, JD Equipment, Inc. is proposing to purchase, through its real estate arm, a building and adjacent land located at 3745 Business Park Drive, to accommodate relocation and expansion; and
WHEREAS, JD Equipment, Inc. has indicated that a Jobs Growth Incentive is crucial to its decision to locate the aforementioned relocation/expansion in Columbus; and
WHEREAS, the City of Columbus desires to facilitate JD Equipment, Inc.'s future growth at the project site by the creation of new jobs; and
WHEREAS, in consideration of JD Equipment, Inc.'s proposed investment of $3.8 million, the relocation/retention of 17 full-time permanent employees, which will be new to Columbus and the creation of 23 permanent full-time jobs; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into an agreement with JD Equipment, Inc. in order to allow them to begin investing and creating jobs as quickly as possible, all for the preservation of public health, peace, property and safety; 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 into a Jobs Growth Incentive equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years with JD Equipment, Inc. beginning January 1, 2009.
Section 2. That each year of the term of the agreement with JD Equipment, Inc., the City's obligation to pay the incentive is expressly contingent upon the passage 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 Charter.
Section 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, the ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.