Explanation
BACKGROUND: The City of Columbus entered into a Jobs Growth Incentive Agreement (hereinafter "Agreement") with International Diversified Funding, Inc. effective May 22, 2008. Columbus City Council approved the Agreement by Ordinance 0598-2008, adopted April 14, 2008 and granted a tax incentive based on an amount equal to 25% of the new Columbus withholding tax paid by New Employees, as that term was defined in Section 5 of the Agreement, to commence no later than January 1, 2009 and for a period of five (5) consecutive taxable years thereafter based on $2.3 million in leasehold improvements and personal property investment, the relocation/retention of 48 full-time positions and the creation of 102 new full-time positions at 7450 Huntington Park Drive (the "Project Site") within the City of Columbus.
Annual Reporting documents for Report Year 2010 were sent to International Diversified Funding, Inc. on March 1, 2011. It was confirmed by staff in April 2011 that the company was no longer in business. International Diversified Funding, Inc. was, however, in operation at the Project Site during Report Year 2010 and so a payment was made as per the terms of the Agreement for Report Year 2010 in 2011. This legislation is to dissolve the Agreement between the City of Columbus and International Funding, Inc.
This legislation is presented as an emergency measure in order for this dissolution to be legislated prior to the end of the Reporting Year 2011 Jobs Growth Incentive reporting period to eliminate any need for annual reporting documentation.
FISCAL IMPACT: No funding is required for this legislation.
Title
To dissolve the Jobs Growth Incentive Agreement between the City of Columbus and International Diversified Funding, Inc.; and to declare an emergency.
Body
WHEREAS, Columbus City Council approved a Jobs Growth Incentive Agreement ("Agreement") with International Diversified Funding, Inc. by Ordinance 0598-2008 on April 14, 2008; and
WHEREAS, the Agreement granted a tax incentive based on an amount equal to 25% of the new Columbus withholding tax paid by New Employees, as that term was defined in Section 5 of the Agreement, to commence no later than January 1, 2009 and for a period of five (5) consecutive taxable years thereafter; and
WHEREAS, in the Agreement, International Diversified Funding, Inc. committed to invest $2.3 million in leasehold improvements and personal property, relocate and retain 48 full-time positions and create 102 new full-time positions at 7450 Huntington Park Drive (the "Project Site") within the City of Columbus; and
WHEREAS, Annual Reporting documents for Report Year 2010 were sent to International Diversified Funding, Inc. on March 1, 2011. It was verified by staff that, International Diversified Funding, Inc. was no longer in business which has led to this legislation to dissolve the Agreement between the City of Columbus and International Diversified Funding, Inc. effective January 1, 2011, and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, in that it is immediately necessary to take action on this agreement in order for this dissolution to be legislated prior to the end of the Reporting Year 2011 Jobs Growth Incentive reporting period to eliminate any need for annual reporting documentation, all for the preservation of the public health, property, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Columbus City Council hereby dissolves the International Diversified Funding, Inc. Jobs Growth Incentive Agreement effective January 1, 2011 thereby making 2010 the final reporting tax year for the incentive.
Section 2. For the reasons stated in the preamble hereto, which is made a part hereof, this Ordinance is 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 (10) days after passage if the Mayor neither approves nor vetoes this Ordinance.