Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Proform Industries, Ltd. equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term of five (5) years. Proform Industries, Ltd. will make an investment of approximately $1,200,000 in leasehold improvements, which includes machinery and equipment, create 60 new full-time permanent positions and retain 58 existing jobs in the City of Columbus.
Proform Industries, Ltd is a privately held company headquartered in Muskogee, Oklahoma. The company is one of North America's leading manufacturers and Tier 1 suppliers of fuel tanks, air tanks, battery boxes and related assemblies to the commercial vehicle industry. The company has three locations: Muskogee, Oklahoma, Monterrey, Mexico and its' Columbus, Ohio facility where it manufactures a range of products including aluminum fuel tanks, Class A aluminum panels, step assemblies and clutch pedals, battery box assemblies and small chassis components. The company recently made a corporate decision to close its' Texas facility and expand its operation in Ohio or Oklahoma.
Proform Industries, Ltd is proposing to expand its current facility located at 1715 Georgesville Road, to meet its anticipated increased growth and consumer demand.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Jobs Growth Incentive Agreement with Proform Industries, Ltd. equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years in consideration of the company's proposed investment of $1,200,000.00, the creation of 60 new full-time permanent positions and the retention of 58 full-time jobs.
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 Jobs Growth Incentive Application from Proform Industries, Ltd.; and
WHEREAS, Proform Industries, Ltd. is proposing to expand its Columbus operation located at 1715 Georgesville Road; and
WHEREAS, Proform Industries, Ltd. has indicated that a Jobs Growth Incentive is crucial to its decision to expand the aforementioned operation in Columbus; and
WHEREAS, the City of Columbus desires to facilitate Proform Industries, Ltd.'s future growth at the project site; and
WHEREAS, in consideration of Proform Industries, Ltd.'s proposed investment of approximately $1,200,000 in leasehold improvements, which includes machinery and equipment, the creation of 60 new full-time permanent positions and the retention of 58 existing jobs; and 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 Agreement with Proform Industries, Ltd. equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years.
Section 2. Each year of the term of the agreement with Proform Industries, Ltd. 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 the City of Columbus Jobs Growth Incentive Agreement is signed by Proform Industries, Ltd. within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 4. That the Director of the Department of Development is hereby authorized to amend the Jobs Growth Incentive Agreement with Proform Industries, Ltd. for non-substantive modifications to the agreement requested in writing by the company and or the City and deemed appropriate by the Director of Development with these non-substantive modifications being specifically limited to reductions in length of term, methods of calculating the incentive, or adding or deleting business entities associated with the employment commitments related to this incentive. All other requested amendments must be approved by City Council.
Section 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.