Explanation
BACKGROUND: The City of Columbus entered into a Jobs Growth Incentive Agreement (Agreement) with Progressive Casualty Insurance Company, (Grantee) effective October 4, 2011. Columbus City Council approved the Agreement by Ordinance 0988-2011, passed July 11, 2011, and granted a financial incentive based on an amount equal to twenty-five percent (25%) of the new Columbus withholding tax paid by the new employees at the project site, to commence on March 1, 2012 for a period of five (5) consecutive taxable years based on an investment of approximately $4.7 million in personal and real property, the relocation and retention of 75 permanent full-time positions which were to be new to the City of Columbus at 3200 Morse Road, Columbus, OH 43231.
In a letter from the Grantee received by the City dated February 20, 2013, the Grantee indicated that many of the jobs related to the project were associated with an additional entity, Progressive Northern Insurance Company, and were attributable to this project. They requested that the Agreement be amended to reflect the Grantee to be "Progressive Casualty Insurance Company and any affiliates thereof." The determination was made that when the facility opened for business in February 2012 the employee mix was a combination of employees from Progressive Casualty Insurance Company and Progressive Northern Insurance Company. In electronic correspondence dated May 1, 2012 the Grantee requested to move forward with naming Progressive Northern Insurance Company as an additional party to the Agreement. As such, the need exists to amend the Agreement to add Progressive Northern Insurance Company as an additional Grantee to the Agreement.
Additionally there exists a need to amend the commencement date of the term of the financial incentive as defined in Section 2 of the Agreement from beginning on March 1, 2012 for a period of five (5) consecutive taxable years to a term beginning on January 1, 2012 for a period of five (5) consecutive taxable years.
This legislation is requested to be considered as an emergency in order to add Progressive Northern Insurance Company as a Grantee to the Agreement in an expedient manner as possible so as to allow for the completion of the reporting process for Report Year 2012.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to amend the Jobs Growth Incentive Agreement with Progressive Casualty Insurance Company to add Progressive Northern Insurance Company as an additional Grantee to the Agreement and to change the commencement date of the term of the financial incentive; and to declare an emergency.
Body
WHEREAS, Columbus City Council approved a Jobs Growth Incentive Agreement (Agreement) with Progressive Casualty Insurance Company (Grantee) by Ordinance 0988-2011 on July 11, 2011 with the Agreement having been made and entered into effective October 4, 2011; and
WHEREAS, the Agreement granted a financial incentive based on an amount equal to twenty-five percent (25%) of the new Columbus withholding tax paid at the project site, to commence on March 1, 2012 for a period of five (5) consecutive taxable years; and
WHEREAS, in the Agreement, Grantee committed to investing approximately $4,700,000 in real and personal property and relocating and retaining 75 permanent full-time positions which would be new to the City of Columbus at 3200 Morse Road, Columbus, OH 43231; and
WHEREAS, a letter from the Grantee received by the City dated February 20, 2013 indicated that many of the jobs related to the project were associated with an additional entity, Progressive Northern Insurance Company and are attributable to this project; and
WHEREAS, the Grantee requested that the Agreement be amended to reflect the Grantee to be "Progressive Casualty Insurance Company and any affiliates thereof," however it was determined that when the facility opened for business in February 2012 the employee mix was a combination of employees from Progressive Casualty Insurance Company and Progressive Northern Insurance Company and so in electronic correspondence dated May 1, 2012 the Grantee requested to move forward with naming Progressive Northern Insurance Company as an additional party to the Agreement; and
WHEREAS, there also exists a need to amend the commencement date of the term of the financial incentive as defined in Section 2 of the Agreement from beginning on March 1, 2012 for a period of five (5) consecutive taxable years to a term beginning on January 1, 2012 for a period of five (5) consecutive taxable years; and
WHEREAS, an amendment is needed to add Progressive Northern Insurance Company as an additional Grantee to the Agreement and to amend the commencement date of the term of the financial incentive as defined in Section 2 of the Agreement from beginning on March 1, 2012 for a period of five (5) consecutive taxable years to a term beginning on January 1, 2012 for a period of five (5) consecutive taxable years; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to seek an amendment to the Jobs Growth Incentive Agreement with Progressive Casualty Insurance Company for the purpose of including Progressive Northern Insurance Company as an additional Grantee to the Agreement and to amend the commencement date of the term of the financial incentive as defined in Section 2 of the Agreement from beginning on March 1, 2012 for a period of five (5) consecutive taxable years to a term beginning on January 1, 2012 for a period of five (5) consecutive taxable years; thereby preserving the 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 Development is hereby authorized to amend the Jobs Growth Incentive Agreement with Progressive Casualty Insurance Company to add Progressive Northern Insurance Company as an additional Grantee to the Agreement.
Section 2. That the Director of Development is hereby authorized to amend this same Agreement to change the commencement date of the term of the financial incentive as defined in Section 2 of the Agreement from beginning on March 1, 2012 for a period of five (5) consecutive taxable years to a term beginning on January 1, 2012 for a period of five (5) consecutive taxable years.
Section 3. That the amendment to the City of Columbus Jobs Growth Incentive Agreement be signed by Progressive Casualty Insurance Company and Progressive Northern Insurance Company within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
Section 4. 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 the passage if the Mayor neither approves nor vetoes the same.