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File #: 1396-2014    Version: 1
Type: Ordinance Status: Passed
File created: 6/9/2014 In control: Development Committee
On agenda: 7/14/2014 Final action: 7/17/2014
Title: To authorize the Director of the Department of Development to enter into a Jobs Growth Incentive Agreement with The Crimson Cup, Inc. equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term up to five (5) years in consideration of the company’s proposed investment of $1.15 million and the creation of 20 new full-time permanent positions.
Attachments: 1. ORD1396-2014 Crimson Cup JGI - Fact Sheet, 2. ORD1396-2014 The Crimson Cup JGI - Project Site Map 1, 3. ORD1396-2014 The Crimson Cup - Project Site Map 2
Explanation

BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with The Crimson Cup, Inc. (Crimson Cup) equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term up to five (5) years for the purposes of job creation and retention of an emerging business located in the Southeast business corridor.

Crimson Cup roasts, manufactures and distributes specialty coffee. The company was founded in 1991 by Greg Ubert, President. With a modest investment from his parents and a couple of friends, Greg rented a small 1200 square foot office and purchased a small blue coffee roaster. He began experimenting; mixing Colombian beans with African, Mexican beans with Sumatran. When he finally had a few blends he felt good about, he started selling to Columbus businesses and coffeehouses. The business name “Crimson Cup,” was derived from the ripe red berry of the coffee tree and in honor of Harvard’s official color, crimson, which is Greg’s alma mater. Today, Crimson Cup distributes coffee, tea, sauces, syrups, equipment and other coffee house related items to its customers across 28 states.

Crimson Cup is proposing to invest approximately $1.15 million, which includes acquisition cost, real property improvements, machinery, equipment, furniture and fixtures, to expand and renovate its corporate headquarters including its R&D training facility at 700 Alum Creek Drive. In addition, the company is proposing to acquire a vacant commercial property located at 1925 Alum Creek Drive to relocate and expand its manufacturing operation. Crimson Cup will create 20 new full-time permanent positions between both project sites with an estimated annual payroll of approximately $1.05 million and retain 17 full-time jobs with an annual payroll of approximately $981,000, to meet its increased growth and consumer demand.

FISCAL IMPACT: No funding is required for this legislation.

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