Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with ComResource, Inc. (ComResource) equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term of five (5) years for the purposes of job creation and retention of an emerging business located in the Northwest business corridor.
ComResource founded in 1991, is a privately-owned and operated company headquartered in Columbus, Ohio. ComResource is a business technology solutions provider that focuses on helping its' clients understand how technology can be used to improve their business processes. The company is a unique IT Services company that not only offer its' clients services which supplement or enhance their own staff, they also offer solutions which will enhance their current business systems. ComResource provides professional services and infrastructure support to help their clients plan, design, implement, manage, and operate IT solutions. The company's Integration Services Division delivers EDI, B2B, EAI and SOA consulting services to Fortune 500 companies in the United States and around the world. On multiple occasions, ComResource has been recognized by Business First as being one of the fastest growing private companies in Central Ohio. In 2010 and 2011, ComResource was nominated for TechColumbus Innovation Awards in the category of Outstanding Services and in 2012 and 2013 they were a finalist for the Corporate Caring Award.
ComResource is proposing to invest approximately $50,000 which includes leasehold improvements, machinery, equipment, furniture and fixtures to expand its corporate headquarters by another 2,400 square feet at 1159 Dublin Road, Suite 200. The expansion will allow the company to create 50 new full-time permanent positions with an estimated annual payroll of approximately $2.5 million and retain 125 full-time jobs with an annual payroll of approximately $10.6 million, to meet its 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 ComResource, Inc. 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 $50,000.00 and the creation of 50 new full-time permanent positions.
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 ComResource, Inc.; and
WHEREAS, ComResource, Inc. is proposing to invest approximately $50,000 to expand and increase its corporate headquarters by adding another 2,400 square feet at 1159 Dublin Road, Suite 200; and
WHEREAS, the company will create 50 new full-time permanent positions with an estimated annual payroll of approximately $2.5 million and retain 125 full-time jobs; and
WHEREAS, ComResource, Inc. 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 ComResource, Inc.'s future growth at the project site; 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 ComResource, Inc. 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 ComResource, 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 the City of Columbus Jobs Growth Incentive Agreement is signed by ComResource, Inc. within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. The City Council hereby extends authority to the Director of the Department of Development to amend ComResource, Inc.'s City of Columbus Jobs Growth Incentive Agreement for certain modifications to the agreement requested in writing by the company and or the City and deemed appropriate by the Director of Development with these 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.