Explanation
BACKGROUND: The need exists to enter into a Job Creation Tax Credit Agreement with The Boys, LLC dba SupplyHouse.com (SupplyHouse.com). The Ohio Tax Credit Legislation (Section 718.15 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter a Council-approved agreement between the City and a participating company.
Headquartered in Long Island, SupplyHouse.com is an on-line retailer serving the plumbing, heating, and HVAC marketplace. SupplyHouse.com distributes these products to end users and trade professionals. The company is privately owned and was created in 2003 to serve on-line retailers focused on the Long Island contractors, but has grown into a national presence. The company ships out orders from its 100,000 square foot fulfillment facility in New York to commercial and independent contractors buying bulk supplies and to regular consumers buying individual parts. SupplyHouse.com stockpiles over 61,000 products and carries a large inventory in its fulfillment warehouse.
Since the company has expanded its distribution nationally, the Long Island operation is a costly and inefficient place from which to ship nationally. SupplyHouse.com is proposing to invest approximately $2.3 million, which includes machinery, equipment, stand-alone computers, inventory, leasehold improvements, furniture and fixtures to open a Midwest Fulfillment Center (at 3800 Lockbourne Industrial Parkway) to complement its East Coast operation. In addition, the company is proposing to create 40 new full-time permanent positions with an estimated annual payroll of approximately $1.128 million, which will be new to Columbus and the region.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Job Creation Tax Credit Agreement of forty-five percent (45%) for a period of six (6) years with The Boys, LLC dba SupplyHous...
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