Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Columbus Downtown Office Incentive with Coyote Logistics, LLC.
Founded in 2006, Coyote Logistics, LLC (Coyote Logistics) is a full-service transportation company. It offers truckload, freight brokerage and documentation services. The company's BAZOOKA software is a freight management system that provides data access and understanding for various industries. As a third-party logistics (3PL) provider, Coyote Logistics arranges the movement of 6,000 shipments per day by way of an ever-growing network of 40,000 carriers. The company offers van, rail, and open-deck brokerage services and transportation management services to more than 14,000 shippers, from Fortune 100 companies to small businesses, in many industries across North America. Coyote Logistics is headquartered in Chicago, with more than 2,000 employees operating from 16 offices nationwide. The company was recently named to the Chicago Tribune's list of the 2014 Top 100 Workplaces in Chicago for its fifth consecutive year.
Coyote Logistics, LLC is proposing to expand its Central Ohio operation by investing approximately $480,000 in leasehold improvements, which includes furniture and fixtures, to relocate its existing office from Hilliard, Ohio into a newly constructed Class A office space consisting of roughly 9,000 square feet located in the Columbus Downtown Business District. In addition, the company will create 50 new full-time permanent positions with an annual payroll of approximately $2.0 million and relocate 34 full-time jobs from Hilliard, Ohio (which will not be incentivized, but new to Columbus), with an annual payroll of approximately $2.89 million. Coyote Logistics, LLC would qualify for the Columbus Downtown Office Incentive in an amount equal to fifty percent (50%) of the payroll taxes paid on the new employees or approximately $125,000 over a term up to five (5) years. The Development Department recommends granting the Columbus Downtown Office Incentive to Coyote Logistics, LLC.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Agreement with Coyote Logistics, LLC as provided in Columbus City Council Resolution 0088X-2007, adopted June 4, 2007.
Body
WHEREAS, the City desires to increase employment opportunities and encourage establishment of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, Resolution 0088X-2007, adopted June 4, 2007, authorized the Department of Development to establish the Columbus Downtown Office Incentive program as amended; and
WHEREAS, the Department of Development has received a completed application for the Columbus Downtown Office Incentive program from Coyote Logistics, LLC; and
WHEREAS, Coyote Logistics, LLC is proposing to relocate its Columbus operation from Hilliard, Ohio into the Downtown Business District by entering into a lease agreement on a newly constructed Class A office space consisting of approximately 9,000 square feet at 250 S. High Street; and
WHEREAS, Coyote Logistics, LLC plans to invest approximately $480,000 in leasehold improvements, which includes furniture and fixtures, retain and relocate 34 full-time jobs from Hilliard, Ohio, which will not be incentivized, and create 50 new full-time permanent positions with an estimated annual payroll of approximately $2.0 million generating approximately $50,000 annually in new City of Columbus income tax revenue; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. Columbus City Council authorizes the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Agreement pursuant to Columbus City Council Resolution 0088X-2007, for an annual cash payment equal to fifty percent (50%) of the amount of City withholding tax withheld on new employees for a term up to five (5) years on the estimated job creation of 50 new full-time permanent positions to be located at 250 S. High Street Columbus, Ohio 43215.
SECTION 2. Each year of the term of the agreement with Coyote Logistics, LLC that a payment is due, the City's obligation to pay the incentive is expressly contingent upon the passing 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 Downtown Office Incentive Agreement is signed by Coyote Logistics, LLC 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 the Coyote Logistics, LLC City of Columbus Downtown Office 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