Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Columbus Downtown Office Incentive with Ohio Film Group, LLC.
Ohio Film Group, LLC (OFG), is a full-service post production company focused on high end film, TV and commercial projects. OFG was established in 2014 in Columbus in order to provide post-production services to media- and entertainment-based clients from around the world seeking the advantages of our low-cost, high-quality editing, VFX, animation, color grading, and sound-editing capabilities. OFG was founded by Leonard Hartman (President & COO) and Gilbert Cloyd (CEO).
OFG is proposing to invest in a 7,000 square-foot, state-of-the-art post-production facility to be renovated on the campus of the Columbus College of Art and Design (CCAD). This facility will not only provide services to high end film, TV and commercial clients, but also provide educational and post-graduate employment opportunities for students of CCAD and The Ohio State University.
OFG will invest approximately $1,175,000 in improvements, which includes leasehold improvements, new machinery and equipment, and on-site infrastructure. The company will enter into a long-term lease agreement at 380 East Broad Street in downtown Columbus and create 17 new full-time permanent positions with an annual payroll of approximately $1,390,880.
OFG is requesting a 50 percent, five-year Downtown Office Incentive from the City of Columbus to assist in the launch of its corporate headquarters.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Columbus Downtown Office Incentive Agreement with Ohio Film Group, 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 Ohio Film Group, LLC; and
WHEREAS, Ohio Film Group, LLC, is proposing to invest approximately $1,175,000 in leasehold improvements, new machinery and equipment, and on-site infrastructure to launch their corporate headquarters; and
WHEREAS, Ohio Film Group, LLC, is proposing to expand their corporate headquarters to a new area of downtown Columbus by entering into a long-term lease agreement at 380 East Broad Street in downtown Columbus and create 17 new full-time permanent positions with an annual payroll of approximately $ 1,390,880, generating approximately $34,752 annually in new City of Columbus income tax revenue; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Development is hereby authorized to enter into a Columbus Downtown Office Incentive Agreement, pursuant to Columbus City Council Resolution 0088X-2007, with Ohio Film Group, LLC 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 17 full-time permanent positions located at 380 East Broad Street, Columbus, Ohio 43215.
SECTION 2. Each year of the term of the agreement with Ohio Film Group, 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 Ohio Film Group, 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 Ohio Film Group, LLC, and City of Columbus Downtown Office Incentive Agreement for non-substantive modifications to the agreement requested in writing by the company and or the City and deemed appropriate by the Director of Development with these non-substantive 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.