Explanation
BACKGROUND: The City of Columbus ("City") entered into a Jobs Growth Incentive Agreement (hereinafter "Agreement") with ContactUS, LLC, (also referred to as the "Grantee") effective May 14, 2012. Columbus City Council approved the Agreement by Ordinance 0276-2012, approved March 5, 2012, and granted a financial incentive based on an amount equal to twenty-five percent (25%) of the new Columbus withholding tax paid by the new employees at the project site, to commence on January 1, 2012 for a period of five (5) consecutive taxable years based on an investment of approximately $1 million in leasehold improvements, new machinery and furniture & fixtures to establish its corporate headquarters and client support operations and was to enter into a 7-year lease for vacant office space of approximately 11,000 square feet and create 150 new permanent full-time positions at the Project Site, 1108 City Park Avenue, Columbus, OH 43026.
Correspondence with a representative for the Grantee indicated that as part of a new project undertaken by the Grantee, on June 2, 2014 the Grantee relocated their operations to a new Project Site, 3700 Fishinger Blvd., Columbus, OH 43026, for which the Grantee has entered into a ten (10) year lease, the term of which is June 1, 2014 to May 31, 2024. The Grantee has noted that they still have rights to 1108 City Park Avenue and consider that still to be a second location even though they currently do not have active operations there. As such, the need exists to amend the Agreement to add 3700 Fishinger Blvd., Columbus, OH 43026 to the Project Site as described in the Agreement.
This legislation is requested to be considered as an emergency in order to add 3700 Fishinger Blvd. to the Project Site as described in the Agreement beginning for Report Year 2014 so that the Jobs Growth Incentive payment can be made during the 2015 payment cycle for Report Year 2014 for both Project Site locations and for the new amended Project Site until the end of the incentive term.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to amend the Jobs Growth Incentive Agreement with ContactUS, LLC to expand the Project Site definition; and to declare an emergency.
Body
WHEREAS, Columbus City Council approved a Jobs Growth Incentive Agreement (the "Agreement") with ContactUS, LLC (also referred to as the "Grantee") by Ordinance 0276-2012 on March 5, 2012 with the Agreement having been made and entered into effective May 14, 2012; and
WHEREAS, the Agreement granted a financial incentive based on an amount equal to twenty-five percent (25%) of the new Columbus withholding tax paid at the project site, to commence on January 1, 2012 for a period of five (5) consecutive taxable years; and
WHEREAS, in the Agreement, Grantee committed to investing approximately $1 million in leasehold improvements, new machinery and furniture & fixtures to establish its corporate headquarters and client support operations and was to enter into a 7-year lease for vacant office space of approximately 11,000 square feet and create 150 new permanent full-time positions at the Project Site, 1108 City Park Avenue, Columbus, OH 43026; and
WHEREAS, correspondence with the consultant for the Grantee indicated that as part of a new project undertaken by the Grantee, on June 2, 2014 the Grantee relocated their operations to a new Project Site, 3700 Fishinger Blvd., Columbus, OH 43026, for which the Grantee has entered into a ten (10) year lease, the term of which is June 1, 2014 to May 31, 2024; and
WHEREAS, the Grantee has noted that they still have rights to 1108 City Park Avenue and consider that still to be a second location even though they currently do not have active operations there; and
WHEREAS, an amendment is needed to add 3700 Fishinger Blvd., Columbus, OH 43026 to the Project Site as described in the Agreement; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to seek an amendment to the Jobs Growth Incentive Agreement with ContactUS, LLC for the purpose of adding 3700 Fishinger Blvd., Columbus, OH 43026 to the Project Site as described in the Agreement; thereby preserving the public health, peace, property and safety, NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Development is hereby authorized to amend the Jobs Growth Incentive Agreement with ContactUS, LLC to add 3700 Fishinger Blvd., Columbus, OH 43026 to the Project Site as described in the Agreement.
SECTION 2. That the amendment to the City of Columbus Jobs Growth Incentive Agreement be signed by ContactUS, LLC within ninety (90) days of passage of this ordinance, or this ordinance and the incentive authorized herein shall be null and void.
SECTION 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, the ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after the passage if the Mayor neither approves nor vetoes the same.