Explanation
BACKGROUND: The City of Columbus entered into a Jobs Growth Incentive Agreement (hereinafter “Agreement”) with Universal Fabricating & Construction Services, Inc. and their employer of record, OneSource Employee Management, LLC (also referred to as the “Grantee”) effective October 3, 2014. Columbus City Council approved the Agreement by Ordinance 1488-2014, adopted July 21, 2014, and granted a financial incentive based on an amount equal to twenty-five percent (25%) of the new Columbus withholding tax paid by new employees at the project site, to commence January 1, 2015 for a period of five (5) consecutive taxable years based on the retention of 40 full-time positions, the creation of 30 new permanent full-time positions with an estimated annual payroll of $1.123 million and an investment of approximately $215,000 related to the acquisition of machinery and equipment at 1241 McKinley Avenue, Columbus, Ohio 43222 (the “Project Site”).
In a letter from the Grantee to the City dated February 5, 2016, it was requested “that the Jobs Growth Incentive be cancelled for Universal Fabricating & Construction Services, Inc.” as “the Company is no longer in operation and has no assets.” This legislation is to dissolve the Agreement between the City of Columbus and Universal Fabricating & Construction Services, Inc. and their employer of record, OneSource Employee Management, LLC.
This legislation is presented as an emergency measure in order for this dissolution to be legislated prior to the completion of the report year 2015 (RY2015) Jobs Growth Incentive reporting cycle in 2016 noting that RY2015 would have been the first reporting year for the Grantee and that the Grantee has not received nor will the Grantee receive any benefit under the terms of the Agreement.
FISCAL IMPACT: No funding is required for this legislation.
Title
To dissolve the Jobs Growth Incentive Agreement between the City of Columbus and Universal Fabricating & Construction Servic...
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