Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Columbus Downtown Office Incentive Agreement with ODW Logistics, Inc.
Established in 1971 in Columbus, Ohio, ODW Logistics, Inc. (“ODW”) is a third party logistics (3PL) provider. ODW provides warehousing and distribution, transportation management, and supply chain solutions to a variety of companies throughout North America. ODW Logistics, Inc. is still headquartered in Columbus and has operations in Chicago, Milwaukee, Cincinnati and Los Angeles. With more than four million square feet of warehouse space, ODW Logistics, Inc. is able to provide unparalleled solutions in the 3PL industry.
ODW Logistics, Inc. intends to relocate headquarters operations from 1580 Williams Road, Columbus, Ohio 43207 in the coming months to support projected growth, growing client demands and space requirements. ODW Logistics, Inc. will lease, renovate, and equip approximately 19,737 square feet of newly-renovated office space in the Buggyworks office project located at 400 W. Nationwide Blvd., Suite 200, Columbus, Ohio 43215. ODW Logistics, Inc. will invest approximately $1,838,000 related to improvements to an existing building, furniture, fixtures, and computers, retain and relocate 62 full-time permanent positions with an associated annual payroll of approximately $5,555,754, and create 25 new full-time permanent positions with an associated annual payroll of approximately $2,015,000.
ODW Logistics, Inc. is requesting a Columbus Downtown Office Incentive from the City of Columbus to assist in the expansion of its operations.
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 ODW Logistics, Inc.
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 from ODW Logistics, Inc.; and
WHEREAS, ODW Logistics, Inc. is proposing to relocate headquarters operations from 1580 Williams Road, Columbus, Ohio 43207 and lease, renovate, and equip approximately 19,737 square feet of newly-renovated office space in the Buggyworks office project located at 400 W. Nationwide Blvd., Suite 200, Columbus, Ohio 43215; and
WHEREAS, ODW Logistics, Inc. plans to invest approximately $1,838,000 related to improvements to an existing building, furniture, fixtures, and computers, retain and relocate 62 full-time permanent positions with an associated annual payroll of approximately $5,555,754, and create 25 new full-time permanent positions with an associated annual payroll of approximately $2,015,000; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development is hereby authorized to enter into a Columbus Downtown Office Incentive Agreement, pursuant to Columbus City Council Resolution 0088X-2007, with ODW Logistics, Inc. for an annual cash payment equal to fifty percent (50%) of the amount of City withholding tax withheld on new employees for a term of up to five (5) years on the estimated job creation of 25 new full-time permanent positions located at 400 W. Nationwide Blvd., Suite 200, Columbus, Ohio 43215.
SECTION 2. That each year of the term of the agreement with ODW Logistics, Inc. 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 ODW Logistics, Inc. within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. That the Director of the Department of Development is hereby authorized to amend the Columbus Downtown Office Incentive Agreement with ODW Logistics, Inc. 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.