Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a dual-rate Jobs Growth Incentive Agreement with BDO USA, LLP in an amount equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on the Columbus payroll of new employees and (ii) thirty percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of new employees, who are also City of Columbus residents at the end of each calendar year, both for a term of up to seven (7) consecutive years.
BDO USA, LLP (“BDO”) is a global accounting, tax, and advisory firm. As of 2016, BDO has member firms in 154 counties, employs approximately 64,000 partners and staff in more than 1,400 offices throughout the world and is the fifth largest accounting network globally.
BDO is proposing to establish a shared services center at 8101 N. High Street Columbus, Ohio 43235, a site where the company is expected to enter into a lease to assume 33,000 square feet. This center will employ individuals who will be assisting the professional staff in BDO offices throughout the United States in performing various tasks. The project involves a total investment of approximately $515,000 related to the acquisition of machinery/equipment and leasehold improvements. As part of this project, BDO may expand operations at their existing Columbus office located at 300 Spruce Street, Suite 100 Columbus, OH 43215, depending on their pace of growth and office space availability.
Between both project sites, BDO anticipates retaining 45 full-time permanent positions with an annual payroll of approximately $3,541,954 and creating 235 new full-time permanent positions with a new annual payroll of approximately $7,990,000 within the next three years. Within the next five years, the project is expected to create 400 new full-time permanent positions with a new annual payroll of approximately $13,600,000.
FISCAL IMPACT: No funding is required for this legislation
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