Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Primero Home Loans, LLC dba Primero equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees for a term up to five (5) years for the purposes of job creation and employment opportunities for the citizens of Columbus.
Primero Home Loans, LLC (Primero) is a privately-owned mortgage banking company headquartered in the Powell, Ohio area that focuses exclusively on home purchase mortgage lending. Founded in 2005, the company has a proven reputation for excellent service and impeccable loan quality. In 2015, Primero closed over $1 billion in mortgage loans. In early 2015, Primero was purchased by a group of senior executives of Keller Williams Realty International, currently the largest real estate brokerage firm by agent count in the U.S.
Primero has outgrown its current office space and is proposing to invest approximately $50,000 in furniture and fixtures to expand and relocate its corporate headquarters from Liberty Township to the City of Columbus. The company proposes to enter into a lease agreement on a vacant commercial office space consisting of approximately 23,000 +/- sq. ft. at 4700 Lakehurst Court, Columbus, Ohio 43016. In addition, Primero will create 35 new full-time permanent positions with an estimated annual payroll of approximately $2.1 million, retain and relocate 70 full-time jobs with an annual payroll of approximately $7.0 million from Liberty Township to Columbus, which will be new jobs and income tax revenue to the City.
Primero Home Loans, LLC is requesting a Jobs Growth Incentive from the City of Columbus to assist in the expansion of this project. This legislation is presented as 30 day legislation.
Fiscal Impact No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Jobs Growth Incentive Agreement with Primero Home Loans, LLC, dba Primero, equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term up to five (5) years in consideration of the company’s proposed investment of $50,000.00 and the creation of 35 new full-time permanent positions. AMENDED BY ORD. 0934-2017 PASSED 4/17/2017
Body
WHEREAS, the City desires to increase employment opportunities and encourage the creation of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, the Department of Development has received a completed Jobs Growth Incentive Application from Primero Home Loans, LLC; and
WHEREAS, Primero Home Loans, LLC is proposing to invest approximately $50,000 in furniture and fixtures to relocate and expand its corporate headquarters from Liberty Township to the City of Columbus by entering into a lease agreement on a vacant commercial office space consisting of approximately 23,000 square feet at 4700 Lakehurst Court, Columbus, Ohio 43016; and
WHEREAS, Primero Home Loans, LLC will create 35 new full-time permanent positions with an estimated annual payroll of approximately $2.1 million, relocate and retain 70 full-time jobs with an annual payroll of approximately $7.0 million from Liberty Township to Columbus, which will be new jobs and tax revenue to the City; and
WHERESAS, the City desires to increase employment opportunities and encourage the creation of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, Primero Home Loans, LLC has indicated that a Jobs Growth Incentive is crucial to its decision to locate the aforementioned expansion in Columbus; and
WHEREAS, the City of Columbus desires to facilitate Primero Home Loan, LLC’s future growth at the project site; 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 Jobs Growth Incentive Agreement with Primero Home Loans, LLC, dba Primero, equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term up to five (5) years.
SECTION 2. That each year of the term of the agreement with Primero Home Loans, LLC, the City’s obligation to pay the incentive is expressly contingent upon the passage 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 Jobs Growth Incentive Agreement is signed by Primero Home Loans, LLC dba Primero 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 Primero Home Loans, LLC dba Primero’s City of Columbus Jobs Growth Incentive Agreement 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.