Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Downtown Office Incentive Agreement with The Oneida Group Inc.
The Oneida Group Inc. (“The Oneida Group” or “Oneida”) is a leading global marketer of tabletop and food preparation products for the consumer and foodservice markets. The company markets their products globally under a broad range of consumer brands. The Oneida Group’s principal operating subsidiaries, Oneida Ltd. and Anchor Hocking, LLC, were founded in 1848 and 1873, respectively. Customers range from Fortune 500 companies to medium and small-sized companies in the consumer, foodservice, business-to-business and e-commerce channels. The company operates two glass manufacturing plants in the U.S. and sources a variety of propriety designed tableware products.
The Oneida Group Inc. intends to relocate its corporate headquarters from 519 N. Pierce Ave. Lancaster, Ohio 43130 in the coming months to support projected growth and future employee recruitment. The Oneida Group Inc. will lease, renovate, and equip approximately 23,000 square feet of office space located at 200 S. Civic Center Drive, Columbus, Ohio 43215 (“Project Site”). The Oneida Group Inc. will invest approximately $2,197,960 related to leasehold improvements, the acquisition of machinery, equipment, furniture, and fixtures. The Oneida Group Inc. will retain and relocate 56 full-time permanent positions with an associated annual payroll of approximately $7,435,904 and create 26 new full-time permanent positions with an associated annual payroll of approximately $2,750,000.
The Oneida Group Inc. is requesting a Downtown Office Incentive from the City of Columbus to assist in the relocation to and expansion of operations in the City of Columbus.
FISCAL IMPACT: No funding is required for this legislation
Title
To authorize the Director of the Department of Development to enter into a Downtown Office Incentive Agreement with The Oneida Group Inc. as provided in Resolution 0088X-2007.
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 Downtown Office Incentive from The Oneida Group Inc.; and
WHEREAS, The Oneida Group Inc. intends to relocate its corporate headquarters from 519 N. Pierce Ave. Lancaster, Ohio 43130; and
WHEREAS, The Oneida Group Inc. will lease, renovate, and equip approximately 23,000 square feet of office space located at 200 S. Civic Center Drive, Columbus, Ohio 43215; and
WHEREAS, The Oneida Group Inc. will invest approximately $2,197,960 related to leasehold improvements, the acquisition of machinery, equipment, furniture, and fixtures; retain and relocate 56 full-time permanent positions with an associated annual payroll of approximately $7,435,904; and create 26 new full-time permanent positions with an associated annual payroll of approximately $2,750,000; 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 Downtown Office Incentive Agreement, pursuant to Columbus City Council Resolution 0088X-2007, with The Oneida Group 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) consecutive years on the estimated job creation of 26 new full-time permanent positions located at 200 S. Civic Center Drive, Columbus, Ohio 43215.
SECTION 2. That each year of the term of the agreement with The Oneida Group 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 The Oneida Group 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 Downtown Office Incentive Agreement with The Oneida Group 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.