Explanation
BACKGROUND: The need exists to amend and restate the Job Creation Tax Credit Agreement between the City of Columbus and Ascena Retail Group, Inc. The City of Columbus (“CITY”) entered into a Job Creation Tax Credit Agreement effective September 26, 2013 (hereinafter “AGREEMENT”) with Ascena Retail Group, Inc. (“GRANTEE”). Columbus City Council (“COUNCIL”), by Ordinance Number 1517-2013, passed July 1, 2013, authorized the CITY to enter into the AGREEMENT which granted a non-refundable tax credit (the “City Tax Credit”) allowed against the tax imposed under Section 361.09, “Net Profits” of the Columbus City Codes of sixty percent (60%) of the new income tax revenue received by the CITY for a calendar year from New Employees, as defined in Section 4 of the AGREEMENT, commencing January 1, 2014 and continuing for seven (7) consecutive years through December 31, 2020) (the “Incentive Term”). The City Tax Credit amount was based on GRANTEE’S proposed investment of approximately $200,000 to relocate its shared services real estate professionals division from out-of-state to Columbus thereby creating 15 new full-time permanent positions with an estimated annual payroll of approximately $1.93 million (the “PROJECT”) at GRANTEE’S offices located at 3344 Morse Crossing Columbus, Ohio 43219, (the “PROJECT SITE”). Pursuant to Ordinance Number 2377-2016, passed October 3, 2016, the AGREEMENT was subsequently authorized to be amended to reflect the following changes to the PROJECT: (i) add additional Grantees, (ii) change the amount of estimated capital expenditure, (iii) change the number of new jobs to be created and the commensurate new job payroll and (iv) include the addition of a new job retention component. Section 2 of Ordinance 2377-2016 required that the amendment was to be signed by the GRANTEE within ninety (90) days of passage of the ordinance, otherwise the ordinance and the authorized amendment would be null and void. The amendment was never exec...
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