Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Downtown Office Incentive Agreement with Telco Pros Inc., doing business as TPI Efficiency.
Telco Pros Inc., doing business as TPI Efficiency, is a Cleveland, Ohio-based consulting firm assisting commercial businesses in long term, strategic purchasing initiatives. These include LED lighting upgrades and other "green" technologies, such as green power. Utilizing the “Total Procurement Intelligence (TPI) Process” to vet supplier quality and competitiveness, the firm manages their clients’ operating costs and dynamic needs for electricity, natural gas, LED lighting, telecommunications, merchant card services, waste disposal and other third-party operating services.
Founded in 2009, Telco Pros Inc. has quickly grown from a single owner/operator business to employing over 30 full-time procurement experts. In fact, in August of 2016 Inc. Magazine ranked TPI Efficiency No. 691 on its 35th annual Inc. 5000, an exclusive ranking of the nation's fastest-growing private companies. TPI was named top 4 in Cleveland and top 18 overall in Ohio companies.
Telco Pros Inc. intends to lease, renovate, and occupy approximately 1,960 square feet of office space at 274 Marconi Blvd., Suite 210, Columbus, Ohio 43215 (“Project Site”) in the Arena District. The establishment of this sales and customer support office will support projected growth and provide access to a diverse and talented pool of prospective employees. Telco Pros Inc. will invest approximately $40,000 related to leasehold improvements and equipping the Project Site. Telco Pros Inc. anticipates retaining and relocating 5 existing full-time permanent positions with an associated annual payroll of approximately $360,000 and expects to create 12 new full-time permanent positions with an associated annual payroll of approximately $800,000.
Telco Pros Inc. is requesting a Downtown Office Incentive from the City of Columbus to assist in the expansion of operations in 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 Telco Pros 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 Downtown Office Incentive from Telco Pros Inc.; and
WHEREAS, Telco Pros Inc. intends to lease, renovate, and occupy approximately 1,960 square feet of office space at 274 Marconi Blvd., Suite 210, Columbus, Ohio 43215; and
WHEREAS, Telco Pros Inc. will invest approximately $40,000 related to leasehold improvements and equipping the Project Site, anticipates retaining and relocating 5 existing full-time permanent positions with an associated annual payroll of approximately $360,000, and expects to create 12 new full-time permanent positions with an associated annual payroll of approximately $800,000; 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 Telco Pros 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 three (3) consecutive years on the estimated job creation of 12 new full-time permanent positions located at 274 Marconi Blvd., Suite 210, Columbus, Ohio 43215.
SECTION 2. Each year of the term of the agreement with Telco Pros 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 Telco Pros 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 Telco Pros 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.