Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Downtown Office Incentive Agreement with BBI Logistics LLC.
BBI Logistics LLC (“BBI Logistics”) is a freight brokerage firm founded in 2017. BBI Logistics specializes in handling full truck load shipments across the United States and Canada for dry van, refrigerated, and all open deck trailers, while also dealing with a variety of other services such as, less than truckload (LTL), intermodal, specialized equipment, and expediting shipments. The goal is to help customers find the most cost-effective and reliable carrier while also maximizing load potential for their carriers. The less than truckload service offered by BBI Logistics also plays an integral role in helping clients find the most effective way to transport their smaller and more frequent shipments.
BBI Logistics intends to lease, renovate, equip, and occupy approximately 15,000 square feet of commercial office space at 80 E. Rich Street, Columbus, Ohio 43215 (“Project Site”) near the Columbus Commons. The relocation of operations to a larger office space will allow for the expansion of the company’s sales team as well as other supporting roles.
BBI Logistics anticipates investing approximately $435,000 to renovate and equip the Project Site. BBI Logistics intends to retain and relocate 15 existing full-time permanent positions with an associated annual payroll of approximately $615,000 to the Project Site from their current office operations located at 4449 Easton Way, Suite 330, Columbus, Ohio 43219 and expects to create approximately 150 net new full-time permanent positions with an associated new annual payroll of approximately $8,175,000.
BBI Logistics is requesting a Downtown Office Incentive from the City of Columbus to assist in the relocation and 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 BBI Logistics LLC. (AMENDED BY ORD. 0818-2019; PASSED 3/25/2019)
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 BBI Logistics LLC; and
WHEREAS, BBI Logistics LLC intends to lease, renovate, equip, and occupy approximately 15,000 square feet of commercial office space at 80 E. Rich Street, Columbus, Ohio 43215; and
WHEREAS, BBI Logistics LLC intends to invest approximately $435,000 to renovate and equip the Project Site, retain and relocate 15 existing full-time permanent positions with an associated annual payroll of approximately $615,000 to the Project Site from 4449 Easton Way, Suite 330, Columbus, Ohio 43219, and expects to create approximately 150 net new full-time permanent positions with an associated new annual payroll of approximately $8,175,000; 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 BBI Logistics LLC 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 three (3) consecutive years on the estimated job creation of 150 new full-time permanent positions to be located at 80 E. Rich Street, Columbus, Ohio 43215.
SECTION 2. Each year of the term of the agreement with BBI Logistics LLC 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 BBI Logistics LLC 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 BBI Logistics LLC 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.