Explanation
BACKGROUND: The City of Columbus (“CITY”) entered into a Job Creation Tax Credit Agreement (hereinafter “FIRST AGREEMENT”) with ADS Alliance Data Systems, Inc. (GRANTEE) effective October 13, 2006. Columbus City Council (COUNCIL) approved the FIRST AGREEMENT by Ordinance No. 1369-2006, adopted July 31, 2006, and granted a non-refundable tax credit in an amount of sixty-five percent (65%) of the new municipal income tax revenues generated by new employees at the project site for fifteen (15) years, commencing July 31, 2006 and for fifteen (15) consecutive full taxable years thereafter in consideration of an investment of $1.05 million, the relocation and retention of 529 permanent full-time employees and the creation of 54 permanent positions related to the long-term lease of a new 200,000 square foot building at 3100 Easton Square Place, Columbus, Ohio 43219 (the “PROJECT SITE”).
A subsequent and separate Job Creation Tax Credit Agreement (hereinafter “SECOND AGREEMENT”) by and between the CITY and the GRANTEE related to a separate project was made and entered into effective November 4, 2014, whereby all of the relocated and retained employees and the newly created positions related to the FIRST AGREEMENT would necessarily become the retained positions of the SECOND AGREEMENT. The SECOND AGREEMENT was to commence January 1, 2015 and run for ten (10) consecutive years thereafter which created an overlap of effective years between the FIRST and SECOND AGREEMENT resulting in the need to dissolve the FIRST AGREEMENT.
In a letter from the GRANTEE dated February 4, 2019, the CITY received a request that “the Jobs Tax Credit Agreement entered into between the City of Columbus and ADS Alliance Data Systems, Inc. dated as of October 13, 2006 for the property located at 3100 Easton Square Place be dissolved.” This legislation is to dissolve the FIRST AGREEMENT between the City of Columbus and ADS Alliance Data Systems, Inc.
This legislation is presented as...
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