Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a dual-rate Jobs Growth Incentive Agreement with Root, Inc. in an amount equal to (i) thirty-five percent (35%) of the City of Columbus income tax withheld on the Columbus payroll of new employees and (ii) forty percent (40%) of the City of Columbus income tax withheld on the Columbus payroll of new employees, who are also City of Columbus residents at the end of each calendar year, for a term of up to six (6) consecutive years.
The primary line of business for Root, Inc. (“Root”), headquartered in Columbus, Ohio, is providing property and casualty insurance, in particular personal passenger auto insurance. Root relies on telematics and a customer's smartphone to deliver rates for good drivers based on their current driving data. Root was formed by a veteran of the insurance industry that saw a need to provide good drivers an insurance product that rewards them with low insurance premiums based on their driving ability. The company’s auto insurance products are sold, administered, and monitored through a smartphone app. Root does not employ agents to sell or administer its products.
Root, Inc. is proposing to invest approximately $3,000,000 in leasehold improvements to expand operations at multiple locations in the City of Columbus. In recognition of this, the project site shall be defined as all locations and operations located within the City of Columbus to expand and support headquarters and administrative operations including 80 E. Rich Street, Columbus, Ohio 43215. Additionally, Root, Inc. will retain 79 employees with an estimated associated annual payroll of approximately $8,407,464 and create 863 new full-time permanent positions with a cumulative estimated annual payroll of approximately $60,840,596 to support its growth.
Root, Inc. is requesting a dual-rate Jobs Growth Incentive from the City of Columbus to assist with this expansion project. This legislat...
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