Explanation
BACKGROUND: The City of Columbus (“CITY”) entered into a Job Creation Tax Credit Agreement (hereinafter “AGREEMENT”) with DSW Inc., DSW Shoe Warehouse, Inc., DSW Information Technology LLC, DSW Leased Business Division LLC, Brand Card Services LLC & eTailDirect LLC (together “GRANTEE”) effective March 20, 2017. Columbus City Council (“COUNCIL”) approved the AGREEMENT by Ordinance Number 2912-2016, adopted December 5, 2016, and granted a non-refundable tax credit allowed against the tax imposed under Section 362.06, “Income Subject to Net Profit Tax” of the Columbus City Codes of fifty-five percent (55%) of the new income tax revenue received by the CITY for a calendar year from New Employees, commencing January 1, 2018 and for five (5) consecutive years thereafter (i.e., January 1, 2018 through December 31, 2022 for a 5-year credit) based on an investment of approximately $3.6 million in building improvements on vacant commercial space consisting of approximately 82,000 square feet within a repurposed aircraft hangar at 4314 East Fifth Avenue, the retention of 840 new full-time jobs with an annual payroll of approximately $71.32 million and the creation of 100 new full-time permanent positions with an estimated annual payroll of approximately $8.32 million (the “PROJECT”) at 810 DSW Drive, 4150 and 4314 East Fifth Avenue, Columbus, Ohio 43219 (the “PROJECT SITE”).
In a letter from the GRANTEE received by the CITY on June 10, 2019, the GRANTEE requested that “the City of Columbus update the legal name on its Job Creation Tax Credit Agreement from DSW Inc. to Designer Brands Inc.” noting that “the name change was announced earlier this year as part of a major rebranding strategy” and that the “requested change is specific to the legal entity name of the company” and that “the affiliates listed on the agreement are current and do not require changes.”
Additionally, COUNCIL, by Ordinance No. 3221-2018, passed March 13, 2019, authorized the Director of D...
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