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File #: 1232-2020    Version: 1
Type: Ordinance Status: Passed
File created: 5/17/2020 In control: Economic Development Committee
On agenda: 6/1/2020 Final action: 6/5/2020
Title: To authorize the Director of the Department of Development to amend the City of Columbus Downtown Office Incentive Agreement with Agility Partners, LLC to: (i) reduce the company’s retention commitment from 50 full-time permanent positions to 39, (ii) to reduce the associated annual payroll for those retained jobs from $4,480,000.00 to $2,890,000.00 and (ii) to provide for language that any requested future amendment to any of the terms of the Agreement shall require the payment of a fee to the City; and to declare an emergency.
Explanation
BACKGROUND: The need exists to amend the Downtown Office Incentive Agreement (hereinafter “AGREEMENT”) with Agility Partners, LLC (hereinafter “GRANTEE”) and the City of Columbus (hereinafter “CITY”). Columbus City Council approved the AGREEMENT by Ordinance No. 1328-2019, on June 3, 2019, and granted a financial incentive based on an amount equal to fifty percent (50%) of the City of Columbus income tax withheld on the Columbus payroll of New Employees for a term of three (3) consecutive years based on the GRANTEE’s commitment to increase its workforce in the Central Business District. The GRANTEE committed to invest in more IT/Software development, create 30 net new full-time permanent positions with an estimated annual payroll of approximately $2.5 million and retain 50 full-time permanent positions with an annual payroll of approximately $4.48 million (the “PROJECT”) at 175 South Third Street, Columbus, Ohio 43215 (the “PROJECT SITE”) in downtown Columbus, as defined in Columbus City Code Title 33 Section 3359.03 downtown district boundary. The AGREEMENT was made and entered into effective July 22, 2019.

?In a letter from the GRANTEE, received by the CITY dated April 15, 2020, it was confirmed that the original retained employment commitment in the initial incentive application included employees not based within the City of Columbus and therefore set the GRANTEE’s retained employment goal, along with the associated annual payroll, too high. The incentive application stated fifty (50) full-time permanent positions were to be retained at the PROJECT SITE, when the actual retained commitment should have been thirty-nine (39) full-time permanent positions with an associated annual payroll of approximately $2,890,000, instead of $4,480,000.

Additionally, Columbus City Council, by Ordinance No. 3221-2018, passed March 13, 2019 authorized the Director of Development to establish a fee schedule that supports the Department’s administrative and p...

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