Explanation
BACKGROUND: The City of Columbus (“CITY”) entered into a Job Creation Tax Credit Agreement (hereinafter the “AGREEMENT”) with Ascena Retail Group, Inc. (“GRANTEE”) effective September 26, 2013. Columbus City Council (“COUNCIL”) approved the AGREEMENT by Ordinance No. 1517-2013, adopted July 1, 2013, and granted a non-refundable tax credit in an amount of sixty percent (60%) of the new municipal income tax revenues generated by new employees at the project site for seven (7) years, commencing January 1, 2014 and for seven (7) consecutive years thereafter in consideration of the company’s total capital investment of approximately $200,000 and the creation of 15 full-time permanent positions related to the relocation of the company’s shared services real estate division from out-of-state into their Columbus offices located at 3344 Morse Crossing, Columbus, Ohio 43219, parcel number 010-274068 (the “PROJECT SITE”).
The COUNCIL approved the authorization for the Director of Development to enter into an amendment to the original AGREEMENT on October 3, 2016 by Ordinance No. 2377-2016, but that amendment was never executed and so as per Section 2 of Ordinance No. 2377-2016 that ordinance after 90 days became null and void.
On September 11, 2017 by Ordinance No. 2303-2017, COUNCIL approved the authorization for the Director of Development to enter into an amended and restated Job Creation Tax Credit Agreement (aka the “FIRST AMENDMENT” or the “AGREEMENT”), between the City of Columbus, a municipal corporation of the State of Ohio (hereinafter “GRANTOR” or the “CITY”) and Ascena Retail Group, Inc., Lane Bryant, Inc., Lane Bryant Purchasing Corp., Catherines Stores Corp., and ASNA Plus Fashion, Inc. (collectively, and hereinafter “GRANTEE”).
With this amended and restated AGREEMENT, the GRANTEE committed to retain 274 full-time permanent jobs with a total annual payroll of approximately $24.7 million, increased their new hiring goal from 15 to 130 full-t...
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