Explanation
BACKGROUND: The need exists to amend Ordinance 1190-2020 approved by Columbus City Council on June 15, 2020, which authorized the Director of the Department of Development to enter into a City of Columbus Jobs Growth Incentive Agreement (the “AGREEMENT”) with Slalom, LLC (“Slalom”). An amendment is now required to revise the 90-day period needed to execute the City of Columbus Jobs Growth Incentive.
The ordinance authorized the Director of the Department of Development to enter into a Jobs Growth Incentive Agreement with Slalom, LLC in an amount equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on the Columbus payroll of new employees and (ii) thirty percent (30%) 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 five (5) consecutive years in consideration of the company’s proposed investment of approximately $120,000 in computers, $263,000 in furniture and fixtures, and $164,000 in leasehold improvements to establish operations at 4111 Worth Avenue, Columbus, Ohio 43219, parcel number 010-298349. With this project, the company plans to relocate 19 existing full-time permanent positions with an associated annual payroll of $3,288,000. Additionally, Slalom, LLC will create 85 new full-time permanent positions with a cumulative estimated annual payroll of approximately $12,157,000 to support its growth.
Slalom was unable to return the original AGREEMENT within the initial 90-day window. As a result, the Department is seeking an additional 90-day period to begin upon passage of this amendment to sign and return the AGREEMENT.
Emergency consideration is requested in order to execute the Jobs Growth Incentive Agreement without further delay.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To amend Ordinance 1190-2020, passed by Columbus City Council on June 15, 2020, for the purposes of revising the 90-day period needed to execute the City of Columbus Jobs Growth Incentive Agreement with Slalom, LLC to 90 days after passage of this ordinance; and to declare an emergency. (AMENDED BY ORD. 1065-2021; PASSED 5/10/2021)
Body
WHEREAS, the need exists to amend Ordinance No. 1190-2020, which was approved by Columbus City Council on June 15, 2020; and
WHEREAS, the ordinance authorized the Director of the Department of Development to enter into a dual-rate Jobs Growth Incentive Agreement with Slalom, LLC for a term of up to five (5) consecutive years in consideration of the company’s proposed capital investment of $547,000, retention 19 full-time permanent positions with an associated annual payroll of $3,288,000 and creation of 85 net new full-time permanent positions with an estimated annual payroll of approximately $12,157,000 at 4111 Worth Avenue, Columbus, Ohio 43219, parcel number 010-298349 (the “Project Site) to support research operations; and
WHEREAS, the City desires to increase employment opportunities and encourage the creation of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, Slalom, LLC has indicated that a Jobs Growth Incentive is crucial to its decision to establish research operations within the City of Columbus; and
WHEREAS, an emergency exists in the daily operations of the City of Columbus to facilitate the future growth of Slalom, LLC at the project site by providing a Jobs Growth Incentive; and
NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF COLUMBUS
Section 1. That Section 4 of Ordinance No. 1190-2020 is hereby amended to revise the 90-day window needed to execute the Jobs Growth Incentive Agreement to 90 days after the passage of this proposed ordinance.
Section 2. That the City of Columbus Jobs Growth Incentive Agreement is signed by Slalom, LLC within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void. Except as otherwise amended by this ordinance, the Prior Ordinance remains in full force and effect without modification or change.
Section 3. For the reasons stated in the Preamble hereto, which is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.