Explanation
BACKGROUND: Columbus City Council (“Council”), by Ordinance No. 1614-2019 (the “Ordinance”), approved on July 22, 2019, authorized the Director of the Department of Development of the City of Columbus (“CITY”) to enter into a Columbus Downtown Office Incentive Agreement (the “AGREEMENT”) with Adept Marketing Outsourced LLC (the “GRANTEE”) for an annual cash payment equal to fifty percent (50%) of the City of Columbus income tax withheld on the payroll for the new employees added to the city of Columbus for a term of three (3) consecutive years on the estimated job creation of 35 net new full-time permanent positions with an annual payroll of $2.1 million at 555 Edgar Waldo Way, Columbus, Ohio 43215, (the “PROJECT SITE”). The AGREEMENT was made and entered into effective January 15, 2020, with the incentive term beginning January 1, 2021 through December 31, 2023.
In an electronic written communication from the GRANTEE received by the CITY on August 2, 2022, the GRANTEE requested that the City of Columbus dissolve its current AGREEMENT with the CITY. Unfortunately, the GRANTEE indicated that the anticipated expansion and growth as previously planned will not occur. The GRANTEE is voluntarily seeking to cancel the AGREEMENT effective immediately because of the effects of the Coronavirus (“COVID-19”). Due to the prolonged nature of COVID-19 and its many ripple effects, the GRANTEE will not create the proposed new jobs as described in the AGREEMENT. Additionally, the GRANTEE’s business was purchased by another entity that is not part of the AGREEMENT. There is a need to dissolve this AGREEMENT between the CITY and GRANTEE related to the effects of COVID-19 and the change of ownership.
This legislation is presented as an emergency measure in order for this dissolution to be legislated in the most expedient manner as possible so that this dissolution of this AGREEMENT can be reported to the necessary agencies.
FISCAL IMPACT:
No funding is re...
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