Title
A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO A JOB CREATION GRANT AGREEMENT WITH BASE HOLDINGS LLC AND OPEN PRACTICE SOLUTIONS; AND DECLARING AN EMERGENCY.
Brief Description: Base Holdings LLC and Open Practice Solutions is requesting a 50% income tax credit for 9 years with a benchmark of $7.1M in payroll.
Body
Legislative History
None.
Purpose & Explanation
The Hudson Economic Development Incentive Committee met on August 26, 2019, and voted unanimously to recommend to Council approval of a 50% Job Creation Grant for a period of nine years which would cover income taxes paid by employees being transferred from Stow (75 employees) and all new hires (16 new employees over the next three years). This company has a nearly $30M in annual revenue and just recently celebrated its 20-year anniversary.
The company is negotiating to acquire a building at 300 Executive Parkway, which is listed at $4.3 M. The purchase and sale will not be finalized without this job creation incentive.
The City of Stow is not a signatory community to the Summit County Memorandum of Understanding for Job Creation and Retention and Tax Revenue Sharing.
Legal Authority for Proposed Legislation
Pursuant to Charter Section 6.04, Contracts & Purchasing:
Competitively bid and advertised for two consecutive weeks; bid tab attached: [Yes/No/NA])
Joint or Cooperative Purchase Program
Professional Services
X Other, with adoption of Resolution No. 05-39, passed May 4, 2005, Council created the Job Creation Grant Program pursuant to Article XVIII, Section 3 and Article VIII, Section 13 of the Ohio Constitution.
Fiscal Impact
Currently Budgeted (Account #, $)
Supplemental Appropriation Required (Account #, $)
X Appropriation Not Required
Does this legislation require use of an emergency clause?
X Yes, so that the company can finalize the purchase of a building at 300 Executive Parkway.
No
Recommendation
Suggested Action
Staff recommends that City Council follow the unanimous recommendation of the Economic Development Incentive Committee and approve this Job Creation Grant Incentive.
Submitted by,
Jane Howington, City Manager
Jim Stifler, Economic Development Director