The City Manager or his/her designee is hereby authorized to administer the Kent Jobs Creation Tax Credit Program and to take all necessary and appropriate actions to achieve its objectives, pursuant to the following:
(a) Criteria for Participation. The following are general guidelines for considering applications to participate in the Kent Jobs Creation Tax Credit Program. (The City may consider applications that do not meet all of the below referenced criteria on a case-by-case basis, if extenuating circumstances exist, and the spirit of the program is satisfied. "Extenuating Circumstances" may include, but are not limited to: a plausible threat that an existing company will relocate out of the City of Kent in the absence of this incentive; prolonged, adverse national economic conditions; the creation of more than 50 new positions:
(1) Any non-retail oriented project, which commits to the creation of at least 25 new, full-time, or full-time equivalent jobs in the City of Kent or in one of the City of Kent's Joint Economic Development areas (JEDDs) that have adopted the Job Creation Income Tax Credit Program. These new, full-time, or full-time equivalent jobs must be created, and maintained, by the company (Applicant), within three years of the granting of the Kent Jobs Creation Tax Credit incentive. The average hourly base wage rate (excluding benefits) of the project's new, full-time, or full-time equivalent jobs must be at least 150% of federal minimum wage. Upon recommendation of the Administration, if the average hourly base wage rate (excluding benefits) of at least 10 new, full-time, or full-time equivalent, jobs meets or exceeds 400% of the federal minimum wage, then the minimum number of employees necessary to qualify for the Kent Jobs Creation categories listed above. The amount and type of employee benefits being provided may impact the term and rate of tax incentive offered to the Applicant under the Kent Jobs Creation Tax Credit Program. The average hourly base wage rate (excluding benefits) of the project's new, full-time, or full-time equivalent jobs must be a least 150% of federal minimum wage. Firms new to the City, and its qualified JEDDs, and current businesses that are expanding, are eligible to participate in this program.
(2) Each participant shall commit to establish within the specified time frame the minimum number of new full-time or full-time equivalent jobs in the City of Kent, and its qualified JEDDs. "New jobs" do not include transfer from affiliated companies within Kent Each Applicant must commit to retaining the existing number of jobs current number of jobs, currently on their payroll, and the payroll associated with these positions. The Kent Jobs Creation Tax Credit does not apply to wage and salary increases of existing jobs.
(3) Each participant must concurrently apply for, and secure, a State of Ohio Jobs Creation Tax Credit Agreement as authorized by Ohio Revised Code Section 122.17. (This is a mandatory requirement).
(4) Each participant shall document that receiving the City income tax credit is a major factor in the taxpayer's decision to go forward with the job creation program.
(5) The average wage of new jobs must be at, or above, 150% of federal minimum wage.
(6) Tax credits are not available for those jobs filled by non-residents of Kent, unless tax revenues are collected, and not refunded, for those employees of the participant who do not live in the City of Kent.
(7) The participant shall comply with all applicable Municipal Code provisions.
(b) Income Tax Credits: For those participants who meet the criteria established in Section 181.21
(b), the following apply:
(1) Refundable income tax credits shall be established by a written Kent Jobs Creation Tax Credit Agreement with each Applicant as authorized by Municipal ordinance.
(2) The maximum job creation tax credit granted under Section 181.21 will be 24% of the municipal income tax withheld on the qualifying new jobs. The rate of any tax credit granted to the applicant shall be established by the Kent City Council, and will be based on a recommendation by the Administration as determined by criteria established in the Kent Jobs Creation Tax Credit Program Description. This is a refundable credit against the company's Kent profit tax or an individual's income tax.
(3) The tax credit shall only apply to income taxes actually collected from the qualifying new jobs or against the company's Kent profit tax.
(4) The maximum term of tax credit granted under Section 181.21 shall be established by the Kent City Council, and will be based on a recommendation by the Administration as determined by criteria established in the Kent Jobs Creation Tax Credit Program Description. Under no circumstances shall the term of the tax credit exceed that provided to the applicant under the State of Ohio Jobs Creation Tax Credit Agreement as authorized by Ohio Revised Code Section 122.17.
(5) Failure to comply with the terms and conditions of the Kent Jobs Creation Tax Credit Agreement may result in the loss of subsequent credit for the duration of the agreement by action of the City Council.
(6) If the Applicant ceases to operate at this location prior to the expiration of its Kent JCTC Agreement, the City of Kent shall have the right to terminate the agreement and demand repayment of all current and previously credited taxes through the Kent JCTC Agreement.
(7) The Applicant agrees to provide the City of Kent reports annually no later than January 31 of each year in which the Kent JCTC Agreement is in effect listing the number of full-time and full-time equivalent jobs created in accordance with the provisions of the Kent JCTC Program, the payroll generated from each employment category and any other information deemed pertinent by the City of Kent, and as specified in the Kent JCTC Agreement.
(c) Applicant Confidentiality: Financial statements and other information (including, but not limited to tax returns) submitted to the City of Kent or the Director of Budget and Finance by the applicant are generally not considered public records subject to Section 149.43 of the Ohio Revised Code. The City Manager, his/her designee may, however, make use of the information received including but not limited to the following, for the purpose of issuing public reports:
(1) Name of the business entity;
(2) Description of the project;
(3) Location of the project;
(4) Number of jobs created and/or retained;
(5) Amount of fixed-asset investment in the project;
(6) Percent and terms of the tax credit, dollar value of the tax credit, years the company wants the tax credit to begin and end; and the
(7) Business entity's contact person, office address, and telephone number.
(8) The City Manager or his/her designee may also make use of the statements and other information in connection with court proceedings concerning the Tax Credit Agreement.
(Ord. 2012-28. Passed 3-28-12.)