(A) Creation. The city hereby establishes a Job Creation and Retention Incentive Program in accordance with R.C. §§ 718.15 and 718.151.
(B) Purpose. The purpose of the Job Creation and Retention Incentive Program is to provide an incentive for the retention and creation of jobs in the city, and to maintain the city’s competitiveness as a site for location of new businesses and the expansion of existing businesses. The Job Creation and Retention Incentive Program may be used in conjunction with other financing and incentive programs available through the Federal Government, the State of Ohio, other local governments, and/or any other city economic development incentive programs. Businesses annexing into the city will be eligible to apply for this program. At the time of annexation, all existing businesses and proposed new business project activity may aggregate "new jobs," "retained jobs," and "qualifying payroll" for the purpose of qualifying for the program.
(C) Definitions. Unless the context clearly indicates or requires a different meaning, the definitions set forth below shall apply in these guidelines:
(1) NEW JOBS. Jobs that have not previously existed in the city and are associated with a qualifying payroll that are approved as new sources of city income tax and are intended as permanent.
(a) For a job to be considered as a new source of city income tax it must be determined by the city to be new work or a new position within the business.
(b) Such new job must be created or moved into the city after the employer's application for the Job Creation and Retention Incentive Program has been submitted to the Director of Finance.
(c) A new job is considered to be intended as permanent if it is designed by the employer to last for five or more years.
(2) RETAINED JOBS. Jobs that currently exist in the city and are associated with a qualifying payroll that are approved as sources of city income tax and are intended as permanent.
(a) For a job to be considered as a source of city income tax it must be determined by the city to be a job that would likely be relocated outside the city if not for the job creation and retention incentive program.
(b) A retained job is considered to be intended as permanent if it is designed by the employer to last for five or more years following the employer's application for the Job Creation and Retention Incentive Program.
(3) QUALIFYING PAYROLL. The dollar amount of the employer's additional payroll attributable to the creation of new jobs or retention of retained jobs in the city. To be approved the qualifying payroll must be equal to a minimum of $200,000 in the aggregate.
(4) QUALIFIED BUSINESS. Any business, owner of real property or developer of real property which has qualified to participate in the Job Creation and Retention Incentive Program and has entered into a contract with the city governing the terms and conditions of participation in the Job Creation and Retention Incentive Program ("Incentive Agreement").
(5) INCENTIVE PAYMENT. Shall be calculated in accordance with an incentive payment schedule to be established by the Director of Finance in accordance with the terms of the incentive agreement.
(a) An incentive payment for a qualified project will be available only to a qualified business.
(b) The incentive payment shall not exceed 50% of the income tax revenue generated for the city as a result of the qualifying payroll in any given year.
(D) Application process; Program administration.
(1) The application process shall be established by the Director of Finance upon the advice and consult of the Director of Law. The application process may be amended from time to time in accordance with this section.
(2) The city Job Creation and Retention Incentive Program shall be administered by the Director of Finance, subject to the authority of the City Manager to enter into contracts for the payment of the incentives, including without limitation an incentive agreement. The Director of Finance shall be responsible, subject to the guidelines set forth in this section, for determining the actual percentage of qualifying payroll that will be used for calculating each awardee's incentive payment.
(3) Interested property owners, developers and businesses must submit an application seeking to participate in the program and obtain approval as a qualified business. In all instances in which participation in the Job Creation and Retention Incentive Program will be based upon new jobs, the application must be submitted to the Director of Finance before any new jobs are located within the city for which the applicant will be claiming the incentive.
(E) Eligible applicants.
(1) All forms of new and existing business located within, or annexing into, the city are eligible to qualify for the incentive payment provided herein, including but not limited to sole proprietorships, incorporations, partnerships, joint ventures, limited liability companies, and limited liability partnerships, whether as for-profit or nonprofit organizations, but excluding governmental entities engaged in retail, commercial, manufacturing, service, or any other type of lawful business.
(2) In addition to other considerations that may be deemed relevant and necessary by the Director of Finance, at a minimum, each awardee of the Job Creation and Retention Incentive Program must demonstrate:
(a) The qualified business will increase payroll for the qualified business within the city and income tax revenue for the city;
(b) The qualified business is economically sound and the new jobs or retained jobs, as applicable, will benefit the people of the city by increasing opportunities for employment and strengthening the economy of the city; and
(c) Receiving the tax credit is a major factor in the qualified businesses decision to go forward with creating the new jobs or with retaining the retained jobs, as applicable.
(F) Incentive agreement. The Director of Finance shall cause each incentive agreement to include all of the following terms:
(1) A detailed description of the new jobs or the retained jobs, as applicable, that are to be the subject of the incentive agreement;
(2) The term of the incentive agreement, which shall not exceed five years, and the first year for which the credit may be claimed;
(3) A requirement that incentive payments are payable only after the qualifying payroll has been maintained for one full calendar year.
(4) A requirement that the qualified business shall maintain operations within the city for at least the term of the incentive agreement;
(5) The percentage, as determined by the Director of Finance but subject to the limitations of this section, of excess income tax revenue that will be allowed in respect of the qualifying payroll as the amount of the credit for each tax year;
(6) The inflation-related pay increase factor, if any, to be applied to the taxpayer's baseline and qualifying payroll income tax revenue for purposes of calculating the incentive payment;
(7) A requirement that the qualified business annually shall report to the Director of Development employment, tax withholding, investment, and other information the Director needs to perform the Director's duties under this section;
(8) A requirement that the qualified business file information on job creation or retention and payroll for new jobs created or retained jobs retained on an annual basis as of December 31 of each tax year throughout the term of the incentive agreement so that the Director of Finance, in consult with the Director of Law, can determine the appropriate qualifying payroll for purposes of calculating the incentive payment and can audit compliance of the awardee with the contract terms. New jobs and retained jobs data for the previous year will be provided no later than April 30 of each year to the Director of Finance. Information must be consistent with city, state and federal tax filings;
(9) An agreement by the Director of Finance to pay to the qualified business the amount of the incentive payment on the terms contained in the incentive agreement; and
(10) A provision allowing the Director of Finance to recoup all incentive payments in the event that information contained in a Job Creation and Retention Incentive Program application, annual report, or incentive agreement and provided to the Director of Finance by the qualified business is inaccurate or incomplete in any material respect.
(G) Term of program. The new jobs incentive program shall remain in effect until July 31, 2022. Any incentive payment contracts entered into prior to the ending date of July 31, 2022 shall remain in effect until the ending date of such contracts. However, no contract for incentive payments shall last more than five years. The Director of Finance shall file an annual report with Council, no later than October 1 of each year, detailing the total number of qualified businesses participating, the total number of new jobs, retained jobs, and qualifying payroll approved.
(Ord. 11-2012, passed 9-26-12)