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TO ADOPT THE RECOMMENDATION OF THE ADVISORY BOARD FOR THE OFFICE & INDUSTRIAL INCENTIVE PROGRAM GRANTING APPROVAL FOR NATIONSHEALTH INC., AND TO DECLARE AN EMERGENCY
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WHEREAS, the Department of Development created the City of Gahanna Office & Industrial Incentive Program guidelines, which are a statement of policy designed to increase employment opportunities and encourage the establishment of new jobs; and
WHEREAS, the incentive is a yearly payment to the employer based on up to 3/4 of a percent of the paid income tax withholding from new job creation for a period of between one and five years; and
WHEREAS, Council has adopted the City of Gahanna Office & Industrial Incentive Program guidelines by ORD-0212-2002; and
WHEREAS, the Incentive Advisory Board met on Monday, June 14, 2010 to review the application to grant incentives to NationsHealth, Inc. for a period of five (5) years, at a rate of 50% of the paid income tax withholding from their employees; and
WHEREAS, it is in the best interest of the City to approve this as quickly as possible so NationsHealth, Inc. can begin operations as quickly as possible, and all for the preservation of the public peace, property, health, safety and welfare;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF GAHANNA, STATE OF OHIO:
Section 1. That this Council hereby acknowledges the recommendation of the Incentive Advisory Board for NationsHealth, Inc.
Section 2. That during the term of the Office & Industrial Incentive, upon the written request of NationsHealth, Inc., the company shall receive a payment of 50% of the net municipal income tax collected from employees working for NationsHealth, Inc. at 800 TechCenter Drive and 915 Taylor Road in the City of Gahanna for five (5) years.
Section 3. That the incentive shall begin the first full year of occupancy after January 1, 2011.
Section 4. That the incentive shall coincide with the Ohio Department of Development job creation tax credit program.
Section 5. Prior to the end of the incentive period and for a period afterwards equal to the length of the incentive, if NationsHealth, Inc. relinquishes its site and therefore is no longer located in Gahanna, then the City shall require the Company to repay 200% of all the incentive payments received from the City of Gahanna.
Section 6. That the incentive shall be in effect for a period of five (5) years, not to exceed 20 consecutive quarters, provided that all federal, state and local taxes are paid in full at the time of each requested reimbursement. If the taxes are not paid in full for the subject reimbursement year, NationsHealth, Inc. forgoes the incentive for that year.
Section 7. That NationsHealth, Inc. shall request reimbursement from the City by June of the second year and each year thereafter the incentive is in effect for the period of the approved term.
Section 8. That if NationsHealth, Inc. declares bankruptcy, then the debt owed to the City per the conditions to the agreement outlined in the adopted Office and Industrial Incentive Guidelines shall be the obligation of any successor lessee and notice of said debt shall be placed as an addendum to the lease.
Section 9. That NationsHealth, Inc. shall complete an annual incentive report provided by the Department of Development for each effective year.
Section 10. That the Advisory Board of the Office and Industrial Incentive Program reserves the right to terminate or revoke the incentive with thirty (30) days written notice to NationsHealth, Inc. if the company fails to comply with the guidelines of the program.
Section 11. That the Incentive Application Form completed by NationsHealth, Inc. and the Department of Development Project Summary and Fiscal Impact Analysis are attached to this ordinance as EXHIBIT A and made a part hereof.
Section 12. That, for the reasons set forth in the preamble hereinabove, this ordinance is declared emergency legislation and shall be in full force and effect after passage by Council and on date of signature approval by the Mayor.