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TO ADOPT THE RECOMMENDATION OF THE ADVISORY BOARD FOR THE OFFICE & INDUSTRIAL INCENTIVE PROGRAM GRANTING APPROVAL FOR MOMENTIVE SPECIALITY CHEMICALS, INC.; TO REPEAL ORD-0102-2007.
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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 75% of the net income tax withholding from new job creation for a period of between one and five years; and
WHEREAS, the Department of Development has recommended a modification of the maximum 5 year incentive established in the program guidelines to a term of 6 years for this application; 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 February 7, 2011 to review the application to grant incentives to Momentive Speciality Chemicals, Inc.; and
WHEREAS, it is in the best interest of the City to approve this as quickly as possible so Momentive Speciality Chemicals, Inc. can add additional employees and 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 Momentive Specialty Chemicals, Inc.
Section 2. That Momentive Specialty Chemicals, Inc. is approved for a refundable credit of 75% of the net municipal income tax revenue the City derives from new employees of Momentive for a term of 2 years; 50% of the net municipal income tax revenue the City derives from new employees of Momentive for a term of 2 years; and 25% of the net municipal income tax revenue the City derives from new employees of Momentive for a term of 2 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 Momentive Specialty Chemicals, 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 six (6) years, not to exceed 24 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, Momentive Specialty Chemicals, Inc. forgoes the incentive for that year.
Section 7. That Momentive Specialty Chemicals, 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 Momentive Specialty Chemicals, 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 Momentive Specialty Chemicals, 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 Momentive Specialty Chemicals, Inc., if the company fails to comply with the guidelines of the program.
Section 11. That the Incentive Application Form completed by Momentive Specialty Chemicals, Inc., and the Department of Development Informational Memorandum are attached to this ordinance as EXHIBIT A and made a part hereof.
Section 12. That ORD-0102-2007 granting an Office & Industrial Incentive for Hexion Speciality Chemicals, Inc. is hereby repealed.
Section 13. That this ordinance shall be in full force and effect upon passage by Council and 30 days after signature approval by the Mayor.