Westerville City Council on July 2 is expected to consider an economic-incentive deal that could bring Columbus-based Vantage Point Logistics and more than 80 new jobs to Westerville.
Vantage Point, currently at 1105 Schrock Road in Columbus, provides freight-management programs tailored to higher-education and health-care systems, according to Westerville economic-development director Jason Bechtold’s June 28 staff report to council. If council approves the incentive agreement, the company would lease 25,000 square feet for 10 years at 440 Polaris Parkway in Westerville, in what’s known as the Westar III development. The location previously was occupied by Huntington Bank.
According to Bechtold’s staff report, Vantage Point would create about 80 jobs with an approximate payroll of $6.1 million within the next three years.
“This could bring the total employment of the company to approximately 110 jobs with a total payroll over $8.1 million during this period,” Bechtold said in the memo.
The memo didn’t say how many employees Vantage Point has or how many would move to Westerville.
Under the terms of the seven-year incentive agreement, Vantage Point would move to the Polaris Parkway location within a year and maintain annual payroll of at least $2 million.
In return, Westerville would make an annual payment to partially offset the income taxes attributable to the newly created jobs paid by Vantage Point at that location. The term of the offset payments would start Jan. 1, 2020, and end Dec. 31, 2026, according to the agreement draft.
According to Bechtold’s memo, the recommendation to council is to approve a 40% income-tax offset for the company’s new growth.
Dublin recently offered similar incentives to Quantum Health.
Such incentives must come from nontax revenues, per state law, according to Colleen Gilger, Dublin’s economic-development director. A city typically pays companies those incentives through such funding sources as licenses, fines, building permits and services provided to outside agencies, she said.
“Over the course of the (10-year) lease term, the city could receive approximately $1.36 million in net new income taxes while the total offset to the company is estimated at approximately $320,000,” Bechtold said in the memo.
According to a worksheet listed in the council agenda packet, the offset payments to the company would be $18,000 in 2020, $37,600 in 2021, $48,800 in 2022, $50,264 in 2023, $52,777 in 2024, $55,416 in 2025 and $58,187 in 2026, for a total of about $321,044.
Income-tax revenue to the city over the course of the 10-year lease would be about $67,000 in 2020, $96,400 in 2021, $113,200 in 2022, $115,396 in 2023, $119,166 in 2024, $123,124 in 2025, $127,280 in 2026, $197,741 in 2027, $200,378 in 2028 and $208,396 in 2029, for a total of about $1.363 million.
Council will meet at 7 p.m. in council chambers, 21 S. State St.