Payroll services provider Paycom plans to build a $10.8 million building on its corporate campus in northwest Oklahoma City and hire another 667 employees over the next five years.
The company is poised to ink a deal with Oklahoma City for $1.25 million in economic development incentives to aid in the expansion.
As a result of its rapid growth in Oklahoma City, Paycom expects to run out of room at its 90,000 square foot, three-story headquarters off the John Kilpatrick Turnpike by next year. The company moved into the building in August 2011.
The Oklahoma City Economic Development Trust is scheduled to vote on the incentive deal on Tuesday, which would then have to be approved by the Oklahoma City Council.
Paycom has about 600 employees, with about 390 of those workers in Oklahoma City.
Oklahoma City estimates Paycom's expansion would have an economic impact of $143 million over the first five years, based on capital investment, wages, as well as state and local taxes.
“When we looked at those numbers, $1.25 million seemed appropriate with the city's guidelines,” said Brent Bryant, economic development program manager for Oklahoma City. “Plus, we are always excited to help a local company expand and grow.”
Incentives from Oklahoma City were key in Paycom's decision whether to expand its Oklahoma City presence, or add positions to another office in Lewisville, Texas, said Craig Boelte, Paycom's chief financial officer.
“I think it definitely helps when you are looking to expand,” Boelte said. “The money confirms our expansion in Oklahoma City.”
This is the second incentive deal that city officials have negotiated with Paycom.
Oklahoma City and Paycom signed an economic development agreement worth up to $1.96 million in 2010 after the company pledged to create 492 jobs and build a new local headquarters.
The company so far has created about 186 new jobs out of the 492 it pledged to create in 2010. The city will only begin paying Paycom incentives for the 667 new jobs once it has fulfilled its 2010 job creation promise, Bryant said.
Money for the job creation incentives will come from Oklahoma City's Strategic Investment Program, an incentive fund that gives cash payments to expanding or relocating companies in the city.
Paycom in 2010 also qualified for payroll tax rebates worth up to $4.5 million from the state's Quality Jobs Program. The job creation program gives expanding or relocating employers rebates worth up to 5 percent of a company's taxable payroll.
Boelte said the company is growing rapidly as it continues to open up new markets for its payroll and human resources tools across the country.
Paycom last year opened sales offices in Boston, New York, and Minneapolis, and has plans to open additional locations this year in San Francisco and Detroit, giving the company a total of 23 field offices in the United States. The company also plans to open additional offices in 2013, but has not determined the locations yet, Boelte said.