Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with Quantum Health, Inc. equal to twenty-five percent (25%) of the amount of personal income tax withheld on new employees to Columbus for a term of five (5) years. The company will invest approximately $3.4 million to expand square footage and acquire new machinery, equipment, furniture and fixtures at the facility at 7450 Huntington Park Drive, and to create 525 full-time permanent positions and retain 230 full-time permanent employees.
Quantum Health, Inc. was founded in 1999 by Kara Trott, after two years of extensive consumer research related to healthcare delivery. The company provides coordinated healthcare programs for self insured employee health benefit plans. The model developed by Quantum Health, Inc. helps clients and patients to better navigate the healthcare system in a manner that provides improved care and lower costs. Quantum Health, Inc. has 230 existing employees at the site in north Columbus. They are currently leasing several floors of the facility. Due to rapid growth, the company has outgrown its existing 53,400 square feet of space at the site.
The project involves the lease of an additional 41,888 square feet at 7450 Huntington Park Drive in Columbus. The company plans to expand operations at the project site witha fixed-asset investment of approximately $3.4 million for equipment, furniture and fixtures. Quantum Health, Inc. will retain 230 full-time permanent positions and create 525 full-time permanent positions.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Jobs Growth Incentive Agreement with Quantum Health, Inc. equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years in consideration of the company's proposed investment of $3.4 million, the creation of 525 full-time permanent positions and the retention of 230 full-time permanent existing jobs.
Body
WHEREAS, the City desires to increase employment opportunities and encourage the creation of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, the Department of Development has received a completed Jobs Growth Incentive Application from Quantum Health, Inc.; and
WHEREAS, Quantum Health, Inc. will expand its operation by 41.888 square feet at the facility housing its existing operations at 7450 Huntington Park Drive; and
WHEREAS, Quantum Health, Inc. has indicated that a Jobs Growth Incentive is crucial to its decision to expand its operational capacity with the acquisition of $3.4 million in machinery, equipment, furniture and fixtures in Columbus; and
WHEREAS, the City of Columbus desires to facilitate Quantum Health, Inc.'s future growth at the project site by providing a Jobs Growth Incentive; and
WHEREAS, in consideration of Quantum Health, Inc.'s proposed investment of $3.4 million, the creation of 525 new full-time permanent positions and the retention of 230 existing full-time employees; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development is hereby authorized to enter into a Jobs Growth Incentive Agreement equal to twenty-five percent (25%) of the amount of new income tax withheld on employees for a term of five (5) years with Quantum Health, Inc.
Section 2. Each year of the term of the agreement with Quantum Health, Inc., the City's obligation to pay the incentive is expressly contingent upon the passage of an ordinance appropriating and authorizing the expenditure of monies sufficient to make such payment and the certification of the City Auditor pursuant to Section 159 of the Columbus City Charter.
Section 3. That the City of Columbus Jobs Growth Incentive Agreement is signed by Quantum Health, Inc. within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 4. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.