Explanation
BACKGROUND: The Department of Development is proposing to enter into a Columbus Downtown Office Incentive Agreement with CoverMyMeds, LLC. CoverMyMeds, LLC, founded in March 2008, is a company that provides a web based tool that allows healthcare professionals to quickly submit prior authorization forms for all drugs and all drug healthcare plans. The company currently has two offices. The main office is located in downtown Columbus at 130 E. Chestnut Street, and the second office is located in Twinsburg Ohio.
CoverMyMeds, LLC is expanding the Columbus location by moving into the adjacent office to add an additional 3,200 square feet. The company will invest a total of $756,000 in real property improvements and personal property. The 61 new positions will create approximately $3.9 million in additional payroll and approximately $98,625 annually in City income tax revenue. CoverMyMeds, LLC will retain 11 full time permanent employees with an annual payroll of $1.1 million. Based on the estimate of new job creation and payroll, CoverMyMeds, LLC would qualify for the Columbus Downtown Office Incentive of an amount equal to fifty percent (50%) of the payroll taxes paid on the new positions or $147,937 for three (3) years. The company will enter into a 5 year lease contract with Whitman Company at the project site.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Agreement with CoverMyMeds, LLC as provided in Columbus City Council Resolution 0088X-2007, adopted June 4, 2007.
Body
WHEREAS, the City desires to increase employment opportunities and encourage the establishment 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 application for the Columbus Downtown Office Incentive Program from CoverMyMeds, LLC; and,
WHEREAS, CoverMyMeds, LLC is proposing to expand into the Columbus market by entering into a 5-year lease agreement and create 61 new positions at 130 E. Chestnut Street, Suite 100, Columbus, Ohio, with an estimated annual payroll of $3.9 million generating an estimated City of Columbus income tax revenue of $98,625 annually; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. Columbus City Council authorizes the Director of Development to enter into a Columbus Downtown Office Incentive Agreement with CoverMyMeds, LLC, pursuant to Columbus City Council Resolution Number 0088X-2007, for an annual cash payment equal to fifty percent (50%) of the amount of City withholding tax withheld on new employees for a term of three (3) year on the estimated job creation of 61 new full-time permanent positions at 130 E. Chestnut Street, Suite 100 Columbus, Ohio.
Section 2. As provided in the program guidelines, leasing of the project site qualifies CoverMyMeds, LLC for a three (3) year incentive term. The term beginning in calendar year 2011, with the incentive payment made in the second quarter of the following year based on actual City of Columbus income tax withholding paid by the new positions for the preceding year.
Section 3. Each year of the term of the agreement with CoverMyMeds, LLC that a payment is due, the City's obligation to pay the incentive is expressly contingent upon the passing 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 4. That the City of Columbus Downtown Office Incentive Agreement is signed by CoverMyMeds, LLC within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.