Explanation
Background: Creation of the Cassady/I-670 Community Reinvestment Area (CRA) was authorized by Columbus City Council on December 12, 2005 by Ordinance Number 2144-05 and confirmed by the Director of the Ohio Department of Development on February 1, 2006. Within this CRA, the City may negotiate and grant tax abatements of up to 50%/12-years on real property improvements for commercial/industrial projects.
This Ordinance will approve a 50%/10-year tax abatement for Gateway Cassady Partners, LLC and Mid Ohio Oncology/Hematology, Inc. to carry out a business consolidation and expansion project within the Cassady/I-670 CRA (see Exhibit A for location map). The abatement will apply to the real property improvements. The enterprises propose to create a comprehensive cancer care center that will include a new 109,000 square foot facility, a total investment of $42 million in real and personal property ($24 million in real property and $18 million in personal property), the retention of 130 jobs (20 new to Columbus) and the creation of 80 new jobs. The annual payroll for all 210 jobs will be $16.5 million, of which approximately $7.6 million will be from the jobs new to Columbus. The comprehensive cancer center will enable Mid Ohio Oncology/Hematology, Inc. to consolidate existing offices from five different locations, provide comprehensive and improved care to cancer patients and increase efficiency and cost effectiveness. This legislation is presented as an emergency piece due to the urgent need for the project to not fall behind its construction schedule.
Fiscal Impact: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a CRA Agreement with Gateway Cassady Partners, LLC and Mid Ohio Oncology/Hematology, Inc. and to grant a 50%/10-year tax abatement on real property improvements; and to declare an emergency.
Body
WHEREAS, the Columbus City Council adopted Ordinance No. 1698-78 on August 3, 1978, which authorized the Department of Development to carry out a Community Reinvestment Program, pursuant to Sections 3735.65 through 3735.70 of the Ohio Revised Code (ORC); and
WHEREAS, the Columbus City Council by its Ordinance Number 2144-2005, adopted December 12, 2005, designated the Cassady/I-670 Community Reinvestment Area (CRA) as a "Community Reinvestment Area" pursuant to Chapter 3735 of the Ohio Revised Code; and
WHEREAS, effective February 1, 2006, the Director of Development of the State of Ohio confirmed Cassady/I-670 CRA as a "Community Reinvestment Area" pursuant to said Chapter 3735; and
WHEREAS, the City's intent in creating the Cassady/I-670 CRA was to gain the ability to use tax incentives to encourage the maintenance of existing and construction of new structures in the CRA to encourage economic stability, maintain real property values, and generate new employment opportunities; and
WHEREAS, Gateway Cassady Partners, LLC and Mid Ohio Oncology/Hematology, Inc. desire to carry out a consolidation and expansion project within the Cassady/I-670 CRA, to construct a new 109,000 square foot facility that will house a comprehensive cancer care center, to invest a total of $42 million in real and personal property, retain 130 existing jobs and to create 80 new jobs, provided that the appropriate development incentives are available to support the economic viability of the project; and
WHEREAS, the City, having the appropriate authority to offer tax incentives in the project, is desirous of providing Gateway Cassady Partners, LLC and Mid Ohio Oncology/Hematology, Inc. with a 50%/10-year tax abatement applying to real property improvements in order to encourage the development of the proposed comprehensive cancer center within the Cassady/I-670 CRA; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, in that it is immediately necessary to authorize the tax incentive in order for the project to keep to the construction schedule and avoid additional costs due to further delays, and to preserve the public health, property, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF THE COLUMBUS:
Section 1. That the Director of the Department of Development is hereby authorized to enter into a Community Reinvestment Area (CRA) Agreement with Gateway Cassady Partners, LLC and Mid Ohio Oncology/Hematology, Inc. and to grant therewith an exemption of fifty percent (50%) on real property improvements for a term of ten (10) taxable years in association with the proposed project to invest $42 million, retain 130 jobs and create 80 new jobs.
Section 2. For the reasons stated in the preamble hereto, which is made a part hereof, this Ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten (10) days after passage if the Mayor neither approves nor vetoes this Ordinance.