Explanation
BACKGROUND: This legislation authorizes the Director of Development to disburse $76,285.38 from the 2007 General Fund Budget to Ohio State University Physicians, Inc. (OSUP) for the payment of the 2006 Technology Growth Incentive. Columbus City Council, per Ordinance Number 1163-2006, authorized the Director of the Department of Development to enter into a Technology Growth Incentive Agreement with Ohio State University Physicians. The authorized agreement allowed a ten year cash incentive for job retention and creation. The Technology Growth Incentive is equal to 30% of the growth of the company's City of Columbus withholding tax paid by the retention of existing employees and new employees over a ten-year period of time.
As a result of entering into this agreement, the City of Columbus has received an additional $254,284.60 in income tax withholding from Ohio State Physicians. Ohio State Physicians has met all the requirements to satisfy the agreement for 2006 and qualifies for a payment of $76,285.38. This is the first disbursement of the ten-year incentive. The 2007 General Fund Budget includes funding for this payment.
FISCAL IMPACT: $76,285.38 IS available from the 2007 General Fund Budget.
Title
To authorize payment of $76,285.38 to Ohio State University Physicians, Inc. for payment of the 2006 Technology Growth Incentive; to authorize the expenditure of $76,285.38 from the 2007 General Fund; and to declare an emergency. ($76,285.38)
Body
WHEREAS, Columbus City Council, on June 26, 2006, per Ordinance Number 1163-2006, authorized the Director of Development to enter into a Technology Growth Incentive Agreement with Ohio State University Physicians, Inc. (OSUP); and
WHEREAS, the Technology Growth Incentive, authorized by Columbus City Council, is equal to thirty percent (30%) of the growth of the company's City of Columbus withholding tax paid by the retention of existing employees and for new employees for a period of ten years; and
WHEREAS, the Technology Growth Incentive was calculated based on the increase of the 2005 payroll of $64,631,742; and
WHEREAS, the City of Columbus reviewed the objectives and performance of the agreement to verify that OSUP was in compliance with the terms of the agreement: and
WHEREAS, OSUP'S income tax to the City of Columbus for 2005 was $1,292,635.00; and
WHEREAS, OSUP'S income tax to the City of Columbus for 2006 was $1,546,919.60; and
WHEREAS, the City of Columbus received an additional $254,284.60 in income tax for OSUP; and
WHEREAS, OSUP, per the agreement, will receive 30% of the additional payroll which is $76,285.38; and
WHEREAS, the City of Columbus desires to disburse the 2006 Technology Growth Incentive payment to OSUP; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to make the 2006 Technology Growth Incentive payment to OSUP for the immediate preservation of the public health, peace, safety and welfare; 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 disburse the 2006 Technology Growth Incentive payment of $76,285.38 to OSUP in compliance with the City of Columbus Technology Growth Incentive Agreement.
Section 2. That the payment totaling $76,285.38 is hereby authorized from the General Fund, Fund 010, Department of Development, Economic Development Division No. 44-02, Object Level Three 5513, OCA Code 440314.
Section 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby 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 days after passage if the Mayor neither approves nor vetoes the same.