Explanation
BACKGROUND: The need exists to enter into a Jobs Creation Tax Credit Agreement with Healthcare Transaction Processors, Inc. (HTP). The Ohio Tax Credit Legislation (Section 718.08 of the Ohio Revised Code) authorizing such agreements became effective January 14, 1993 and requires the City to enter a Council-approved agreement between the City and a participating company.
HTP develops software for the healthcare industry. The company was founded in 1996 and is headquartered in Columbus, Ohio. HTP's software is designed to improve efficiency, profitability and service quality for hospitals, insurance companies, physician groups, and other healthcare providers. HTP has more than 170 customers in 25 states, including 90 hospitals and 60 health plans. Notable HTP customers include Ohio Medicaid and Utah Health Information Network.
The project will result in an investment of $850,000 in new personal property, the retention of 36 full-time permanent employees and the creation of 109 full-time permanent jobs with an annual payroll of $6.5 million.
The Department of Development recommends a 65%/8 year Jobs Creation Tax Credit.
Emergency action is requested in order to allow HTP to make a decision on the location of their proposed expansion as quickly as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into an agreement with Healthcare Transaction Processors, Inc. for a Jobs Creation Tax Credit of 65% for a period of 8 years in consideration of the company's investment of $850,000 in new personal property, the creation of 109 full time permanent jobs and the retention of 36 full time permanent employees; and to declare an emergency.
Body
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code, the State of Ohio is authorized to establish the Tax Credit
Authority and to execute agreements with taxpayers of the State of Ohio for the purpose of granting these
taxpayers job creation tax credits against their corporate franchise or income tax, which tax credits are provided to
create new jobs in the State of Ohio; and
WHEREAS, the Ohio Department of Development has offered Healthcare Transaction Processors, Inc. a 60%/5 year Jobs Creation Tax Credit; and
WHEREAS, pursuant to Section 718.08 of the Ohio Revised Code (the "City Act") a municipal corporation is authorized to grant local income tax credits to taxpayers who have received tax credits from the State; and
WHEREAS, contingent on the City granting a Jobs Creation Tax Credit, Healthcare Transaction Processors, Inc. will expand in Columbus, retaining 36 full-time permanent employees, creating 109 full-time permanent jobs with an annual payroll of $6.5 million, investing $850,000 including $700,000 in computers & software and $150,000 in furniture & fixtures, increasing job opportunities and strengthening the economy of the city; and
WHEREAS, receiving these tax credits from the State and the City is a critical factor in Healthcare Transaction Processors, Inc.'s decision to go forward with the project in the City of Columbus; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to enter into an agreement with Healthcare Transaction Processors, Inc. for the preservation of public health, peace, property and safety; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the City hereby finds and determines that the project will (1) create jobs in the State and City; (2) the project is economically sound and will benefit the people of the State and City by increasing opportunities for employment and strengthening the economy of the State and City; and (3) receiving the aforementioned tax credits is a critical factor in the decision by Healthcare Transaction Processors, Inc. to go forward with the project.
Section 2. That the City Council hereby finds and determines that the project meets all the requirements of the City Act.
Section 3. That the Director of the Department of Development is hereby authorized and directed to enter into and execute an 8-year, 65% Jobs Creation Tax Credit Agreement with Healthcare Transaction Processors, Inc.
Section 4. That the City of Columbus Jobs Creation Tax Credit Agreement be signed by Healthcare Transactions Processors, Inc. within 90 days of passage of this ordinance, or the credit authorized herein are null and void.
Section 5. That for reasons stated in the preamble hereto, which is hereby made a part hereof, the 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 the passage if the Mayor neither approves nor vetoes the same.