Explanation
BACKGROUND: The need exits to amend Ordinance 1870-2026 (the “ORDINANCE”), approved by Columbus City Council (“COUNCIL”) on June 29, 2026. The ORDINANCE authorized the Director of the Department of Development to enter into a City of Columbus Jobs Creation Tax Credit Agreement (the “AGREEMENT”) on the behalf of the City of Columbus (“CITY”) and Hikma Pharmaceuticals USA Inc. (“Hikma”), (the “ENTERPRISE”) for a tax incentive of forty-five percent (45%) for a period of six (6) consecutive years in consideration of a proposed total capital investment of approximately $215,700,000.00, which includes $92,000,000.00 in real property improvements and $123,700,000.00 in machinery & equipment. With this investment, Hikma is proposing to construct a 131,000 square-foot pharmaceutical storage and distribution facility as well as a 40,000 square-foot expansion (the (“PROJECT”) to their existing facility at 1809 Wilson Road, Columbus, Ohio 43228, Parcel No. 560-138818 (the “PROJECT SITE”), to their increase pharmaceutical manufacturing, increase storage and distribution, to expand R&D capabilities, and to grow their presence in the Columbus market. The proposed project will allow Hikma to modernize and expand their current facility in the Columbus region and create fifty (50) net new full-time permanent positions with a cumulative associated estimated annual payroll of approximately $3,000,000.00 and retain one-thousand two hundred twenty-four (1,224) full-time permanent positions with an associated estimated annual payroll of approximately $93,627,177.00 at the proposed PROJECT SITE.
Prior to executing the AGREEMENT, the 90-day period needed to execute the City of Columbus Jobs Creation Tax Credit Agreement expired. In a letter dated October 23, 2026 received by the CITY, and through ensuing correspondence, the ENTERPRISE confirmed that they are committed to the aforementioned PROJECT and is requesting the 90-day period be extended to execute the AGREEMENT.
The need now exists to amend the ORDINANCE. The ENTERPRISE is requesting the ORDINANCE be amended to revise the 90-day period needed to execute the AGREEMENT, to 90 days after passage from this ordinance. This will not impact on the scope of the project as authorized by Columbus City Council. All job retention, job creation, and investment commitments remain unchanged.
This legislation is being presented as 30-day legislation.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To amend Ordinance No. 1870-2026, approved by Columbus City Council on June 29, 2026, for the purpose of revising the 90-day period needed to execute the City of Columbus Jobs Creation Tax Credit Agreement, to 90 days after passage from this ordinance. ($0.00)
Body
WHEREAS, the need exists to amend Ordinance No. 1870-2026 (the “ORDINANCE”), which was approved by Columbus City Council on June 29, 2026; and
WHEREAS, the ORDINANCE authorized the Director of the Department of Development to enter into a City of Columbus Jobs Creation Tax Credit Agreement (the “AGREEMENT”) on the behalf of the City of Columbus (“CITY”) and Hikma Pharmaceuticals USA Inc. (“Hikma”) for a tax incentive of forty-five percent (45%) for a period of six (6) consecutive years in consideration of a proposed capital investment of approximately $92,000,000.00 in real property improvements and $123,700,000.00 in machinery and equipment. The investment in real property improvements include the construction of a new 131,000 square foot pharmaceutical storage and distribution facility as well as a 40,000 square foot expansion to the existing facility (the “PROJECT) at 1809 Wilson road, Columbus, Ohio 43228, Parcel No. 560-138818 (the “PROJECT SITE”). Additionally, Hikma will create fifty (50) net new full-time permanent positions with an associated annual payroll of approximately $3,000,000.00 (“New Employees”) and retain one-thousand two hundred twenty-four (1,224) full-time permanent positions with an associated estimated annual payroll of approximately $93,627,177.00 at the proposed PROJECT SITE; and
WHEREAS, prior to executing the AGREEMENT, the 90-day period needed to execute the City of Columbus Jobs Creation Tax Credit Agreement expired. In a letter dated October 23, 2026 received by the CITY, and through ensuing correspondence, the ENTERPRISE confirmed that they are committed to the aforementioned PROJECT and is requesting the 90-day period be extended to execute the AGREEMENT; and
WHEREAS, it is necessary in the usual daily operation the need exists to now seek an amendment from Columbus City Council for Ordinance No. 1870-2026, to revise the 90-day period needed to execute the City of Columbus Jobs Creation Tax Credit Agreement, to 90 days after passage from this ordinance; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Section 3 of Ordinance No. 1870-2026 is hereby amended to revise the 90-day window needed to execute the City of Columbus Jobs Creation Tax Credit Agreement, to 90 days after the passage of this ordinance, as follows::
SECTION 3. That the City of Columbus Jobs Creation Tax Credit Agreement shall be signed by Hikma Pharmaceuticals USA Inc. within ninety (90) days of this passage, or this Ordinance, and the authorization to enter into the tax abatement agreement, is null and void. That the City and Enterprise must execute the City of Columbus Jobs Creation Tax Credit Agreement within ninety (90) days of the passage of Ordinance No. 3083-2026, or else authorization to enter into the agreement is null and void.
SECTION 2. The existing Section 3 of Ordinance No. 1870-2026 is hereby repealed.
SECTION 3. That all other provisions of Ordinance No. 1870-2026 not amended herein remain in force and effect.
SECTION 4. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.