Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a dual-rate Jobs Growth Incentive Agreement with Gifthealth, Inc. dba Gifthealth Pharmacy.in an amount equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on Columbus payroll of new employees and (ii) thirty-percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of new employees, who are also City of Columbus residents at the end of each calendar year, both for a term of up to five (5) consecutive years.
Gifthealth Inc. dba Gifthealth Pharmacy (“Gifthealth”) began operations in 2020 to provide solutions for the cost and complexity of prescription drugs. Gifthealth began with two startup founders, Nick Potts and John Romano. The company initially launched a pilot program in Ohio and then expanded to all 50 states. Gifthealth offers solutions for prescribers, manufacturers, and patients, with a specialization in gastroenterology. The two primary lines of business for Gifthealth are its Pharmacy Hub and Dispensing Services. The team today includes technologists, data scientists, patient advocates, and path to purchase experts. Gifthealth’s mission is to get people the prescribed care that they need, when they need it, at the best possible price.
Gifthealth is proposing to invest a total project cost of approximately $1,000,000.00, which includes $300,000.00 in machinery and equipment, $300,000.00 in furniture and fixtures, $100,000.00 in stand-alone computers, and $300,000.00 in leasehold improvements, to expand their operations in the City of Columbus. With this investment, the company proposes to enter into a lease agreement on a vacant warehouse space consisting of approximately 30,000 square feet at 4321 Equity Drive, Columbus, Ohio 43228, parcel number 560-184535(the “Project Site”) The proposed project will allow Gifthealth to expand their dispensing services by creating seven hundred and fifty-one (751) net new full-time permanent positions with a cumulative associated estimated annual payroll of approximately $56,449,965.00 at the proposed Project Site.
This legislation is presented as 30-day legislation.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into a dual-rate Jobs Growth Incentive Agreement with Gifthealth Inc. dba Gifthealth Pharmacy for a term of up to five (5) consecutive years in consideration of the company’s proposed total capital investment of $1,000,000.00 and the creation of seven hundred and fifty-one (751) net new full-time permanent positions with an estimated annual payroll of approximately $56,449,965.00. ($0.00)
Body
WHEREAS, Gifthealth Inc. dba Gifthealth Pharmacy (“Gifthealth”) began operations in 2020 to provide solutions for the cost and complexity of prescription drugs. Gifthealth began with two startup founders, Nick Potts and John Romano. The company initially launched a pilot program in Ohio and then expanded to all 50 states. Gifthealth offers solutions for prescribers, manufacturers, and patients, with a specialization in gastroenterology. The two primary lines of business for Gifthealth are its Pharmacy Hub and Dispensing Services. The team today includes technologists, data scientists, patient advocates, and path to purchase experts. Gifthealth’s mission is to get people the prescribed care that they need, when they need it, at the best possible price.
WHEREAS, Gifthealth is proposing to invest a total project cost of approximately $1,000,000.00, which includes $300,000.00 in machinery and equipment, $300,000.00 in furniture and fixtures, $100,000.00 in stand-alone computers, and $300,000.00 in leasehold improvements, to expand their operations in the City of Columbus. With this investment, the company proposes to enter into a lease agreement on a vacant warehouse space consisting of approximately 30,000 square feet at 4321 Equity Drive, Columbus, Ohio 43228, parcel number 560-184535(the “Project Site”) The proposed project will allow Gifthealth to expand their dispensing services by creating seven hundred and fifty-one (751) net new full-time permanent positions with a cumulative associated estimated annual payroll of approximately $56,449,965.00 at the proposed Project Site; and
WHEREAS, Gifthealth proposes to create seven hundred and fifty-one (751) net new full-time permanent positions with a cumulative associated estimated annual payroll of approximately $56,449,965.00 at the proposed Project Site; and
WHEREAS, Gifthealth has indicated that a Jobs Growth Incentive is crucial to its decision to relocate office operations to the City of Columbus; and
WHEREAS, the City of Columbus desires to facilitate the future growth of Gifthealth at the proposed Project Site by providing a Jobs Growth Incentive; 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 enter into a dual-rate Jobs Growth Incentive Agreement with Gifthealth Inc. dba Gifthealth Pharmacy equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on Columbus payroll of new employees and (ii) thirty-percent (30%) of the City of Columbus income tax withheld on the Columbus payroll of new employees, who are also City of Columbus residents at the end of each calendar year, both for a term of up to five (5) consecutive years.
SECTION 2. That, should Gifthealth Inc. dba Gifthealth Pharmacy not be able to sufficiently document residency for an employee associated with this project during a calendar year of the term of the agreement, the default rate of the Jobs Growth Incentive to be applied that calendar year for that new employee shall be twenty-five percent (25%).
SECTION 3. That, each year of the term of the agreement with Gifthealth Inc. dba Gifthealth Pharmacy the City’s obligation to pay the incentive is expressly contingent upon passage of an ordinance appropriating and authorizing the expenditure of monies sufficient to make such a payment and the certification of the City Auditor pursuant to Section 159 of the Columbus City Charter.
SECTION 4. That the City of Columbus Jobs Growth Incentive Agreement is signed by Gifthealth Inc. dba Gifthealth Pharmacy within 90 days of the passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 5. That the Columbus City Council hereby extends authority to the Director of the Department of Development to amend the Gifthealth Inc. dba Gifthealth Pharmacy and City of Columbus Jobs Growth Incentive Agreement for certain modifications to the agreement requested in writing by the company and or the City and deemed appropriate by the Director of the Department of Development with these certain modifications being specifically limited to reductions in length of term, methods of calculating the incentive, or adding or deleting business entities associated with the employment commitments related to this incentive. Columbus City Council must approve all other requested amendments.
SECTION 6. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.