Explanation
BACKGROUND: Columbus City Council (COUNCIL), by Ordinance Number 1624-2010, passed December 6, 2010, authorized the City of Columbus (CITY) to enter into a Jobs Growth Incentive Agreement (the AGREEMENT) with The Ohio State University Medical Center (also referred to as the GRANTEE) with this incentive to pay annually an amount equal to thirty percent (30%) of the income tax withheld on new employees for a term of up to fifteen (15) years, not to exceed $35 million, in consideration of the proposed investment by the GRANTEE of $1.005 billion and the creation of 5,615 full-time permanent positions at 410 West 10th Avenue, Columbus, Ohio 43210 (the PROJECT SITE). Prior to the execution of the AGREEMENT, Ordinance Number 0939-2011, passed June 20, 2011, amended Ordinance Number 1624-2010 to change the GRANTEE from The Ohio State University Medical Center to The Ohio State University on behalf of the Ohio State University Medical Center with the AGREEMENT made and entered into effective August 24, 2011. The AGREEMENT was subsequently authorized by COUNCIL to be amended for the first time to (1) change the GRANTEE from The Ohio State University on behalf of the Ohio State University Medical Center to The Ohio State University Wexner Medical Center (also GRANTEE or OSUWMC) and (2) to expand the PROJECT SITE to include all sites affiliated with OSUWMC throughout the City of Columbus affected by the Medical Center’s expansion project by Ordinance Number 2395-2014, passed November 3, 2014, with the first amendment made and entered into on January 9, 2015 to be effective as of the date and year first written in the AGREEMENT.
As a result of negotiations between the CITY and The Ohio State University regarding a new two-part, city-wide Jobs Growth Incentive (the NEW AGREEMENT) related to (1) hospital and medical center jobs to be created throughout the City of Columbus by the Ohio State University and (2) new jobs to be created by tenant companies leasing space in buildings to be constructed within an area to be known as the Innovation District (roughly bordered by Lane Avenue to the north, Kenny Road to the east, Kinnear Road to the south and North Star Road to the west), The Ohio State University has requested that AGREEMENT be dissolved effective January 1, 2022, allowing for calendar year (also known as Report Year) 2021 to be the final year of the term for the AGREEMENT with eligibility for an incentive benefit payment for Report Year 2021 in calendar year 2022 and that the incentive benefit payment in 2022 would be the final incentive benefit payment related to the AGREEMENT.
This legislation is presented as an emergency measure in order for this dissolution to be legislated in the most expedient manner as possible so that this dissolution of the AGREEMENT can be reported to any and all associated authorities and entities prior to the start of the Report Year 2021 reporting cycle and prior to any action being taken on the NEW AGREEMENT.
FISCAL IMPACT: No funding is required for this legislation.
Title
To dissolve the Jobs Growth Incentive Agreement with The Ohio State University Wexner Medical Center (GRANTEE), and to direct the Director of the Department of Development to notify as necessary any and all associated authorities and entities, and to declare an emergency.
Body
WHEREAS, Columbus City Council (COUNCIL), by Ordinance Number 1624-2010, passed December 6, 2010, authorized the City of Columbus (CITY) to enter into a Jobs Growth Incentive Agreement (the AGREEMENT) with The Ohio State University Medical Center (also referred to as the GRANTEE); and
WHEREAS, prior to execution, Ordinance Number 1624-2010 was amended by Ordinance Number 0939-2011, passed June 20, 2011 to change the GRANTEE from The Ohio State University Medical Center to The Ohio State University on behalf of the Ohio State University Medical Center (also GRANTEE) with the AGREEMENT made and entered into effective August 24, 2011; and
WHEREAS, the AGREEMENT provides for an annual payment equal to thirty percent (30%) of the income tax withheld on new employees for a term of up to fifteen (15) years, not to exceed $35 million, in consideration of the proposed investment by the GRANTEE of $1.005 billion and the creation of 5,615 full-time permanent positions at 410 West 10th Avenue, Columbus, Ohio 43210 (the PROJECT SITE); and
WHEREAS, the AGREEMENT was subsequently authorized by COUNCIL to be amended for the first time to (1) change the GRANTEE from The Ohio State University on behalf of the Ohio State University Medical Center to The Ohio State University Wexner Medical Center ( also GRANTEE or OSUWMC) and (2) to expand the PROJECT SITE to include all sites affiliated with OSUWMC throughout the City of Columbus affected by the Medical Center’s expansion project by Ordinance Number 2395-2014, passed November 3, 2014, with this first amendment made and entered into on January 9, 2015 to be effective as of the date and year first written in the AGREEMENT; and
WHEREAS, based on negotiations between the CITY and The Ohio State University regarding a new two-part, city-wide Jobs Growth Incentive (the NEW AGREEMENT) related to (1) hospital and medical center jobs to be created throughout the City of Columbus by the Ohio State University and (2) new jobs to be created by tenant companies leasing space in buildings to be constructed within an area to be known as the Innovation District (roughly bordered by Lane Avenue to the north, Kenny Road to the east, Kinnear Road to the south and North Star Road to the west), The Ohio State University has requested that AGREEMENT be dissolved effective January 1, 2022; and
WHEREAS, calendar year (also known as Report Year) 2021 will be the final year of the term for the AGREEMENT with eligibility for an incentive benefit payment for Report Year 2021 in calendar year 2022 and that the incentive benefit payment in 2022 would be the final incentive benefit payment related to the AGREEMENT; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, in that it is immediately necessary to take action on the AGREEMENT in order for this dissolution to be legislated in the most expedient manner as possible so that this dissolution of the AGREEMENT can be reported as necessary to any and all associated authorities and entities prior to the start of the Report Year 2021 reporting cycle and prior to any action being taken on the NEW AGREEMENT and to preserve the public health, property, safety and welfare; NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS
SECTION 1. That Columbus City Council hereby dissolves the Jobs Growth Incentive Agreement between the City of Columbus and The Ohio State University Wexner Medical Center as of January 1, 2022.
SECTION 2. That the Director of Development is hereby directed to notify as necessary any and all associated authorities and entities of the dissolution of the Jobs Growth Incentive Agreement between the City of Columbus and The Ohio State University Wexner Medical Center to be effective January 1, 2022.
SECTION 3. 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.