Explanation
BACKGROUND: The Columbus Department of Development is proposing a Jobs Growth Incentive Agreement with OFFOR Health, Inc. dba SmileMD.
Founded in 2014, and headquartered in Central Ohio, OFFOR Health, Inc. dba SmileMD (“SmileMD”) is a healthcare company that brings mobile anesthesia services for in-office surgical procedures. Specifically, the company brings an anesthesiologist and full care team to primarily pediatric dental offices to provide anesthesia services for their surgical procedures. Having these procedures done in small offices rather than larger facilities saves the providers and patients potentially thousands of dollars in medical bills and removes a bottleneck for services. Services areas presently include Ohio, Illinois, and Kentucky. New service areas will be in contiguous states coming online later this year and are the catalyst for the new employee growth.
SmileMD is proposing to invest a total project cost of approximately $45,000 including $40,000 in machinery and equipment and $5,000 in leasehold improvements to build out their corporate headquarters and renovate an approximately 9,195 square-foot office space at 1103 Schrock Road, Suite 200, Columbus, Ohio 43229, parcel number 610-184216 (“Project Site”), to accommodate its increased sales growth and to meet its consumer demands. The company will create 100 net new full-time permanent positions with an annual payroll of $6,781,000 and retain 23 full-time permanent positions with an annual payroll of $1,886,000 at the 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 OFFOR Health, Inc., dba SmileMD, for a term of up to two (2) consecutive years in consideration of the company’s proposed capital investment of $45,000.00 and creation of 100 net new full-time permanent positions with an estimated payroll of approximately $6,781,000.00.
Body
WHEREAS, the City desires to increase employment opportunities and encourage the creation of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, the Department of Development received a completed Jobs Growth Incentive Application from OFFOR Health, Inc. dba SmileMD; and
WHEREAS, OFFOR Health, Inc., dba SmileMD, is proposing to invest a total project cost of approximately $45,000 including $40,000 in machinery and equipment and $5,000 in leasehold improvements to build out their corporate headquarters and renovate an approximately 9,195 square-foot office space at 1103 Schrock Road, Suite 200, Columbus, Ohio 43229, parcel number 610-184216 to support these operations; and
WHEREAS, OFFOR Health, Inc. dba SmileMD will create 100 net new full-time permanent positions with an estimated associated annual payroll of approximately $6,781,000 and retain 23 full-time permanent positions with an associated annual payroll of approximately $1,886,000 at the proposed project site; and
WHEREAS, OFFOR Health, Inc. dba SmileMD has indicated that a Jobs Growth Incentive is crucial to its decision to establish administrative operations within the City of Columbus; and
WHEREAS, the City of Columbus desires to facilitate the future growth of OFFOR Health, Inc. dba SmileMD at the project site by providing a Jobs Growth Incentive; and 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 OFFOR Health, Inc., dba SmileMD, equal to (i) twenty-five percent (25%) of the City of Columbus income tax withheld on the 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, for a term of up to two (2) consecutive years.
SECTION 2. That, should OFFOR Health, Inc. dba SmileMD 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 OFFOR Health, Inc. dba SmileMD the City’s obligation to pay the incentive is expressly contingent upon the passage of an ordinance appropriating and authorizing the expenditure of monies sufficient to make such 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 must be signed by OFFOR Health, Inc. dba SmileMD within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 5. The City Council hereby extends authority to the Director of the Department of Development to amend OFFOR Health, Inc. dba SmileMD City of Columbus Jobs Growth Incentive Agreement for certain revisions to the agreement requested in writing by the company and or the City and deemed appropriate by the Director of Development with these certain revisions 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. All other requested amendments must be approved by City Council.
SECTION 6. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.