Explanation
BACKGROUND:
This ordinance amends Ordinance 0702-2006, passed on May 5, 2006, that authorized an Incentive Agreement between OhioHealth and the City of Columbus. This amendment will change the start date for this incentive from 2005 to 2007. The original 2005 date was the result of a typo.
Ordinance 0702-2006 was passed in order to retain 310 positions and move the OhioHealth corporate headquarters to the downtown. With the benefit of this incentive they moved 310 employees from their previous location on Dennison Avenue to 180 East Broad Street downtown. Over the next five years they expect that number to grow to 350. This job retention and expansion is estimated to retain $22,130,000 of payroll and $442,600 annually in City income tax revenue and generate an additional $2.8 million in payroll and $57,000 in City income tax revenue annually after 5 years.
Emergency action is requested to correct the error immediately and to allow the incentive agreement to be completed.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To amend Ordinance 0702-2006, passed May 1, 2006, to change the start date of an incentive agreement between OhioHealth and the City of Columbus; and to declare an emergency.
Body
WHEREAS, the City desires to retain and increase employment opportunities and encourage establishment 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 desires to amend the incentive term to begin in 2007; and
WHEREAS, OhioHealth has retained and moved 310 jobs and plan to create 40 new positions over the next five years at 180 East Broad Street, with a projected payroll of $22,130,000 generating estimated City of Columbus income tax revenue of $442,600 annually and generate an additional $2.8 million in payroll and $57,000 in City income tax revenue annually after 5 years; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary to amend Ordinance 0702-2006 to change the incentive agreement's start date, all for the preservation of the public health, peace, property, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That for the purpose stated in the preamble Section 3 of Ordinance 0702-2006 passed May 1, 2006, shall read:
The incentive term begins in calendar year 2007, with the incentive payment made in the following year based on actual City of Columbus income tax withholding paid by employees for the preceding year.
Section 2. That for the 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 and form after its passage and approved by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.