Explanation
BACKGROUND: The Department of Development is proposing to enter into a Jobs Growth Incentive Agreement with The Ohio State University Medical Center, equal to thirty percent (30%) of the amount of new income tax withheld on employees for a term of up to 15 years, not to exceed $35 million in consideration of The Ohio State University Medical Center's proposed investment of $1.005 billion and the creation of 5,615 new permanent full-time jobs.
Located in Columbus, Ohio, The Ohio State University Medical Center is one of the largest and most diverse academic medical centers in the country and the only academic medical center in central Ohio. The Ohio State University Medical Center currently employs 12,883 full-time employees.
The Ohio State University Medical Center is embarking on a strategic plan that includes over a billion dollars in investment to improve its medical campus as well as the OSU East campus at East Broad Street near Downtown. Also included in the Project is the investment of millions of dollars to revitalize the neighborhood surrounding the OSU East Facility. The plan expects to create 5615 new jobs for Columbus.
The Ohio State University Medical Center is requesting a Jobs Growth Incentive.
Emergency action is requested to allow the Jobs Growth Incentive Agreement between The Ohio State University Medical Center and the City of Columbus to entered into in a timely manner.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Jobs Growth Incentive Agreement with The Ohio State University Medical Center to pay annually an amount equal to 30% of the personal income tax withheld on new employees for a term of up to 15 years, not to exceed $35 million, in consideration of a proposed investment of $1.005 billion and the creation of 5615 permanent full-time jobs; and to declare an emergency.
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 has received a completed application for the Jobs Growth Incentive from The Ohio State University Medical Center; and
WHEREAS, The Ohio State University Medical Center is proposing to invest $1.005 billion to accommodate expansion and invest in the community; and
WHEREAS, The Ohio State University Medical Center's will retain 12,883 jobs and create 5615 new positions with an approximate annual payroll of $336.6 million; and
WHEREAS, the City of Columbus desires to facilitate The Ohio State University Medical Center's future growth at the project site by the creation of new jobs; and
WHEREAS, The Ohio State University Medical Center has indicated that a Jobs Growth Incentive is crucial to its decision to go forward with the project in Columbus; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into this Jobs Growth Incentive Agreement between OSUMC and the City of Columbus for the economic development and continued improvement of the near east side community, all for the immediate 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 the Director of the Department of Development is hereby authorized to enter into a Jobs Growth Incentive with The Ohio State University Medical Center to pay annually an amount equal to thirty percent (30%) of the personal income tax withheld on new employees for a term of up to 15 years, not to exceed $35 million, in consideration of The Ohio State University Medical Center's proposed investment of $1.005 billion and the creation of 5615 full-time permanent positions.
Section 2. That each year of the term of the agreement with The Ohio State University Medical Center 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 3. That the City of Columbus Jobs Growth Incentive Agreement is signed by The Ohio State University Medical Center within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
Section 4. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby 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 days after the passage if the Mayor neither approves nor vetoes the same.