Explanation
BACKGROUND: This legislation authorizes the Director of Development to disburse $76,285.38 from the 2007 General Fund Budget to Ohio State University Physicians, Inc. (OSUP) for the payment of the 2006 Technology Growth Incentive. Columbus City Council, per Ordinance Number 1163-2006, authorized the Director of the Department of Development to enter into a Technology Growth Incentive Agreement with Ohio State University Physicians. The authorized agreement allowed a ten year cash incentive for job retention and creation. The Technology Growth Incentive is equal to 30% of the growth of the company's City of Columbus withholding tax paid by the retention of existing employees and new employees over a ten-year period of time.
As a result of entering into this agreement, the City of Columbus has received an additional $254,284.60 in income tax withholding from Ohio State Physicians. Ohio State Physicians has met all the requirements to satisfy the agreement for 2006 and qualifies for a payment of $76,285.38. This is the first disbursement of the ten-year incentive. The 2007 General Fund Budget includes funding for this payment.
FISCAL IMPACT: $76,285.38 IS available from the 2007 General Fund Budget.
Title
To authorize payment of $76,285.38 to Ohio State University Physicians, Inc. for payment of the 2006 Technology Growth Incentive; to authorize the expenditure of $76,285.38 from the 2007 General Fund; and to declare an emergency. ($76,285.38)
Body
WHEREAS, Columbus City Council, on June 26, 2006, per Ordinance Number 1163-2006, authorized the Director of Development to enter into a Technology Growth Incentive Agreement with Ohio State University Physicians, Inc. (OSUP); and
WHEREAS, the Technology Growth Incentive, authorized by Columbus City Council, is equal to thirty percent (30%) of the growth of the company's City of Columbus withholding tax paid by the retention of existing employees and for new employees for a ...
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