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File #: 1948-2018    Version: 1
Type: Ordinance Status: Passed
File created: 6/29/2018 In control: Economic Development & Small and Minority Business Committee
On agenda: 7/23/2018 Final action: 7/25/2018
Title: To authorize the Director of Development to enter into an Enterprise Zone Agreement with OBM HQ, LLC, FDP Investments I, LLC, and FDP Investments II, LLC (collectively, the “Owner”) and CoverMyMeds LLC (the future office tenant) for a property tax abatement of one-hundred percent (100%) for a period of fifteen (15) consecutive years on real property improvements in consideration of a proposed total investment of approximately $225,000,000.00 in new building and garage construction, the retention and relocation of approximately 592 existing full-time permanent employment positions, the creation of approximately 1,032 net new full-time permanent employment positions within the next five (5) years, and to authorize the Director of Development to enter into a Compensation Agreement with the Columbus City School District, CoverMyMeds LLC, and the Owner pursuant to this project.
Attachments: 1. ORD1948-2018 CoverMyMeds LLC - Fact Sheet (EZ), 2. ORD1948-2018 CoverMyMeds LLC - Site Map (EZ), 3. ORD1948-2018 School Board Resolution - FINAL (Certified Copy)
Explanation
BACKGROUND: The need exists to enter into an Enterprise Zone Agreement with a real estate development partnership comprised of OBM HQ, LLC, FDP Investments I, LLC, and FDP Investments II, LLC (collectively, the “Owner”) and CoverMyMeds LLC (the future office tenant). The Ohio Enterprise Zone law (Section 5709.62(C) of the Ohio Revised Code) requires the City to enter into Council-approved agreements between the City and participating companies.

CoverMyMeds LLC (“CoverMyMeds”), an operating company under McKesson Corporation, is a leader in electronic prior authorization (ePA) solutions, and one of the fastest growing health care technology companies in the U.S. CoverMyMeds’ software suite automates the medication prior authorization process for more than 500 electronic health records (EHR) systems, 49,000 pharmacies, 700,000 providers and most health plans and Pharmacy Benefit Managers (PBMs). By ensuring appropriate access to medications, the company helps its customers avoid billions of dollars each year in administrative waste and avoidable medical spending caused by prescription abandonment.

CoverMyMeds, in collaboration with the Owner, intends to initially construct one (1) new approximately 200,000-square-foot Class A office building and ancillary amenities and may, at a later date, construct another one (1) approximately 200,000-square-foot Class A office building (total of approximately 400,000 square feet), one or more associated parking structures (hereinafter collectively referred to as the “Project”) to serve as a new headquarters campus for CoverMyMeds. This new headquarters campus will be developed in two phases with the first phase (“Phase 1”) including the construction of the first office building, the ancillary campus amenities, and surface parking. At a later date, a potential second phase (“Phase 2”) of the Project is projected to include the construction of the second office building and an estimated 1,150-space structured ...

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