Explanation
BACKGROUND:
The City of Columbus currently has an excessive amount of vacant office space in our downtown market. This high vacancy rate is having a negative impact on all business activity downtown and throughout the city. OhioHealth is currently in negotiation with Continental Real Estate for office space at 180 East Broad Street (the Borden Building) for the relocation of their corporate headquarters. OhioHealth is a leading provider of healthcare in Central Ohio employing over 12,000 employees with a payroll in excess of $443 million in the City of Columbus. OhioHealth has sold their corporate headquarters at 1087 Dennison Avenue and have explored potential sites outside the city of Columbus as they must move by year-end.
With the benefit of this incentive they anticipate moving 310 employees from their current 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. Thus the Downtown Development Office recommends granting a financial incentive based on the future growth of this employment base not only to retain these jobs in Columbus but also relocate them to Downtown.
FISCAL IMPACT:
No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to enter into an incentive agreement based on payroll growth with OhioHealth. (AMENDED BY ORD. 0702-2007 PASSED 5/9/2007)
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, OhioHealth is a leader in healthcare for Central Ohio and a prominent member of our busi...
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