Explanation
BACKGROUND: This legislation authorizes the Director of Development to disburse $137,689.01 from the 2008 General Fund Budget to Ohio State University Physicians, Inc. (OSUP) for the payment of the 2007 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 $204,678.70 in income tax withholding from Ohio State University Physicians for 2007. Ohio State University Physicians has met all the requirements to satisfy the agreement for 2007 and qualifies for a payment of $137,689.01. This is the second disbursement of the ten year incentive. The 2008 General Fund Budget includes funding for this payment.
FISCAL IMPACT: $137,689.01 is available from the 2008 General Fund Budget.
Title
To authorize the Director of the Department of Development to disburse $137,689.01 from the 2008 General Fund Budget to the Ohio State University Physicians for payment of the 2007 Technology Growth Incentive; and to declare an emergency. ($137,689.01)
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 exist...
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