Explanation
BACKGROUND: The City of Columbus was authorized by Columbus City Council to enter into a Technology Corridor Office Incentive Agreement (Agreement) with Ohio State University Physicians, Inc., (also referred to as the “Grantee” or “OSUP”) by Ordinance 1163-2006, passed on June 26, 2006, which was to grant a financial incentive based on an amount equal to thirty percent (30%) of the growth of the Grantee’s City of Columbus withholding tax paid by the retention of existing employees and for new employees for a period of ten (10) years commencing calendar year 2006 based on the Grantee maintaining its corporate offices at 700 Ackerman Road and by employing people at 700 Ackerman Road and locations throughout the City of Columbus (Project Site).
The Agreement, made and entered into effective November 22, 2006, identified the Project Site to only be 700 Ackerman Road, not 700 Ackerman Road and locations throughout the City of Columbus. The Agreement also stated that the incentive would commence for calendar year 2006 and continue for a period ending with calendar year 2016, which is an 11-year term not a 10-year term as authorized by Ordinance 1163-2006. The Agreement also identified a baseline municipal income tax withholding amount from 2005 which is to be subtracted from the current year OSUP City of Columbus municipal income tax withholding payments as part of the yearly incentive calculation process.
In a letter from the Grantee dated November 13, 2013, the Grantee indicated that physician employees of OSUP have traditionally been dual employees of both OSUP and the Ohio State University College of Medicine and Public Health (OSUCM) with OSUP compensating the physicians for their clinical services and OSUCM compensating the physicians for their teaching and research services. Additionally, OSUP has other employees who are not physicians and who are not necessarily dual employees of OSUP and OSUCM. The letter went on to say that these former dual emp...
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