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File #: 2237-2016    Version: 1
Type: Ordinance Status: Passed
File created: 9/2/2016 In control: Economic Development Committee
On agenda: 9/19/2016 Final action: 9/22/2016
Title: To authorize the Director of the Department of Development to enter into an Economic Development Agreement with OhioHealth to facilitate the development of (±) 240,000 square feet of administrative office space and associated parking to be used by OhioHealth and promote further growth and expansion of OhioHealth’s corporate and medical campuses.
Sponsors: Elizabeth Brown, Zach M. Klein

Explanation

Background: OhioHealth is proposing a consolidation of its current administrative operations from facilities located in multiple areas across Central Ohio. OhioHealth will consolidate these operations in the northwest area of Columbus in the vicinity of State Route 315 and W. North Broadway, 3420 Olentangy River Road Columbus, Ohio 43214 (parcel number 010-183740) (“Project Site”). OhioHealth will conduct the entire project in two phases.

During Phase 1 of the project, OhioHealth will invest an estimated $89,000,000 to construct (±) 240,000 square feet of administrative office space at the Project Site; retain and relocate 1,222 full-time non-clinical jobs to the Project Site from other City of Columbus sites with an annual payroll of approximately $81,700,000; relocate 155 full-time non-clinical jobs to the Project Site, from current non-City of Columbus sites with an annual payroll of approximately $7,262,060; and create 256 net new full-time non-clinical jobs on the Project Site with an annual payroll of approximately $15,100,000.  As a result of investments made related to Phase 1, OhioHealth commits to achieve an employment level of 1,633 full-time non-clinical jobs on the Project Site to be completed no later than December 31, 2019.

During Phase 2 of the project, OhioHealth commits to add 900 net new full-time, non-contingent, non-seasonal jobs, a mix of both clinical and non-clinical positions, with an annual payroll of approximately $53,300,000 within the vicinity of State Route 315 and W. North Broadway (“Olentangy River Road Corridor”) through relocation and net new growth.

In total, OhioHealth commits to achieve an employment level of 2,533 full-time, non-contingent, non-seasonal jobs within the Olentangy River Road Corridor, with at least 1,311 of those positions being net new jobs for OhioHealth in the Olentangy River Road Corridor and employed within the City of Columbus, no later than December 31, 2024.  This would include the relocation of 155 full-time positions to the City of Columbus, the creation of 256 new full-time positions under Phase 1, and the addition of 900 full-time, non-contingent, non-seasonal jobs under Phase 2 no later than December 31, 2024.

In addition, OhioHealth will invest approximately $7,300,000 over five years, towards the following community initiatives: (i) Community-Based Pre-Natal and Women’s Health Care Services; (ii) Substance Abuse Prevention and Treatment Services; (iii) the OhioHealth Primary Care Mobile Medical Home; and (iv) Health Literacy Programming.

In support of OhioHealth’s project commitments, the City will take the lead on funding infrastructure investments in the Olentangy River Road Corridor in the amount up to $40,000,000.  These investments will aim to make roadway improvements to State Route 315, North Broadway, and Olentangy River Road, as well as the construction of new streets, and other associated public improvements within the Corridor. The City and OhioHealth will work together to complete the roadway improvements in alignment with OhioHealth’s project commitments.

Fiscal Impact: There is no fiscal impact for this legislation. No funding is required

 

Title

To authorize the Director of the Department of Development to enter into an Economic Development Agreement with OhioHealth to facilitate the development of  (±) 240,000 square feet of administrative office space and associated parking to be used by OhioHealth and promote further growth and expansion of OhioHealth’s corporate and medical campuses.

 

Body

 

WHEREAS, OhioHealth is consolidating its administrative operations in the northwest area of Columbus in the vicinity of State Route 315 and W. North Broadway, 3420 Olentangy River Road Columbus, Ohio 43214 (parcel number 010-183740) (“Project Site”); and

 

WHEREAS, during Phase 1 of the project, OhioHealth will invest an estimated $89,000,000 to construct (±) 240,000 square feet of administrative office space at the Project Site; and

 

WHEREAS, during Phase 1 of the project, OhioHealth will retain and relocate 1,222 full-time non-clinical jobs to the Project Site from other City of Columbus sites with an annual payroll of approximately $81,700,000; relocate 155 full-time non-clinical jobs to the Project Site, from current non-City of Columbus sites with an annual payroll of approximately $7,262,060; and create 256 net new full-time non-clinical jobs on the Project Site with an annual payroll of approximately $15,100,000; and

 

WHEREAS, as a result of investments made related to Phase 1, OhioHealth commits to achieve an employment level of 1,633 full-time non-clinical jobs on the Project Site to be completed no later than December 31, 2019; and

 

WHEREAS, during Phase 2 of the project, OhioHealth commits to add 900 net new full-time, non-contingent, non-seasonal jobs, a mix of both clinical and non-clinical positions, with an annual payroll of approximately $53,300,000 within the vicinity of State Route 315 and W. North Broadway (“Olentangy River Road Corridor”) through relocation and net new growth; and

 

WHEREAS, in total, OhioHealth commits to achieve an employment level of 2,533 full-time, non-contingent, non-seasonal jobs within the Olentangy River Road Corridor, with at least 1,311 of those positions being net new jobs for OhioHealth in the Olentangy River Road Corridor and employed within the City of Columbus, no later than December 31, 2024; and

 

WHEREAS, OhioHealth will invest approximately $7,300,000 over five years, towards the following community initiatives: (i) Community-Based Pre-Natal and Women’s Health Care Services; (ii) Substance Abuse Prevention and Treatment Services; (iii) the OhioHealth Primary Care Mobile Medical Home; and (iv) Health Literacy Programming; and

 

WHEREAS, the City will coordinate public improvements to facilitate access to OhioHealth’s Project Site at 3240 Olentangy River Road; and 

 

WHEREAS, the City will take the lead on pursuing funding in the amount of up to $40,000,000  to make such public improvements; and

 

WHEREAS, all future expenditures related to this ordinance are subject to future ordinances and certification of available funds by the City Auditor; and

 

WHEREAS, the City and OhioHealth will work together to complete the roadway improvements in alignment with OhioHealth’s project commitments; and NOW THEREFORE,

 

BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:

SECTION 1.                     That the Director of the Department of Development is hereby authorized to enter into an Economic Development Agreement on behalf of the City with OhioHealth Corporation to outline plans and certain commitments of the parties relating to the proposed development on the site in the vicinity of State Route 315 and W. North Broadway.

SECTION 2. This ordinance shall take effect and be in force from and after the earliest period allowed by law.