Explanation
BACKGROUND: The need exists to enter into a Job Creation Tax Credit Agreement with West-Ward Pharmaceuticals Corp. The Ohio Tax Credit law (Section 718.15 of the Ohio Revised Code) requires the City to enter into Council-approved agreements between the City and participating companies.
West-Ward Pharmaceuticals Corp. (“West-Ward”) develops, manufactures, and distributes generic pharmaceuticals. The company offers a range of generic pharmaceuticals used in various therapeutic areas, such as analgesic, anti-infective, anti-inflammatory, cardiovascular, central nervous system (CNS), respiratory, and hormonal areas. It offers products in various dosage forms, including capsules, injectables, solutions, and suspensions. The company also provides contract manufacturing services through its facilities in Eatontown, New Jersey; and Portugal. West-Ward operates as a subsidiary of Hikma Pharmaceuticals PLC.
West-Ward is proposing to expand and enhance manufacturing operations at 1809 Wilson Road Columbus, Ohio 43228 (“Project Site”) to accommodate new and expanding pharmaceutical production lines. West-Ward anticipates retaining 1,255 full-time permanent positions with an annual payroll of approximately $78,506,414 and creating 65 new full-time permanent positions with a new annual payroll of approximately $2,275,000 within the next three years. The project involves a total investment of approximately $78,400,000 with the majority, $50,400,000, related to real property improvements to expand the current 934,000-square foot facility by approximately 30,300 square feet. The balance of the investment is related to the acquisition of machinery and equipment.
The Department of Development recommends a Job Creation Tax Credit with West-Ward Pharmaceuticals Corp. equal to fifty-five percent (55%) of the amount of new employee city income tax withholdings for a term of six (6) consecutive years.
FISCAL IMPACT: No funding is required for this legislation.
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