Explanation
BACKGROUND: The Columbus Department of Development is proposing to enter into a Columbus Downtown Office Incentive Agreement with AND Health, LLC (“AND Health”).
Founded in 2021, AND Health is a digital health company operating a Virtual Center of Excellence (VCOE) for the reversal of migraines. The company will soon launch a second VCOE for autoimmune conditions, including rheumatoid arthritis, psoriasis, ulcerative colitis and Crohn’s disease. The company works with employers, health plans, public entities and individuals. AND Health offers its disease reversal programs as an employer-sponsored benefit and direct to patients. The project represents the establishment and expansion of headquarters operations as well as using the on-site kitchen to allow And Health to prototype the “elimination diet as a service” for our customers/patients in Columbus.
AND Health is proposing to invest a total project cost of approximately $1,115,000 which includes $785,000 in furniture and fixtures and $330,000 in leasehold improvements to renovate and occupy a vacant office space consisting of approximately 21,303 square-feet at 2 Miranova Place, Columbus, OH 43215 parcel number 010-248905 (“Project Site”). With this investment, AND Health plans to establish a new corporate office, create 65 net new full-time permanent positions with an estimated annual payroll of approximately $6,155,000, and retain 21 full-time permanent employees with an estimated annual payroll of $1,900,000 at the Project Site.
FISCAL IMPACT:
No funding is required for this legislation
Title
To authorize the Director of the Department of Development to enter into a Columbus Downtown Office Incentive Agreement with AND Health, LLC as provided in Columbus City Council Resolution Number 0088X-2007, adopted June 4, 2007.
Body
WHEREAS, the City desires to increase employment opportunities and encourage the creation of new jobs in the City in order to improve the overall economic climate of the City and its citizens; and
WHEREAS, Resolution Number 0088X-2007, adopted June 4, 2007, authorized the Department of Development to establish the Columbus Downtown Office Incentive program as amended; and
WHEREAS, the Department of Development has received a completed application for the Downtown Office Incentive program from AND Health, LLC (“AND Health”); and
WHEREAS, founded in 2021, AND Health is a digital health company operating a Virtual Center of Excellence (VCOE) for the reversal of migraines. Shortly, AND Health will launch a second VCOE for autoimmune conditions, including rheumatoid arthritis, psoriasis, ulcerative colitis and Crohn’s disease. The company works with employers, health plans, public entities and individuals. AND Health offers its disease reversal programs as an employer-sponsored benefit and direct to patients; and
WHEREAS, AND Health is proposing to invest a total project cost of approximately $1,115,000, which includes $785,000 in furniture and fixtures and $330,000 in leasehold improvements to renovate and occupy a vacant office space consisting of approximately 21,303 square-feet at 2 Miranova Place, Columbus, OH 43215 parcel number 010-248905 (“Project Site”), in the Central Business District; and
WHEREAS, with this expansion, AND Health will create 65 net new full-time permanent positions with an estimated associated annual payroll of approximately $6,155,000 and retain 21 full-time permanent positions with an estimated annual payroll of approximately $1,900,000 at the proposed Project Site; and
WHEREAS, AND Health has indicated that a Downtown Office Incentive is crucial to its decision to establish administrative operations within the City of Columbus; and
WHEREAS, the City of Columbus desires to facilitate the future growth of AND Health at the Project Site by providing a Downtown Office Incentive, NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. Columbus City Council authorizes the Director of the Department of Development to enter into a City of Columbus Downtown Office Incentive Agreement with AND Health, LLC pursuant to Columbus City Council Resolution Number 0088X-2007, for an annual cash payment equal to fifty percent (50%) of the amount of City withholding tax withheld on new employees for a term up to five (5) consecutive years on the estimated job creation of 65 net new full-time permanent positions with an annual payroll of approximately $6,155,000 to be located at the Project Site.
SECTION 2. Each year of the term of the agreement with AND Health, LLC the City’s obligation to pay the incentive is expressly contingent upon the passage of an ordinance appropriating and authorizing the expenditure of monies sufficient to make such payment and the certification of the City Auditor pursuant to Section 159 of the Columbus City Charter.
SECTION 3. That the City of Columbus Downtown Office Incentive Agreement is signed by AND Health, LLC within 90 days of passage of this ordinance, or this ordinance and the credit herein shall be null and void.
SECTION 4. The City Council hereby extends authority to the Director of the Department of Development to amend the AND Health, LLC City of Columbus Downtown Office Incentive Agreement for certain modifications to the agreement requested in writing by the company and/or the City and deemed appropriate by the Director of Development with these certain modifications being specifically limited to reductions in length of term, methods of calculating the incentive, or adding or deleting business entities associated with the employment commitments related to this incentive. All other requested amendments must be approved by City Council.
SECTION 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.