Grove City Council members gave the go-ahead last week for an economic development agreement with Mount Carmel Health System.

Grove City Council members gave the go-ahead last week for an economic development agreement with Mount Carmel Health System.

Council voted 4-0 on Sept. 4 to approve an ordinance authorizing City Administrator Chuck Boso to enter into an economic development agreement with Mount Carmel.

Councilwoman Melissa Albright abstained from the discussion and vote.

Boso said the agreement between the city and Mount Carmel is a "perfect partnership."

"Mount Carmel can be proud," he said. "Grove City can be proud."

Under the terms of the agreement, the city will extend and widen North Meadows Drive from its current intersection at state Route 665 to the intersection of Hoover and Holton roads and to use "commercially reasonable efforts" to complete the public improvements by Oct. 31, 2013.

The North Meadows extension, according to the agreement, has been part of Grove City's thoroughfare map for a number of years to facilitate north/south traffic flow east of I-71 and ease congestion on the Hoover Road corridor.

"Its construction will greatly help the community," according to the agreement document.

Boso said the project is estimated to cost $12.5 million.

While the agreement notes the city will be required to pay or cause to be paid the costs of the improvements, Mount Carmel will contribute $3 million toward construction as well as the land the road will be built on.

"That's valued at $1.5 million," Boso said.

In addition, Boso said the city will receive a grant from the Ohio Department of Transportation for $750,000, a grant from the Ohio Public Works Commission for $630,000 and an interest-free loan from the OPWC for $400,000.

Council is scheduled to vote Sept. 17 on an ordinance to put $1,505,288 from the general fund toward the engineering land acquisition expenses associated with the widening and extension.

The public improvements will be done to support Mount Carmel's plans to construct a 36,775-square-foot emergency care center and a 68,215-square-foot medical office building at 5525 Hoover Road, on approximately 21 acres of the former Grovebrook Golf Course.

According to language in the development agreement, both the city and Mount Carmel "acknowledge that the development of the project will create jobs and employment opportunities and stimulate medical development within Grove City."

"It's a gift to our community,"Mayor Richard "Ike" Stage said. "I think it says a lot for all of us."

City council previously approved the development plan for the project on Aug. 20. A groundbreaking is scheduled for 5 p.m. Sept. 27.

Boso said construction for the public improvements are expected to begin in the first quarter of 2013.