The Upper Arlington Community Improvement Corporation has recommended council approve two economic incentive agreements for new businesses hoping to open in Upper Arlington.

The Upper Arlington Community Improvement Corporation has recommended council approve two economic incentive agreements for new businesses hoping to open in Upper Arlington.

CIC members heard presentations from Philip Eggers, founder and chief technical officer for CardiOx, a startup company that produces a low-invasive procedure to detect cardiac shunts, and from Edward Marszal, principal engineer for Kenexis, an industrial consulting firm focused on safety and the process for improving the petrochemical, pharmaceutical and power generation industries.

The CIC voted to recommend a 30-percent initial income tax credit to CardiOx to open at 4100 Horizons Drive. The company plans to lease 7,400 square feet of the building, bringing it to full occupancy.

CardiOx, currently located on Tuller Road in Dublin, currently has four employees and projects to have as many as 40 by 2013. Twenty-three of the employees are slated to be located in Upper Arlington and pay into the city's income tax.

The company projects a $2.3-million payroll with future growth.

"This is probably the best type of incentive the city could engage in because this is basically if you meet your growth you get rewarded," said Matt Shad, deputy city manager for economic development. "This is a credit annually based on payroll. Our impression is this is an excellent company to invest in."

The CIC also voted to recommend a forgivable loan to Kenexis to build a lift or elevator at 3366 Riverside Drive.

Kenexis, already located in Upper Arlington at 2929 Kenny Road, plans to move to Riverside because it has outgrown its current location.

The company plans to purchase the Riverside Drive building and use 90 percent of the second floor.

According to Shad's staff report, Kenexis has 16 employees and is expected to increase that number to 26 by December 2013.

"Their potential to grow in place is good here," Shad said. "They have the capacity to be a much larger company than they are promising."

The board recommended that council approve the forgivable loan, which would cover 80 percent of the cost to install either an elevator or lift but would not exceed $50,000.

Marszal of Kenexis said he is glad his company can stay in Upper Arlington.

"Part of why we are moving is the high quality of life," he said. "If we can't give our employees as much money as they would be making down in Houston, we want to provide a (high quality of life)."

In other CIC news, the board voted to recommend that council consider giving TechColumbus $100,000 over the next two years.

"Whether we have direct assets or indirect assets, the time and the talent is as important as the dollars," Shad said of investing in TechColumbus. "It's as important for us to grow those resources in our region as it is to grow those resources in our community."

Council member and CIC member Wade Steen once again expressed concerns about the city investing in TechColumbus.

"I am just making sure that whatever we commit to, we see that return coming back to us in revenue," he said. "Can I point to something that says this is what residents get back?"

CIC chairman Chris Widing said the city would like to continue its relationship with the organization.

"We feel there are great opportunities there in the future for us to become the domicile for companies that begin their existence with the encouragement of TechColumbus," he said.

The board also voted to recommend council create two tax-increment financing (TIF) districts on Riverside Drive Riverside North and Riverside South TIFs.

"Basically, what we have here is a number of projects in development and starting to bubble along Riverside Drive," Shad said. "This is proactive TIFing. By capturing some of these development period, there are some abilities to start capturing these dollars."