Dublin City Council on June 24 unanimously approved an incentive package for Quantum Health to move its headquarters from Columbus to Dublin.
The move could bring 800 employees to the city and create another 350 new jobs.
Scott Doolittle, chief financial officer with Quantum Health, said Quantum is excited about the incentive package.
“It’s been a long search to find a new home for Quantum,” Doolittle said.
Dublin has been supportive in helping create an attractive incentive program that meets Quantum Health’s needs, he said.
Quantum Health considered several locations within Columbus before landing on a potential site in Dublin, according to Cynthia Henry, senior vice president of marketing at Quantum Health.
“For various reasons, the facilities in Columbus unfortunately did not meet Quantum Health’s needs,” she said.
Quantum Health provides health-care navigation and has offices at 7450 Huntington Park Drive in Columbus.
If the company moves to Dublin, the business would add 350 new jobs by 2025 for a total of 1,150 employees, according to a June 4 memo to Dublin City Council.
Quantum Health had performed a multistate search to identify the optimal site and evaluated using a single site or multiple sites early last year across a broader geographic footprint, Henry said.
“The site in Dublin offers short- and long-term growth options with multiple amenities, as well as proximity to new and existing workforce,” she said.
She said Quantum Health can’t disclose the location of the new site yet because the company still is working through the details.
Doolittle said the company would look to move to Dublin within a 12- to 18-month timeframe.
Quantum Health will continue to build its teams and capabilities, including such positions as patient-services representatives, registered nurses and information-technology professionals, Henry said. The company also will continue to add roles and capabilities as the business evolves, she said.
Henry said the company still is working out details about what it would do with its Columbus facility and how many staff members have committed to moving if Quantum Health moves to Dublin.
The incentive agreement is a seven-year, 17% performance incentive on withholdings collected from 2021 to 2027 capped at $1,665,000 for the term of the agreement, according to the memo.
The city typically pays companies incentives in such agreements from the city’s nontax revenue, such as licenses, fines, building permits and services provided to outside agencies, such as the Northwest Regional Emergency Communications Center.
Colleen Gilger, Dublin’s economic-development director, has said all such incentives must come from nontax revenues, per state law.
The agreement also includes a $150,000 relocation grant from the city, according to the memo.
The company must execute a minimum 10-year lease and reach predetermined annual withholdings targets to qualify for the performance incentives, according to the memo. The city expects to net a little less than $11.25 million in income-tax revenue over the 10-year lease term.
The state also is proposing incentives to Quantum, according to the memo.
The Ohio Tax Credit Authority on March 25 approved a tax credit of 1.71% for nine years for Quantum Health in exchange for a commitment to create 350 new full-time equivalent employees, generating $18,060,000 in new annual payroll and retaining $47,822,305 in payroll. In addition, the company would claim the tax credit on Ohio employee payroll generated in excess of the company’s baseline payroll at the project location.
The tax credit tentatively would begin retroactively Jan. 1, 2019, and end Dec. 31, 2027, according to the document on the authority’s website.
Todd Walker, chief communications officer for the Ohio Development Services Agency, which oversees the Ohio Tax Credit Authority, said Quantum Health’s move within the state would not affect the authority’s vote on the state incentives. He said the estimated value of the tax credit is $2,769,000, based on Quantum Health’s commitment to add 350 new jobs.
When asked how many employees Quantum Health has hired since presenting its application to the Ohio Tax Credit Authority, Henry said the business actively has been hiring and believes its growth projections submitted to Dublin and the state are on track.Additional pacts
Council members also approved three other economic-incentive agreements June 24. They are:
Company: Univar Solutions, a global chemical and ingredient distributor
Location: 6000 Parkway Place, Dublin
Current jobs: 313
New jobs: 200 by 2022 per the incentive agreement
Incentive agreement: A 7-year, 15% performance incentive on withholdings collected from 2020 through 2026 capped at $755,000 for the term of the agreement. The city also is including a $75,000 relocation grant. Under the agreement, Univar would add 200 jobs by the end of 2021 and execute a minimum 10-year lease on a Dublin location. The company has to reach predetermined annual withholdings targets to qualify for the performance incentives. Dublin is estimating the city will net approximately $5,558,000 in income-tax withholding revenue over the company’s 10-year lease term.
Company: Dave Thomas Foundation for Adoption, a national nonprofit charity
Location: 1328, 716 Mt. Airyshire Blvd., Columbus
Current jobs: 36
New jobs: 46 by 2025 per the incentive agreement
Incentive agreement: A 7-year, 15% performance incentive on net new payroll withholdings from 2021 through 2027 capped at $75,000 for the term of the agreement. The payroll attributed to the initial regional 36 relocating jobs will not count toward the incentive. Dublin also is including a $25,000 relocation grant. The company has to purchase a property or enter a minimum 10-year lease and reach predetermined annual withholdings targets to qualify for the performance incentives. The city expects to net approximately $750,094 over the seven-year project term.
Company: City Barbecue, which has 50 restaurant locations in seven states
Location: Headquartered at 6175 Emerald Parkway, training and call-center facility at 6185 Emerald Parkway
Current jobs: 68
New jobs: 39 by 2023 per the incentive agreement
Incentive agreement: A 7-year, 15% performance incentive on withholdings collected from 2020 through 2026 capped at $165,000 for the term of the agreement. The city also is including two lump-sum relocation grants totaling $60,000. Under the agreement the company would need to execute a minimum 10-year lease in Dublin and reach annual withholdings targets to qualify for the performance incentives. The city estimates that it will net approximately $1,407,483 in income-tax withholding revenue over the company’s 10-year lease term.