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Yesterday afternoon, OSU president Gordon Gee and Mayor Michael Coleman jointly announced a new partnership in relation to the previously announced 17-story OSU Medical Center expansion. The City of Columbus will provide OSU with an income-tax rebate that OSU would then be required to reinvest in neighborhood revitalization efforts surrounding OSU’s University Hospital East located on the Near East Side. Gee announced that OSU is dedicated to spending $10 million over the next ten years to improve housing stock and the quality of life surrounding the East Hospital.
“As University Hospital East improves, so will the neighborhood it calls home,” Mayor Coleman said in a press release. “I appreciate all the great people at Ohio State and the OSU Medical Center for working with us on this historic partnership for jobs and neighborhood revitalization.”
The 17-story $1 billion hospital expansion at OSU’s main campus will bring roughly 6,000 new jobs to Central Ohio, and the City of Columbus is projecting to see $77 million in income tax revenue over the next 15 years from the project.
“This initiative builds on many longstanding collaborations among the university, the City of Columbus and community leaders,” said President Gee in a press release. “Recognizing that our fates are thoroughly tied, we are marshalling our collective resources and pressing forward as partners in common purpose and common calling to advance Columbus’ future.”
Original Press Release:
Mayor Coleman, President Gee, OSU Medical Center and City Council Announce Partnership To Create 6,000 New Jobs And East Side Neighborhood Revitalization
Ohio State University President E. Gordon Gee and Mayor Michael B. Coleman today were joined by OSU Medical Center CEO Steven G. Gabbe, members of Columbus City Council and East Side neighborhood leaders to announce a historic partnership that will result in the creation of 6,000 new jobs and a new neighborhood revitalization effort on the East Side.
“As University Hospital East improves, so will the neighborhood it calls home,†Mayor Coleman said. “I appreciate all the great people at Ohio State and the OSU Medical Center for working with us on this historic partnership for jobs and neighborhood revitalization.â€Â
This partnership will result in the largest jobs initiative in Columbus history through a $1 billion expansion of OSU Medical Center where 6,000 new jobs will be created. The city will realize $77 million in income tax over the next 15 years from the partnership.
“This initiative builds on many longstanding collaborations among the university, the City of Columbus and community leaders,†said President Gee. “Recognizing that our fates are thoroughly tied, we are marshalling our collective resources and pressing forward as partners in common purpose and common calling to advance Columbus’ future.â€Â
The city is providing an income-tax rebate mirrored after the agreement City Council approved in 2008 for Children’s Hospital. OSU will in turn reinvest dollars it saves into an unprecedented neighborhood revitalization effort in the area surrounding University Hospital East. OSU is committing to spending $10 million over the next decade to improve housing and quality of life in the neighborhood.
“As a member of The Ohio State University Health System, University Hospital East has been delivering outstanding medical care in the neighborhood for many years,†said Dr. Gabbe. “Continued investments in our facility and programming, combined with innovative community partnerships, demonstrate OSU Medical Center’s ongoing commitment to improve the health and well-being of residents in our communities.â€Â
Key components of the investment include acquisition and rehab of houses, down-payment assistance and a $1 million faith-based initiative with neighborhood clergy, designed to promote healthy lifestyles through education, diet and exercise. Prior to any final neighborhood decisions, OSU is undertaking an area-wide study and seeking the input of residents to help shape future programs and investment.
“While OSU’s community reinvestment plans will be a shot in the arm for the East Side, the overall expansion will have an incredible impact on all Columbus neighborhoods,†said Councilmember Andrew J. Ginther, chair of the Development and Finance Committee. “Job creation and retention are key components to stabilizing our economy and improving our community. This commitment also allows Columbus to continue to position itself as a national leader in field of medical technology and to attract the best and brightest to our city.â€Â
“Studies have proven that access to high quality medical care and nutrition services are critical to improving the lives of our residents,†said Councilmember Charleta B. Tavares, chair of the Health and Human Development Committee. “I appreciate the fact that Ohio State leaders also recognize that affordable housing gives our families a safe place to grow and begin to learn the value of investing in the future, helping to build a stronger neighborhood here on the East Side.â€Â
Neat! What is the “area” in the area-wide study? Just the immediate area surrounding the hospital?
This sounds amazing! The near east side has so many beautiful homes that are waiting to have life again! Hopefully within the next few years we will see a big movement in the area! LIVE INNER CITY!!
I just moved to the area this summer, and while the mansions have spectacular potential, there’s a literal ton of more modest stock that just needs a little boost to become solid middle-class and affordable housing. Woo-hoo!
Very good to hear. Things are really starting to pick up for the near East. Seriously, what the hell would this city do withoug OSU?
Sounds great, looking forward to hearing more specifics. Lot of vacant homes with great potential but also lot of positive momentum and good people from my experience!
Wow 6k jobs that’s a bunch! And badly needed too.
This is a pretty huge win for the east side!
Would a celebratory “Go Bucks!” be inappropriate ? :)
This is great news. I’m all for improving neighborhoods. That said, this really isn’t OSU making some great donation. The city is simply giving them $10M back in paid income taxes. OSU then gets to spend this money as they choose, with the only stipulation being that the money indirectly improves the property values around their hospital. It sounds like this means they plan to give cold hard cash to their med students and doctors under the stipulation that they spend that cash as a downpayment on property in the area. Almost like a scholarship for the students or a “fringe benefit” of being on the hospital staff. Politically, Mayor Coleman couldn’t raise our income taxes by 25% (from 2.0 to 2.5%) then give downpayment assistance to a Doctor making 6 figures, so he called up Gordo and made it happen this way. The end result is that the neighborhood improves — SO I”M NOT COMPLAINING.
Like I said, I’m all for this…but to call Coleman and Gordon Gee great people by robbing from the common man and giving to OSU doctors and med students is a bit of a stretch.
Very insightful HogRoaster. I guess that’s how politics works but like you said, the end result is an improvement!
Sort of like saying Coleman and Gee are “robbing from the common man” is a bit of a stretch, eh hogroaster? But I’m not complaining.
This is sort of a strange press release as it’s talking about two different bits of information:
1) The previously announced 17-story $1B expansion project at the main OSU Hospital on campus that will bring 6,000 new jobs to Columbus.
2) A new $10M tax abatement for OSU that it will then reinvest into the neighborhood around OSU East on the Near East Side.
Either way, both pieces of information are good news for the city as a whole.
HogRoaster, can you elaborate on how Coleman/Gee are “robbing from the common man?”
I’m pretty pumped about this news, I live about two blocks from OSU East and I hope this does good things for the neighborhood (and my property value!)
Walker, I was thinking the same thing when I read the article in the Dispatch this morning. Is the 6,000 jobs being solely attributed to the hospital expansion on the Main Campus or are some of those jobs going to be at the hospital East. Regardless, 6,000 jobs is 6,000 jobs; I would just like it to be a little more clear.
Why doesn’t the city just spend the $10 Million on revitalization? Are they assuming that OSU can do a better job with the money?
Stewz – The original announcement for the main OSU expansion says 6,000 jobs, so it sounds the new announcement for the East Side is more about housing development rather than job creation.
It really is a strange press release. Unless they are doing an expansion (none mentioned?) at Hospitals East I doubt any of those 6,000 jobs would land over on the east side and would stay with on OSUMC main campus.
Anyone know if the new the new hospital still going to look like rendering released back in the fall due to the lawsuits going on with a architect firm?
I think JohnWirtz hit it right on the head: why doesn’t the city just invest the $10M directly in the neighborhood? I think the answer is simple — they would get all kind of flack if they gave “downpayment assistence” to doctors already making plenty of money. Using OSU as an intermediary makes this “acceptable” in most people’s eyes because they won’t connect the dots.
The money will make a significant difference and do good for the neighborhood, which is why I’m for it. I’m just pointing out that good press created by the mostly unrelated expansion at the main campus has been severely leveraged to justify this $10M gift from the city to OSU. Not trying to be a downer…
Will their be an expansion of OSU East? Are they going to build offices or clinics in the Near East? I do not understand what the $10 million is for?? Maybe a little of that money (~$150,000) could be spent on rehabbing the Edna Building which is slated for demolition.
When is construction on the new hospital supposed to start?
This is great news but I am somewhat confounded by specious comments surmising that the funds are disguised to help doctors acquire property in the area. The press release and corresponding Dispatch story make clear that the hospital does not wish to gentrify the area. Whether that will ultimately be achieved is a different matter of course. Nevertheless, the entire theme of this press release speaks to the less fortunate residents who live in the area surrounding the hospital.
Quite frankly, I don’t think many doctors would have a genuine interest in living in the Near East at this time.
Nothing is mentioned about hospital expansion at University Hospital East, though this is tied in with prospective increased tax revenue from Ohio State’s expansion at the main campus.