City giving to cancer center

$49M facility will get $3.6M incentive from Kettering.

By Kelly Hopper
Staff Writer

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The city of Kettering will contribute a record $3.6 million incentive to Kettering Health Network for its new $49 million cancer facility.

The cancer center will add 80 new jobs to the existing 3,600 Kettering Health Network jobs now in the area, said Kettering Economic Development Manager Gregg Gorsuch.

“The reasoning behind the incentive is to ensure Kettering Medical Center continues to grow and thrive in the community. They are the largest employer and revenue producer, and we want to make sure they stay in the city of Kettering and this continues to be their flagship operation,” Gorsuch said.

The city of Kettering and Kettering Health have engaged in talks in recent years regarding the development of the Kettering Medical Center campus. As plans for the new cancer center evolved, those talks included potential incentives, according to Gorsuch.

“This is the largest cash financial incentive the city of Kettering has given,” Gorsuch said.

Until now, the largest incentive awarded by the city went to a business that recently relocated to the Miami Valley Research Park — the Center for Tissue, Innovation and Research — for up to $1 million for community tissue services, according to officials.

The cancer center award will come from the city’s general fund, Gorsuch said.

The city will make three equal payments based on project milestones — Phase One, issuing of a groundbreaking permit; Phase Two, halfway point in construction; and Phase Three, issuing of the certificate

of occupancy. No funds have been issued yet.

“Kettering Medical Center campus is really critically important to the city of Kettering not only for the jobs but the quality of life it gives our residents. It is going to add to that and continue the growth of the medical center campus,” Gorsuch said.

The city will award the incentive in the form of a forgivable loan. If Kettering Health meets three criteria, it will not be required to pay back millions to the city. They must complete the building, be issued a certificate of occupancy, and have three consecutive years of at least $7 million in annual payroll from that facility, Gorsuch said. The city generates up to $3.5 million in tax revenue annually from Kettering Health and expects the cancer center to bring in an additional $200,000 annually, according to Gorsuch.

Crews broke ground this week on the five-story, 120,000-square-foot cancer center on the Kettering Medical Center campus on Southern Boulevard. It should be finished by late 2016.

“We considered a lot of different locations but all signs pointed to Kettering Medical Center as being the best geographic location to meet our patients’ needs,” Elizabeth Koelker, director of the oncology service line for Kettering Health Network, said.

City officials plan to adopt legislation concerning the incentives at 7:30 p.m. Tuesday in Kettering City Council Chambers, 3600 Shroyer Road.