CIC gives incentive go-ahead to eInformatics

ThisWeek UA 04/27/2011

http://www.thisweeknews.com/live/content/upperarlington/stories/2011/04/27/cic-gives-incentive-go-ahead-to-einformatics.html?sid=104

    

The Upper Arlington Community Improvement Corp. met April 21 to discuss financial incentives to attract a growing company, eInformatics, to the city.

Tim Ninke, owner of eInformatics, which provides software installation, support and maintenance for a variety of medical record solutions, was given an opportunity to share with the board the background of his company and its expected growth moving forward.

According to Ninke, double-digit growth and the need for more personnel are the reasons behind the company’s planned move.

“We’ve been slowly growing for the past 12 years in a very conservative way. We started with just two employees and have grown on cash flow, not debt,” Ninke said. “Our focus is niche, providing paperless medical charts for small physician offices.”

eInformatics, currently at 5151 Reed Road just outside the city, employs 20 people with a payroll of $1.1 million, according to Matt Shad, deputy city manager for economic development. The company plans to grow to 30 employees with a payroll of $1.65 million once they relocate to larger office space.

“We’re on a short timeline in regard to our current lease, so I contacted all of the economic development directors in northwest Columbus. Matt (Shad) was back in touch with me within four hours.” Ninke said, noting he was very appreciative of the city’s responsiveness.

Office space at 5005 Horizon Drive, currently owned by Teamworks Solutions Inc., an IBM software development company that occupies half of the building, is being considered.

“If we can make things work for (Ninke), Teamworks has space ready to move eInformatics in as early as June,” Shad said. “The space can fit up to 40 employees so there is additional room for growth if needed in the future.”

Ninke said he is hopeful that a deal can be made.

“We’ve looked at Hillard, Dublin and Worthington. We work closely with (Ohio State University) health information program,” he said. “My partner was a longtime UA resident and we feel that a smaller community like this will be a good fit for a smaller company like ours. The city and CIC’s responsiveness have been incredible.”

After deliberation in executive session, the CIC board voted unanimously to ask council to approve a municipal income tax credit of 25 percent. The credit will be made available upon eInformatics signing a five-year lease for the first three years of that lease, and is dependent on a payroll increase to $1.65 million.

The option of one additional year of credit will be made available if the company renews the lease for another three years after meeting the initial goals.

Council is slated to see the motion at its May 9 meeting.

In other business last week, the board discussed a special study that members David Hartsook, Phillip Markwood and Robin Lorms are conducting of the Mallway area to see if they can find any inefficiencies that might be able to be addressed. They are working with city development director Dean Sivinski.

Board members also discussed recent presentations at TechColumbus and other central Ohio business incubators, and the desire to have business incubation space in the city.

“I am very impressed by their funding mechanisms and, if I were an entrepreneur today, I would go running to something like Tech Columbus,” Lorms said. “We should consider a volunteer adviser board like this.”

Board member and Upper Arlington Area Chamber of Commerce president Becky Hajost said that the chamber is currently developing this type of advisory panel.

The next CIC meeting is scheduled at 4 p.m., Thursday, May 19, in the lower level meeting room at the municipal building on Tremont Road.