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Home My WebLink About013-02 Ordinance RECORD OF ORDINANCES Dayton Legal Blank Co. Form No. 30043 Ordinance No ...........................13-.02....................... Passed AN ORDINANCE APPROVING A TAX CREDIT AND ECONOMIC DEVELOPMENT AGREEMENT WITH STATPROBE, INC. AND AUTHORIZING, CONFIRMING AND RATIFYING THE EXECUTION OF THE AGREEMENT. WHEREAS, Statprobe, Inc. (the "Company") is an employer located in the City of Dublin, Ohio (the "City") at 425 Metro Place North, Suite 450 (the "Property"), and based on inducements and incentives offered by the City in an Economic Development Agreement (the "Agreement"), the Company is embarking upon a expansion of operations at their existing facility; and WHEREAS, the City, by provision of the incentives provided in the Agreement, desired and intended to induce the Company to pursue expansion of operations for the purpose of creating jobs and employment opportunities and to improve the economic welfare of the people of the State of Ohio and the City as authorized in Article VIII, Section 13 of the Ohio Constitution; and WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code (the "ORC"), the State of Ohio (the "State") established the Ohio Tax Credit Authority (the "Authority") authorized to execute agreements with taxpayers of the state of Ohio for the purpose of granting these taxpayers job creation tax credits against the taxpayers' State corporate franchise or State income tax, which tax credits are provided to create new jobs in the State; and WHEREAS, pursuant to Section 122.17 ORC, on January 28, 2002, the Authority granted the Company's request for a Jobs Creation Tax Credit; and WHEREAS, pursuant to Section 718.08 ORC, a municipal corporation is authorized to grant local income tax credits to taxpayers which have received a Jobs Creation Tax Credit from the State; and WHEREAS, the granting of the tax credits by the City for the proposed expansion by the Company will create jobs and increase opportunities for employment and strengthen the economy of the City; and WHEREAS, receiving these tax credits from the State and the City is a critical factor in the Company's decision to go forward with the project; and NOW, THEREFORE, BE IT ORDAINED by the City of Dublin, Franklin, Union and Delaware Counties, Ohio, _~of the elected members concurring: Section 1. The City hereby finds and determines that it is necessary and appropriate and in the best interests of the City to provide certain assistance to the Company for the purpose of creating jobs and employment opportunities and to improve the economic welfare of the people of the State of Ohio and the City as authorized in Article VIII, Section 13 of the Ohio Constitution. Section 2. To provide the assistance and thereby induce the Company to expand their operations located at the Property, the City Manager and the Director of Finance, for and in the name and on behalf of the City, shall execute, acknowledge and deliver the Agreement by and between the City and the Company in substantially the form thereof on file with the Clerk of Council. That Agreement is approved with changes therein not inconsistent with this ordinance and not substantially adverse to the City and which are permitted by law, and shall be approved by the City Manager and the Director of Finance; provided, that the approval of those changes by such RECORD OF ORDINANCES Da on Le al Blank Co. Form o 30 43 Ordinance No......13.-02 Passed ..............................Page.. officers, and their character as not being substantially adverse to the City, shall be evidenced conclusively by their execution of those instruments. Section 3. The City Manager and the Director of Finance shall execute, deliver and, if applicable, file, for and in the name and on behalf of the City, any other materials, documents or certifications which are necessary or appropriate to consummate the transactions contemplated in this ordinance and the Agreement. Section 4. This Council finds and determines that all formal actions of this Council concerning or relating to the passage of this ordinance were taken in an open meeting of this Council and that all deliberations of this Council that resulted in those formal actions were in meetings open to the public in compliance with the law. Section 5. This ordinance shall take effect in accordance with Section 4.04 of the City Charter. Signed: Mayor - Presi ing Officer Attest: r.,r, L^~ Clerk of Council Passed: . 1 ~ , 2002 Effective: , 2002 I hereby certify that copies of this Ordinance/Resolution were posted in the City of Dublin in accordance with Section 731.25 of the Ohio Revised Code. Cam, C c of Council, Dublin, Ohio Office of the City Manager 5200 Emerald Parkway -Dublin, Ohio 43017-1006; CITY OF DUBLIN Phone: 614-410-4400 -Fax: 614-410-4490 Memo To: Dublin City Council From: Marsha I. Grigsby, Interim City Manager Date: January 29, 2002 Re: Ordinance No. 13-02 Initiated by: Michael H. Stevens, Director of Economic Development (/~(,~~~iL.[' The State of Ohio offers the Job Creation Tax Credit incentive to companies to%king to relocate to Ohio or expand their existing operation within the State. The incentive program is administered through the Ohio Department of Development and provides businesses with a State income tax credit for each new job created. The percentage and length of the incentive is determined by the Ohio Tax Credit Authority on a case by case basis. When a company enters into a Job Creation Tax Credit agreement with the State, it commits to keeping the newly created jobs in the political jurisdiction for twice the length of the incentive package. As part of the incentive program, the State requires local support and participation. On January 28, 2002, the Ohio Tax Credit Authority approved a Job Creation Tax Credit for Statprobe, Inc., an existing Dublin business, contingent upon the approval of local support. Ordinance No.13-02 Ordinance No. 13-02 is the authorization to enter into an Economic Development Agreement with Stateprobe, Inc., (Statprobe). The Economic Development Agreement is to provide a municipal corporate income tax credit that will support the State of Ohio's Job Creation Tax Credit. The • municipal corporate income tax credit is for five years at a maximum of 50 percent. Statprobe opened its Dublin office at 425 Metro Place North in 1998. Serving as a contract research organization, Statprobe analyzes and manages clinical data. The company prides itself in delivering the highest quality clinical management, data management, programming, biostatistics and medical writing services to the pharmaceutical, biotechnology, and medical device industries worldwide. Employing over 235 people nationwide, Statprobe currently has ten (10) employees working at its Dublin office. With its expansion, Statprobe plans to create ten (10) new full-time positions in a span of three years. The new positions will have an average hourly wage of approximately $28.85. Since the municipal corporate income tax paid by the company is considered confidential tax information, staff is unable to provide City Council with a historical perspective on the impact of a 50 percent municipal corporate income tax credit. However, the municipal corporate income tax paid by Statprobe since opening its Dublin office has been insignificant. Please contact Mike Stevens, 410-4619, if you have any questions. ECONOMIC DEVELOPMENT AGREEMENT AGREEMENT BETWEEN THE CITY OF DUBLIN AND STATPROBE, INC. February, 2002 ECONOMIC DEVELOPMENT AGREEMENT This Agreement is entered into on , 2002, between the City of Dublin (the "City") and Statprobe, Inc. (the "Company") for the purpose of assisting in the ~ Company's future expansion of its contract research company located at 425 Metro Place North, Suite 450, Dublin, Ohio. ARTICLE I. BACKGROUND The Company analyzes and manages clinical data, delivering the highest quality clinical management, data management, programming, biostatistics and medical writing services to the pharmaceutical, biotechnology, and medical device industries worldwide. The Company has approximately 235 employees nationwide and currently has offices in Dublin, Ann Arbor, San Diego, and Lexington, Kentucky. The Company opened its Dublin office in 1998, and currently has ten (10) full-time employees. The Company's future plans involve expanding employment at its Dublin office by ten (10) new full-time positions in the thirty-six month period beginning March 1, 2002 and ending February 28, 2005. The City desires to enumerate specific cooperative efforts, which will be undertaken to assist the Company's future expansion. This effort is being made in recognition that expansion at the Dublin office and the creation of these new jobs will provide economic benefits to the City and will further add to the quality of this community. Page 1 of 3 ARTICLE II. AGREEMENT 1. Municipal Corporate Income Tax Credit. City agrees to assist Company in its application for Job Creation Tax Credit from the State. If the Company obtains a Job Creation Tax Credit from the State for the Dublin office expansion, the City will commit to granting a 50% credit of new City income tax revenues generated by new jobs resulting from the expansion, towards up to 50% of the Company's municipal corporate income tax obligation, for a five (5) year period, commencing January 1, 2002 through December 31, 2006. The tax credit shall under no circumstances exceed 50% of the Company's municipal corporate income tax liability. 2. Coordination. To allow for the expansion of this facility in a timely and cost-effective manner, the City will assign its Director of Economic Development to work with the Company to assist in obtaining approval for the Jobs Creation Tax Credit through the Ohio Tax Credit Authority. ARTICLE III. INTENTION OF COMPANY It is the Company's intent to carry out expansion of operations as contemplated by and set forth herein this Agreement. ARTICLE IV. EXPEDITIOUS ACTION The City and the Company recognize that the creation of additional jobs is a matter of highest priority, and both parties will use their best efforts to proceed as expeditiously as possible in carrying out their responsibilities hereunder. Page 2 of 3 ARTICLE V. AUTHORIZATION This Agreement shall become effective when fully executed by both parties. The City Manager will sign on behalf of the City following adoption of an authorizing ordinance by Dublin City Council. CITY OF DUBLIN By: City Manager By: Director of Finance STATPROBE, INC. By: Terry Sharp, M. S. Associate Director, Columbus Operations Page 3 of 3