The URL can be used to link to this page

Home My WebLink About25-02 Ordinance RECORD OF ORDINANCES Da on Le al Blank Co. Form o 30043 Ordinance No .................25-02................................. Passed AN ORDINANCE APPROVING A TAX CREDIT AND ECONOMIC DEVELOPMENT AGREEMENT WITH SPIREA, LLC., AND AUTHORIZING, CONFIRMING AND RATIFYING • THE EXECUTION OF THE AGREEMENT. f WHEREAS, Spirea, LLC. (the "Company") is an employer starting a research and development facility in the City of Dublin, Ohio (the "City") at the Millennium Office Park (the "Property"), and based on inducements and incentives offered by the City in an Economic Development Agreement (the "Agreement"), the Company has selected the City to begin its United States operations; WHEREAS, the City, by provision of the incentives provided in the Agreement, desired and intended to induce the Company to pursue the location 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 "O.R.C."), 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 within the State; and WHEREAS, pursuant to Section 122.17 O.R.C., on February 25, 2002, the Authority granted the Company's request for a Jobs Creation Tax Credit; and WHEREAS, pursuant to Section 718.08 O.R.C., a municipal corporation is authorized to grant local income tax credits to taxpayers who have received a Jobs Creation Tax Credit from the State; and WHEREAS, the granting of the tax credits by the City for the proposed location by the Company will create jobs, increase opportunities for employment and strengthen the economy of the City; and WHEREAS, receiving the tax credits from the State and the City is a critical factor in the Company's decision to go forward with the project, NOW, THERFORE, BE IT ORDAINED by the City of Dublin, Franklin, Union and Delaware Counties, Ohio, the elected members concurring that: 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 locate their operations to 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 officers, and their character as not being substantially adverse to the City, shall be evidenced conclusively by their execution of those instruments. RECORD OF ORDINANCES Dayton Legal Blank Co Form No. 30043 Ordinance No .................25-02................................. Passed ..................................................Page..? 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 -Presiding Officer Attest: Clerk of Council Passed: ~ ~ , 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. lerk of Council, Dublin, Ohio s•¦~ ECONOMIC DEVELOPMENT AGREEMENT AGREEMENT BETWEEN THE CITY OF DUBLIN AND SPIREA, LLC. March, 2002 ECONOMIC DEVELOPMENT AGREEMENT / p This Agreement is entered into on 1. ~ ~'CLG ~ ~ C, ~ 2002, between the City of Dublin (the "City") and Spirea, LLC. (the "Company") for the purpose of assisting in the Company's future expansion of its research and development facility located at 6059 Frantz Road, Suite 203, Dublin, Ohio. ARTICLE I. BACKGROUND The Company is a subsidiary of the Swedish based SPIItEA AB. The Company will do the research and development for Wireless Local and Personal Area Network markets. The Company has approximately forty-five (45) employees worldwide, with its headquarters located in Sweden. The Company plans to establish its office in the City and has committed to hiring ten (10) new full- time positions in the thirty-six (36) month period beginning April 1, 2002 and ending March 31, 2005. The City desires to enumerate specific cooperative efforts, which will be undertaken to assist the Company in the location of its research and development facility. This effort is being made in recognition _d that the creation of these new jobs will provide economic benefits to the City and will fizrther add to the quality of this community. ARTICLE II. AGREEMENT 1. Municipal Corporate Income Tax Credit. The City agrees to assist the Company in its application for Job Creation Tax Credit from the State. If the Company obtains a Job Creation Tax Credit from the State Page 1 of 3 i for the establishment of its Dublin office, 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 April 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 establishment 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 the establishment 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. 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. Page 2 of 3 CITY OFD LIN By. j,.Y~s~ ~a- City Manager By: Director of Finance a.•. SPIREA, LLC. By: r`-~`' Dr. Mohammed Ismail Page 3 of 3 a