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HomeMy WebLinkAbout08-04 OrdinanceRECORD OF ORDINANCES Blnnk.lnc Ordinance No. ~g'~4 Passed , 20 AN ORDINANCE AUTHORIZING THE PROVISION OF CERTAIN INCENTIVES FOR PURPOSES OF ENCOURAGING THE EXPANSION BY CC TECHNOLOGIES INTERNATIONAL, INC. OF ITS OPERATIONS AND WORKFORCE WITHIN THE CITY AND AUTHORIZING THE EXECUTION OF AN ECONOMIC DEVELOPMENT AGREEMENT WHEREAS, consistent with the Economic Development Strategy approved by Dublin City Council Resolution No. 07-94 on June 20, 1994, this Council desires to encourage commercial office development and provide for the creation of employment opportunities within the City; and WHEREAS, based on the results of CC Technologies International, Inc.'s ("CC Technologies") recent comprehensive examination of workforce needs, CC Technologies is desirous of expanding its operations and workforce within the City in consideration for the provision by the City of additional economic development incentives; and WHEREAS, this Council has determined to offer additional economic development incentives, the terms of which are set forth in a substantially final form of Economic Development Agreement presently on file in the office of the Clerk of Council, to induce CC Technologies to further expand its operations and workforce within the City, to create additional jobs and employment opportunities and to improve the economic welfare of the citizens of the City and the State of Ohio, all as authorized in Article VIII, Section 13 of the Ohio Constitution; and WHEREAS, this Council finds that it is in the best interest of the City to provide those economic development incentives to induce CC Technologies to expand its operations and workforce within the City and to provide for the execution and delivery of that Economic Development Agreement with CC Technologies; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, Franklin, Union and Delaware Counties, Ohio, that: Section 1. The Economic Development Agreement by and between the City and CC Technologies International, Inc., in the form presently on file with the Clerk of Council, providing for, among other things, the provision of incentives to CC Technologies in consideration for CC Technologies' agreement to expand its operations and workforce within the City, is hereby approved and authorized with changes therein not inconsistent with this Ordinance and not substantially adverse to this City and which shall be approved by the City Manager and Director of Finance. The City Manager and Director of Finance, for and in the name of this City, are hereby authorized to execute that Economic Development Agreement, provided further that the approval of changes thereto by those officials, and their character as not being substantially adverse to the City, shall be evidenced conclusively by their execution thereof. This Council further authorizes the City Manager and the Director of Finance, for and in the name of the City, to execute any amendments to the .Economic Development Agreement, which amendments are not inconsistent with this Ordinance and not substantially adverse to this City. Section 2. This Council further hereby authorizes and directs the City Manager, the Clerk of Council, the Director of Law, the Director of Finance, or other appropriate officers of the City to prepare and sign all agreements and instruments and to take any other actions as maybe appropriate to implement this Ordinance. RECORD OF ORDINANCES Ordinance No. 08-04 Passed Page 2 20 Section 3. This Council finds and determines that all formal actions of this Council concerning and 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 4. This Ordinance shall be in full force and effect on the earliest date permitted bylaw. Signed: L,~ residing Officer Attest: ~~~ Clerk of Council Passed: /~i~.QY~ l , 2004 Effective: /~Q ~GL. ~ ~ , 2004 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. D rty Clerk of Council, Dublin, Ohio Office of the City Mana er 5200 Emerald Parkway • Dubin, OH 43017 Phone: 614-410-4400 • Fax: 614-410-4490 f,ITY OF DUBLIN Memo To: Members of the Dublin City Council From: Jane S. Brautigam, City Manager~.~.r.t~S• CJ Date: February 11, 2004 Re: Ordinance No. 08-04 - CC Technologies International, Inc. Initiated by: Michael Stevens, Director of Economic Development ~~ Summary: Ordinance No. 08-04 authorizes the execution of an Economic Development Agreement with CC Technologies International, Inc., for the purpose of encouraging the retention, relocation and expansion of their operations within the City of Dublin. CC Technologies is a world leader in corrosion science and engineering. CC Technologies staff combines the expertise of research scientist and practical engineers to solve complex problems. CC Technologies International, Inc.'s headquarters currently is located at 6141 Avery Road, and their desire is to acquire and relocate to 5777 Frantz Road (former Witco building). The attached Economic Development Agreement (the Agreement) will provide CC Technologies with a Relocation Incentive to retain the current 50 jobs and create an additional 31 new jobs. The City's proposed Relocation Incentive to CC Technologies totals $175,000 over 3 years. The City will award $100,000 of the incentive to CC Technologies upon occupancy of its new facility. Contingent upon certain payroll withholding targets being met, the City will award $50,000 of the incentive in the second year and the remaining $25,000 in the third year. This financial incentive is structured to provide assistance with the acquisition of the new facility. The City further agrees that if CC Technologies' total aggregate Actual Withholding for the calendar years 2004 through 2008, inclusive (the "Five Year Actual Withholdings"), equals or exceeds $600,000, then the City shall pay to CC Technologies an amount equal to twenty-five percent (25%) of the Actual Withholdings for Calendar year 2008. This Agreement also provides for the repayment of a portion of the financial incentive to the City if certain payroll withholding targets are not met by CC Technologies. The advantage of the City's proposed financial incentive is a direct benefit to CC Technologies and requires no involvement from the local school district, nor does it adversely impact the local school district. The Agreement does not contain any non-financial incentives. Recommendation: Staff continues to pursue retention and job growth within the community. Using incentives to retain companies like CC Technologies International, Inc. will result in additional income tax revenue. Staff recommends that City Council approve Ordinance No. 08-04 at its March I, 2004 meeting. ECONOMIC DEVELOPMENT AGREEMENT THIS ECONOMIC DEVELOPMENT AGREEMENT (the "Agreement") is made and entered into this day of , 2004, by and between the CITY of DUBLIN, OHIO (the "City"), a municipal corporation duly organized and validly existing under the Constitution and the laws of the State of Ohio (the "State") and its Charter, and Cortest Columbus Technologies, INC. ("CC Technologies") an Ohio corporation with its offices located in Dublin, Ohio, under the circumstances summarized in the following recitals. RECITALS: WHEREAS, consistent with its Economic Development Strategy approved by Dublin City Council Resolution No. 07-94 adopted on June 20, 1994, the City desires to encourage commercial office development and provide for the creation of employment opportunities within the City; and WHEREAS, based on the results of CC Technologies' recent comprehensive examination of workforce needs, and induced by and in reliance on the economic development incentives provided in this Agreement, CC Technologies is desirous of expanding its existing workforce within the City; and WHEREAS, pursuant to Ordinance No. 08-04 passed March 1, 2004 (the "Ordinance"), the City has determined to offer economic development incentives described herein to induce CC Technologies to expand its workforce within the City to create jobs and employment opportunities and to improve the economic welfare of the people of the State of Ohio and the City, all as authorized in Article VILI, Section 13 of the Ohio Constitution; and WHEREAS, the City and CC Technologies have determined to enter into this Agreement to provide these incentives to induce that expansion by CC Technologies of its operations within the City; Now THEREFORE, the City and CC Technologies covenant agree and obligate themselves as follows: Section 1. CC Technolo ie~greement to Expand Jobs. CC Technologies presently employees approximately 50 employees at its site located at 6141 Avery Road in the City. The aggregate annual payroll of those employees is approximately $3.1 million. In consideration of the economic development incentives to be provided by the City herein, CC Technologies agrees that it will relocate all of the employees described in this Section 1 to a site located at 5777 Frantz Road in the City. CC Technologies further agrees to create 31 new jobs at the 5777 Frantz Road location no later than September 30, 2004. Section 2. City Agreement to Provide Incentives. (a) General. In consideration for CC Technologies' agreement to expand its workforce and associated payroll within the City, the City agrees to provide economic development incentives to CC Technologies in accordance with this Section. (b) Relocation Incentive. Within thirty (30) days following the date on which CC Technologies relocates its approximately 50 employees to the 5777 Frantz Road location, the Ciry shall pay to CC Technologies, solely from nontax revenues, an amount equal to One Hundred Thousand Dollars ($100,000). (c) Workforce Expansion Incentive. (i) Calculation of Actual Withholdings. On or before March 15 of each of the years 2005 and 2006, the City shall determine whether the actual payroll withholding taxes collected during the preceding calendar year by the City from all Employees (the "Actual Withholdings") exceed the Target Withholdings for that preceding calendar year, all in accordance with the schedule set forth below. For purposes of this Section 2, "Employees" shall include all individuals employed by CC Technologies and working at a location within the City. CC Technologies agrees that, in accordance with the Dublin Ciry Code, the annual payroll reconciliation relating to CC Technologies' Employees will be provided to the City prior to February 28 of each calendar year. (ii) Payments to CC Technologies. If the Actual Withholdings exceed the Target Withholdings for the preceding calendar year, the City shall, on or before April 15 of the then current calendar year, pay to CC Technologies, solely from nontax revenues, the incentive amount set forth in the following schedule. (iii) Withholdings and Incentive Payments. With respect to the Actual Withholdings collected during each of the calendar years 2004 and 2005, the Target Withholdings and Incentive Payment to be paid in respect of each of those calendar years shall be as follows: Calendar Year Target Withholdings Incentive Payment 2004 $85,000 $50,000 2005 $100,000 $25,000 The payments provided for in this Section 2 shall be made by the Ciry to CC Technologies by electronic funds transfer or by such other manner as is mutually agreed to by the City and CC Technologies. (d) Additional Incentive Payment. The Ciry further agrees that if CC Technologies' total aggregate Actual Withholdings for the calendar years 2004 through 2008, inclusive (the "Five Year Actual Withholdings"), equals or exceeds $600,000, then the City shall pay to CC Technologies an amount equal to twenty-five percent (25%) of the Actual Withholdings for -2- calendar year 2008. The City acknowledges and agrees to make that payment, if required by this Section 2(d), to CC Technologies no later than April 15, 2009 by electronic funds transfer or by such other manner as is mutually agreed to by the City and CC Technologies. (e) Forfeiture of Incentive Payment. CC Technologies agrees and acknowledges that the incentive payments provided for herein are being made by the City to CC Technologies in consideration for CC Technologies' agreement to expand its workforce within the City. CC Technologies further agrees that if the Five Year Actual Withholdings does not equal or exceed $530,000, then CC Technologies shall pay to the City an amount equal to the lesser of (i) $530,000 minus the Five Year Actual Withholdings, or (ii) $100,000. CC Technologies acknowledges and agrees to make that payment, if required by this Section 2(e), to the City no later than April 15, 2009 and in such manner as is acceptable to the City. (f) City's Obligation to Make Payments Not Debt• Payments Limited to Nontax Revenues. Notwithstanding anything to the contrary herein, the obligations of the City pursuant to this Agreement shall not be a general obligation debt or bonded indebtedness, or a pledge of the general credit or taxes levied by the City, and CC Technologies shall have no right to have excises or taxes levied by the City, the State or any other political subdivision of the State for the performance of any obligations of the City herein. Consistent with Section 13 of Article VIII, Ohio Constitution, any payments or advances required to be made by the City pursuant to this Section 2 shall be payable solely from the City's nontax revenues. Further, since Ohio law limits the City to appropriating monies for such expenditures only on an annual basis, the obligation of the City to make payments pursuant to this Section 2 shall be subject to annual appropriations by the City Council and certification by the Director of Finance of the City as to the availability of such nontax revenues. (g) Applicable City Payroll Tax Rate. For purposes of calculating the Actual Withholdings in each calendar year under this Section 2, the City's payroll tax rate shall be assumed to be two percent (2%). Section 3. Miscellaneous. (a) Notices. Except as otherwise specifically set forth in this Agreement, all notices, demands, requests, consents or approvals given, required or permitted to be given hereunder shall be in writing and shall be deemed sufficiently given if actually received or ifhand-delivered or sent by recognized, overnight delivery service or by certified mail, postage prepaid and return receipt requested, addressed to the other party at the address set forth in this Agreement or any addendum to or counterpart of this Agreement, or to such other address as the recipient shall have previously notified the sender of in writing, and shall be deemed received upon actual receipt, unless sent by certified mail, in which event such notice shall be deemed to have been received when the return receipt is signed or refused. For purposes of this agreement, notices shall be addressed to: -3- (i) the City at: City of Dublin, Ohio 5800 Shier Rings Road Dublin, Ohio 43016-7295 Attention: Economic Development Director (ii) CC Technologies at: Cortest Columbus Technologies, Inc. 5777 Frantz Road Dublin, Ohio 43016 Attention: Neil Thompson, CEO The parties, by notice given hereunder, may designate any further or different addresses to which subsequent notices, certificates, requests or other communications shall be sent. (b) Extent of Provisions; No Personal Liability. All rights, remedies, representations, warranties, covenants, agreements and obligations of the City under this Agreement shall be effective to the extent authorized and permitted by applicable law. No representation, warranty, covenant, agreement, obligation or stipulation contained in this Agreement shall be deemed to constitute a representation, warranty, covenant, agreement, obligation or stipulation of any present or future trustee, member, officer, agent or employee of the City or CC Technologies in other than his or her official capacity. No official executing or approving the City's or CC Technologies' participation in this Agreement shall be liable personally under this Agreement or be subject to any personal liability or accountability by reason of the issuance thereof. (c) Successors. This Agreement shall be binding upon and inure to the benefit of CC Technologies and its successors and assigns. (d) Recitals. The City and CC Technologies acknowledge and agree that the facts and circumstances as described in the Recitals hereto are an integral part of this Agreement and as such are incorporated herein by reference. (e) Amendments. This Agreement may only be amended by written instrument executed by the City and CC Technologies. (f) Executed Counterparts. This Agreement may be executed in several counterparts, each of which shall be regarded as an original and all of which shall constitute but one and the same agreement. It shall not be necessary in proving this Agreement to produce or account for more than one of those counterparts. (g) Severability. In case any section or provision of this Agreement, or any covenant, agreement, obligation or action, or part thereof, made, assumed, entered into or taken, or any application thereof, is held to be illegal or invalid for any reason, (i) that illegality or invalidity shall not affect the remainder hereof or thereof, any other section or provision hereof, or any other covenant, agreement, obligation or action, or -4- part thereof, made, assumed, entered into or taken, all of which shall be construed and enforced as if the illegal or invalid portion were not contained herein or therein, (ii) the illegality or invalidity of any application hereof or thereof shall not affect any legal and valid application hereof or thereof, and (iii) each section, provision, covenant, agreement, obligation or action, or part thereof, shall be deemed to be effective, operative, made, assumed, entered into or taken in the manner and to the full extent permitted by law. (h) Captions. The captions and headings in this Agreement are for convenience only and in no way define, limit or describe the scope or intent of any provisions or sections of this Agreement. (i) Governing Law and Choice of Forum. This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio or applicable federal law. All claims, counterclaims, disputes and other matters in question between the City, its agents and employees, and CC Technologies, its employees and agents, arising out of or relating to this Agreement or its breach will be decided in a court of competent jurisdiction within Franklin County, Ohio. (j) Survival of Representations and Warranties. All representations and warranties of CC Technologies and the City in this Agreement shall survive the execution and delivery of this Agreement. (Signature Pages to Follow) -5- IN WITNESS WHEREOF, the City and CC Technologies have caused this Agreement to be executed in their respective names by their duly authorized representatives, all as of the date first written above. CITY OF DUBLIN, OHIO By: Printed: Jane Brautigam Title: City Manager By: \~~ `~ Printed: Marsha I. Grigsby Title: Director of Finance Approved as to Form: B~_ _ ~~. _ Printed: Stephen J. Smith Title: Director of Law CORTEST COLUMBUS TECHNOLOGIES, INC. ,~..,'- By: ,' Printed: ~lEl~ (~. ~'HOMPSOI~ CEO Title: -6- FISCAL OFFICER'S CERTIFICATE The undersigned, Director of Finance of the City under the foregoing Agreement, certifies hereby that the moneys required to meet the obligations of the City during the year 2004 under the foregoing Agreement have been appropriated lawfully for that purpose, and are in the Treasury of the City or in the process of collection to the credit of an appropriate fund, free from any previous encumbrances. This Certificate is given in compliance with Sections 5705.41 and 5705.44, Ohio Revised Code. .. _, ~ Dated: ~\ o , ~ ~, I ~ , 2004 ~~~~' _ ' `. ~~ ~ .) _ ~~ Marsha I~ Grigsby Director of Finance City of Dublin, Ohio -7-