HomeMy WebLinkAbout012-03 Ordinance RECORD OF ORDINANCES
Dayton Legal Blank Co. Form No. 30043
Ordinance No .........................I.2_Q3......................... Passed
AN ORDINANCE APPROVING A TAX CREDIT AND
ECONOMIC DEVELOPMENT AGREEMENT WITH
SYPHERLINK, INC. CORPORATION AND
AUTHORIZING, CONFIRMING AND RATIFYING
THE EXECUTION OF THE AGREEMENT.
WHEREAS, Sypherlink, Inc. (the "Company") is an employer located in the
City of Dublin, Ohio (the "City") at 565 Metro Place South (the "Property"),
and based on inducements and incentives offered by the City in an Economic
Development Agreement (the "Agreement"), the Company is embarking upon
an 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 1;he Company to pursue expansion
of operations for the purpose of creating jobs and employment opportunities
and to improve the economic welfare of thl° 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 newjobs in the State; and
WHEREAS, pursuant to Section 122.17 ORC, on January 27, 2003, 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 cred~~ts 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, THEREFQRE, BE IT ORDAINED by the Council of the City of
Dublin, Ohio, I_~_ 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 jabs 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 naive 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
RECORD OF ORDINANCES
Dayton Legal Blank Co. Form No. 30043
Ordinance No...1.2._03 Passed ............................................page..2...,
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.
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 pa:;sage of this ordinance were taken
in an open meeting of this Council and tha~r 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 and be in force in accordance
with Section 4.04 of the City Charter.
Signed:
Mayor -Presiding Officer
Attest:
Clerk of Council
Passed: • ~ , 2003
Effective: /t/t ~ yC ~ ~ , 2003
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.
A,(11 I~.
r', k of Council, Dublin, Ohio
Division of Economic Development
5800 Shier-Rings Road Dublin, Ohio 43016-1236
crrv of nug~?N Phone: 614-410-4600 Fax: 614-761-650Ei Memo
To: Members of Dublin City Council
From: Jane Brautigam, City Manager~cw..~.5. (lj
Date: February 12, 2003
Re: Ordinance No. 12-03
Initiated by: Michael H. Stevens, Director of Economic; Development /G~-„
Summary'
At the February 3, 2003 meeting, City Council requested information on the Economic Development
Agreements in place that support the State's Job Creation 'Tax Credit program. To date City Council
has approved ten such agreements. The following is the ;list of ten companies:
1). Ashland
2). Submit Order.com -out of business
3). ASCI
4). SPATA -out of business
5). ECNext -did not relocate to Dublin
6). Foresight
7). Spirea
8). Statprobe
9). Medex
10). Aelita Software
Only one company has been eligible for the tax credit provided in the agreements. That credit was in
the amount of $6,400 and was received in 2001. In 2002 the total revenue received from these
companies was $2,650,937.
Recommendation:
Staff recommends approval of the Economic Development Agreement with Sypherlink, Inc.,
Ordinance No. 12-03.
Division of Economic Development
5800 Shier-Rings Road Dublin, Ohio 43016-1236
CI"f l' OF DUBLIN Phone: 614-410-4600 Fax: 614-761-650Ei Memo
To: Members of Dublin City Council
From: Jane Brautigam, City Manager
Date: January 23, 2003
Re: Ordinance No. 1203
Initiated by: Michael H. Stevens, Director of Economic; Development Q,Q,
Summary:
Ordinance No. 1'$-03 is the authorization to enter into an Economic Development Agreement with
Sypherlink, Inc. (Sypherlink). 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.
Sypherlink received a Job Creation Tax Credit from the Ohio Tax Credit Authority on January 27,
2003. The State's incentive is contingent upon the approval of local support.
Sypherlink is located at 565 Metro Place South and currently has seven (7) employees. Sypherlink is
a local technology company that has developed applications that enable the analysis, virtual
centralization, and content query of complex sets of data, including very large databases,
spreadsheets, and flat files. The Company has committed to creating 90 additional jobs over the next
three (3) years. The average wage of the new positions will be $70,000/year. It is anticipated that
the incentive will not exceed $315,000.
Recommendation:
Staff is recommending the adoption of Ordinance No. 1$ 03 at the February 18, 2003 City Council
meeting.
ECONOMIC DEVELOPMENT AGREEMENT
AGREEMENTC
BETWEEN
THE CITY OF DUBLIN
AND
SYPHERLINK, INC.
February 2003
ECONOMIC DEVELOPMENT AGREEMENT
This Agreement is entered into on , 2003, between the City
of Dublin (the "City") and Sypherlink, Inc. (the "Corripany") for the purpose of assisting in
the Company's future expansion of its corporate headquarters located at 565 Metro Place
South, Dublin, Ohio.
ARTICLE I. BACKGROUND
The Company is a local technology company that has developed applications that enable the analysis,
virtual centralization, and content query of complex sets of data, including very large databases,
spreadsheets, and flat files. The Company relocated its offices to Dublin in October 2002 and currently
leases 9,875 s.f. The Company currently has seven (7) employees, and is has committed to creating 90
additional jobs over the next three (3) years, beginning February 1, 2003 and ending January 31, 2006.
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 facility
and the creation of these new jobs will provide economic bf;nefits to the City and will further add to the
quality of this community.
ARTICLE II. AGREEMENT
1. Municipal Corporate Income Tax Credit. 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 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,
2003 through December 31, 2007. The tax credit shall under no circumstances exceed 50% of the
Company's corporate Municipal 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.
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
SYPHERLINK, INC.
By:
