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Home My WebLink About101-03 OrdinanceRECORD OF ORDINANCES Dayton Legal Blank. Inc. Form No. 30043 Ordinance No. ~Ql _n~ Passed . 20 AN ORDINANCE APPROVING A TAX CREDIT AND ECONOMIC DEVELOPMENT AGREEMENT WITH COMPMANAGEMENT, INC. AND AUTHORIZING, CONFIRMING AND RATIFYING THE EXECUTION OF THE AGREEMENT. WHEREAS, CompManagement, Inc. (the "Company") is an employer located in the City of Dublin, Ohio (the "City") at 6377 Emerald Parkway (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 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 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 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 RECORD OF ORDINANCES [nc. Ordinance No. 1(11-n~ Passed Pace 2 . 20, 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 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 Attest: Clerk of Council Passed: S~,7Y"~inhG/ ~5 , 2003 Effective: ~~O~C r /.~ , 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. ~ ~ e uty Clerk of Council, Dublin, Ohio of the City Charter. Division of Economic Development 5800 Shier-Rings Road Dublin, Ohio 43016-1236 CITY OF DUBLIN Phone: 614-410-4600 Fax: 614-761-6506 Memo To: Members of Dublin City Council From: Jane Brautigam, City Manager ~_ rj . ~ ~~ v Date: August 28, 2003 Re: Ordinance Numbers 101-03, CompManagement, Inc. and 102-03, Signature, Inc. Initiated by: Michael H. Stevens, Director of Economic Development /~~ U Summary Ordinance No. 101-03 is the authorization to enter into an Economic Development Agreement with CompManagement, Inc. (CompManagement). 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. CompManagement received a Job Creation Tax Credit from the Ohio Tax Credit Authority on August 25, 2003. The State's incentive is contingent upon the approval of local support. CompManagement, Inc. 6377 Emerald Parkway, is one of the nation's leading third party administrators. The Company, which is headquartered in Dublin, has approximately 800 employees nationwide and has provided service to over 53,000 employers. Located in Dublin since 1990, the company employs 375 locally. Comp Management has committed to the State to add 90 new, full-time jobs within the next three years at an average salary of $50,000. It is anticipated that the incentive will not exceed $225,000. Ordinance No. 102-03 is the authorization to enter into an Economic Development Agreement with Signature, Inc. (Signature). 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 Signature received a Job Creation Tax Credit from the Ohio Tax Credit Authority on August 25, 2003. The State's incentive is contingent upon the approval of local support. Signature, Inc., 5115 Park Center Avenue, is the largest and most comprehensive sales and service training company for the hospitality industry in the United States and Canada. The Company, which has been in Dublin since 1990, is a business solution provider that develops custom programs designed to enhance the skills sets of each client's employees. Signature has 120 full time equivalent positions at its Dublin office and has committed to creating 41 additional jobs over the next 3 years. The average wage of the jobs will be $54,000/year. It is anticipated that the incentive will not exceed $110,700. Recommendation Staff is recommending the adoption of Ordinance Numbers 101-03 and 102-03 at the September I5, 2003 City Council meeting. ECONOMIC DEVELOPMENT AGREEMENT AGREEMENT BETWEEN THE CITY OF DUBLIN AND COMPMANAGEMENT, INC. September, 2003 ECONOMIC DEVELOPMENT AGREEMENT This Agreement is entered into on 2003, between the City of Dublin (the "City") and CompManagement, Inc. (the "Company") for the purpose of assisting in the Company's future expansion as one of the nation's leading third party administrators. ARTICLE I. BACKGROUND The Company, headquartered in Dublin, Ohio, is one of the nation's leading third party administrators, with over 800 associates located throughout the country providing superior service to over 53,000 employers across the nation. The Company plans to create an additiona190 jobs over the next 3 years beginning 2004 and ending 2007. 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 that the creation of these new jobs will provide economic benefits to the City and will further 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 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 January 1, 2004 through December 3l, 2008. The tax credit shall under no circumstances exceed 50% of the Company's municipal corporate income tax liability. Page 1 of 2 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. CITY OF DUBLIN By: ~J ~5• - City Manager ~~ ~ , Director of Finance COMP M T, INC. By: Page 2 of 2