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HomeMy WebLinkAboutOrdinance 47-24RECORD OF ORDINANCES BARRETT BROTHERS - DAYTON, OHIO Form 6220S 47-24 Ordinance No. Passed AUTHORIZING THE PROVISION OF CERTAIN INCENTIVES TO CSD DUBLIN LLC TO INDUCE IT TO DEVELOP RIVERVIEW VILLAGE AND ITS ASSOCIATED OPERATIONS AND WORKFORCE WITHIN THE CITY; AND AUTHORIZING THE EXECUTION OF AN ECONOMIC DEVELOPMENT AGREEMENT WHEREAS, consistent with its Economic Development Strategy approved by Dublin City Council Resolution No. 78-23 adopted on October 23, 2023, the City desires to encourage commercial office development and create and preserve jobs and employment opportunities within the City; and WHEREAS, CSD Dublin LLC (the “Company’) recently performed a comprehensive examination of its workforce needs, and based on the results of this examination, and induced by and in reliance on the economic development incentives provided in the heretofore executed Real Estate Transfer and Development Agreement and the proposed Economic Development Agreement (as described below), the Company is desirous of relocating its national headquarters to a new office within the Riverview Village area of the City and attracting COhatch members to Riverview Village, which will result in the creation of new jobs and employment opportunities, all within the City, and based on the Company’s estimates, will allow the Company to achieve the payroll withholding targets set forth in the Economic Development Agreement; and WHEREAS, this Council has determined that it is necessary and appropriate and in the best interests of the City to provide for certain economic development incentives to the Company, as described in the proposed Economic Development Agreement; and WHEREAS, this Council has determined to offer the 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 the Company to relocate its national headquarters to a new office within the Riverview Village area of the City and to provide for the future expansion of that national headquarters and its associated operations and workforce within the City, and attracting COhatch members to Riverview Village, which will result in the creation of new jobs and employment opportunities, thereby improving the economic welfare of the people of the State of Ohio and the City, all as authorized in Article VIII, Section 13 of the Ohio Constitution; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, “"l of the elected members concurring, that: Section 1. The Economic Development Agreement by and between the City and the Company, in the form presently on file with the Clerk of Council, providing for, among other things, the provision of certain economic development incentives in consideration for the Company’s agreement to relocate its national headquarters to a new office within the Riverview Village area of the City and to provide for the future expansion of that national headquarters and its associated operations and workforce within the City, and attracting COhatch members to Riverview Village, which will result in the creation of new jobs and employment opportunities, 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. The City Manager, for and in the name of this City, is hereby authorized to execute that Economic Development Agreement, provided further that the approval of changes thereto by that official, and their character as not being substantially adverse to the City, shall be evidenced conclusively by the execution thereof. This Council further authorizes the City Manager, 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 Director of Law, the Director of Finance, the Economic Development Director, the Clerk of Council, or other appropriate officers of the City to prepare and sign all agreements and instruments and to take any other actions as may be appropriate to implement this Ordinance. RECORD OF ORDINANCES BARRETT BROTHERS - DAYTON, OHIO Form 6220S 45-24 Ordinance No. Passed , AMENDING THE LOCATION AND AMOUNT OF CASH ON HAND FOR CHANGE FUNDS WHEREAS, business transactions occur in a variety of locations which require cash on hand to complete the transaction and minimize the inconvenience to the public, and WHEREAS, Ordinance 73-21 previously established the authorized locations and amounts for change funds, and WHEREAS, it is necessary to modify the amount of the change fund for the Mayor’s Court to meet their needs for processing payments, and WHEREAS, due to an increase in reimbursements being processed through payroll, the petty cash fund in the Finance Division will be reduced, and the change fund in the Finance Division is no longer needed, and NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, __“[__ of its elected members concurring, that: Section 1. Change funds for conducting City business will be maintained in the following locations for the purposes indicated: Court Services Court fees/costs 200.00 Police General fees 100.00 After hours collection For Court Services 75.00 Recreation Services Recreation programs 650.00 North Outdoor pool 800.00 South Outdoor pool 800.00 Events Administration Rental Fees 200.00 Section 2. | Temporary change funds needed for special event activities may be established throughout the year. These change funds will only be maintained during the event and the monies will be re-deposited upon its conclusion. Section 3. The Director or designee will be responsible for maintaining and reconciling the change funds on a daily basis. Receipts collected shall be deposited intact daily with the Finance Department or the City depository. Section 4. The change funds are to be used to make change only and not for payment of petty cash items. Section 5. There be established a petty cash fund in the amount of $100.00, which will be maintained by the Finance Department for the purpose of reimbursing employees for out-of-pocket expenses up to $20.00 per Administrative Order. Section 6. This ordinance shall take effect and be in force in accordance with Section 4.04(b) of the Revised Charter. ia this gt “S of Novtady , 2024. [A — Presiding Offi om Clerk of Céuncil () RECORD OF ORDINANCES BARRETT BROTHERS - DAYTON, OHIO Form 6220S 47-24 Page 2 Ordinance No. Passed Section 3. This Council finds and determines that all formal actions of this Council and any of its committees concerning and relating to the passage of this Ordinance were taken in open meetings of this Council or committees, and that all deliberations of this Council and any of its committees that resulted in those formal actions were in meetings open to the public, all in compliance with the law including Section 121.22 of the Revised Code. Section 4. This Ordinance shall be in full force and effect on the earliest date permitted by law. Signed: Vt. Ze Mayor - Presiding Officer Attest: Clerk of Cofincil (| Passed: Movember l¥ 2024 Effective: Necember IY 2024 To: Members of Dublin City Council From: Megan O’Callaghan, City Manager Date: October 29, 2024 Initiated By: Jeremiah Gracia, CEcD, Director of Economic Development Luke Fleming, Economic Development Administrator Re: Ordinance 47-24 Economic Development Agreement with COhatch Background On October 10, 2023, the City entered into a Real Estate Transfer and Development Agreement (“Agreement”) with COhatch for its Riverview Village project. The Agreement includes provisions for the City to provide income tax incentives and development grant payments based on the private investment commitments made by COhatch and public infrastructure commitments by the City to develop and construct COhatch’s Riverview Village project. This Economic Development Agreement (EDA) solidifies the income tax performance incentives available to COhatch, and its future members, that will result in job creation, expansion and investment in the City of Dublin. The EDA provides for a twenty (20%) percent performance income tax incentive for the years 2027 through 2033 based on net payroll withholdings received by the City. While there are no minimum targets for withholdings there are annual cap payments for each year. The annual cap payments are as follows: 2027: $206,000 2028: $218,000 2029: $231,000 2030: $243,000 2031: $257,000 2032: $272,000 2033: $287,000 There are also separate annual grant payments to COhatch based on their private investment activities of up to $195,000/year for ten years. The annual amount of the economic development grant is based on an interest rate of 6.75% for its project loan. The annual amount of the grant will be reduced by $11,100 for every 0.25% reduction in the loan interest rate. COhatch will provide evidence of its current loan interest rate each year prior to receiving its annual grant payment. All incentive payments are designed to encourage COhatch’s private investments, create new jobs and employment opportunities, and create a first-of-a-kind coworking and entrepreneurial village. COhatch must also maintain operations of its headquarters at Riverview Village for at least ten (10) years from which the first grant payment is paid. Failure to do so requires repayment of all incentive payments paid by the City. Office of the City Manager 5555 Perimeter Drive • Dublin, OH 43017 Phone: 614.410.4400 Memo October 29, 2024 Page 2 of 2 This EDA represents a significant step towards enhancing Dublin's economic development successes and the creation of a new business hub in Historic Dublin. The collaboration between the City and COhatch will foster job creation and contribute to the City's long-term growth and prosperity. Recommendation Staff recommends Council passage of Ordinance 47-24 on November 18, 2024. 1097032757\4\AMERICAS ECONOMIC DEVELOPMENT AGREEMENT THIS ECONOMIC DEVELOPMENT AGREEMENT (the “Agreement”) is made and entered into this _____ day of __________, 2024 (the “Effective Date”), 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 CSD DUBLIN LLC, an Ohio limited liability company (the “Company” and together with the City, the “Parties”), under the circumstances summarized in the following recitals. RECITALS: WHEREAS, consistent with its Economic Development Strategy approved by Dublin City Council Resolution No. 78-23 adopted on October 23, 2023, the City desires to encourage commercial office development and create and preserve jobs and employment opportunities within the City; and WHEREAS, the Company owns and operates a coworking office and meeting space which is located at 25 North Street in Historic Dublin (the “Existing Office”); and WHEREAS, based on the results of the Company’s recent comprehensive examination of workforce needs, and induced by and in reliance on the economic development incentives provided in this Agreement and the Development Agreement (defined below), the Company desires to establish, and eventually expand, its national headquarters (the “Headquarters”) within the City; and WHEREAS, the Headquarters will initially be established in the Existing Office; and WHEREAS, to facilitate the eventual expansion of the Headquarters, the City and the Company have entered into a Real Estate Transfer and Development Agreement dated October 10, 2023 (the “Development Agreement”) which, among other terms, provides that the City will, pursuant to a real estate conveyance agreement (the “Real Estate Conveyance Agreement”), convey certain real property (the “City Real Property”) to the Company which will be developed into “Riverview Village” to accommodate the expansion of the Headquarters and creation of other uses; and WHEREAS, pursuant to Ordinance No. ___-24 passed on __________, 2024 (the “Ordinance”), the City has determined to offer the economic development incentives described herein to induce the Company to establish and expand the Company’s Headquarters within the City, together with its associated operations and workforce, and to promote the location of COhatch Members (as defined below) to Riverview Village, which will result in the creation of new jobs and employment opportunities to improve the economic welfare of the people of the State of Ohio and the City, all as authorized in Article VIII, Section 13 of the Ohio Constitution; and WHEREAS, the City and the Company have determined to enter into this Agreement to provide these incentives in order to induce the Company to establish and expand the Company’s Headquarters within the City and its associated operations and workforce and to promote the location of COhatch Members at or in proximity to the Headquarters; - 2 - 1097032757\4\AMERICAS NOW THEREFORE, in consideration of the foregoing, the promises contained herein, and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the City and the Company agree and obligate themselves as follows: Section 1. Company’s Agreement to Establish and Expand the Company’s Headquarters within the City and its Associated Operations and Workforce and to promote the location of COhatch Members at or in proximity to the Headquarters. (a) In consideration for the economic development incentives to be provided by the City in and consistent with the Development Agreement and this Agreement, the Company agrees that it will, promptly following the (i) execution of this Agreement, establish the Headquarters at the Existing Office and (ii) conveyance by the City of the City Real Property to the Company, expand the Company’s Headquarters to Riverview Village, together with its associated operations and workforce and to promote the location of COhatch Members at or in proximity to the Headquarters. In connection with the establishment and expansion of the Headquarters and the location of COhatch Members at or in proximity to the Headquarters, the Company expects to retain and/or create or cause to be retained and/or created Five Hundred Ten (510) Employee (as defined below) positions within the City by December 31, 2033. The total estimated payroll withholdings for those new Employee positions is estimated to be approximately Eight Million Five Hundred Thousand Dollars ($8,500,000) for the period from January 1, 2027 through December 31, 2033. (b) The Company agrees that the City’s obligations to remit the payments pursuant to Section 2 of this Agreement shall be contingent upon: (i) the City conveying the City Real Property to the Company, provided that said conveyance will have been completed no later than July 1, 2025, (ii) the City issuing to the Company (which issuance will not be unreasonably conditioned, delayed or withheld) a certificate of occupancy (the "Certificate of Occupancy") for the expanded Headquarters (within Riverview Village) and (iii) such other conditions as are set forth in Section 2; provided, however, and notwithstanding any provision herein to the contrary, if the Company shall, after having acted in good faith, fail to consummate the conveyance of the City Real Property, receive the Certificate of Occupancy or occupy the expanded Headquarters (within Riverview Village), each within the respective periods set forth in Sections 3(s)(i) and 3(s)(ii), (iv) this Agreement will terminate without such failure constituting a breach by the Company, (v) the City’s obligation to remit any Capital Expenditure Grant Payment or any Annual Incentive Payment will be terminated and (vi) the Company will owe no penalties to the City as a result of such failure. Section 2. City’s Agreement to Provide Incentives. (a) General. In consideration for the Company’s agreement to establish and expand the Headquarters within the City, together with its associated operations and workforce, to promote the location of COhatch Members at or in proximity to the Headquarters and to create new jobs and employment opportunities, all within the City, the City agrees to provide economic development incentives to the Company in accordance with this Section. - 3 - 1097032757\4\AMERICAS (b) Capital Expenditure Grants. (i) General. The Company agrees to acquire title to the City Real Property for the purpose of developing Riverview Village which will also accommodate the planned expansion of the Headquarters and attraction of COhatch Members. To facilitate that planned expansion and the development of Riverview Village, the Company will make a significant capital investment (expected to be at least $8 million). In consideration for the Company’s agreement to acquire the City Real Property and develop Riverview Village and subject to the Company’s compliance with the requirements set forth in Sections 1(b) and compliance by the Company with the requirements Section 2(d), the City agrees to provide to the Company a series of capital expenditure grant payments (the “Capital Expenditure Grant Payments”) as described in this Section 2(b). (ii) Base Amounts Related to the Capital Expenditure Grant Payments. For purpose of calculating the amount of each annual Capital Expenditure Grant Payment, the Parties agree that the assumed interest rate applicable to the Credit Facility (described below) shall be 6.75% per annum and the maximum amount of any annual Capital Expenditure Grant Payment shall be $195,000. (iii) Company’s Credit Facility. Promptly following the conveyance by the City of the City Real Property to the Company, the Company will finalize the terms of its loan (the “Credit Facility”) which will be used by the Company for the purpose of paying the costs of the improving Riverview Village to accommodate the expansion of the Headquarters and other planned uses. Once that Credit Facility is finalized by the Company, the Company shall provide written notice to the City regarding the interest rate applicable to the credit facility (the “Applicable Rate”). To the extent that the Applicable Rate is adjusted during the period over which the City is obligated to remit Capital Expenditure Grant Payments to the Company, the Company shall promptly notify the City in writing of any such adjustments. (iv) Determination and Payment of Annual Capital Expenditure Grant Payments. No later than December 31, 2024 and on March 15th in each of the years 2025 through 2033 (inclusive), the City shall determine the then most recent Applicable Rate provided by the Company to the City. If the then Applicable Rate equals or exceeds 6.75% per annum, the Capital Expenditure Grant for that calendar year shall be $195,000. For each 25 basis points (i.e., 0.25%) by which the then Applicable Rate is reduced below 6.75%, the Capital Expenditure Grant Payment for that calendar year shall be reduced by $11,100. For example, if the Applicable Rate is (A) 6.51%, the Capital Expenditure Grant will be $195,000, (B) 6.49%, the Capital Expenditure Grant will be $183,900 and (C) 6.25%, the Capital Expenditure Grant will be $172,800. However, the Capital Expenditure Grant Payment shall not be increased for any increase if the Applicable Rate is greater than 6.75% per annum. The City agrees that the Capital Expenditure Grant Payments will be made to the Company no later than December 31, 2024 and April 15th of each of the years 2025 through 2033 (inclusive). (v) Forfeiture of Right to Receive Capital Expenditure Grant Payments. The Company agrees and acknowledges that the Capital Expenditure Grant Payments provided - 4 - 1097032757\4\AMERICAS for in this Section 2(b) are being made by the City to the Company in consideration for the Company’s agreement to acquire the City Real Property, develop Riverview Village, expand the Headquarters and promote the location of COhatch Members at or in proximity to the Headquarters. The Company further agrees that if the requirements of Section 1(b) are not initially satisfied and for so long as the requirements of Section 2(d) are not satisfied by the Company, the City shall not be obligated to remit any Capital Expenditure Grant Payments to the Company as required by this Section 2(b). (vi) Repayment of Capital Expenditure Grant Payments. The Company agrees that if the City reasonably determines, at any time from the date on which the first Capital Expenditure Grant Payment is remitted to the Company through and including the tenth (10th) anniversary thereafter, that the Company has ceased operations of the Headquarters at Riverview Village, the City will within thirty (30) days of that determination provide written notice to that effect to the Company, and the Company will no later than ninety (90) days after provision of that notice remit to the City a payment equal to the aggregate amount of all Capital Expenditure Grant Payments theretofore remitted by the City to the Company. (c) Workforce Creation Incentive. (i) Calculation of Net Payroll Withholdings. On or before March 15 of each of the years 2028 through 2034, the City shall calculate the Net Payroll Withholdings (as defined below). For purposes of that calculation, the Company acknowledges and agrees that for each calculation, the total amount of actual payroll withholding taxes shall be determined based solely upon the amount of payroll withholding tax payments actually received by the City from the Company, an Affiliated Entity or a COhatch Member during the then preceding calendar year. For purposes of this Section 2: (A) “COhatch Member” shall mean any individual, partnership, corporation, limited liability company, association, joint stock company, trust, joint venture, unincorporated organization or any other entity who enters into a membership agreement with the Company and selects the Headquarters located in the City as its principal or “home” location. The Company agrees that as part of the process of “locating” a COhatch Member at the Headquarters, the Company will require that the COhatch Member complete and submit to the City’s Division of Taxation a copy of the then current Business Registration Form (a copy of the current Form is attached hereto as EXHIBIT A). The Company also agrees that monthly it will provide an updated copy of EXHIBIT B to the City which will include all of the COhatch Members. The Parties acknowledge that completion and submission of such Form and the monthly reporting will facilitate the City’s ability to track the various COhatch Members’ Net Payroll Withholdings. The Parties agree that the payroll withholdings taxes of any Employee(s) employed by COhatch Member which is not included on EXHIBIT B shall not be included in the computations described in this Section 2 until such time as the Company shall have submitted a written request to the City which identifies the COhatch Member and that COhatch Member’s Federal Employer Identification - 5 - 1097032757\4\AMERICAS Number, and such request shall have been approved in writing by the City, which approval shall not be unreasonably conditioned, delayed or withheld; provided, however, the payroll withholdings taxes of any Employee(s) employed by a COhatch Member shall not be included in the computations described in this Section 2 in respect of any particular calendar year if those payroll withholdings taxes are for that particular calendar year included in the computations for a separate City municipal income tax-based incentive payment. (B) “Affiliated Entity” or “Affiliated Entities” shall mean any entity listed on EXHIBIT C or any entity controlled by or under common control with the Company and, “controlled by” or “under common control with” will refer to the possession, directly or indirectly, of the legal power to direct or cause the direction of the management and policies of an entity, whether through the exercise of, or the ability to exercise, voting power or by contract. The Parties agree that the payroll withholdings taxes of any Employee(s) employed by an Affiliated Entity which is not included on EXHIBIT C shall not be included in the computations described in this Section 2 until such time as the Company shall have submitted a written request to the City which identifies the Affiliated Entity and that Affiliated Entity’s Federal Employer Identification Number, and such request shall have been approved in writing by the City, which approval shall not be unreasonably conditioned, delayed or withheld; provided, however, the payroll withholdings taxes of any Employee(s) employed by an Affiliated Entity shall not be included in the computations described in this Section 2 in respect of any particular calendar year if those payroll withholdings taxes are for that particular calendar year included in the computations for a separate City municipal income tax-based incentive payment. Promptly following the City’s approval of such additional Affiliated Entity, the Parties agree that EXHIBIT C will be updated to reflect that additional Affiliated Entity. (C) “Employees” shall include only those individuals employed by the (A) Company, (B) an Affiliated Entity or (C) a COhatch Member, and in each case, are subject to withholding for the City’s municipal income tax. (D) “Net Payroll Withholdings” shall mean the result of (A) the actual payroll withholding taxes received by the City during the then preceding calendar year from all Employees minus (B) the municipal income tax refunds paid by the City to Employees during the then preceding calendar year in respect of income earned as an Employee. All obligations of the Company under this Section 2(c) may be satisfied by any combination of the Company, any Affiliated Entity and any COhatch Member; provided, however, Net Payroll Withholdings in any calendar year shall not include any Employee if such Employee was employed in the City by an Affiliated Entity or a COhatch Member immediately preceding the occurrence of the event resulting in the recognition of such entity as an Affiliated Entity or a COhatch Member. - 6 - 1097032757\4\AMERICAS For purposes of monitoring the Company’s performance under this Agreement, the Company consents to and agrees that the City’s Division of Taxation may share with the City’s Department of Economic Development information relating to Employees and Net Payroll Withholdings which is determined pursuant to this Section 2(c)(i). (ii) Information Relating to Employees. The Company agrees that, in accordance with the City’s codified ordinances, as may hereafter be amended from time to time (the “Dublin City Code”), the annual payroll reconciliation and related W-2 forms relating to its Employees will be provided to the City prior to February 28 of each calendar year. (iii) Employer Identification Number. The Company’s Federal Employer Identification Number is 33-1514767 . The Company agrees that if the Federal Employer Identification Number changes at any time during the term of this Agreement, the Company will notify the City of such change, including the new Federal Employer Identification Number, within thirty (30) days of the occurrence of such change. (iv) Annual Incentive Payments to the Company. Subject to the Company’s compliance with the requirements set forth in Section 2(d), the City shall, on or before April 15 of the then current calendar year, pay to the Company, solely from nontax revenues (as defined in Section 2(f)), an amount equal to the product of (A) the Net Payroll Withholdings for that preceding calendar year multiplied by (B) twenty percent (20%) (with each such product being referred to as an “Annual Incentive Payment”); provided, however, that (1) the City shall not be required pursuant to this Section 2(c) to remit an Annual Incentive Payment to the Company in excess of the Annual Cap (as defined in Section 2(c)(v)) in any calendar year, and (2) the aggregate amount of all Annual Incentive Payments remitted pursuant to this Section 2(c) by the City to the Company shall not exceed One Million Seven Hundred Fourteen Thousand and 00/100 Dollars ($1,714,000.00). (v) Annual Cap. The Annual Cap for each of the calendar years 2027 through 2033 shall be as follows: Calendar Year Annual Cap 2027 $206,000 2028 218,000 2029 231,000 2030 243,000 2031 257,000 2032 272,000 2033 287,000 (vi) Forfeiture of Right to Receive Annual Incentive Payments. The Company acknowledges and agrees that the Annual Incentive Payments provided for in Section 2(c) are being made by the City to the Company in consideration for the Company’s agreement to establish the Headquarters and expand it into Riverview Village, together with its associated operations and workforce, to attract COhatch Members to Riverview Village, and to create new jobs and employment opportunities, all within the City. - 7 - 1097032757\4\AMERICAS (vii) Repayment of Annual Incentive Payments. The Company agrees that if the City reasonably determines, at any time from the date on which the first Capital Expenditure Grant Payment is remitted to the Company through and including the tenth (10th) anniversary thereafter, that the Company has ceased operations of the Headquarters at Riverview Village, the City will within thirty (30) days of that determination provide written notice to that effect to the Company, and the Company will no later than ninety (90) days after provision of that notice remit to the City a payment equal to the aggregate amount of all Annual Incentive Payments theretofore remitted by the City to the Company. (d) Filing of Municipal Income Tax Returns and Remission of Related Taxes. (i) Filings and Payment. (A) Direct Filings and Payments. The Company agrees for itself and, to the extent that Net Payroll Withholdings for any Affiliated Entity or any COhatch Member are to be included in this Section 2(c), on behalf of each Affiliated Entity and each COhatch Member, that each shall timely (1) file all municipal income tax returns directly with the City and (2) remit all municipal income tax payments directly to the City, each as required by the Dublin City Code. Notwithstanding the prohibitions in Sections 2(d)(i)(B) and (C) below, the Company, or any Affiliated Entity or COhatch Member, may utilize the services of an accounting firm to provide for such filings and/or payments, provided that any such filing and/or payment is not combined with a filing and/or payment relating to any other taxpayer. (B) Ohio Business Gateway. While Ohio law currently permits the Company, and each Affiliated Entity and COhatch Member, to file its municipal income tax returns and remit its municipal income tax payments directly through the Ohio Business Gateway, the Company acknowledges that if in respect of any of the tax years 2027 through 2033 (inclusive), the Company, or any Affiliated Entity or COhatch Member, either (1) files a related municipal income tax return or (2) remits a related municipal income tax payment, in either case directly with the Ohio Business Gateway instead of the City, then notwithstanding Section 2(d)(ii), the Net Payroll Withholdings of Employees of such Company, Affiliated Entity or COhatch Member shall be excluded from the computations in Section 2(c) for purposes of determining the amount of an Annual Incentive Payment. (C) Professional Employer Organizations. The Company further acknowledges that if in respect of any of the tax years 2027 through 2033 (inclusive), the Company, any Affiliated Entity or COhatch Member, engages a professional employer organization to provide for the (1) filing of such entity’s municipal income tax return or (2) remission of such entity’s municipal income tax payment, the Net Payroll Withholdings of Employees of such Company, Affiliated Entity or COhatch Member shall be excluded from the computations in Section 2(c) for purposes of determining the amount of an Annual Incentive Payment. - 8 - 1097032757\4\AMERICAS (ii) Compliance with Dublin City Code. (A) Not earlier than fifteen (15) days preceding the date on which the City is required to make a Capital Expenditure Grant Payment or Annual Incentive Payment to the Company, the City shall determine whether the Company is in full compliance with its obligation to remit municipal income taxes to the City pursuant to the Dublin City Code. If the City reasonably determines that the Company is not in full compliance, the City shall not be obligated to make such Capital Expenditure Grant Payment and Annual Incentive Payment on the required payment date and will promptly provide written notification of such determination to the Company. If within sixty (60) days following the date of the City’s written notification the City receives a payment from the Company which the City reasonably determines will cause the Company to be in full compliance with its municipal income tax obligations pursuant to the Dublin City Code (including any applicable interest and penalties), the City will within fifteen (15) days of receipt of such payment remit to the Company such Capital Expenditure Grant Payment or Annual Incentive Payment. If, however, the Company fails to timely remit sufficient payment to the City in accordance with the preceding sentence, the City may in its sole discretion determine that the City’s obligation to remit such Capital Expenditure Grant Payment or Annual Incentive Payment is voided and that such required Capital Expenditure Grant Payment or Annual Incentive Payment will not be made, and will promptly provide written notification to the Company of such determination. (B) Not earlier than fifteen (15) days preceding the date on which the City is required to make a Capital Expenditure Grant Payment or Annual Incentive Payment to the Company, the City shall determine whether each Affiliated Entity and each COhatch Member is in full compliance with its obligation to remit municipal income taxes to the City pursuant to the Dublin City Code. If the City reasonably determines that any such entity is not in full compliance, the City will promptly provide written notification of such determination to the Company and such notice shall inform the Company that the Net Payroll Withholdings of Employees of such entity will not be included within the computations in Section 2(c) for purposes of determining the amount of an Annual Incentive Payment. If within sixty (60) days following the date of the City’s written notification the City receives a payment from such entity which the City reasonably determines will cause that entity to be in full compliance with its municipal income tax obligations pursuant to the Dublin City Code (including any applicable interest and penalties), the City will within fifteen (15) days of receipt of such payment notify the Company that the Net Payroll Withholdings of Employees of such entity will be included within the computations in Section 2(c) for purposes of determining the amount of an Annual Incentive Payment. (e) Method of Payment. The payments to be paid to the Company as provided in this Section 2 shall be made by the City to the Company by electronic funds transfer or by such other manner as is mutually agreed to by the City and the Company. - 9 - 1097032757\4\AMERICAS (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 the Company 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 and on a subordinated basis to the payment of debt service charges as may hereafter be payable on securities of the City which are payable 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. For purpose of this Agreement, “nontax revenues” shall mean, all moneys of the City which are not moneys raised by taxation, to the extent available for such purposes, including, but not limited to the following: (i) grants from the United States of America and the State, (ii) payments in lieu of taxes now or hereafter authorized to be used for the purposes by State statute, (iii) fines and forfeitures which are deposited in the City’s General Fund, (iv) fees deposited in the City’s General Fund from properly imposed licenses and permits, (v) investment earnings on the City’s General Fund and which are credited to the City’s General Fund, (vi) investment earnings of other funds of the City that are credited to the City’s General Fund, (vii) proceeds from the sale of assets which are deposited in the City’s General Fund, (viii) rental income which is deposited in the City’s General Fund and (ix) gifts and donations. Section 3. Miscellaneous. (a) Assignment. This Agreement may not be assigned without the prior written consent of all non-assigning Parties. (b) Binding Effect. The provisions of this Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. (c) 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. (d) Day for Performance. Wherever herein there is a day or time period established for performance and such day or the expiration of such time period is a Saturday, Sunday or legal holiday, then such time for performance shall be automatically extended to the next business day. (e) Economic Development Assistance Certification. The Company has made no false statements to the City in the process of obtaining approval of the incentives described in this Agreement. If any representative of the Company has knowingly made a false statement to the City to obtain the incentives described in this Agreement, the Company shall be required to immediately return all benefits received under this Agreement pursuant Ohio Revised Code Section 9.66(C)(2) and shall be ineligible for any future economic development assistance from the State, any State agency or a political subdivision pursuant to Ohio Revised Code Section 9.66(C)(1). The Company - 10 - 1097032757\4\AMERICAS acknowledges that any person who provides a false statement to secure economic development assistance may be guilty of falsification, a misdemeanor of the first degree, pursuant to Ohio Revised Code Section 2921.13(F)(1), which is punishable by a fine of not more than $1,000 and/or a term of imprisonment of not more than six months. (f) Entire Agreement. The Development Agreement and this Agreement constitute the entire Agreement between the Parties on the subject matter hereof and supersede all prior negotiations, agreements and understandings, both written and oral, between the Parties with respect to such subject matter. The Parties agree that to the extent there is a contradiction in terms between the Development Agreement and this Agreement, the terms of this Agreement shall prevail and be binding against the Parties. This Agreement may not be amended, waived or discharged except in an instrument in writing executed by the Parties. (g) Events of Default and Remedies. Except as otherwise provided in this Agreement, in the event of any default in or breach of this Agreement, or any of its terms or conditions, by any Party hereto, such defaulting Party shall, upon written notice from any non-defaulting Party, proceed immediately to cure or remedy such default or breach, and, in any event, within thirty (30) days after receipt of such notice. In the event such default or breach is of such nature that it cannot be cured or remedied within said thirty (30) day period, then in such event the defaulting Party shall upon written notice from any non-defaulting Party commence its actions to cure or remedy said breach within said thirty (30) day period, and proceed diligently thereafter to cure or remedy said breach. In case such action is not taken or not diligently pursued, or the default or breach shall not be cured or remedied within a reasonable time, the aggrieved non-defaulting Party may institute such proceedings as may be necessary or desirable in its opinion to cure and remedy such default or breach. (h) Executed Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed to constitute an original, but all of which together shall constitute but one and the same instrument. It shall not be necessary in proving this Agreement to produce or account for more than one of those counterparts. (i) Extent of Covenants; No Personal Liability. All covenants, obligations and agreements of the Parties contained in this Agreement shall be effective to the extent authorized and permitted by applicable law. No such covenant, obligation or agreement shall be deemed to be a covenant, obligation or agreement of any present or future member, officer, agent or employee of the City or the Company other than in his or her official capacity, and neither the members of the legislative body of the City nor any City or Company official executing this Agreement shall be liable personally under this Agreement or be subject to any personal liability or accountability by reason of the execution thereof or by reason of the covenants, obligations or agreements of the City and the Company contained in this Agreement. (j) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio without regard to its principles of conflicts of laws. All claims, counterclaims, disputes and other matters in question between the City, its agents and employees, and the Company, 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. - 11 - 1097032757\4\AMERICAS (k) Legal Authority. The Parties respectively represent and covenant that each is legally empowered to execute, deliver and perform this Agreement and to enter into and carry out the transactions contemplated by this Agreement. The Parties further respectively represent and covenant that this Agreement has, by proper action, been duly authorized, executed and delivered by the Parties and all steps necessary to be taken by the Parties have been taken to constitute this Agreement, and the covenants and agreements of the Parties contemplated herein, as a valid and binding obligation of the Parties, enforceable in accordance with its terms. (l) Limit on Liability. Notwithstanding any clause or provision of this Agreement to the contrary, in no event shall the City or the Company be liable to each other for punitive, special, consequential, or indirect damages of any type and regardless of whether such damages are claimed under contract, tort (including negligence and strict liability) or any other theory of law. (m) 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 if hand-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: (i) the City at: City of Dublin, Ohio 5200 Emerald Parkway Dublin, Ohio 43017 Attention: Economic Development Director (ii) the Company at: CSD Dublin LLC 25 North Street Dublin, Ohio 43017 Attention: Matt Davis with a copy to: Brian Kooperman, Esq. Kooperman Mentel Crossley Yaross, Ltd. 250 E. Town Street – Suite 200 Columbus, Ohio 43215 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. (n) No Waiver. No right or remedy herein conferred upon or reserved to any Party is intended to be exclusive of any other right or remedy, and each and every right or remedy shall be cumulative and in addition to any other right or remedy given hereunder, or now or hereafter legally existing upon the occurrence of any event of default hereunder. The failure of any Party to insist at any time upon the strict observance or performance of any of the provisions of this Agreement or to - 12 - 1097032757\4\AMERICAS exercise any right or remedy as provided in this Agreement shall not impair any such right or remedy or be construed as a waiver or relinquishment thereof. Every right and remedy given by this Agreement to the Parties hereto may be exercised from time to time and as often as may be deemed expedient by the parties hereto, as the case may be. (o) Recitals. The Parties 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. (p) Reporting Requirements. The Company acknowledges that it is hereby advised by the City that certain accounting reporting requirements may obligate the City to treat and report payments remitted hereunder to the Company as a tax abatement. Notwithstanding any such reporting requirements, the Company acknowledges and agrees that the Company is not entitled hereunder to an abatement or exemption of any tax obligation that would otherwise be payable pursuant to the Dublin City Code. (q) Severability. If any provision of this Agreement, or any covenant, obligation or agreement contained herein is determined by a court to be invalid or unenforceable, that determination shall not affect any other provision, covenant, obligation or agreement, each of which shall be construed and enforced as if the invalid or unenforceable portion were not contained herein. That invalidity or unenforceability shall not affect any valid and enforceable application thereof, and each such provision, covenant, obligation or agreement shall be deemed to be effective, operative, made, entered into or taken in the manner and to the full extent permitted by law. (r) Survival of Representations and Warranties. All representations and warranties of the Parties in this Agreement shall survive the execution and delivery of this Agreement. (s) Term of Agreement. This Agreement shall become effective as of the Effective Date and shall continue until the earlier of: (i) July 1, 2025 provided that as of that date the Company shall have theretofore failed to satisfy the requirements of Section 1(b)(i) (i.e., accept conveyance of the City Real Property), (ii) December 31, 2027 provided that as of that date the Company shall have theretofore failed to satisfy the requirements of Section 1(b)(ii) (i.e., receive the Certificate of Occupancy for the Headquarters located within Riverview Village), or (iii) the date on which the final Capital Expenditure Grant Payment or Annual Incentive Payment which the City is obligated to pay hereunder is received by the Company. In the event that the Company fails to satisfy the condition in either clause (i) or (ii) of this Section 3(s), the City agrees that it will not treat such failure as an Event of Default for so long as the City determines that the Company is proceeding in good faith and making material progress towards satisfaction of such condition. - 13 - 1097032757\4\AMERICAS (t) Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to or shall confer upon any other person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK – SIGNATURE PAGE FOLLOWS) - 14 - 1097032757\4\AMERICAS IN WITNESS WHEREOF, the City and the Company 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: Megan D. O’Callaghan Title: City Manager Approved as to Form: By: Printed: Title: Assistant Director of Law CSD DUBLIN LLC By: Printed: Title: - 15 - 1097032757\4\AMERICAS 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 under the foregoing Agreement during Fiscal Year 2024 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: ____________, 2024 Matthew L. Stiffler Director of Finance City of Dublin, Ohio 1097032757\4\AMERICAS EXHIBIT A CITY BUSINESS REGISTRATION FORM 1097032757\4\AMERICAS EXHIBIT B LIST OF COHATCH MEMBERS Name of COhatch Member Federal EIN 1097032757\4\AMERICAS EXHIBIT C LIST OF AFFILIATED ENTITIES Name of Affiliated Entity Federal EIN COhatch LLC 47-5595280 Community Space Development LLC (CSD) 82-3901015 CSD Dublin RG LLC 93-4067646 CSD RG Holdings LLC 93-4701961 Activate Construction LLC 86-2001674 COhatch Regional Development Ventures LLC 84-2007914 Mesh Fitness Dublin LLC 81-5446071 To: Members of Dublin City Council From: Megan D. O’Callaghan, City Manager Date: September 5, 2023 Initiated By: Jennifer M. Rauch, AICP, Director of Planning Kendel L. Blake, Management Analyst Re: Ordinance 33-23 Real Estate Transfer and Development Agreement for the Development of Riverview Village with CSD Dublin LLC (Community Space Development, LLC, DBA “COhatch”) Update As part of the introduction of this Ordinance, City Council raised a question regarding the current and future zoning of the three city-owned parcels that are currently part of the auction process that was authorized by City Council on July 31, 2023. These three parcels are currently zoned Historic Residential (HR), which permits single-family and residentially compatible uses. The future owners of these parcels would have the option to pursue a rezoning application to another compatible district as part of the City’s development application process. A rezoning to the Historic Core (HC) District would be an available option for a rezoning request. The HC District permits more commercial uses and does not permit single-family. The topic of rezoning for Riverview Village was supported by the Architectural Review Board when the more expanded proposal that included all the city-owned N. Riverview Street parcels was reviewed in February 2023. Any zoning request would be weighed against the character and uses of the surrounding parcels and the Community Plan and Future Land Use recommendations, which for these parcels is identified as Mixed Use Village Center. Background Founded in 2016, CSD Dublin LLC (Community Space Development, LLC, DBA “COhatch”) offers a mix of private offices, coworking, meeting and event spaces, and food and beverage concepts. In seven years, the company has grown from a vision to a thriving integrated co-working company with locations in six states. While not all of their locations are located on historic properties, COhatch specializes in restoring historic buildings in town centers to bring new life and energy into the community. The company’s mission includes giving back to communities and often supports local charities and entrepreneurs through scholarships. COhatch first approached Dublin’s Economic Development team in 2016 with a concept to explore in the Dublin community. At the time, COhatch had no existing locations and was still working through its business plan and gathering funding. The company and staff continued conversations regarding a Dublin COhatch location, which resulted in an Economic Development Agreement (EDA) signed in April 2019, Ordinance 22-19. The EDA is a five-year, $700,000 (total) incentive agreement, split evenly by each year (2019-2023). Additionally, COhatch has a set of annual milestones they must successfully complete in order to receive their payment. 2023 is the final year for the current EDA. Office of the City Manager 5555 Perimeter Drive • Dublin, OH 43017 Phone: 614.410.4400 Memo Memo re. Ordinance 33-23 Real Estate Transfer and Development Agreement for the Development of Riverview Village with CSD Dublin LLC (Community Space Development, LLC, DBA “COhatch”) September 5, 2023 Page 2 of 6 In 2017, COhatch had four active locations (two in Worthington, one in Delaware and one in Polaris Fashion Place) and two locations under construction in Upper Arlington and Springfield. Since that time, it has expanded to 40 locations (open or under construction) across six states. They have publicly stated a goal of over 500 locations nationally. The company has become an active partner in the communities of each of its locations by providing scholarships for nonprofits, opportunities for business start-ups and hosting community-based events. Ordinance 54-20 was approved by City Council on January 4, 2021, and authorized the acquisition of seven residential lots and one parcel on N. Riverview Street, totaling approximately 2.78 acres for a purchase price of $1.95 million. The City took possession of the parcels on October 21, 2021, and shortly thereafter City Council had the opportunity to tour the premises in late November through early December. Staff provided an update at the January 10, 2022 City Council Meeting, and Council reaffirmed the proposed Request for Proposal (RFP) process and the role of the proposed Advisory Committee. The Advisory Committee met several times between February through April to visit the properties and review the project background documents including the 2017 Historical and Cultural Assessment, property condition assessments, zoning requirements, Riverside Crossing Park Master Plan, and the Architectural Review Board (ARB) process. On April 18, 2022, the Advisory Committee reviewed and recommended to City Council a draft RFP for approval to publicly advertise. The RFP was publicly advertised on the City’s website on April 28, 2022. Staff also used social media, including Facebook, Twitter, and LinkedIn, to notify the public about the RFP and generate interest. After the nine-week advertising period, two responses were received, and they were from Corinthian Fine Homes and COhatch. On August 1, 2022, the Advisory Committee met to discuss and evaluate the proposals. On September 14, 2022, the Advisory Committee interviewed COhatch to gain greater understanding of their proposal. After discussion and analysis of both proposals, the Committee determined that the COhatch concept best addressed the preservation, pedestrian activity, historic character, and public experience goals. It was noted that further evaluation was needed, including the use of designated riverfront parkland, density, and the uncertainty of the use for the southernmost homes. On September 26, 2022, Council approved the recommendations of the Advisory Committee to select COhatch’s proposal for further consideration and to direct staff to evaluate and negotiate the proposal through the development process. On February 22, 2023, COhatch presented an Informal Request to the Architectural Review Board (ARB) based on the accepted RFP. All eight properties were included at that time, and the Board provided feedback on the potential to rezone the area to Historic Core, density, and overall concept. The Board was favorable toward rezoning and supported the lesser density. The Board also supported the addition of an office building on the east side of N. Riverview Street as well as the potential demolition of outbuildings along N. Blacksmith Lane and the house at 53 N. Riverview Street noting that there is demolition criteria that must be met (reference attached ARB documents). Through further discussions with COhatch and consistent with their proposal indicating an option for others to own the southern block of properties, on July 31, 2023, Ordinance 24-23 authorized the City Manager to dispose of three properties (parcel nos. 273-000068, 273-000107, 273-000032 in the City of Dublin, County of Franklin and State of Ohio). The public auction is currently open and will end on September 18, 2023. Staff has also continued to evaluate and negotiate their proposal Memo re. Ordinance 33-23 Real Estate Transfer and Development Agreement for the Development of Riverview Village with CSD Dublin LLC (Community Space Development, LLC, DBA “COhatch”) September 5, 2023 Page 3 of 6 with a focus on economic development. Through these negotiations, the initial development concept has evolved to a first-of-a-kind coworking and entrepreneurship village to include COhatch’s national headquarters. Development Agreement COhatch (“Developer”) is looking to expand its footprint and establish its national headquarters (HQ) in Downtown Dublin. Ordinance 33-23 authorizes the execution of the proposed Development Agreement (“Agreement”) with COhatch for the development of the Riverview Village concept. The parcels that are the subject of the proposed agreement are as depicted on Exhibit A. Riverview Village is proposed to be COhatch’s new HQ and a one-of-a-kind coworking and entrepreneurship community. The development will be visible from The Dublin Link pedestrian and bicycle bridge, Bridge Park, Riverside Crossing Park, North High Street and E. Bridge Street. This walkable district will attract interest with its history and architecture, beautiful views, unique food and beverage options, educational business experiences and innovative community atmosphere. The area will provide a unique opportunity for Dublin to enhance its historic district, restoring and revitalizing this North Riverview neighborhood. The properties located at Riverview Village will encompass start-ups, small businesses, freelancers, nonprofits and hybrid companies representing all innovative aspects of the future of remote and hybrid work. The proposed COhatch HQ and Riverview Village development aligns with Dublin’s Economic Development strategies. This project is in furtherance of creating distinctive development nodes and builds on the momentum of the Bridge Street District. The expanded opportunity for start- up businesses would continue to add an innovative flavor to the Historic District that is also being encouraged in the Metro Office District, West Innovation District and the Bridge Street District. Start- up pitch competitions held at this facility would allow investors to connect with small businesses that are in need of growth capital. The additional employees and events held at this location within the Historic District would also create more support to the existing businesses in the immediate area and be a draw for activity on the west side of the Scioto River. Developer Commitments Pursuant to the terms of the proposed Agreement, COhatch will design Riverview Village, and use best efforts to achieve all necessary approvals of the Final Development Plan from the City’s Architectural Review Board, Planning and Zoning Commission and City Council by December 31, 2024. COhatch agrees that it will construct the Private Improvements at its sole cost and expense. The total estimated cost of private investment for restoration and new build construction is at least $8,000,000. The Developer shall commence construction of the Private Improvements no later than sixty (60) days after the Closing Date, and will use best efforts to substantially complete construction of Private Improvements no later than December 31, 2026. COhatch agrees that it will, from the date of this Agreement perform on behalf of the City all required maintenance and upkeep on the property as necessary to comply with the City’s Codified Ordinance and to a reasonable standard based on the properties’ current state. COhatch agrees that within ninety (90) days of the execution of the Agreement, it will establish its HQ at the Existing Office with the expectation that the HQ will be expanded into Riverview Village. The Developer represents that the minimum annual payroll associated with individuals employed by Memo re. Ordinance 33-23 Real Estate Transfer and Development Agreement for the Development of Riverview Village with CSD Dublin LLC (Community Space Development, LLC, DBA “COhatch”) September 5, 2023 Page 4 of 6 either CSD Dublin LLC or its affiliates employed at the HQ will be $8 million. The project expects to create 571 jobs within the City. COhatch agrees to provide public access to certain patios and outdoor spaces located on the East Development Parcels, as designated in the Final Development Plan. COhatch will award on behalf of the City 40 scholarships per year and $57,000 in COhatch credit for coworking memberships or other meeting/event space per year. COhatch will list the City as a sponsor/partner on all marketing materials affiliated with Riverview Village and include the City’s Economic Development team in on- boarding sessions with all new members. COhatch will provide information to the City pertaining to member agreements including City tax account forms and W-9 forms as well as quarterly reporting pertaining to events and special programming at Riverview Village. Additional commitments and benefits regarding Riverview Village are set forth in Section 12 of the proposed Agreement. City Commitments In return, the City agrees to transfer its interest in the West Parcels and those portions of its interest in the East Parcels which are required for the development of Riverview Village (as reasonably determined by the City, the “East Development Property”) as-is. Upon approval of the Final Development Plan, the City will split the East Parcels in order to create one or more separate tax parcels constituting the East Development Property as are necessary to accommodate the construction of the improvements identified in the Final Development Plan. The real property ultimately conveyed to the Developer is referred to as the “Property”. The income tax incentive proposed is a seven-year payroll performance withholding incentive of up to $1,714,000 as a result of an 20% Incentive Factor for COhatch employees and members. The City will also provide an annual Economic Development Grant of up to $195,000 for ten years, depending on the developer’s final financing terms. The annual amount of the grant is based on an interest rate of 6.75% for the loans, and will be reduced by $11,000 for every 0.25% reduction in the Loan interest rate (e.g. if the Loan interest rate is 6.00%, the annual grant will be $161,700). The City will design and construct the necessary Public Improvements. Simultaneously with the development and approval of the Final Development Plan, the City will undertake, with input from COhatch, a review to determine those public improvements in and around the Property, including North Riverview Street, North Street, Blacksmith Lane and Wing Hill Lane, together with street lighting, underground utilities and to the extent feasible, on street parking, which are necessary to facilitate development of and access to Riverview Village (collectively, the “Public Improvements”). The City will have sole authority to determine the work and will use best efforts to coordinate the timing of various elements of the Public Improvements with the construction of the Private Improvements. These public infrastructure improvements are needed with or without this development and are considered maintenance improvements. With the land use and associated infrastructure needs for this area identified, now is the appropriate time to upgrade the infrastructure to Historic District standards. Closing The obligation of the City to transfer the Property, and the obligations of the Developer to develop the Private Improvements, are contingent upon the satisfaction of all of the contingencies specified in the Agreement. Either the City or the Developer may terminate the Agreement at any time prior to Closing if the Contingencies have not been satisfied or waived by June 30, 2025. Memo re. Ordinance 33-23 Real Estate Transfer and Development Agreement for the Development of Riverview Village with CSD Dublin LLC (Community Space Development, LLC, DBA “COhatch”) September 5, 2023 Page 5 of 6 The City and the Developer have agreed upon a Purchase Option in favor of the City for the Property. Should COhatch fail to complete the Private Improvements prior to December 31, 2027 or cease operations at Riverview Village, the City has the option to purchase all or a portion of the Property. The Purchase Option price would be the necessary amount to repay any Loans secured by COhatch. If the Private Improvements are completed but COhatch ceases operations at Riverview Village, the option price would be equal to the greater of the amount necessary to repay any loans and the fair market appraised value, less $2,000,000 plus any grants previously paid. The Purchase Option terminates with respect to the West Parcels thirty (30) years after the completion of the Private Improvements. The Purchase Option remains effective for the East Development Parcels for the maximum period permitted by law. Financial The financial benefits to the City include income tax revenues which are estimated to be $8.6 million through 2033 and Tax Increment Financing service payment revenue estimated to be $10.0 million over 30 years. Staff is requesting funds for the Public Improvements as part of the 2024-2028 Capital Improvements Program (CIP) update. The transportation and public utility infrastructure improvements in and around the Property, including North Riverview Street, North Street, Blacksmith Lane and Wing Hill Lane are anticipated to include street lighting, underground utilities and to the extent feasible, on street parking, which are necessary to facilitate the development of and access to Riverview Village. The improvements will also provide for a 30-inch diameter parallel trunk sewer installation along North Riverview Street. The need for this project was identified in the Deer Run Sanitary Sewer Modeling Report from 2012 and the Sanitary Sewer Modeling Update in 2019. Providing this improvement will increase system capacity and reduce the occurrences of sanitary system overflow and water in basement events in the Deer Run sanitary system. This will also help to fulfill the obligation of the Director's Final Findings and Orders from the Ohio EPA. Staff is currently proposing funding for detailed design of the Public Improvements in 2024 at $1,190,000, while construction is planned for 2025 at $7,060,000. Should Council approve this Ordinance, staff will continue to review the improvements and refine the scope of work and estimates. Since 2008, the City has sponsored the Dublin Entrepreneurial Center (“DEC”) with financial contributions totaling $4,924,419. Since the last contract renewal in 2019, the City’s sponsorship contribution decreased annually, allowing Dart Points (formerly Metro Data Center), a five-year window to increase self-sustainability through other means. The decreased funding model of the DEC was intended to free up additional funds to increase innovation programming City-wide over a five-year period without increasing the annual budget. The City’s sponsorship of the DEC is approximately $250,000 for 2023. Staff continues to evolve the DEC model as trends change, research other types of partnerships and explore innovative small business support options that could compliment the DEC and the Dublin community, like membership-driven collaboration spaces, and smart and innovation centers for research and development. Given that the lease agreement between Dart Points and the City is set to expire at the end of 2023, staff believes this is an appropriate time to consider continuing to free up additional funds to potentially offset the City’s commitments without a budget increase. Additionally, Riverview Village is a potential site for an innovation center that could be created as part of the City’s Fiber to the Home initiative. The agreement with altafiber includes a $250,000 allocation to potentially be used for an innovation center. Staff believes Riverview Village would be Memo re. Ordinance 33-23 Real Estate Transfer and Development Agreement for the Development of Riverview Village with CSD Dublin LLC (Community Space Development, LLC, DBA “COhatch”) September 5, 2023 Page 6 of 6 the ideal spot for an innovation center because of the high volume of foot traffic in the area, its visibility and its proximity to The Dublin Link. Recommendation Staff recommends City Council approve Ordinance 33-23 at the second reading/public hearing on September 11, 2023. REAL ESTATE TRANSFER AND DEVELOPMENT AGREEMENT (Riverview Village) This REAL ESTATE TRANSFER AND DEVELOPMENT AGREEMENT (the “Agreement”) is made and entered into this ____ day of __________, 2023, 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 CSD DUBLIN LLC (which is wholly owned by Community Space Development LLC d/b/a COhatch), an Ohio limited liability company (“COhatch” or the “Developer” and together with the City, the “Parties”), under the circumstances summarized in the following recitals. RECITALS: WHEREAS, Developer or its affiliate owns and operates a coworking office and meeting space which is located at 25 North Street in Historic Dublin (the “Existing Office”). WHEREAS, based on the results of COhatch’s recent comprehensive examination of workforce needs, and induced by and in reliance on the economic development incentives provided in this Agreement, COhatch desires to establish its national headquarters (the “Headquarters”) within the City. WHEREAS, initially, COhatch will create the Headquarters within its Existing Office, but to accommodate the planned growth of the Headquarters, COhatch will need additional office space in proximity to the Existing Office. WHEREAS, the City holds fee simple title to the following parcels of real property which are adjacent to the Existing Office: Parcel ID 273-000042-00, consisting of approximately 0.16 acres and referred to herein as “West Parcel 1”, Parcel ID 273-000073-00, consisting of approximately 0.12 acres and referred to herein as “West Parcel 2”, Parcel ID 273-000098-00, consisting of approximately 0.11 acres and referred to herein as “West Parcel 3”, and together with West Parcel 1 and West Parcel 2, the “West Parcels”, Parcel ID 273-005565-00, consisting of approximately 0.619 acres and referred to herein as “East Parcel 1”, and Parcel ID 273-005564-00, consisting of approximately 1.18 acres and referred to herein as “East Parcel 2”, and together with East Parcel 1, the “East Parcels”, which Parcels are depicted on EXHIBIT A. DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C October10th - 2 - WHEREAS, Developer has determined that the buildings located upon the West Parcels (assuming restoration thereof) plus the building located upon the East Parcel (assuming restoration thereof) and any new building(s) constructed on portions of the East Parcels would accommodate the planned growth of the Headquarters and their member base in the surrounding area. WHEREAS, the Parties have determined that the Headquarters will be integrated with other COhatch uses, including but not limited to, co -working space, private flex office space, innovation space, meeting and programmable space, and space for eating and drinking. WHEREAS, the development of the West Parcels and the East Parcels, which shall include the restoration of the buildings located thereupon, and such portions of the East Parcels as are necessary to accommodate a new building(s) constructed thereon, are collectively referred to herein as “Riverview Village”. A depiction of the current concept for Riverview Village is attached as EXHIBIT B. The plans for Riverview Village are subject to change as a result of the development review process and the agreement of the Parties. The approved Final Development Plan (including Architectural Review Board approval) for Riverview Village is referred to herein as the “Final Development Plan”, with the privately owned improvements to be constructed pursuant to the Final Development Plan referred to herein as the “Private Improvements”. WHEREAS, the Architectural Review Board informally reviewed an initial concept for the creation of Riverview Village in February 2023, and the Board was supportive of the proposal as it ensures preservation and rehabilitation of the existing historic structures, to the extent practicable, and provides for additional development opportunity along North Riverview Street. WHEREAS, subject to the satisfactory completion of the zoning and development review and approval process required by the City’s Codified Ordinances, the City will thereafter timely convey (i) its interest in the West Parcels and (ii) those portions of its interest in the East Parcels which are required for the development of Riverview Village (as reasonably determined by the City and referred to herein as the “East Development Property”), to Developer (the real property ultimately conveyed to Developer being referred to herein as the “Property”). WHEREAS, Developer will, following conveyance of the Property and at its sole cost (except for the contributions from the City as provided herein), develop Riverview Village and establish its Headquarters at Riverview Village, which improvements are estimated to cost at least $8 million. WHEREAS, the City will, following conveyance of the Property and at its sole cost, design and construct certain public improvements within and proximate to Riverview Village which may include, but are not necessarily limited to, improvements to North Riverview Street, North Street, Blacksmith Lane, and Wing Hill Lane, including lighting, underground utilities and where feasible, additional on-street parking (the “Public Improvements”). NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree to and incorporate in the foregoing Recitals in this Agreement and as follows: DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 3 - Section 1. Design of Riverview Village. Promptly following the execution of this Agreement Developer shall proceed with the design of Riverview Village, and use best efforts to achieve all necessary approvals of the Final Development Plan from the City’s Architectural Review Board, Planning and Zoning Commission and City Council by December 31, 2024 (the “Plan Approval Deadline”). Developer shall regularly communicate with City administration regarding design development and will consider input from City administration when developing design submittals to the City. Nothing in this Agreement shall be deemed to be an approval of any particular zoning or design for Riverview Village, and Developer acknowledges and agrees that the Final Development Plan must be approved pursuant to the normal procedures and requirements of the City’s Codified Ordinances. The City and the Developer further acknowledge that it is the intent of the Parties, subject to Planning and Zoning Commission and City Council approval (in the respective sole discretion of those bodies), to zone the West Parcels and the East Development Property as “Historic Core” parcels pursuant to the City’s zoning code. If the zoning for the Property and the Final Development Plan are not approved by the City’s Architectural Review Board, the Planning and Zoning Commission and City Council (as applicable) by the Plan Approval Deadline, either Developer or the City may terminate this Agreement by written notice to the other at any time prior to such approvals being granted. The Developer may request one six-month extension of the Plan Approval Deadline in order to address comments made by the Architectural Review Board, which request the City shall not unreasonably withhold. Any additional requests for extension of the Plan Approval Deadline shall be approved or disapproved by the City in its sole discretion. Section 2. Design and Construction of Related Public Improvements. Simultaneously with the development and approval of the Final Development Plan, the City shall undertake, with input from Developer, a review to determine those public improvements in and around the Property, including to North Riverview Street, North Street, Blacksmith Lane and Wing Hill Lane, together with street lighting, underground utilities and to the extent feasible, on-street parking, which are necessary to facilitate development of and access to Riverview Village (collectively, the “Public Improvements”) and create the plans for the Public Improvements (such plans, the “Public Improvement Plans”) and a schedule for the construction of the Public Improvements (the “Public Improvement Schedule”). Developer agrees that the City shall have sole authority to determine what constitutes a Public Improvement. In developing the Public Improvement Schedule, the City and the Developer will use best efforts to coordinate the timing of various elements of the Public Improvements with the construction of the Private Improvements in a logical order that will allow for the earliest completion of both the Public Improvements and the Private Improvements The City agrees that it will, at its sole cost (except as otherwise described herein), use good faith efforts to design, construct and install those Public Improvements in order that the Public Improvements will be substantially completed and available for public use prior to completion of the Private Improvements, subject to Force Majeure delays. Both parties acknowledge that the relocation of private utilities (electric and gas) require the approval of third parties that neither the City nor the Developer control, and the timing of those approvals and the scheduling of construction or relocation of those utilities may require adjustments to the Public Improvements Schedule. The Parties also agree that adjustments to the Public Improvement Schedule may be necessary as work on the Public Improvements and the Private Improvements progresses, and each Party agrees to consult with each other as the need for adjustments arises. Developer agrees to provide at no charge to the City any right-of-way or easements (temporary or permanent) which the City determines are necessary to provide for the construction and installation of the Public Improvements. DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 4 - Section 3. City Incentives. As an inducement to the Developer to enter into this Agreement and perform its obligations hereunder, the City agrees to provide the following incentives subject to the achievement of the Closing described below: (a) Income Tax Incentive. The City will provide an income tax incentive to the Developer pursuant to the Economic Development Agreement provided for in Section 6(g) hereof for a period of seven years as set forth in the following chart in an amount equal to 20% of City income taxes paid (less refunds) by employees of the Developer (or its affiliates) and COhatch members (the “Income Tax Incentive”). The income tax incentive will be subject to maximum payments as set forth in the following chart. The projected income tax increment is illustrative only based on projections provided by the Developer and the actual income tax incentive will vary based on actual income taxes paid. Year Target In-Person Payroll Target 2% Withholdings Projected 20% Incentive on WH Maximum Payment 2027 $51,495,100 $1,029,902 $205,980 $206,000 2028 $54,422,347 $1,088,447 $217,689 $218,000 2029 $57,504,817 $1,150,096 $230,019 $231,000 2030 $60,749,720 $1,214,994 $242,999 $243,000 2031 $64,164,963 $1,283,299 $256,660 $257,000 2032 $67,759,198 $1,355,184 $271,037 $272,000 2033 $71,541,364 $1,430,827 $286,165 $287,000 (b) Economic Development Grant. The City will make a grant to the Developer to pay Private Improvement Costs in the amount of $195,000 per year for ten years (maximum grant amount of $1,950,000)(the “Economic Development Grant”). The annual Economic Development Grant will first be paid in the calendar year required under the approved Loan Documents (which may be the year in which the Closing Date occurs), and thereafter for nine consecutive years. The annual amount of the Economic Development Grant is based on an interest rate of 6.75% for the Loan. The annual amount of the Economic Development Grant will be reduced by $11,100 for every 0.25% reduction in the Loan interest rate (e.g. if the Loan interest rate is 6.00%, the annual Economic Development Grant will be $161,700). As used herein: “Private Improvement Costs” means the hard and soft costs of developing the Private Improvements as necessary to obtain a certificate of occupancy for the Private Improvements, including the costs of acquiring the Property from the City and the costs of designing, financing, constructing and equipping the Private Improvements, including contingencies. “Loan” means one or more loans made by one or more lenders to the Developer to finance a portion of the Private Improvement Costs. (c) Repayment of Incentives. The City may require the Developer to repay either or both of the Income Tax Incentive paid based on employees of the Developer or its affiliates (and not DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 5 - COhatch members) and the Economic Development Grant if COhatch ceases Headquarters operations at Riverview Village within 10 years of the first payment of the Economic Development Grant. (d) Appropriation. The Developer acknowledges and agrees that payment of both the Income Tax Incentive and the Economic Development Grant are subject to annual appropriation of funds by City Council to make those payments. If City Council fails to appropriate any such amounts (other than due to a breach or default by the Developer hereunder or under the Economic Development Agreement), the Developer’s obligations to complete the Private Improvements and its obligations under Section 12 of this Agreement shall be suspended until City Council makes such appropriation. Section 4. Property Due Diligence. (a) Property Information. The City has delivered to Developer, or made available to Developer for inspection and copying, copies of the following: (i) any title insurance commitments or policies for any portion of the Property which are in the possession or control of the City; (ii) any surveys of any portion of the Property which are in the possession or control of the City; (iii) any environmental assessment reports with respect to any portion of the Property which are in the possession or control of the City; and (iv) any geotechnical reports with respect to any portion of the Property which are in the possession or control of the City. The City will furnish to Developer, or make available to Developer for inspection and copying, such additional documents and information regarding the Property as are reasonably requested by the Developer from time to time and in possession and control of the City. The Developer acknowledges and agrees that all documents, materials, data and information delivered by or on behalf of the City to the Developer in connection with the transaction contemplated by this Agreement are provided to the Developer as a convenience only and that any reliance on or use of such documents, materials, data or information by the Developer shall be at the sole risk of the Developer. The City does not represent or warrant the accuracy of and the City shall have no liability to the Developer for any inaccuracy in or omission from any such documents, materials, data or information. (b) Lot Splits. Upon approval of the Final Development Plan, the City shall split the East Parcels in order to create one or more separate tax parcels constituting the East Development Property as are necessary to accommodate the construction of the improvements identified in the Final Development Plan. (c) Access. The City grants to Developer and persons designated by the Developer the right and permission at reasonable times prior to the Closing Dates and upon reasonable notice to enter upon the Property and to conduct any reasonable inspections and tests the Developer chooses to conduct, provided that: (a) such inspections and tests shall be conducted as not to materially damage the Property; (b) such inspections and tests shall be conducted at the Developer’s cost; (c) Developer shall indemnify and hold the City, and its agents and employees, harmless from and against any liabilities or claims for damage to persons or property, and costs and expenses in connection therewith, caused by such entry and/or such inspections and tests; and (d) prior to entering upon any portion of the Property, Developer shall furnish the City certificates of insurance reasonably satisfactory to the City that the Developer or Developer’s designee maintains (i) DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 6 - commercial general liability insurance on an occurrence basis, including contractual liability coverage and broad form property damage endorsement coverage, Developer or Developer’s designee as the named insured and the City named as an additional insured, providing liability limits of not less than $2,000,000 combined single limit per occurrence with respect to bodily or personal injury, death and property damage and $3,000,000 in the aggregate, (ii) worker’s compensation insurance at statutory limits, and (iii) employer’s liability insurance in an amount not less than $1,000,000. (d) Title Commitment. The Developer will cause the title company it selects (the “Title Company”) to issue to Developer a commitment (the “Title Commitment”) for an ALTA Owner’s Policy of Title Insurance (the “Title Policy”), together with legible copies of all instruments evidencing those matters listed as exceptions thereon, setting forth the state of title to the Property as of the effective date of the Title Commitment, the Title Company’s requirements to delete the standard printed exceptions on Schedule B-II of the Title Policy, the results of a special tax search and committing to issue those endorsements required by Developer and its lender(s). The Title Company will be instructed to deliver a copy of the Title Commitment to the Developer and City. (e) Title Objection. At least 60 days prior to the scheduled Closing Date, Developer shall cause the Title Company to deliver the Title Commitment to Developer and the City. Developer shall deliver to City at least 50 days prior to the scheduled Closing Date, in writing (the “Title Objection Notice”), any objections to the exceptions to title set forth in the Title Commitment, other than the Permitted Exceptions (each a “Title Objection”, and collectively, hereinafter the “Title Objections”). In addition, upon the issuance of an updated Title Commitment by the Title Company, Developer may provide a Title Objection Notice within five days (5) of receiving the updated Title Commitment. Any such matter not the subject of a timely Title Objection Notice shall be deemed a Permitted Exception. All Title Objections with respect to any portion of the Property shall be deemed waived upon conveyance of the Property to the Developer. (f) City’s Duties. City shall use commercially reasonable efforts to eliminate all Title Objections prior to the Closing Date so as to permit Developer to receive insurable title to the Property, provided, however, that the City shall not be obligated to expend any funds of the City in order to eliminate such Title Objections. If the City is unable to eliminate any Title Objection by such Closing Date, the City shall provide written notice of same to Developer. The Developer’s sole remedies if the City does not eliminate a Title Objection are (1) to terminate rights and obligations of the Parties hereunder, or (2) waive the Title Objection. Such termination shall be effective upon delivery of written notice of such termination or credit by the Developer to the City. (g) Permitted Exceptions. The Property shall be sold, assigned, and conveyed by the City to the Developer, and the Developer shall accept and assume the same, subject only to the following matters (collectively, the “Permitted Exceptions”): (i) Any and all present and future zoning, building, environmental, and other laws, statutes, ordinances, codes, rules, regulations, requirements, or executive mandates of all governmental authorities having jurisdiction with respect to the Property, including, without limitation, landmark designations and all zoning variances and special exceptions, DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 7 - if any, provided, however, that the same do not prohibit or impair the continued use of the Property as it is being used on the date of this Agreement; (ii) All presently existing and future liens for unpaid property taxes, assessments, and water and sewer charges that are not due and payable as of the Closing Date; (iii) All covenants, and restrictions, and all easements and agreements of record for the erection and/or maintenance of water, gas, steam, electric, telephone, sewer or other utility pipelines, poles, wires, conduits, or other like facilities, and appurtenances thereto, over, across, and under the Property, provided, however, that the same do not impose any monetary obligation on the owner of the Property; (iv) Any lien or encumbrance arising out of the acts or omissions of the Developer or its affiliates, agents or contractors or with the consent of the Developer; and (v) All other items shown in the Title Commitment (except uncured or unwaived Title Objections). Section 5. Closing Contingencies. The obligation of the City to transfer the Property, and the obligations of the Developer to develop the Private Improvements as contemplated by this Agreement, are contingent upon the satisfaction of all of the following contingencies (collectively, the “Contingencies”). Either the City or the Developer may terminate this Agreement at any time prior to Closing if the Contingencies have not been satisfied or waived by June 30, 2025; provided that such deadline shall be extended by the same number of days that the Plan Approval Deadline is extended pursuant to the terms of this Agreement. (a) Final Development Plan Approval. The appropriate approving bodies as provided in the City’s Codified Ordinances have approved the Final Development Plan for the Private Improvements. (b) Public Improvement Plans and Public Improvement Schedule. The City and the Developer have agreed on the Public Improvement Plans (which may be schematic designs) and the Public Improvement Schedule. (c) Public Improvement Budget. The City and the Developer have agreed to a not to exceed amount for the Public Improvement and City Council shall have authorized the expenditure of such amount. The City shall not be required to spend more than the maximum amount of the Public Improvement Budget when constructing the Public Improvements. If costs of the Public Improvements are higher than the Public Improvement Budget, the Developer agrees that the City may modify the Public Improvement Plans in order to meet the requirement of the Public Improvement Budget. Prior to modifying the Public Improvement Plans, the City shall notify the Developer that the Public Improvement Plans need to be modified due to cost overruns, and shall reasonably consult with the Developer regarding the modifications to the Public Improvement Plans and the scope of the Public Improvements as necessary in order to reduce the costs of the Public Improvements to the Public Improvement Budget. In addition, the Developer shall have DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 8 - the option, but not the obligation, to fund any overruns of the Public Improvement Budget, in which case the Public Improvement Budget shall be increased by the amount of Developer funding deposited with the City. If the Developer makes any such deposit and to the extent that such funds are not used to construct the Public Improvements, the City will return such unused funds to the Developer. (d) Private Development Budget. The Developer shall have prepared and submitted to the City a budget of the Private Improvement Costs (the “Private Development Budget”), and the City shall have approved the Private Development Budget (whose approval shall not be unreasonably withheld). The Private Development Budget will provide for a minimum of $8 million of costs of the Private Improvements (such costs, the “Private Development Costs”). The Private Development Budget must include commercially reasonable contingency amounts and detailed documentation with respect to each element of the Private Development Costs. The Private Development Budget shall reflect those items and costs as the Developer determines, in its best professional judgment, are reasonable and necessary to develop the Private Improvements as described in the Final Development Plan. (e) Loan Commitment. The Developer shall have obtained and provided to the City, and the City shall have approved (whose approval shall not be unreasonably withheld), a commitment issued by one or more lenders to the Developer to provide a Loan (collectively, the “Loan Commitment”). In reviewing the Loan Commitment, the City may consider, inter alia, the conditions of closing and disbursing the Loan as set forth in the Loan Commitment, whether the aggregate amount of the Loan and the committed Equity Investment is at least 100% of the Private Development Cost based on the approved Private Development Budget, and whether, based on all relevant factors, it is feasible for the Developer to complete the Private Improvements with the Loan contemplated by the Loan Commitment and one or more binding commitments issued by one or more investors to the Developer to provide the capital contributions to the Developer to finance the Private Improvement Costs (the “Equity Investment Commitment”). (f) Equity Investment Commitment. The Developer shall have obtained and provided to the City, and the City shall have approved (whose approval will not be unreasonably withheld), the Equity Investment Commitment. The copies of the Equity Investment Commitment provided to the City shall be true, correct and complete. (g) Construction Contracts. The Developer shall provide to the City copies of all contracts and estimates of the contractors selected to construct the Private Improvements. (h) Purchase Option. The City and the Developer have agreed upon the form of the Purchase Option Agreement in favor of the City for the Property. The Purchase Option Agreement shall provide the City with the option to purchase all or a portion of the Property if the Developer does not complete the Private Improvements by December 31, 2027 (subject to Force Majeure extensions) or ceases operations at Riverview Village. If the Private Improvements are not completed, the option purchase price shall be the amount necessary to repay any Loans secured by the Property. If the Private Improvements are completed but the Developer ceases operations at Riverview Village, the option price shall equal the greater of (a) the amount necessary to repay any Loans secured by the Property and (b) the fair market appraised value of the Property to be DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 9 - conveyed to the City less $2,000,000 (or such lesser amount prorated by acreage of the portion of the Property to be conveyed to the City versus the total acreage of the Property) and less any portion of the Economic Development Grant previously paid. When determining the fair market appraised value of the Property (or portion thereof), the appraisers shall assume that the Property shall continue to be used as co-working office space and shall not assume any other use of the Property. If the City only exercises the option with respect to a portion of the Property, the portion of the Loans secured by that portion of the Property will be reasonably allocated to that portion of the Property based on a formula to be agreed by the Parties and the lender. The Purchase Option shall terminate with respect to the West Parcels on the date that is thirty (30) years after the completion of the Private Improvements. The Purchase Option shall remain effective for the East Development Property for the maximum period permitted by law. (i) Insurable Title. Prior to the Closing Date, Developer must have received a Title Commitment acceptable to Developer, insuring title in accordance with this Agreement. (j) Procedures for Contingencies. The Parties will proceed diligently and in good faith to pursue the satisfaction of the Contingencies in a timely and coordinated manner. The Parties will cooperate to coordinate their efforts to pursue the satisfaction of the Contingencies in a logical order intended to result in the satisfaction of all of the Contingencies as soon as practical. The City will have the right to review and approve each Contingency. The City will notify the Developer of its approval or disapproval of each Contingency within 30 days of the Developer’s submission of the same to the City for approval. If the City disapproves any Contingency in whole or part, the City will provide to the Developer a written description of the reasons for that disapproval together with the notice of disapproval provided pursuant to the preceding sentence. The Developer may, at any time, revise and re-submit the Contingency for approval pursuant this paragraph. From time to time at the request of any Party, the Parties will confirm in writing the satisfaction, waiver or failure of any of the Contingencies that have been satisfied or waived or have failed. Section 6. Closing. The closing of the transfer of the Property (the “Closing”) shall occur after satisfaction or waiver of each of the Contingencies for that Phase, on the date mutually agreed by the City and the Developer (the “Closing Date”). The Closing shall consist of the following (except to the extent that any of the following have occurred prior to the Closing Date): (a) Payment of Purchase Price. The Developer will pay to the City the purchase price for the Property ($10.00) plus all out-of-pocket costs incurred by the City in connection with the Closing (except for attorneys’ fees). (b) Quitclaim Deed. The City shall execute and deliver to the Title Company to be held in escrow pending the Closing a quitclaim deed conveying the Property to the Developer. (c) Equity Investment. All of the Equity Investment Documents, consistent with the Equity Investment Commitment, shall be executed and delivered by the parties thereto, and the Equity Investment shall otherwise be closed as contemplated by the Equity Investment Commitment. The Developer shall provide to the City (i) then current drafts of the Equity Investment Documents upon written request of the City, and (ii) copies of the executed Equity DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 10 - Investment Documents on or about the Closing Date; provided that the Developer may redact from the drafts and final versions of the Equity Investment Documents furnished to the City (including those furnished as part of the Loan Documents) such portions thereof which are confidential or not reasonably necessary for the City to determine the committed amount of the Equity Investment, the terms and conditions applicable to disbursement of the Equity Investment, and that the Equity Investment Documents are consistent with the Equity Investment Commitment in all respects material to the City under this Agreement. (d) Loan. All of the documents evidencing, securing and/or executed for the benefit of the lender in connection with a Loan made pursuant to a Loan Commitment (the “Loan Documents”), consistent with the Loan Commitment, shall be executed and delivered by the parties thereto, and the Loan shall be ready to be closed as contemplated by the Loan Commitment, subject only to the City’s conveyance of the portion of the Property to be developed as part of the Loan. The Developer shall provide to the City (i) then current drafts of the Loan Documents upon written request of the City, and (ii) copies of the executed Loan Documents on or about the Closing Date; subject, in each case, to the redactions of the Equity Investment Documents permitted pursuant to paragraph (b) of this Section and any confidentiality requirements of the lender. (e) Purchase Option Agreement. The Developer shall execute and deliver the Purchase Option Agreement for the Property. The Purchase Option Agreement shall be recorded prior to all mortgages encumbering the applicable portion of the Property, provided that the Purchase Option Agreement shall expressly provide that the City or its designee shall purchase the Property subject to any mortgage securing a Loan or shall be required to pay off any Loan. (f) Completion Guaranty. The Developer shall execute and deliver, and cause the other completion guarantors to execute and deliver, the Completion Guaranty. The completion guarantors shall be the same completion guarantors required in connection with the Loan. The Completion Guaranty will be in the customary guaranty form required by the City. (g) Economic Development Agreement. The City and the Developer shall execute and deliver the Economic Development Agreement providing for the Income Tax Incentive. The Economic Development Agreement will be in the customary form required by the City. (h) Other Documents; Financing Cooperation. The Parties shall execute and deliver such other documents as are contemplated by this Agreement or appropriate to the transaction as reasonably determined by the Parties. The parties further acknowledge and agree to cooperate in the negotiation of the financing structures related to the development of the Private Improvements so as to permit a lender(s) to be reasonably comfortable in lending to the Developer. Section 7. AS-IS Sale; Disclaimers. It is understood and agreed that the City is not making and has not at any time made any warranties or representations of any kind or character, express or implied, with respect to the Property, including, but not limited to, any warranties or representations as to habitability, merchantability or fitness for a particular purpose. DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 11 - The Developer acknowledges and agrees that upon the Closing the City shall sell and convey to the Developer and the Developer shall accept the Property “AS IS, WHERE IS, WITH ALL FAULTS”. The Developer has not relied and will not rely on, and the City is not liable for or bound by, any express or implied warranties, guaranties, statements, representations or information pertaining to the Property or relating thereto made or furnished by the City, or any agent representing or purporting to represent the City, to whomever made or given, directly or indirectly, orally or in writing. The Developer represents to the City that the Developer has conducted, or will conduct prior to the Closing, such investigations of the Property, including but not limited to, its environmental condition as the Developer deems necessary or desirable to satisfy itself as to the condition of the Property and the existence or nonexistence or curative action to be taken with respect to the Property or any hazardous or toxic substance on or discharged from the Property. The Developer will rely solely upon its investigations and not upon any information provided by or on behalf of the City or any agent or employee of the City with respect thereto. Upon the Closing, the Developer shall assume the risk that adverse matters arising or existing on or before such Closing as it relates to the Property, including but not limited to, defects and adverse environmental conditions, may not have been revealed by the Developer’s investigations. The provisions of this Section shall survive the Closing or any termination of this Agreement. Section 8. Brokerage Commission. The Parties represent to each other that they have not entered into any written agreement with any real estate broker, finder or agent in connection with the sale of the Property, and that they have not taken any action which might result in any real estate broker’s, finder’s or other fee or commission being due or payable in connection with the transactions contemplated by this Agreement. The Developer shall indemnify, defend and save harmless the City from and against all costs, claims, expenses or damages (including but not limited to reasonable attorneys’ fees) resulting from or related to any brokerage commission, finder’s fee or other commission due or alleged to be due arising from the acts or contacts of the Developer. The provisions of this Section shall survive the Closing or any termination of this Agreement. Section 9. Agreements Regarding Property prior to Closing. (a) Developer agrees that it will, from the date of this Agreement until the earlier of (i) the Closing Date or (ii) the date on which this Agreement may have been terminated, perform on behalf of the City all required maintenance and upkeep on the West Parcels and the East Development Property (including the building located on parcel 273-005565) as necessary to comply with the City’s Codified Ordinance and to a reasonable standard based on the properties current state and the Developer will use best efforts to maintain to a standard that is consistent with real property located adjacent to the West Parcels. Within thirty (30) days following the execution of this Agreement, the City shall record a temporary easement against the West Parcels relating to Developer’s obligation to perform such maintenance and upkeep. Subject to all approvals required by the City’s Codified Ordinances, including approval by the Architectural Review Board, the Developer may demolish and remove structures on located on the West Parcels or the East DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 12 - Development Property. If this Agreement is terminated by the City prior to Closing (except terminations for Developer default or the inability of the Developer to obtain financing), the City will reimburse the Developer for its reasonable and documented out of pocket costs spent on upkeep pursuant to this Section 9(a). (b) Following the approval of the Final Development Plan and subject to any necessary Architectural Review Board approvals (including those requiring best efforts to limit tree removal), prior to the Closing, the Developer will enter onto the East Development Property to perform, at its sole cost, any approved tree removals necessary for the development of the Property pursuant to the Final Development Plan. To satisfy the tree replacement requirements set forth in the City’s Codified Ordinances, the City agrees to perform at its sole cost any necessary tree replacements necessary as a result of the development of Riverview Village at appropriate offsite locations, all as determined by the City. Section 10. Construction of the Private Improvements. (a) As an inducement for the City to enter into this Agreement, the Developer covenants and agrees that the Developer shall construct the Private Improvements, subject to the occurrence of the Closing. The Private Improvements, including the engineering and design therefor, the plans and specifications and the construction and installation shall be completed: (i) at the Developer’s sole cost and expense; (ii) in conformance with this Agreement and all applicable codes, ordinances, and laws; (iii) in a good and workmanlike manner; and (iv) in conformance with the Final Development Plan. At all times following the Closing, the Developer will keep the Property mowed and free from accumulation of weeds and debris. The Developer, at its sole cost and expense, shall prepare and submit to appropriate government agencies all applications for such approvals as are required to develop and construct the Private Improvements in accordance with applicable laws, rules, regulations, codes and ordinances. In addition, the Developer agrees to provide to the City such temporary construction easements as may be needed to accommodate the construction of the Public Improvements adjacent to the Property. (b) The Developer acknowledges and agrees that: (a) the development of the Private Improvements and the Property in accordance with the terms of this Agreement are of utmost importance to the City; (b) the post-Closing obligations of the Developer set forth in this Section and elsewhere in this Agreement are a material consideration for the City to transfer the Property to the Developer; and (c) absent the Developer’s covenant to perform its post-Closing obligations set forth in this Section and elsewhere in this Agreement, the City would not have transferred the Property to the Developer. (c) The Developer shall commence construction of the Private Improvements no later than sixty (60) days after the Closing Date, and will use best efforts to substantially complete construction of Private Improvements no later than December 31, 2026, subject to Force Majeure. Section 11. Establishment of Headquarters. Developer agrees that within ninety (90) days of the execution of this Agreement, it will cause COhatch to establish the Headquarters at the Existing Office with the expectation that the Headquarters will eventually be expanded into Riverview Village. Developer represents that the minimum annual payroll associated with DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 13 - individuals employed by either CSD Dublin LLC or its affiliates employed at the Headquarters will be $8 million. Section 12. Additional Commitments Regarding Riverview Village. In consideration for the conveyance of the Property and the incentives to be provided by the City described in this Agreement, the Developer agrees to the following additional commitments and benefits for so long as the Developer maintains operations at Riverview Village or the Existing Office, commencing upon occupancy of any portion of the Property by the Developer or its affiliates. (a) Provide public access to certain patios and outdoor spaces located on the East Development Property, as designated in the Final Development Plan. (b) Award on behalf of the City, 40 scholarships per year. The scholarships provided shall include: (A) 20 Give Scholarships (for 501(c)(3) entities) which have an estimated value of $48,000 and (B) 20 Boost Scholarships (for early-stage start-ups) which focus on underrepresented populations and which have an estimated value of $48,000. Developer agrees to promote these scholarship programs throughout the City and work with the City to maximize the impact of this program. Developer also agrees that the City may from time to time ask that additional scholarships be granted. (c) Provide the City with a credit of $57,000 per year that may be used by the City or one or more designees of the City to purchase COhatch coworking memberships or other use of Riverview Village (i.e., meeting spaces, events, passes, etc., but excluding private offices). (d) List the City as a sponsor/partner on all marketing materials affiliated with Riverview Village unless otherwise approved by the City. (e) Actively interact with, establish relationships and promote a network of local start- ups within the City. (f) Actively facilitate internal member community building events and meetings. (g) Actively recruit Rev1 Venture (“Rev 1”) referrals and Ohio Small Business Center (“OSBC”) referrals to become members. (h) Provide COhatch members with onsite amenities, including offices, conference rooms, a café, training rooms, shared services, 24/7 security access and Wi-Fi. (i) Facilitate regularly scheduled “on-boarding” sessions with all new members and collaborators. Collaborators shall include, but not be limited to, staff of the City’s Economic Development Division, Rev 1 and OSBC. (j) Respond in a timely manner to inquiries regarding the City and/or refer those inquires to the City’s Economic Development Division staff. DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 14 - (k) Provide information to the City pertaining member agreements, including but not limited to: (A) City Tax Account Forms for each member and (B) W-9 Forms for each member. The Developer will provide the information it has on members and will develop programs to incentivize members to provide additional information that the City may request. (l) Provide information (i.e., date, location, purpose, special guests and hosts) to staff of the City’s Economic Development Division quarterly pertaining to events and special programming at Riverview Village. (m) Provide and coordinate marketing of content relating to programs, events or information pertaining to the City or public purposes. Such content may include, but is not necessarily limited to: (A) website content and updates, (B) calendar updates, (C) blogs, social media posts, and internal and external communications and (D) marketing and promotional opportunities. (n) Share City graduation incentive programs to Developer members which outgrow their space and are relocating to the City. (o) Host annual start-up pitch competitions at Riverview Village to allow investors to connect with small businesses that need growth capital. (p) Offer a mix of uses at Riverview Village, including but not limited to, office, meeting space, retail and approximately 3,000 square feet (subject to the City’s development standards) of programmable space. (q) Offer free access to the public to attend monthly educational workshops and/or events. Public events may include, but are not limited to, workshops, seminars, demo days, training classes, book talks, networking events, speaking engagements or other community or philanthropic uses. Programming for the events can also be established by the City. (r) Work cooperatively with the City to develop a mutually agreeable concept for and to locate the City/Altafiber Innovation Center in Riverview Village. (s) Connect to Dublink (Developer is responsible for connection costs and monthly subscription fees for selected provider). (t) Work with the City to develop an annual report, and thereafter report on an annual basis, information and metrics that will allow the City to understand the effectiveness of Riverview Village in developing new businesses, expanding current businesses, and ultimately expanding the job opportunities within and income tax base of the City. DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 15 - The Developer will meet regularly with the City to coordinate the delivery of the foregoing commitments and benefits with the goal of maximizing the benefits to the residents of the City and employees working within the City, as well as the success of Riverview Village. Section 13. Traffic Control. The City and Developer acknowledge joint responsibility for the accommodation of traffic flow in and around the Property during the construction of the Private Improvements and Public Improvements. The City agrees to place directional signage on or beside public right of ways to assist with the routing of traffic to the facility in the most efficient and safe manner. Section 14. Management and Ownership. The Developer acknowledges and agrees that among the City’s inducements to enter into this Agreement with the Developer was the reputation of the Developer as an experienced developer, owner, and manager of similar projects and the Developer’s proposal made in response to the City’s Request for Proposals for the redevelopment of the Property and the intent of the Developer to own and operate Riverview Village for the long term and never sell the Property. Therefore, the Developer agrees that except as otherwise set forth in this Agreement: (a) except for an assignment by the Developer of its rights under this Agreement to one or more entities owned and controlled by COhatch LLC or any affiliates of COhatch LLC, (any of the foregoing being referred to herein as a “Developer Related Party”), the Developer shall not voluntarily sell, ground lease or otherwise transfer the Property; (b) if, due to financial hardship, the Developer is not able to maintain its existence and is forced to sell the Property, the Developer will meet with the City prior to marketing the Property. (c) the Developer shall enter into all general contracts for construction of the Private Improvements; (d) the Developer shall not mortgage or permit the mortgaging of the Private Improvements for any purpose other than financing or refinancing a Loan; (e) any assignment of this Agreement shall not be effective as against the City unless the assignee delivers a written acknowledgement to the City whereby the assignee agrees to be bound by the terms of this Agreement; (f) no assignment or transfer shall relieve the Developer from its obligations hereunder; and (g) the restrictions set forth in this Agreement on the Developer’s rights to transfer the Property or delegate management thereof are reasonable and necessary to the success of the Private Improvements. Section 15. Indemnification. Notwithstanding anything in this Agreement to the contrary, as a material inducement to the City to enter into this Agreement, the Developer covenants and agrees that the Developer shall defend, indemnify and hold the City, its council DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 16 - members, commissioners or board members, officers and employees (collectively, the “Indemnified Parties”) harmless from and against any and all actions, suits, claims, losses, costs (including without limitation reasonable attorneys’ fees), demands, judgments, liability and damages (collectively, “Claims”) suffered or incurred by or asserted against the Indemnified Parties, or any of them, as a result of or arising from any bodily injury, death or loss or damage to property to the extent caused by the acts or omissions of the Developer, its agents, employees, contractors, subcontractors, or anyone else acting at the request of the Developer in connection with the construction of the Private Improvements or undertaking any activity in connection with the Private Improvements contemplated by this Agreement. Notwithstanding anything set forth herein to the contrary, the indemnification obligations of the Developer in this Section will survive the termination of this Agreement and Closing. Section 16. Insurance. Until such time as all construction work associated with the Private Improvements has been completed in accordance with the terms of this Agreement, the Developer shall maintain the insurance provided for in EXHIBIT C. The Developer shall provide evidence of such insurance to the City on or before the Closing and thereafter upon request. Section 17. Miscellaneous. (a) Assignment. This Agreement may not be assigned without the prior written consent of all non-assigning Parties. (b) Binding Effect. The provisions of this Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. (c) 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. (d) Day for Performance. Wherever herein there is a day or time period established for performance and such day or the expiration of such time period is a Saturday, Sunday or legal holiday, then such time for performance shall be automatically extended to the next business day. Time is of the essence of this Agreement. (e) Administrative Actions. The City represents and warrants to Developer that, (i) to the extent permitted by law, and except as otherwise provided in this Agreement, all actions taken or permitted to be taken by the City under or in furtherance of this Agreement may be taken by the City Manager and will not require legislative action of a City Council beyond the legislative actions authorizing this Agreement, and (ii) the City Manager, on behalf of the City, is authorized to make all approvals and consents that are contemplated by this Agreement (other than reviews and approvals of zoning matters and the Final Development Plan, which in all cases shall be subject to the review and approval requirements of the City’s Codified Ordinances), without the separate approval by the City Council, including reviews, approvals, and consents and any and all such other approvals contemplated herein. All actions, approvals, and consents of the City required under this Agreement must be given in writing (which may include e-mail) in order to be effective. Developer represents and warrants to the City that (a) all actions taken or to be taken by Developer under this Agreement may be taken by Matt Davis, Managing Member of Developer, DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 17 - and (b) Eric Ferch, on behalf of Developer, is authorized to make all approvals and consents that are provided for in this Agreement. All actions, approvals, and consents of Developer required under this Agreement must be given in writing (which may include e-mail) to be effective. (f) Entire Agreement. This Agreement constitutes the entire Agreement between the Parties on the subject matter hereof and supersedes all prior negotiations, agreements and understandings, both written and oral, between the Parties with respect to such subject matter. This Agreement may not be amended, waived or discharged except in an instrument in writing executed by the Parties. This Agreement does not and may not be construed to create a partnership or joint venture between or among any of the Parties. The Developer acknowledges that it has not been induced to enter this Agreement by any representations not set forth in this Agreement, the exhibits attached to it, and all documents delivered pursuant thereto and that the Developer has not relied on any representations which are not set forth in this Agreement, the exhibits attached to it, and all documents delivered pursuant thereto in making its decision to sign this Agreement. No representations not set forth in this Agreement, the exhibits attached to it, and all documents delivered pursuant thereto shall be used in the interpretation or construction of this Agreement, and the City shall have no liability for any consequences arising as a result of any representations which are not set forth in this Agreement. (g) Events of Default and Remedies; Force Majeure. Except as otherwise provided in this Agreement, in the event of any breach of this Agreement, or any of its terms or conditions, by any Party hereto, such breaching Party shall, upon written notice from any non-breaching Party, proceed immediately to cure or remedy such breach. In the event such breach is of such nature that it cannot be cured or remedied within a thirty (30) day period, then in such event the breaching Party shall promptly commence its actions to cure or remedy said breach and proceed diligently thereafter to cure or remedy said breach. In case such action is not taken or not diligently pursued, or the breach shall not be cured or remedied within a reasonable time thereafter, then the non-breaching Party may declare the breaching Party to be in default of this Agreement upon written notice to the breaching Party. After delivering such default notice, breaching Party shall be in default under this Agreement and the aggrieved Party may institute such proceedings as may be necessary or desirable in its opinion to compel the defaulting Party to cure and remedy such default or breach (which remedies shall include, but are not limited to, specific performance). To the extent that an obligation of a Party is subject to Force Majeure as provided herein, if a Force Majeure (as such term is defined below) event causes the failure, that Party shall receive an additional period of time as is reasonably necessary to perform or observe the obligation in light of the event if it notifies the other of the potential event and the extent of the delay promptly after becoming aware of the event. As used herein, “Force Majeure” means the following: acts of God; acts of public enemies; orders or restraints of any kind of the government of the United States or of the State or any of their departments, agencies, political subdivisions or officials, or any civil or military authority; insurrections; nuclear accidents; pandemics; fires; restraint of government and people; explosions; failure by City Council to appropriate an installment of the Economic Development Grant; and, as they relate to those particular improvements, force majeure acts or conditions claimed by the applicable contractor under the construction contract(s) for Riverview Village or the Public Improvements. DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 18 - (h) Executed Counterparts. This Agreement may be executed in several counterparts (including electronically executed counterparts), each of which shall be deemed to constitute an original, but all of which together shall constitute but one and the same instrument. Executed copies hereof may be delivered by facsimile or email of a PDF document, and, upon receipt, shall be deemed originals and binding upon the signatories hereto. It shall not be necessary in proving this Agreement to produce or account for more than one of those counterparts. (i) Extent of Covenants; No Personal Liability. All covenants, obligations and agreements of the Parties contained in this Agreement shall be effective to the extent authorized and permitted by applicable law. No such covenant, obligation or agreement shall be deemed to be a covenant, obligation or agreement of any present or future council member, officer, commissioner, board member, agent or employee of the City other than in his or her official capacity, and neither the members of the legislative body of the City, nor any City or Developer official executing this Agreement shall be liable personally under this Agreement or be subject to any personal liability or accountability by reason of the execution thereof or by reason of the covenants, obligations or agreements of the City and Developer contained in this Agreement. (j) Negotiated Provisions. This Agreement shall not be construed more strictly against a party by virtue of the fact that a contract may be more strictly construed against the party preparing the contract, it being understood and agreed that both the City and the Developer have equally negotiated the provisions hereof and contributed substantially and materially to the preparation of this Agreement. (k) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio without regard to its principles of conflicts of laws. All claims, counterclaims, disputes and other matters in question between the City, its agents and employees, and Developer, 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. This Agreement shall not be construed more strictly against one Party than against another merely by virtue of the fact that it may have been prepared by counsel for one of the Parties, it being acknowledged that each Party has contributed substantially and materially to the preparation of this Agreement. (l) Legal Authority. The Parties respectively represent and covenant that each is legally empowered to execute, deliver and perform this Agreement and to enter into and carry out the transactions contemplated by this Agreement. The Parties further respectively represent and covenant that this Agreement has, by proper action, been duly authorized, executed and delivered by the Parties and all steps necessary to be taken by the Parties have been taken to constitute this Agreement, and the covenants and agreements of the Parties contemplated herein, as a valid and binding obligation of the Parties, enforceable in accordance with its terms. (m) 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 if hand-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, and shall be deemed received upon actual receipt, DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C - 19 - 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: (i) the City at: City of Dublin, Ohio 5555 Perimeter Drive Dublin, Ohio 43017 Attention: City Manager (ii) the Developer at: CSD Dublin LLC _______________ Dublin, Ohio ______ Attention: _________ 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. (n) No Waiver. No right or remedy herein conferred upon or reserved to any Party is intended to be exclusive of any other right or remedy, and each and every right or remedy shall be cumulative and in addition to any other right or remedy given hereunder, or now or hereafter legally existing upon the occurrence of any event of default hereunder. The failure of any Party to insist at any time upon the strict observance or performance of any of the provisions of this Agreement or to exercise any right or remedy as provided in this Agreement shall not impair any such right or remedy or be construed as a waiver or relinquishment thereof. Every right and remedy given by this Agreement to the Parties hereto may be exercised from time to time and as often as may be deemed expedient by the parties hereto, as the case may be. (o) No Offer Until Executed and Delivered. The submission of this Agreement to the Developer for examination or consideration does not constitute an offer to sell or lease the Property and this Agreement shall become effective, if at all, only upon the full execution and delivery thereof by the Developer and the City. (p) Recitals. The Parties 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. (q) Severability. If any provision of this Agreement, or any covenant, obligation or agreement contained herein is determined by a court to be invalid or unenforceable, that determination shall not affect any other provision, covenant, obligation or agreement, each of which shall be construed and enforced as if the invalid or unenforceable portion were not contained herein. That invalidity or unenforceability shall not affect any valid and enforceable application thereof, and each such provision, covenant, obligation or agreement shall be deemed to be effective, operative, made, entered into or taken in the manner and to the full extent permitted by law. DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C 25 North St Matt Davis 43017 - 20 - (r) Survival. All representations and warranties of the Parties in this Agreement shall survive the execution and delivery of this Agreement. The respective rights and obligations of the parties shall survive the Closing of the transactions contemplated in this Agreement. (s) No Debt. Notwithstanding any other provision of this Agreement, the obligations of the City hereunder requiring expenditure of funds to perform those obligations are subject to appropriation by City Council of funds necessary to perform those obligations and do not constitute an indebtedness of the City within the provisions and limitations of the laws and the Constitution of the State of Ohio, and neither the Developer nor any other party has the right to have taxes or excises levied by the City for the payment or performance of its obligations hereunder. (t) Third Party Beneficiaries. Nothing in this Agreement, express or implied, is intended to or shall confer upon any other person any right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. (REMAINDER OF PAGE INTENTIONALLY LEFT BLANK – SIGNATURE PAGE FOLLOWS) DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C S-1 IN WITNESS WHEREOF, the City and the Developer 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: Megan D. O’Callaghan Title: City Manager Approved as to Form: By: Printed: Title: Assistant Director of Law CSD DUBLIN LLC By: Printed: Title: DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C Managing Member Matt Davis Phil Hartmann A-1 EXHIBIT A DEPICTION OF WEST PARCEL 1, WEST PARCEL 2, WEST PARCEL 3, EAST PARCEL 1 AND EAST PARCEL 2 DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C B-1 EXHIBIT B PRELIMINARY DEVELOPMENT PLAN FOR RIVERVIEW VILLAGE DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C C-1 EXHIBIT C INSURANCE REQUIREMENTS The Developer shall maintain, at its own expense, the following minimum insurance coverages of the types and in the amounts described below that are applicable to the scope of work being performed: 1. Workers’ Compensation and Employer’s Liability Insurance. The Developer must carry Workers’ Compensation Insurance (including occupational disease) in compliance with Workers’ Compensation statutes of any applicable jurisdiction in which the work is to be performed. For the attainment of Workers’ Compensation in monopolistic states, including Ohio, coverage must be secured through the state fund. If the Developer is a qualified self-insurer in compliance with the laws of the state, this is also acceptable. A certificate of compliance from the appropriate Workers’ Compensation Bureau or Board must be provided with the certificate of insurance. The Developer must also carry Employer’s Liability Insurance with minimum limits of $500,000 each accident; $500,000 for disease (per employee); and $500,000 for disease (policy limit). This policy must include Ohio “Stop Gap” coverage. 2. Commercial General Liability Insurance. The Developer must carry Commercial General Liability Insurance (“CGL”) written on ISO form CG 00 01 10 01 (or its equivalent) with limits of $1,000,000 per occurrence and $2,000,000 in the aggregate. The general aggregate limit shall apply separately to this Project. The City (including its council members, employees and volunteers) must be named as an additional insured on the CGL for liability arising out of the acts or omissions of the Developer, including coverage for liability arising out of products and completed operations. The coverage afforded to the City shall be primary to any other insurance carried by the City, and the City’s coverage shall not contribute to any loss made pursuant to this coverage grant. Commercial General Liability coverage (including the City’s status as additional insured) shall be maintained for at least two years after completion of the Developer’s work performed under the Development Agreement. 3. Commercial Auto Liability Insurance. The Developer shall carry Commercial Automobile Liability Insurance covering all owned, leased and non-owned vehicles used in connection with the work to be performed under the Development Agreement, with limits of not less than $1,000,000 combined single limit per accident for bodily injury and property damage. The City shall be afforded coverage under this policy for any liability arising out of the acts or omissions of the Developer. 4. Excess/Umbrella Insurance. The Developer shall carry Commercial Excess or Umbrella Liability Insurance over the Commercial General Liability, Employer’s Liability and Commercial Automobile Liability policies in the amount of $2,000,000 combined single limit. The Excess/Umbrella policy is subject to all requirements of the underlying policies as set forth herein. 5. Builders’ Risk Insurance. The Developer shall provide and maintain, during the progress of the work and until completion of the Private Improvements, a Builder’s Risk Insurance policy DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C C-2 to cover all work in the course of construction including falsework, temporary buildings, scaffolding, and materials used in the construction process (including materials designated for the project but stored off site or in transit). The coverage shall equal the total completed value of the work and shall provide recovery at replacement cost. a. Such insurance shall be on a special cause of loss form, providing coverage on an open perils’ basis insuring against the direct physical loss of or damage to covered property, including but not limited to theft, vandalism, malicious mischief, earthquake, tornado, lightning, explosion, breakage of glass, collapse, water damage and testing/startup. b. Coverage shall include coverage for “soft costs” (costs other than replacement of building materials) including, but not limited to, the reasonable extra costs of the architect/engineer and reasonable Developer extension or acceleration costs. This coverage shall also include the reasonable extra costs of expediting temporary and permanent repairs to, or permanent replacement of, damaged property. This shall include overtime wages and the extra cost of express or other means for rapidly transporting materials and supplies necessary to the repair or replacement. c. The Builder’s Risk deductible may not exceed $5,000. The Developer or subcontractor experiencing any loss claimed under the Builder’s Risk policy shall be responsible for that loss up to the amount of the deductible. d. If the Developer is involved solely in the installation of material and equipment and not in new building construction, the Developer shall provide an Installation Floater policy in lieu of a Builder’s Risk policy. The policy must comply with the provisions of this Section 5. 6. Pollution Liability Insurance. The Developer shall purchase and maintain pollution liability coverage of at least $1,000,000 per occurrence. This policy shall cover property damage, bodily injury and cleanup/pollution remediation costs caused by a pollution event and otherwise excluded under the Developer’s Commercial General Liability policy. The City shall be afforded protection under this policy as an additional insured, including coverage for claims arising out of the Developer’s products and completed operations. 7. This Section is Intentionally Left Blank. 8. Railroad Protective Liability Insurance. If the work is being performed within 50 feet of a railroad, the Developer shall maintain Railroad Protective Liability insurance coverage with limits of $2,000,000 per occurrence and $6,000,000 in the aggregate. The Developer shall name the City and the affected railroad as additional insured(s) on such policy for liability arising out of work performed under the Agreement. 9. Requirements Common to All Policies. a. The Developer shall be solely responsible for reimbursing any deductible amount to the insurer, even if payment is being made on behalf of the City as an additional insured on the DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C C-3 Developer’s policy. Any deductibles or self-insured retentions in excess of $5,000 must be disclosed and approved in writing by the City. b. The Developer waives all rights of recovery it may otherwise have against the City (including its council members, employees and volunteers) to the extent the damages are covered by any of the Developer’s insurance policies. c. All insurance required hereunder shall be placed with insurers that have a minimum A.M. Best’s rating of A-/X and shall be licensed, admitted insurers authorized to do business in the State of Ohio. d. A certificate(s) of insurance showing that the Developer’s insurance coverages are in compliance with the insurance requirements set forth herein must be completed by the Developer’s insurance agent, broker, or insurance company as of the Closing. All certificates (other than Ohio Workers’ Compensation) shall provide for thirty (30) days’ written notice to the City prior to cancellation or non-renewal of any insurance referred to therein. The certificate shall reference the City’s status as an additional insured with primary/noncontributory coverage under both the General Liability and Auto policies. e. Failure of the City to obtain certificate(s) or other evidence of full compliance with these insurance requirements (or failure of the City to identify and/or object to a deficiency in the certificate(s) that is/are provided by the Developer) shall not be construed as a waiver of the Developer’s obligations to maintain such insurance. The City shall have the right, but not the obligation, to prohibit the Developer from beginning performance under the Development Agreement until such certificates or other evidence that insurance has been placed in complete compliance with the above insurance requirements is received and approved by the City. The Developer shall provide certified copies of all insurance policies required above within ten (10) days of written request from the City. f. By requiring insurance herein, the City does not represent that coverage and limits will necessarily be adequate to protect the Developer, and such coverage limits shall not be deemed as a limitation on the Developer’s liability under the indemnities granted to the City. g. Any subcontractors engaged by the Developer to perform the work shall comply with these insurance and indemnification provisions and shall provide primary/noncontributory coverage to the City as set forth herein. h. A capitalized term not otherwise defined herein shall have the same meaning as is ascribed to it in the Agreement. DocuSign Envelope ID: 8E6E5674-796D-4778-8835-1CDCF4AE4C8C