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HomeMy WebLinkAboutOrdinance 08-25RECORD OF ORDINANCES BARRETT BROTHERS - DAYTON, OHIO Form 6220S 08-25 Ordinance No. Passed AUTHORIZING THE PROVISION OF A _ CERTAIN INCENTIVE TO WHALEN AND COMPANY, CPAS, INC. TO INDUCE IT TO LEASE A FACILITY TO LOCATE AND EXPAND ITS OFFICE AND ITS ASSOCIATED OPERATIONS AND WORKFORCE, ALL 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, Whalen and Company, CPAs, Inc. (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 incentive provided in the proposed Economic Development Agreement (as described below), the Company is desirous of leasing a facility to locate and expand its office and its associated operations and workforce, all within the City; and WHEREAS, this Council has determined that it is necessary and appropriate and in the best interests of the City to provide for a certain economic development incentive to the Company, as described in the proposed Economic Development Agreement; and WHEREAS, this Council has determined to offer the economic development incentive, 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 lease a facility to locate and expand its office and its associated operations and workforce, all within the City, 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, 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 a certain economic development incentive in consideration for the Company's agreement to lease a facility for the location and expansion of its office and its associated operations and workforce, all within the City, 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 Director of Economic Development, 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 08-25 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: - -D— Mayor - Presiding Officer Cb/ Passed: Aol 7 __, 2025 Attest: =~ Gietk of Godncil Effective: (May: 7, 2025 To: Members of Dublin City Council From: Megan O’Callaghan, City Manager Date: March 11, 2025 Initiated By: Jeremiah Gracia, CEcD, Director of Economic Development Luke Fleming, Economic Development Administrator Re: Ordinance 08-25 – Economic Development Agreement with Whalen CPAs Background Founded in the 1940s in Springfield, Ohio by Elmer J. Whalen, Whalen CPAs has built a strong reputation for providing comprehensive tax, accounting, auditing, and business advisory services. As a certified public accounting firm, their primary focus remains on delivering high-quality financial solutions to businesses of all sizes. Currently operating in the City of Worthington, Whalen CPAs plans to relocate its headquarters to Dublin. The company exhausted its office search opportunities in Worthington and provided notification to the City of Worthington of its intent to search for a new office location outside of Worthington. This transition involves moving 39 employees and expanding its employee count to 47 by December 31, 2031. The City of Dublin has proposed an Economic Development Agreement to Whalen CPAs, which includes a one-time grant of $20,000. To qualify for this incentive, Whalen CPAs must sign a lease agreement for a minimum of five years and obtain proof of occupancy by August 1, 2025. Whalen’s decision to invest in Dublin reflects the city's strong business-friendly environment and commitment to fostering economic growth. We are pleased to welcome them to our corporate community and are confident that their values and business excellence will contribute to Dublin’s reputation as an exceptional place to live and work. Recommendation Staff recommends Council adoption of Ordinance 08-25 on April 7, 2025. Please contact Luke Fleming with any questions that you may have. Office of the City Manager 5555 Perimeter Drive • Dublin, OH 43017 Phone: 614.410.4400 Memo 1103911683\2\AMERICAS ECONOMIC DEVELOPMENT AGREEMENT THIS ECONOMIC DEVELOPMENT AGREEMENT (the “Agreement”) is made and entered into this _____ day of __________, 2025 (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 WHALEN AND COMPANY, CPAS, INC., an Ohio corporation (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 (the “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, based on the results of the Company’s recent comprehensive examination of workforce needs, and induced by and in reliance on the economic development incentive provided in this Agreement, the Company desires to lease a facility to locate and expand its office and its associated operations and workforce, all within the City; and WHEREAS, pursuant to Ordinance No. ___-25 passed on __________, 2025, the City has determined to offer the economic development incentive described herein to induce the Company to lease a facility for the location and expansion of the Company’s office and the associated operations and workforce, all within the City, 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 this incentive in order to induce the Company to lease a facility to locate and expand its office and its associated operations and workforce, all within the City; 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 Lease a Facility to Locate and Expand its Office and its Associated Operations and Workforce Within the City. (a) Anticipated New Employees. In consideration for the economic development incentive to be provided by the City herein, the Company will lease a facility which is located within the City (the “Facility”) to locate and expand its office and the associated operations and workforce, all within the City, and all consistent with the terms of this Agreement. The Company expects to create thirty-nine (39) new employee positions within the City by December 31, 2025. The total estimated annual payroll withholdings for the new employee positions are estimated to be approximately One Hundred Twelve Thousand Five Hundred Twenty Dollars ($112,520). - 2 - 1103911683\2\AMERICAS (b) Lease of a Facility. The Company agrees that the City’s obligations to remit the payment pursuant to Section 2 of this Agreement shall be contingent upon (i) the Company delivering to the City a photocopy of a fully executed agreement, which may be partially redacted to protect sensitive financial information, evidencing the Company’s lease of the Facility within the City (the “Lease Agreement”), provided that the term of such Lease Agreement shall commence no later than August 1, 2025 and terminate no earlier than five (5) years thereafter, which will accommodate the location and expansion of the Company’s office and its associated operations and workforce, (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 Facility, (iii) the Company occupying the Facility and (iv) such other conditions as are set forth in this Section 1 and 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 deliver either the Lease Agreement, receive the Certificate of Occupancy or occupy the Facility, each within the respective periods set forth in Sections 3(s)(i), 3(s)(ii) and 3(s)(iii), (A) this Agreement will terminate without such failure constituting a breach by the Company, (B) the City’s obligation to remit the Location Incentive Payment will be terminated and (C) the Company will owe no penalties to the City as a result of such failure. Section 2. City’s Agreement to Provide Incentive. (a) General. In consideration for the Company’s agreement to lease the Facility and locate and expand its office and its associated operations and workforce, and to create new jobs and employment opportunities, all within the City, the City agrees to provide an economic development incentive to the Company in accordance with this Section. (b) Location Incentive. (i) Location Incentive Payment to the Company. The Company agrees to lease the Facility to locate the Company’s office within the City and to expand that office and its associated operations and workforce within the City. In consideration of the Company’s agreement to lease the Facility to locate the Company’s office within the City and to expand that office and create new jobs and employment opportunities within the City, and subject to the Company’s compliance with the requirements set forth in Sections 1(b)(i) through (iv), the City agrees to pay to the Company, solely from nontax revenues (as defined in Section 2(e)), a location incentive payment (the “Location Incentive Payment”) in the amount of Twenty Thousand and 00/100 Dollars ($20,000.00), payable to the Company no later than sixty (60) days following the date on which the City shall have determined that all of the following conditions shall have been satisfied: (A) the Company shall have executed the Lease Agreement and provided a photocopy of that executed Lease Agreement to the City, (B) the City shall have issued a Certificate of Occupancy for the Facility (which issuance will not be unreasonably conditioned, delayed or withheld by the City) and (C) the Company shall have occupied the Facility; provided that, no payment shall be required to be made pursuant to this Section 2(b)(i) prior to August 1, 2025. - 3 - 1103911683\2\AMERICAS (ii) Forfeiture of Right to Receive Location Incentive Payment. The Company agrees and acknowledges that the Location Incentive Payment provided for in Section 2(b)(i) is being made by the City to the Company in consideration for the Company’s agreement to lease the Facility to locate the Company’s office within the City and to expand that office and its associated operations and workforce, and to create new jobs and employment opportunities, all within the City. The Company further agrees that if the requirements of Section 2(b)(i) are not satisfied, the City shall not be obligated to remit the Location Incentive Payment to the Company as required by this Section 2(b). (c) Consent to Share Information. 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 the employees of the Company and the related net payroll withholdings information for each of the tax years 2025 and 2026. (d) Method of Payment. The payment 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. (e) City’s Obligation to Make Payment Not Debt; Payment 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. - 4 - 1103911683\2\AMERICAS 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 incentive described in this Agreement. If any representative of the Company has knowingly made a false statement to the City to obtain the incentive 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 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. 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. (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. - 5 - 1103911683\2\AMERICAS (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. (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: - 6 - 1103911683\2\AMERICAS (i) the City at: City of Dublin, Ohio 5200 Emerald Parkway Dublin, Ohio 43017 Attention: Economic Development Director (ii) the Company at: Whalen and Company, CPAs, Inc. 655 Metro Place South – Suite 450 Dublin, Ohio 43017 Attention: Lisa Shuneson 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) 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. - 7 - 1103911683\2\AMERICAS (s) Term of Agreement. This Agreement shall become effective as of the Effective Date and shall continue until the earlier of (i) August 1, 2025, provided that as of that day the Company shall have theretofore failed to satisfy the requirements of Section 1(b)(i), (ii) August 1, 2025, provided that as of that day the Company shall have theretofore failed to satisfy the requirements of Section 1(b)(ii), (iii) August 1, 2025, provided that as of that day the Company shall have theretofore failed to satisfy the requirements of Section 1(b)(iii) or (iv) the day on which the Location Incentive Payment which the City is obligated to pay hereunder is received by the Company. (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. - 8 - 1103911683\2\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 WHALEN AND COMPANY, CPAS, INC. By: Printed: Title: - 9 - 1103911683\2\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 2025 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: ____________, 2025 Jaime Hoffman Interim Director of Finance City of Dublin, Ohio