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Home My WebLink About02-95 Ordinance ORDINANCE NO. 02-95 2/16/95 AN ORDINANCE APPROVING A MUNICIPAL INCOME TAX REVENUE SHARING AGREEMENT BETWEEN THE CITY OF DUBLIN AND THE DUBLIN CITY SCHOOL DISTRICT, AND AUTHORIZING THE EXECUTION OF THAT AGREEMENT, AND DECLARING AN EMERGENCY. WHEREAS, the City of Dublin may, under authority of Chapter 725. or 1728., or Sections 3735.65 to 3735.70, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632, 5709.73, 5709.78 or 5709.84 of the Ohio Revised Code, grant an exemption from taxation for real or tangible personal property improvements (a Project); and WHEREAS, pursuant to Section 5709.82 of the Ohio Revised Code, the City may negotiate and enter into an agreement with the Dublin City School District to compensate that School District for tax revenue the School District would have received had property comprising a Project not been exempted from taxation by the City (the Agreement); and WHEREAS, the City has negotiated an Agreement with the School District pursuant to Section 5709.82 of the Ohio Revised Code and determined that Agreement is in the vital and best interest of the City and will improve the health, safety and welfare of the citizens of the City of Dublin; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, Franklin, Union and Delaware Counties, Ohio, that: Section 1. The municipal income tax revenue sharing agreement between the City and the Dublin City School District, in the form presently on file with the Clerk of Council, providing for, among other things, payments by the City to the School District compensating the School District for tax revenue the School District would have received had property comprising a Project not been exempted from taxation by the City, is hereby approved and authorized with changes thereto not inconsistent with this Ordinance and not substantially adverse to the City, and which shall be approved by the City Manager and Director of Finance. The City Manager and the Director of Finance, for and in the name of this City, are hereby authorized to execute that Agreement, and the appr:wal of changes thereto by those officials and the character of those changes as not being substantially adverse to the City shall be evidenced conclusively by their execution thereof. Section 2. fhis Council finds and determines that all formal actions of this Council concerning or relating to the passage of this ordinance were taken in an oPen meeting of this Council and that all deliberations of this Council that resulted in those formal actions were in meetings open to the public in compliance with the law. Section 3. This ordinance is declared to be emergency measure and necessary for tIle immediate p;.~servation of the public peace, health, safety or welfare of this City and for the further reason that this ordinance is required to be immediately effective in order to provide for the impJementaJon of economic development incentives at the earliest possible time to create and preserve jobs and employment opportunities and improve the economic welfare of the people of the City; wherefore, this ordinance shall be in full force and effect immediately upon its passage. I hereby certify that copies of this Ordinance/Re!6Iuliulf Wflr!' P',;"t:o ;,.'ne Signed: City of Dublin in accordance wit" Section 731.?c jr the 6'11io RG'ii'l~tlrl elIde. ~. (--:6 C2L--u~~ ~{(L~ Clark of iCGunril ~. 'i,;;, Ohio presie g Officer ~G--~ Clerk of Council passed:d-f.J,(/;4.(AI''t^ 1, 1995 I heff!bv ,,,.!'tv "'1f rOH;es of ,", I)rdnonce/1t"'1O.A..liuII tiere posted in till' City of Dublin in accordance w;,~ Sedion 731.25 of the _ill Revised Code. Effective:,:fi/PflA.A"j Jj , 1995 ~ C!..~~J ~~ 9412l583AGB.88B (IP,ftc of Coun6! O'lhlin. Ohio , MEMORANDUM TO: Dublin City Council FROM: Tim Hansley, City Manager DATE: February 23, 1995 SUBJECT: Ordinance #02-95 and Ordinance #03-95 INITIATED BY: Mary L. Bearden, Economic Development Coordinator c: We are requesting that Council take action on Ordinance #02-95 approving a Municipal Income Tax Revenue Sharing Agreement between the City of Dublin and the Dublin City School District and Ordinance #03-95 approving a Britton Parkway Community Reinvestment Area Agreement between the City of Dublin and Duke Realty Limited Partnership. Both ordinances must go into effect immediately and need to be passed as emergencies at your Monday, February 27 meeting. Approval from the Director of the Ohio Department of Development certifying the CRA will be granted on Friday, February 24, 1995. The only substantial change in the Revenue Sharing AgreelTlent with the School District is the manner in which the "new employee" issue has been resolved by agreeing to share 35 percent of the total income tax revenues from a given project versus 50 percent of income tax revenue sharing from "new employees" by the new statute. The School District and City staff believe that this is both equitable in dollars and far easier to implement. The Retention and Expansion (R & E) program is moving along quite nicely, and volunteers are being solicited from Council, Board, Commission and Staff members to serve on the business visitation team. Volunteers will receive instructions prior to visiting businesses, with the purpose being to gather data from the business leader first hand. The state program requires that Council pass a "Resolution of Support" prior to undertaking the R & E activity. Also, for your information, the Development Department participated in the Central Ohio Technology Exposition '95 on Thursday, February 23. The overall objective of this event was the communication of information that contributes to the economic strength of Dublin and all of Central Ohio to foster growth, stabilize and enhance the higher paying jobs, and to increase the awareness of technology firms, products, and services that are available through the City of Dublin and all of Central Ohio. EXECUTION COpy MUNICIPAL INCOME TAX REVENUE SHARING AGREEMENT This Agreement (the "Agreement") is made and entered into this day of February, 1995, by and between the City of Dublin, Ohio (the "City"), a municipal corporation with its principal offices at 6665 Coffman Road, Dublin, Ohio 43017, and the Dublin City School District, Ohio (the "School District"), a public school district with its principal offices located at 7030 Coffman Road, Dublin, Ohio 43017. WITNESSETH: WHEREAS, the City of Dublin may, under authority of Chapter 725. or 1728., or Sections 3735.65 to 3735.70, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632, 5709.73, 5709.78, or 5709.84 of the Ohio Revised Code, grant an exemption from taxation for real or tangible personal property improvements (a "Project"); and WHEREAS, pursuant to Section 5709.82 of the Ohio Revised Code, the City may negotiate and enter into an agreement with the School District to compensate the School District for tax revenue the School District would have received had property comprising a Project not been exempted from taxation by the City; and WHEREAS, the City has determined that this Agreement is in the vital and best interests of the City and will improve the health, safety and welfare of the citizens of the City of Dublin; NOW, THEREFORE, in consideration of the premises and covenants contained herein the parties agree as follows: Section 1. Definitions. As used in this Agreement, the following terms shall have the meanings set forth below: "Annual Payment Amount" shall mean the amount paid by the City to the School District under Section 2 of this Agreement. "Base Year" means, for any Project, the calendar year immediately preceding the first Exemption Year for that Project. "Exemption Year" means, for any Project, any calendar year in which the Project would be taxable but for the City's authorizing for that Project any of the tax exemptions authorized under Chapter 725. or 1728. or Sections 3735.65 to 3735.70, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632, 5709.73, 5709.78, or 5709.84 of the Ohio Revised Code. "New Employee Payroll" shall mean the difference between (a) the dollar amount of payroll reported for any Exemption Yearby each employer which is the occupant, whether as an owner or as a lessee, of all or any portion of a Project during such Exemption Year, MINUS (b) the annualized dollar amount of payroll as of the date of occupancy for each such employer. "Property Tax. Amount" shall mean the amount of real and/or tangible personal property tax payments derived each Exemption Year from a Project which the School District would have received but for the City's authorizing for that Project any of the tax exemptions authorized under Chapter 725. or 1728. or Sections 3735.65 to 3735.70, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632, 5709.73, 5709.78, or 5709.84 of the Ohio Revised Code. Section 2. Amount of City Payments. During any Exemption Year in which (i) the School District would have received real or tangible personal property tax payments derived from a Project (including, without limitation, a Project located in the Britton Parkway Community Reinvestment Area or the Tuttle Crossing Community Reinvestment Area) but for the City authorizing for that Project any of the tax exemptions referred to above, and (ll) the New Employee Payroll resulting from the exercise of that authority equals or exceeds One Million Dollars ($1,000,000) in that Exemption Year, the City hereby agrees to pay the School District for that Exemption Year an amount equal to 35 % of the amount of income taxes levied and collected by the City on payroll derived from each employer which is the occupant, whether as an owner or lessee, of that Project; provided, however, that, except with respect to a Project within the Tuttle Crossing Community Reinvestment Area, the Annual Payment Amount payable for any Exemption Year shall not be less than (a) 50% of the Property Tax. Amount, MINUS (b) the sum of (1) the amount of ad valorem real property taxes charged and payable on any portion of the assessed valuation of the Project that will not be exempted from taxation (excluding the land on which the Project is located), plus (2) the amount of taxes charged and payable on tangible personal property located on the premises of the Project (whether payable by the owner of the Project or by a related member, as defined in Section 5733.42 of the Ohio Revised Code without regard to division (B) of that section) that will not be exempted from taxation, plus (3) the amount of any cash payment by the owner of the project or the dollar value, as mutually agreed to by the owner and the School District, of any property or services provided by the owner of the property to the School District, whether by gift, loan, or otherwise; and provided, further, that the Annual Payment Amount paid to the School District for any Project for any Exemption Year shall never exceed the Property Tax. Amount. -2- This Agreement shall not apply to any Project to which Section 5709.82 of the Ohio Revised Code does not apply. Section 3. Timing of Payments: Review of Records. Beginning with the calendar year following the first Exemption Year, the City shall calculate the Annual Payment Amount for the immediately preceding Exemption Year on or before the last day of April and shall provide to the School District a copy of such calculations. The calculation by the City of the Annual Payment Amount for each Project shall be conclusive absent manifest error. The City shall pay the Annual Payment Amount to the School District on July 1st of the calendar year after the Exemption Year for which the calculation is made. The School District may from time to time, with reasonable advance notice, review the records of the City relating to its receipt of municipal income taxes derived from any Project. Section 4. Amendment: Change of Law. This Agreement may be amended or modified by the parties only in writing, signed by both parties to the Agreement. Section 5. Entire Agreement. This Agreement sets forth the entire agreement and understanding between the parties as to the subject matter hereof and merges and supersedes all prior discussions, agreements, and undertakings of every kind and nature between the parties with respect to the subject matter of this Agreement. Section 6. Notices. All payments, certificates and notices which are required to or may be given pursuant to the provisions of this agreement shall be sent by the United States ordinary mail, postage prepaid, and shall be deemed to have been given or delivered when so mailed to the following addresses: If to the City: City of Dublin 6665 Coffman Road Dublin, Ohio 43017 Attn: Director of Development If to the School District: Dublin City School District 7030 Coffman Road Dublin, Ohio 43017 Attn: Treasurer Either party may change its address for receiving notices and reports by giving written notice of such change to the other party. Section 7. Severability of Provisions. The invalidity of any provision of this Agreement shall not affect the other provisions of this Agreement, and this Agreement shall be construed in all respects as if any invalid portions were omitted. -3- Section 8. Counterparts. This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument, and any party to this Agreement may execute this Agreement by signing any such counterpart. IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the date set forth above. CITY OF DUBLIN, OHIO DUBLIN CITY SCHOOL DISTRICT, OHIO By: By: City Manager Superintendent And: By: Director of Finance Treasurer By: President of the Board of Education -4- . . FISCAL OFFICER'S CERTIFICATE The undersigned, Director of Finance and Fiscal Officer of the City of Dublin, Ohio, hereby certifies that the monies required to meet the obligations of the City during the year 1995 under the foregoing Agreement between the City and the Dublin City School District have been lawfully appropriated by the Council of the City for such purposes 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. Dated: , 1995 Marsha Grigsby, Director of Finance 94\21583AAF.89L ... -5-