27-99 Ordinance _v. _
RECORD OF ORDINANCES
Dayton Legal Blank Co. Form No. 30043
Ordinance No .........................27-.~9......................... Passed
YEAR
AN ORDINANCE APPROVING A TAX CREDIT AGREEMENT WITH
OPTICON MEDICAL, INC.; AND AUTHORIZING, CONFIRMING AND
RATIFYING THE EXECUTION OF THAT TAX CREDIT AGREEMENT.
"r.~.. WHEREAS, Pharmacia and Upjohn, Inc. ("Pharmacia") owns certain real property
(the "Property") located at 7001 Post road in the City of Dublin, Ohio (the "City") and
based on inducements and incentives previously offered by the City, Pharmacia has leased
a portion of their space to Opticon Medical, Inc. (the "Company"); and will involve the
creation of 26 new jobs over three years; and
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code ("O.R.C.") (the
"Act"), the state of Ohio, (the "State") established the Ohio Jobs Creation Tax Credit
Authority (the "authority") and is authorized to execute agreements with taxpayers of the
state of Ohio for the purpose of granting these taxpayers job creation tax credits against
the taxpayers' corporate franchise or income tax which tax credits are provided to create
new jobs in the State; and
WHEREAS, the Authority, on July 13, 1998, granted the Company's request for a
State income tax credit for creation of jobs pursuant to the Act; and
WHEREAS, pursuant to Section 718.08, O.R.C. (the "City Act"), a municipal
corporation is authorized to grant local income tax credits to taxpayers which have
received a tax credit from the State; and
WHEREAS, the granting of the tax credits by the City for the proposed expansion
by the Company will create jobs and increase opportunities for employment and
strengthen the economy of the City; and
WHEREAS, receiving these tax credits from the State and the City is a critical
factor in the Company's decision to go forward with the project; and
WHEREAS, the City commits to granting a 50% credit of new city municipal
income tax revenues generated by new jobs, resulting from the relocation, towards up to
50% of the Company's municipal corporate income tax obligation, for a five (5) year
period. Under no circumstances shall the tax credit to the Company exceed 50% of the
Company's corporate municipal income tax liability.
NOW, THEREFORE, BE IT ORDAINED by the ouncil of the City of Dublin,
Franklin, Union and Delaware Counties, State of Ohio, of the elected members
concurring, that:
Section 1. The Council hereby finds and determines that the Project will (1) create
jobs in the State and City, (2) the Project is economically sound and will benefit the
people of the State and City by increasing opportunities for employment and strengthening
the economy of the State and City; and (3) receiving the aforementioned tax credits is a
critical factor in the decision by the Company to go forward with the Project.
Section 2. The City Manager and the Director of Finance are authorized to execute,
deliver and, if applicable, file, for and in the name and on behalf of the City, any other
materials, documents or certifications which are necessary or appropriate to consummate
the transactions contemplated in this ordinance and the Tax Credit Agreement.
S ion .This Council finds and determines that all formal actions of this Council
concerning or relating to the passage of this ordinance were taken in an open meeting of
this Council and that all deliberations of this Council that resulted in those formal actions
were in meetings open to the public in compliance with the law.
RECORD OF ORDINANCES
Dayton Legal Blank Co. Form No. 30043
Ordinance No .............................27,-99..................... Passed
YE.~R
Page two
t~
.Section 4. This Ordinance shall take effect in accordance with Section 4.04 of the
r City Charter.
Passed this day of J~~~'LG, , 1999.
Signed:
G'~
Mayor -Presiding Officer
Attest:
~~wvYr,~L
Clerk of Council
I hr~^!~~~ -~~+~f,~ thnt copies of this Ordinance/Resolutio~ wpro posted
n the
City of ~ ,?;!~n `n o~rnr~aRte wit~A Section 731.25 of the Ot;:o Revised Code.
.
/9s5f: Cler~f Council, Dublin, Ohio
ye.
4
1
Division of Economic Development
5800 Shier-Rings Road • Dublin, Ohio 43016-1236
CITY OF DUBLIN Phone: 614-761-6550 • Fax: 614-761-6506
Memo
~
To: Rick Helwig, Assistant City Manager/Development Director
From: Mary L. Bearden, Economic Development Director
Date: August 21, 1998 VVV~~-""`
Re: Opticon Medical, Inc.
I am pleased to inform you that Opticon Medical, Inc. is leasing approximately 4,300 sq. ft. of
office space at the Pharmacia complex, moving their operation, and establishing their corporate
headquarters in Dublin. The company is presently headquaztered in Minneapolis, Minnesota.
Opticon was started in 1994 to develop a disposable device for the management of urinary
incontinence and has recently successfully completed initial clinical trials of the device. To date,
the company has outsourced many of its operating functions. The company is now entering the
commercialization phase of its business and will be hiring additional people, including design
and process engineers, in order to further develop the product for the eventual goal of integrated
manufacturing.
Opticon's proposed project would initially involve an investment of $350,000 in production
tooling and testing equipment and would result in the creation of 26 new jobs with an annual
payroll of $1,900,000 within three yeazs.
As part of Opticon's due diligence, the Company applied to the State of Ohio for Ohio Job Tax
Credits to induce them to move their entire operation to Ohio. As you know, the State requires
local participation and has accepted and approved the City's offer to commit to granting a 50%
credit of new city municipal income tax revenues generated by new jobs, resulting from the
expansion, towards up to 50% of the Company's municipal corporate income tax obligation, for a
five (5) yeaz period. Under no circumstances shall the tax credit to the Company exceed 50% of
the Company's corporate Municipal income tax liability. The Company did not wish to
G:\OFFICE\W P\98CORRES\OPTICON. W PD
go public prior to their getting approval from the State. The State did approve their request and
issued them a letter of commitment. I wanted you and the City Council to be aware that the
leasing transaction is nearing completion with an understanding that additional space will be
made available as needed.
It was fortunate that Opticon was able to find appropriate space to lease in the Pharmacia office
complex. Even though the Opticon project is not of the magnitude we normally see, the
Company has the capability of becoming one of the City's larger employers. We have
experienced other such success stories and are proud of the City's ability to attract companies
such as this that recognize the opportunities Dublin has in place to allow them to prosper and
grow. We welcome Opticon Medical, Inc. to Dublin.
G:\OFFICE\W P\98CORRES\OPTICON. W PD
February 2, 1999
Mr. Bill Post, President
Opticon Medical, Inc.
CI'1'1' OF DCBL[\ '7001 Post Road, Suite 100
Divi:ion of Dublin, OH 43017
Economic Development
s, 5800 Shier•Rings Road Dear Mr. Post:
Dublin, Ohio 43016.1236
Phone/fDD:614-761-6550 The Cit of Dublin is leased that O ticon Medical, Inc. has moved their co orate
Fax: 614-761.6506 y p p ~
Web Site: www.dublin.oh.us headquazters to our city from Minneapolis, Minnesota. It is our understanding that the
company is the front runner in developing disposable devices for the management of
urinary incontinence and has recently successfully completed initial clinical trials of the
device. We further understand the company will be entering the commercialization phase
of their business. In the past, you have had to outsource many of your operating
functions. In order to further develop the product for the eventual goal of integrated
manufacturing, you will, therefore, have the need to hire additional people. We aze
looking forwazd to your growth potential in the City of Dublin.
Opticon's proposed project involves an investment of $350,000 in production tooling and
testing equipment, and initially the creation of 26 new jobs, with an annual payroll of .
$1,900,000 within three yeazs. Since you have applied to the State of Ohio for Ohio Job
Tax Credits and as the State requires local participation, the City is prepazed to make the
following offer. The City commits to granting a 50% credit of new city municipal income
tax revenues generated by new jobs, resulting from the expansion, towards up to 50% of
the Company's municipal corporate income tax obligation, for a five (5) year period.
Under no circumstances shall the tax credit. to the Company exceed 50% of the -
Company's corporate Municipal income tax liability.
"`"`P' The City is pleased that Opticon was able to find appropriate space in the Pharmacia
complex. We see the Company having the capability of becoming one of the City's larger
employers. We have experienced other such success stories and are proud of the City's
ability to attract companies such as your that recognize the opportunities Dublin has in
place to allow them to prosper and grow. We welcome Opticon Medical, Inc. to Dublin.
Sincerely,
Mary eazden
Economic Development Director
G:\OFFICE\W P\99CORRESIO PTICON. W PD
Division of Economic Development
5800 Shier-Rings Road • Dublin, Ohio 43016-1236
CITY OF DUBLIN Phone: 614-761-6550 • Fax: 614-761-6506 Memo
To: Dublin City Council
' From: Timothy C. Hansley, City Manager
Date: February 25, 1999
Re: Ordinance #27-99 `z~"3+d'
Initiated By: Mary L. Bearden, Economic Development Director
Ordinance No. 27-99 is the authorization to approve a tax credit agreement with Opticon
Medical, Inc. as presented to City Council by memo on August 21, 1998.
Opticon Medical, Inc. has moved their entire operation from Minneapolis, Minnesota, and has
established their corporate headquarters in leased space at the Pharmacia complex. They have
undergone major renovations to the space, and are initiating their local recruitment activities.
The State did approve their request for Tax Credits on July 13, 1998. The State requires local
participation, and has accepted the offer the City presented for a credit to the company's
municipal corporate income tax obligation.
Opticon was started in 1994 to develop a disposable device for the management of urinary
incontinence.
\WIMBUS\VOLI\PER\KG396\OFFTCT:IWP~99CORRES\ORDIIVANCE2799.DOC