28-99 Ordinance RECORD OF ORDINANCES
Dayton Legal Blank Co. Form No. 30043
Ordinance No ....................28.-99.............................. Passed
YEAR
AN ORDINANCE APPROVING A TAX CREDIT AND ECONOMIC
DEVELOPMENT AGREEMENT WITH CHECKFREE
CORPORATION AND AUTHORIZING, CONFIRMING AND
RATIFYING THE EXECUTION OF THE AGREEMENTS.
r
WHEREAS, CheckFree Corporation ("CheckFree") has purchased certain real
property (the "Property") located in the City of Dublin, Ohio (the "City") at 6000
Perimeter Drive, and based on inducements and incentives previously offered by the
City, CheckFree has renovated and moved their entire Ohio operation to the facility;
and
WHEREAS, the City, by provision of the incentives provided in the Economic
Development Agreement referred to in Section 1 of this Ordinance, desired and
intended to and did induce CheckFree to purchase and improve the building for the
purpose of creating jobs and employment opportunities and to improve the economic
welfare of the people of the State of Ohio and the City as authorized in Article VIII,
Section 13 of the Ohio Constitution; and
WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code ("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 May 18, 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 tax payers 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
NOW, THEREFORE, BE IT ORDAINED by the Counc 1 of the City of
Dublin, Franklin, Union and Delaware Counties, State of Ohio, ~ of the elected
members concurring, that:
Section 1. The City hereby finds and determines that it was and is necessary
and appropriate and in the best interests of the City to provide certain assistance to
CheckFree for the purpose of creating jobs and employment opportunities and to
improve the economic welfare of the people of the -State of Ohio and the City as
authorized in Article VIII, Section 13 of the Ohio Constitution.
Section 2. To provide the assistance and thereby induce CheckFree to purchase
certain real estate located at 6000 Perimeter Drive, the City Manager and the Director
of Finance, for and in the name and on behalf of the City, shall execute, acknowledge
and deliver the Tax Credit and Economic Development Agreement by and between the
City and CheckFree in substantially the form thereof on file with the Clerk of Council.
That Agreement is approved with changes therein not inconsistent with this ordinance
and not substantially adverse to the City and which are permitted by law, and shall be
approved by the City Manager and the Director of Finance; provided, that the approval
RECORD OF ORDINANCES
Dayton Legal Blank Co.
Form No 30043
Ordinance No ....................28.-99.............................. Passed
YE?.R
Page two
of those changes by such officers, and their character as not being substantially adverse
to the City, shall be evidenced conclusively by their execution of those instruments.
Section 3. The City Manager and the Director of Finance shall execute, deliver
and, if applicable, file, for and in the name and on behalf of the City, any other
materials, documents or certifications which are necessary or appropriate to
consummate the transactions contemplated in this ordinance and the Economic
Development Agreement.
Section 4. This Council finds and determines that all formal actions of this
Council concerning or relating to the passage of this ordinance were taken in an open
meeting of this Council and that all deliberations of this Council that resulted in those
formal actions were in meetings open to the public in compliance with the law.
Section 5. This Ordinance shall take effect in accordance with Section 4.04 of
the City Charter.
Passed this / day of f ~n , 1999.
Signed:
ayor -Presiding Officer
Attest:
~ ~
Clerk of Council
1 ~iereby certify that conies of ~~k O'~`nance/Resolufion were posted in the
City of Oahl~r. ~n 0"'nr'{(1~~e w t!? Sert:on ?31.15 of the Ohio Revised Code.
/9.557: [ler f Council, Dubli ,Ohio
S:\DATA\COUNCIL\ORDINANC\CHECKFR.289 ~ ~ - - - . - ~ -
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YYiYM
AGREEMENT OF INTENT
BETWEEN
CITY OF DUBLIN
AND
CHECKFREE CORPORATION
AGREEMENT OF INTENT
This Agreement of Intent is entered into on , 1998, between the City of
Dublin (the "City") and CheckFree Corporation (the "Company") for the purpose of inducing the
Company to locate its electronic commerce functions by purchasing a 140,000 square foot facility
located at 6000 Perimeter Drive, Dublin, Ohio for an estimated purchase price of $15,000,000 with
additional construction improvements estimated to be $2,000,000 and to commence by Summer, 1998;
such construction schedule based on a continuation of the current business conditions.
I. BACKGROUND
The Company has been an important and significant part of the central Ohio region since 1981,
and is presently located in two (2) separate facilities in the Worthington, Ohio area as well as 13 major
facilities in ten states. During this period, the Company has experienced exceptional growth and
financial success. The Company is the leading provider of electronic commerce services, software and
related products for more than 2 million consumers, 1,000 businesses and 850 financial institutions. The
Company designs, develops and markets services that enable its customers to make electronic payments
u~
and collections, automate paper-based recurring financial transactions and conduct secure transactions
on the Internet.
The Company currently has agreements with a multitude of home banking and bill payment
subscribers and financial institutions to provide banking and electronic billing and payment processing
services. The Company processes an average of 7 million transactions per month.
The Company is the only processing company that enables financial institutions to provide
electronic banking, bill payment, bill presentment, brokerage and business services. The Company also
provides brokerage processing through an Investment Services division and core application software
products through their Software division. The Company has earned a high level of respect not only
within the central Ohio region, but also nationally.
The Company has identified a need to relocate their operation from their existing facilities which
will necessitate the acquisition of a new building. It is estimated that the first phase of their project
could be accommodated by their purchase of the Dublin facility that has a purchase price of S 15,000,000
and is 140,000 square feet in size. The initial occupying of this facility is estimated to result in the
transferring of 700 new jobs from the City of Worthington to the City of Dublin. A second phase
.,ti
would create an additional 600 new jobs, and phase three would result in an expansion to the existing
facility. It is anticipated that a decision regarding this move could be made on or about April 1, 1998
and would result in a Summer, 1998 occupancy. It is recognized and understood by the City that the
Company has looked at other sites in Central Ohio, has existing sites and/or facilities in the state of
Georgia, Illinois and Texas, which in addition to the Dublin site, are being reviewed and evaluated by
the Company in determining the most beneficial location for developing a new facility.
To assist in the decision making process, the City desires to enumerate specific cooperative
efforts which will be undertaken in the event the Company chooses the Dublin site over the other sites
being evaluated. This effort is being made in recognition that the purchase of this facility and the "
creation of these new jobs to the City of Dublin will provide economic benefits to the City and will
further add to the quality of this community.
Accordingly, the City and the Company wish to set forth certain matters as to which agreement
has been reached and to indicate their intent and agreement in principle with regard to other matters.
Both the City and the Company recognizes that this Agreement may be replaced or supplemented in the
future by more detailed agreements. However, the parties intend that this Agreement shall set forth
those intentions, principles and details as to which agreements have been reached at this time.
II. AGREEMENT OF INTENT
The parties. predicated on the previous recitation intend as follows: '
1. Municipal Corporate Income Tax Credit. If the Company is successful in obtaining from the
State of Ohio, an Ohio Job Creation Tax Credit, the City will 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) year period. Under no
circumstances shall the tax credit to the Company exceed 50% of the Company's corporate Municipal
income tax liability.
2. Pazkina Requirements. Both parties agree that the intent of the Ciry's zoning code is to require
that an adequate number of parking spaces be in place to properly serve the company's needs. The City
agrees to work cooperatively with the Company to determine the facility's parking needs and to also
satisfy the above stated intent of the zoning code; by assisting the company in obtaining any permits for
additional parking and/or to seek a variance in the required number of off street parking spaces as might
be mutually agreed to.
3. Zoning Code Restrictions/Sideyazds. The City Administrative Staff agrees that if the Company
provides evidence that they, or a closely related holding company or other affiliated corporate entity, has
overall control of the acreage, the sideyazds requirements of the Dublin Zoning Code will apply to the
` perimeter of the azea of control.
4. Coordination. In order to allow for the expansion of this facility in acost-effective manner, the
City agrees to provide the full support of its staff in assisting the Company to identify and obtain
potential sources of public funding and assistance for the project. The City will assign its Economic
Development Director to work closely with the Company as a liaison between the City and the Company
and to serve as a coordinator with other agencies and levels of government. Specifically, in this regard,
the City agrees to act through its Economic Development Director to seek or identify State assistance on
behalf of the Company; such funds or assistance to be used by the Company to aid with relief of training
costs, obtaining a tax credit through the Ohio Job Creation Tax Credit Authority, or any other eligible
costs associated with developing this proposed facility or expanding it's operation.
5. Building Permit Process. The City of Dublin through its Economic Development Director, will
assign its highest priority to help expedite the building permit process so that the Company, its designers
and contractors can implement their aggressive construction schedule for the project.
6. Contingent upon the Company obtaining assistance from the State of Ohio, the City of Dublin is
prepared to provide the Company with a technology allowance in the amount of $250,000 to purchase a
generator and associated equipment required to provide a continual power supply for their operation.
Reimbursement will be annual installments of $50,000 over a five year period. Said payments would
commence after the first full year of occupancy by the Company and will be disbursed by December 31
of each year. At no time will the City's annual payment to the Company exceed municipal income tax
withholdings collected from the employees in the building. The City's payment would be provided from
"non-tax revenues" of the City in conformance with Article VIII, Section 13, of the Ohio Constitution.
These provisions will be incorporated in an economic development agreement between the City and the
Company.
III. INTENTION OF COMPANY
It is the Company's intention to review the Dublin site with full consideration given to the
inducements herein enumerated and in recognition of the other benefits available to the Company by
moving its facilities to the Dublin community. In the event that the Dublin site is chosen, then it is the
Company's intention to cant' out the acquisition, construction and operation of the proposed new facility
as contemplated by this agreement and as set forth hereinabove, provided the conditions agreed to by the
City in this Agreement have been undertaken in a timely manner.
IV. EXPEDITIOUS ACTION
The City and the Company recognize that the creation of additional jobs is a matter of highest
priority, and both parties will use their best efforts to proceed as expeditiously as possible in carrying out
their responsibilities hereunder.
V. AUTHORIZATION
This Agreement shall become effective when fully executed by both parties. The City Manager
will sign on behalf of the City following adoption of an ordinance by Dublin City Council authorizing
such action.
CITY OF DUBLIN
By
Timothy C. Hansley Date
City Manager
CHECKFREE
By
T. Richard Camp Date
Vice President of Administration
Division of Economic Development
5800 Shier-Rings Road • Dublin, Ohio 43016-1236
Phone: 614-761-6550 • Fax: 614-761-6506 Memo
CITY OF DUBLIN \
To: Dublin City Council
From: Timothy C. Hansley, City Manager
Date: February 25, 1999
Re: Ordinance #28-99 ~;;~1
Initiated By: Mary L. Bearden, Economic Development Director `~hu
Ordinance No. 28-99 is the authorization to enter into an Economic Development Agreement
with CheckFree Corporation. The Letter of Intent was presented to City Council on March 26,
1998 in the form of a confidential memo.
CheckFree Corporation has fulfilled their commitment and purchased the 150,000 sq. ft.
Frigidaire Building at 6000 Perimeter Drive, undergone amulti-million dollar renovation,
consolidated their entire Ohio operation to the facility, and now employ 800 in the city of Dublin.
Founded in 1981, CheckFree Corporation is the leading provider of electronic services, software
and related products for more than 2.2 million consumers, 1000 businesses and 850 financial
institutions.
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