HomeMy WebLinkAbout121-00 Ordinance RECORD OF ORDINANCES
Dayton Legal Blank Co. Form No. 30043
Ordinance No .....................121-00...............,......... Passed
AN ORDINANCE APPROVING A TAX CREDIT AND ECONOMIC
DEVELOPMENT AGREEMENT WITH TRADESITE CORPORATION
AND AUTHORIZING, CONFIRMING AND RATIFYING THE
EXECUTION OF THE AGREEMENT.
WHEREAS, TRADESITE Corporation (the "Company") is an employer located in
the City of Dublin, Ohio (the "City") at 4950 Blazer Parkway (the "Property"), and
based on inducements and incentives offered by the City in an Economic Development
Agreement (the "Agreement"), the Company is embarking upon an expansion of
operations at their existing facility; and
WHEREAS, the City, by provision of the incentives provided in the Agreement,
desired and intended to induce the Company to pursue expansion of operations 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 (the "ORC"), the
State of Ohio (the "State") established the Ohio Tax Credit Authority (the "Authority")
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' State
corporate franchise or State income tax, which tax credits are provided to create new
jobs in the State; and
WHEREAS, pursuant to Section 122.17 ORC, on September 25, 2000, the Authority
granted the Company's request for a Jobs Creation Tax Credit; and
WHEREAS, pursuant to Section 718.08 ORC, a municipal corporation is authorized
to grant local income tax credits to taxpayers which have received a Jobs Creation 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 City of Dublin, Franklin, Union
and Delaware Counties, Ohio, of the elected members concurring:
Section 1. The City hereby finds and determines that it is necessary and appropriate
and in the best interests of the City to provide certain assistance to the Company 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 the Company to expand
their operations located at the Property, 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 Agreement by and between the City and the Company 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 of those changes by such officers, and
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RECORD OF ORDINANCES
Dayton Legal Blank Co. Form No 30043
Ordinance No ................121-00............................... Passed ......................................P..age..2.........,
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 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.
Signed:
Ma -Presiding Officer
Attest:
~..r
~
Clerk of Council
Passed: 2000
Effective: ~ D ~ • l~ , 2000
I hereby Certify that copies of this Ordinance/Resolution were posted in the
City of Dublin in accordance with Settlon 131.25 of the Ohio Revised Code.
_ .
Qa,~', Cler f Council, Dublin, Ohio
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ECONOMIC DEVELOPMENT AGREEMENT
AGREEMENT
BETWEEN
THE CITY OF DUBLIN
AND
TRADESITE CORPORATION
October, 2000
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ECONOMIC DEVELOPMENT AGREEMENT
This Agreement is entered into on , 2000, between the City of
Dublin (the "City") and TRADESITE Corporation (the "Company") for the purpose of assisting in
the Company's future expansion of its corporate headquarters located at 4950 Blazer Parkway,
Dublin, Ohio.
ARTICLE I. BACKGROUND
Founded in 1990, the Company has become the world's leading provider of productivity tools used
in EC/BDI (Electronic Data Interchange). The productivity tools perform the tasks of testing, documenting,
and implementing EC/BDI. As with most technology-related businesses, growth has been fast with
continued rapid growth projected. The Company's Dublin presence consists of about 35 corporate office
employees in approximately 9,500 s.f.
The Company's expansion in Dublin will support its rapid growth in personnel and equipment
necessary for development and marketing of EC/EDI products. The proposal under consideration would
allow the Company to expand its presence in Dublin by approximately 100 new corporate office employees
and lease an additional 14,700 s.f. over the next three years.
The City desires to enumerate specific cooperative efforts which will be undertaken to assist the
Company's future expansion. This effort is being made in recognition that expansion at the Dublin facility
and the creation of these new jobs will provide economic benefits to the City and will further add to the
quality of this community.
ARTICLE II. AGREEMENT
1. Munici ap 1 Corporate Income Tax Credit. City agrees to assist Company in its application for Job
Creation Tax Credit from the State. If the Company obtains a Job Creation Tax Credit from the State for
the Dublin office expansion, the City will commit to granting a 50% credit of new City 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, commencing January 1, 2000 through December
31, 2004. The tax credit shall under no circumstances exceed 50% of the Company's corporate Municipal
income tax liability.
Page 1 of 2
2. Coordination. To allow for the expansion of this facility in a timely and cost-effective
manner, the City will assign its Director of Economic Development to work with the Company to assist in
obtaining approval for the Jobs Creation Tax Credit through the Ohio Tax Credit Authority.
ARTICLE III. INTENTION OF COMPANY
It is the Company's intent to carry out expansion of operations as contemplated by and set forth
herein this Agreement.
ARTICLE 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.
ARTICLE 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 authorizing ordinance by Dublin City Council.
CITY OF DUBLIN
By:
City Manager
By:
Director of Finance
TRADESITE CORPORATION
By:
Robert Fisher
President & Chief Executive Officer
Page 2 of 2
Division of Economic Development
5800 Shier-Rings Road • Dublin, Ohio 43016-1236
CITY OF DUBLIN Phone: 614-410-4600 • Fax: 614-761-6506 Memo
To: Dublin City Council
G~~ -t.
From: Tim Hansley, City Manager
Date: September 27, 2000
Re: Ordinance No. 120-00
Ordinance No. 121-00
Ordinance No. 122-00
Initiated By: Michael H. Stevens, Director of Economic Development
The State of Ohio offers a Job Creation Tax Credit as an incentive for companies looking to
relocate to Ohio or expand their existing operation within the state. The incentive program is
administered through the Ohio Department of Development and provides businesses with a state
income tax credit for each new job created. The percentage and length of the incentive is
determined on a case by case basis. When a company enters into a Job Creation Tax Credit
agreement with the State, it commits to keeping the newly created jobs in the political
jurisdiction for twice the length of the incentive package. As part of the incentive program, the
State requires local support and participation.
On September 25, 2000, the Ohio Tax Credit Authority approved a Job Creation Tax Credit for
three local businesses contingent upon approval of local support.
Ordinance 120-00
Ordinance No. 120-00 is the authorization to enter into an Economic Development Agreement
with American Services Consulting, Inc. (ASCI). The Economic Development Agreement is to
provide a municipal corporate income tax credit that will support the State of Ohio's Job
Creation Tax Credit. The municipal corporate income tax credit is for five years at a maximum
of 50 percent.
ASCI recently relocated its headquarters from Columbus to 5550 Blazer Parkway. ASCI is
comprised of two divisions -ASCI Services, the information technology division, and ASCInet,
the Internet division (the City's Internet access provider). ASCI prides itself on providing end-
to-end information technology resources and management to a variety of businesses and is
considered a leader in government contracting services.
With its expansion, ASCI plans to create 130 new full-time positions in a span of three years.
The new positions will have an average hourly wage of approximately $20.10.
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Ordinance 121-00
Ordinance No. 121-00 is the authorization to enter into an Economic Development Agreement
with FORESIGHT Corporation. The Economic Development Agreement is to provide a
municipal corporate income tax credit that will support the State of Ohio's Job Creation Tax
Credit. The municipal corporate income tax credit is for five years at a maximum of 50 percent.
Founded in 1990, FORESIGHT Corporation has its headquarters in Dublin at 4950 Blazer
Parkway in the TechMart at the corner of Frantz and Blazer. FORESIGHT specializes in "e-
commerce" providing business-to-business software integration tools. FORESIGHT provides
both software and services to Fortune 500 companies including; Cardinal Health, IBM, WalMart,
Dell, Ford Motor Company, and Coca-Cola.
FORESIGHT currently occupies 9,500 square feet and has 35 full-time employees.
FORESIGHT will expand their leased space by 14,700 square feet and fill an additional 100 full-
time positions over the next three years. The average hourly wage for the new full-time positions
is $24.04.
Ordinance 122-00
Ordinance No. 122-00 is the authorization to enter into an Economic Development Agreement
with SPATA Communications, Corp. The Economic Development Agreement is to provide a
municipal corporate income tax credit that will support the State of Ohio's Job Creation Tax
Credit. The municipal corporate income tax credit is for five years at a maximum of 50 percent.
SPATA Communications Corporation is located within the City of Dublin at 325 Cramer Creek
Court, Suite 205. Formed in August of 1998, SPATA Communications is a switch based
telecommunications company which offers seamlessly integrated speech and data
communications on a business to business basis to small and mid size companies.
SPATA Communications currently has 18 employees and is projected to add 25 new positions by
the end of this year. The average hourly base wage for the new full time employees is $25.00.
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