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Home My WebLink About122-00 Ordinance RECORD OF ORDINANCES Dayton Legal Blank Co. Form No. 30043 Ordinance No.---122-00------ - --------------19-------- _ Passed------- AN ORDINANCE APPROVING A TAX CREDIT AND ECONOMIC DEVELOPMENT AGREEMENT WITH SPATA COMMUNICATIONS CORPORATION AND AUTHORIZING, CONFIRMING AND RATIFYING THE EXECUTION OF THE AGREEMENT. +r.. WHEREAS, SPATA Communications Corporation (the "Company") is an employer located in the City of Dublin, Ohio (the "City") at 325 Cramer Creek Court, Suite 205 (the "Property"), and based on inducements and incentives offered by the City in an Economic Development Agreement (the "Agreement"), the Company is embarking upon a 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: I i 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. ~ I I Page 1 of 2 RECORD OF ORDINANCES Dayton Legal Blank Co. Form No 3004 122-00 Ordinance No Passed _ 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 I~ of the City, shall execute, acknowledge and deliver the Agreement by and between the City and the Company in substantially the form thereof err 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 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: Presiding Officer Attest: Clerk of Council Passed: o / , 2000 Effective: ~'l/ 0!~• ~.~2000 1 hereby certify that codes of this Ordnance/Resolution were posted " thr City of Oublin in accordance with Section 731.25 of the Oi;ia Revised C de. tl of Council, Dublin, Ohio Page 2 of 2 ECONOMIC DEVELOPMENT AGREEMENT AGREEMENT BETWEEN THE CITY OF DUBLIN AND SPATA COMMUNICATIONS CORPORATION October, 2000 _ ECONOMIC DEVELOPMENT AGREEMENT This Agreement is entered into on N~ v ~ z r l , 2000, between the City of Dublin (the "City") and SPATA Communications Corporation (the "Company") for the purpose of assisting in the Company's future expansion of its switch-based telecommunications company corporate headquarters located at 325 Cramer Creek Court, Suite 205, Dublin, Ohio. ARTICLE I. BACKGROUND Established in 1998, the Company is a telecommunications company that provides seamlessly integrated speech and data communications services on business to business basis to small and mid-size companies and on a wholesale basis to Internet Service Providers and Competitive Local Exchange Carriers, proving capabilities and efficiencies not available on existing networks. As with most telecommunication businesses, growth has been fast with continued rapid growth projected. The Company's Dublin presence consists of 18 employees in approximately 7,000 s.f. The Company's expansion in Dublin will support its rapid growth in personnel and equipment necessary for offering a wide range of speech and data communication products. The proposal under consideration would allow the Company to expand its presence in Dublin by approximately 25 new employees over the next three years. The Company will lease the facility for a minimum often years. Page 1 of 3 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. Municipal 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. 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. Page 2 of 3 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: ~~w~-~~~~ Director of Finance SPATA COMMUNICATIONS CORPORATION By: T s . Vice Presi ent Finance Page 3 of 3 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 ti 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. \\DV-NW-APPS\VOLI\PASS\ECON_DEV\INCENTIVES\COUNCIL MEMO - JCTC LOCAL SUPPORT.DOC 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, Wa1Mart, 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. \\DV-NW-APPS\VOLI\PASS\ECON_DEVUNCENTIVES\COUNCIL MEMO - JCTC LOCAL SUPPORT.DOC