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HomeMy WebLinkAbout148-00 Ordinance RECORD OF ORDINANCES Dayton Legal Blank Co. Form No 30043 Ordinance No......148-00 Passed AN ORDINANCE APPROVING A TAX CREDTI' AND ECONOMIC DEVELOPMENT AGREEMENT WITH RBM TECHONOLOGY, INC., d.b.a. ECNEXT AND AUTHORIZING, CONFIRMING AND RATIFYING THE EXECUTION OF THE AGREEMENT. ~r.. WHEREAS, RBM TECHONOLOGY, INC., d.b.a. ECNEXT (the "Company") is an employer located in the City of Dublin, Ohio (the "City") at 6375 Riverside Drive, Suite 250 (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 October 30, 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 ORD INED 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. Page 1 of 2 RECORD OF ORDINANCES Dayton Legal Blank Co. Form No 30043 148-00 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 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 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:~~ t/. y , 2000 e Effective: ~ V , 2000 t hereby c4rt~fv t!znt c0^'©~ of t~,;s OC?'{~`!dl1S9~esalut~on were posted in tnP City 9+ Dublin in accordance with Section 731.25 of the A{~i~ Revised Code, ~ferk t auncii, Dublin, Ohio Page2of2 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 ""~4 From: Timothy C. Hansley, City Manager ~ ~ Date: November 2, 2000 Re: Ordinance No. 148-00 Initiated by: Michael Stevens, Director of Economic Development ,f~~~ : - J~ Ordinance No. 148-00 is the authorization to enter into an Economic Development Agreement with RBM TECHONOLOGY, INC., d.b.a. ECNEXT. 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 that was awarded to ECNEXT on October 30, 2000 by the Ohio Tax Credit Authority. The municipal corporate income tax is for five years at a maximum of 50 percent. ECNEXT is proposing to initially lease 5000 square feet of office space, in its relocation of 12 full-time employees from Liberty Township. The proposal under consideration would allow the company to expand its presence in Dublin by approximately 79.5 new employees over the next three years. The average hourly wage of the new jobs will be $25.00. Established in 1997, ECNEXT is an Application Service Provider to commercial information publishers. The company provides a turnkey outsource option and an experienced, knowledgeable e-commerce partner to its clients. ECNEXT has established partnerships with over 50 of the world's leading commercial content publishers, including the Economist Intelligence Unit, the Freedonia Group, Eurometer, the Thomson Financial Group and Roper Starch Worldwide. If there are any concerns or questions please contact Mike Stevens, 410-4619. \\DV-NW-APPS\VOLI\PASS\ECON DEV\INCENTIVES\ECNEXT\COUNCIL MEMO -ECNEXT ORDINANCE.DOC ~ ECONOMIC DEVELOPMENT AGREEMENT AGREEMENT BETWEEN THE CITY OF DUBLIN AND RBM TECHNOLOGY, INC., d.b.a. ECNEXT November, 2000 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 relocation to 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. In consideration of the Company's commitment to expand in the City, and the approval of the Ohio Tax Credit Authority for a Job Creation Tax Credit with the State in connection with its expansion in Dublin, the City shall grant to the Company a municipal corporate income tax credit (the "Credit"), pursuant to R.C. 718.15. The Credit shall be in the amount of fifty percent (50%) of the new City income tax revenues generated from New Employees, as that term is defined herein, for the five (5) year period, but the Credit shall be up to fifty percent (50%) of the Company's municipal corporate income tax obligation during this five (5) year period. The term of the Credit shall be five (5) years, beginning with the municipal income tax return filed in 2002 for the fiscal year ending Y, December 31, 2001, and ending with the municipal income tax return filed in 2006 for the fiscal year ending December 31, 2005. The tax credit shall under no circumstances exceed 50% of the Company's corporate municipal income tax liability. For the purposes of calculating the amount of the Credit, New Employee shall mean an employee first employed by the Company subsequent to October 30, 2000. An employee hired to replace or succeed a person already employed by the Company as of October 30, 2000 shall not be considered a New Employee. Page 2 of 3 _ _ d~ _ 2. Coordination. To allow for the relocation and 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 the 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, and approved by the ~ City by the adoption of an authorizing ordinance by Dublin City Council. CITY OF DUBLIN RBM TECHNNOLOGY, INC., d.b.a. ECNEXT City Manager Randall K. Smith President By\~ ~ ; Director of Finance Page 3 of 3