HomeMy WebLinkAbout53-00 Ordinance RECORD OF ORDINANCES
D on Le al Blank Co. Form N 30043
53-00
Ordinance No Passed
AN ORDINANCE APPROVING A TAX CREDIT AND
ECONOMIC DEVELOPMENT AGREEMENT WITH
SUBMITORDER.COM AND AUTHORIZING, CONFIRMING
AND RATIFYING THE EXECUTION OF THE AGREEMENT.
WHEREAS, SubmitOrder.com (the "Company") is an employer located in the City
of Dublin, Ohio (the "City") at 7003 Post Road (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 February 28, 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 Council of the City of Dublin,
State of Ohio, of the elected members concurring that:
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. In order 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
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RECORD OF ORDINANCES
Da on Le a1 Blank Co. Form o. 30043
Ordinance No Passed ..................................................................,Page..2.......
officers, and their character as not being substantially adverse to the City, shall be
evidenced conclusively by their execution of those instruments.
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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:
G~
Mayor -Presiding Officer
Attest:
Clerk of Council
Passed: ~ ~ , 2000
Effective: ~7 , 2000
! hereby certify that rnpies of this Ordinance%Resolution were bested in tl~e
Eity of Dublin in accordance with Section 731.25 of tine ~':io Revised Code.
~,Q/j~, Clerk touncil, Dublin, Ohio
\\CUMULUS\VOLI\DATA\COUNCIL\ORDINANC\2000153-00 SUBMITORDER.COM.DOC
ECONOMIC DEVELOPMENT AGREEMENT
AGREEMENT
BETWEEN
THE CITY OF DUBLIN
AND
SUBMITORDER.COM
April, 2000
ECONOMIC DEVELOPMENT AGREEMENT
This Agreement is entered into on , 2000, between the City
of Dublin (the "City") and Submit Order.Com (the "Company") for the purpose of inducing
the Company to expand its existing operations and locate its electronic fulfillment company
corporate headquarters in the Post Commerce Building, 7003 Post Road, Dublin, Ohio.
ARTICLE I. BACKGROUND
The Company is a start-up firm in the "e-tail" industry performing electronic order fulfillment for
companies doing business over the Internet. As with most Internet-related businesses, growth has been fast
with continued rapid growth projected. The Company's Dublin presence consists of about 101 corporate
office employees in approximately 34,300 s.f. of the Post Commerce Building (f.k.a., the Pharmacia
Building).
The Company is at a critical point in their expansion and is now looking for separate existing
facilities for their warehouse and office space needs. One site under consideration for the new office space
is their existing facility in Dublin.
The proposal under consideration would expand the Company's existing presence in Dublin to a
minimum of 265 new corporate office employees and a minimum addition of 55,000 s.f. of office space by
the end of 2003. The Dublin facility would become the Company's new corporate headquarters. The
Company would lease the facility for a minimum of five years.
Page 1 of 4
sr~ _
. 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 for its corporate headquarters
over other sites being evaluated. 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
p--•
to the quality of this community.
ARTICLE II. AGREEMENT
1. Municipal Corporate Income Tax Credit. 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. The tax credit shall under no
circumstances exceed 50% of the Company's corporate Municipal income tax liability.
2. Parking Requirements. Both parties agree that the intent of the City's zoning code is to require an
adequate number of parking spaces to properly serve the Company's needs. The City agrees to work
cooperatively with the Company to determine parking needs and to satisfy the above stated intent of the
zoning code and to assist the Company in obtaining any permits for additional parking and/or to seek a
variance in the required number of parking spaces as might be mutually agreed to.
3. 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.
Page 2 of 4
4. Permitting Process. The City, through its Economic Development Division, will help expedite
applicable zoning approval and building permit processes associated with the office expansion project.
ARTICLE III. INTENTION OF COMPANY
It is the Company's intent 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 expanding its
operations in the Dublin community. In the event expansion in Dublin is chosen, 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.
Page 3 of 4
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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
Timothy C. Hansley -City Manager Date
SUBMITORDER.COM
By
Jeffery C. King -Chief Operating Officer Date
Page 4 of 4
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Division of Economic Development
5800 Shier-Rings Road • Dublin, Ohio 43016-1236
CITY OF DUBLIN Phone: 614-761-6550 • Fax: 614-761-6506 M e m o
To: Dublin City Council
From: Timothy C. Hansley, City Manager
Date: March 14, 2000
Re: Ordinance No. 53-00
~ ,
Initiated by: Michael Stevens, Economic Development Director G~~
Ordinance No. 53-00 is the authorization to enter into an Economic Development Agreement
with SubmitOrder.Com, Inc. As first reported to Council in the memo dated February 1, 2000,
SubmitOrder.Com is considering expanding its presence in Dublin. The facility at the Post
Commerce Center would continue to serve as the company's headquarters.
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
SubmitOrder.Com on February 28, 2000 by the Ohio Tax Credit Authority. The municipal
corporate income tax is for five years at a maximum of 50 percent.
SubmitOrder.Com is proposing to lease an additional 54,000 square feet of office space,
providing it with an 88,000 square foot corporate headquarters. This would result in the
retention of 101 full-time jobs and the creation of 265 full-time jobs within three years. The
average hourly wage of the new jobs will be $27.84.
Founded in 1995, SubmitOrder.Com is an "e-fulfillment" business that is dedicated to providing
a comprehensive range of services that support development, deployment, operation and growth
of e-commerce applications that make it easy for customers to buy on-line.
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