013-02 Ordinance RECORD OF ORDINANCES
Dayton Legal Blank Co. Form No. 30043
Ordinance No ...........................13-.02....................... Passed
AN ORDINANCE APPROVING A TAX CREDIT AND
ECONOMIC DEVELOPMENT AGREEMENT WITH
STATPROBE, INC. AND AUTHORIZING, CONFIRMING AND
RATIFYING THE EXECUTION OF THE AGREEMENT.
WHEREAS, Statprobe, Inc. (the "Company") is an employer located in the City of
Dublin, Ohio (the "City") at 425 Metro Place North, Suite 450 (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 January 28, 2002, 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
RECORD OF ORDINANCES
Da on Le al Blank Co. Form o 30 43
Ordinance No......13.-02 Passed ..............................Page..
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:
Mayor - Presi ing Officer
Attest:
r.,r,
L^~
Clerk of Council
Passed: . 1 ~ , 2002
Effective: , 2002
I hereby certify that copies of this
Ordinance/Resolution were posted in the
City of Dublin in accordance with Section
731.25 of the Ohio Revised Code.
Cam, C c of Council, Dublin, Ohio
Office of the City Manager
5200 Emerald Parkway -Dublin, Ohio 43017-1006;
CITY OF DUBLIN Phone: 614-410-4400 -Fax: 614-410-4490 Memo
To: Dublin City Council
From: Marsha I. Grigsby, Interim City Manager
Date: January 29, 2002
Re: Ordinance No. 13-02
Initiated by: Michael H. Stevens, Director of Economic Development (/~(,~~~iL.['
The State of Ohio offers the Job Creation Tax Credit incentive to companies to%king 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 by the Ohio Tax
Credit Authority 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 January 28, 2002, the Ohio Tax Credit Authority approved a Job Creation Tax Credit for
Statprobe, Inc., an existing Dublin business, contingent upon the approval of local support.
Ordinance No.13-02
Ordinance No. 13-02 is the authorization to enter into an Economic Development Agreement with
Stateprobe, Inc., (Statprobe). 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.
Statprobe opened its Dublin office at 425 Metro Place North in 1998. Serving as a contract research
organization, Statprobe analyzes and manages clinical data. The company prides itself in delivering
the highest quality clinical management, data management, programming, biostatistics and medical
writing services to the pharmaceutical, biotechnology, and medical device industries worldwide.
Employing over 235 people nationwide, Statprobe currently has ten (10) employees working at its
Dublin office.
With its expansion, Statprobe plans to create ten (10) new full-time positions in a span of three years.
The new positions will have an average hourly wage of approximately $28.85. Since the municipal
corporate income tax paid by the company is considered confidential tax information, staff is unable
to provide City Council with a historical perspective on the impact of a 50 percent municipal
corporate income tax credit. However, the municipal corporate income tax paid by Statprobe since
opening its Dublin office has been insignificant.
Please contact Mike Stevens, 410-4619, if you have any questions.
ECONOMIC DEVELOPMENT AGREEMENT
AGREEMENT
BETWEEN
THE CITY OF DUBLIN
AND
STATPROBE, INC.
February, 2002
ECONOMIC DEVELOPMENT AGREEMENT
This Agreement is entered into on , 2002, between the City
of Dublin (the "City") and Statprobe, Inc. (the "Company") for the purpose of assisting in the
~ Company's future expansion of its contract research company located at 425 Metro Place
North, Suite 450, Dublin, Ohio.
ARTICLE I. BACKGROUND
The Company analyzes and manages clinical data, delivering the highest quality clinical
management, data management, programming, biostatistics and medical writing services to the
pharmaceutical, biotechnology, and medical device industries worldwide. The Company has approximately
235 employees nationwide and currently has offices in Dublin, Ann Arbor, San Diego, and Lexington,
Kentucky.
The Company opened its Dublin office in 1998, and currently has ten (10) full-time employees. The
Company's future plans involve expanding employment at its Dublin office by ten (10) new full-time
positions in the thirty-six month period beginning March 1, 2002 and ending February 28, 2005.
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 office
and the creation of these new jobs will provide economic benefits to the City and will further add to the
quality of this community.
Page 1 of 3
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, 2002 through December
31, 2006. The tax credit shall under no circumstances exceed 50% of the Company's municipal corporate
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.
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 2 of 3
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
STATPROBE, INC.
By:
Terry Sharp, M. S.
Associate Director, Columbus Operations
Page 3 of 3