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Ordinance 098-15RECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No. 30043 Ordinance No. 98-15 Passed . 20 AN ORDINANCE AUTHORIZING THE PROVISION OF CERTAIN INCENTIVES TO CAREWORKS LTD. TO INDUCE IT TO RETAIN AND EXPAND AN OFFICE AND ITS AND ITS AFFILIATED ENTITIES' ASSOCIATED OPERATIONS AND WORKFORCE WITHIN THE CITY; AND AUTHORIZING THE EXECUTION OF AN ECONOMIC DEVELOPMENT AGREEMENT. WHEREAS, consistent with its Economic Development Strategy (the "Strategy'} approved by Dublin City Council Resolution No. 07 -94 adopted on June 20, 1994, and the updated Strategy approved by Dublin City Council Resolution No. 30 -04 adopted on July 6, 2004, the City desires to encourage commercial office development and create and preserve jobs and employment opportunities within the City; and WHEREAS, CareWorks Ltd. (the "Company recently performed a comprehensive examination of its workforce needs, and based on the results of this examination, and induced by and in reliance on the economic development incentives provided in the proposed Economic Development Agreement (as described below), the Company is desirous of renewing a lease for a facility within the City to retain and expand an office and its and its affiliated entities' associated operations and workforce within the City in order to achieve the payroll withholding targets set forth in the Economic Development Agreement; and WHEREAS, this Council has determined that it is necessary and appropriate and in the best interests of the City to provide for certain economic development incentives to the Company, as described in the proposed Economic Development Agreement; and WHEREAS, this Council has determined to offer the economic development incentives, the terms of which are set forth in a substantially final form of Economic Development Agreement presently on file in the office of the Clerk of Council, to induce the Company to renew a lease for a facility and retain and expand an office and its and its affiliated entities' associated operations and workforce, all within the City, which will result in the retention and creation of new jobs and employment opportunities, thereby improving the economic welfare of the people of the State of Ohio and the City, all as authorized in Article VIII, Section 13 of the Ohio Constitution; NOW, THE EFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, of the elected members concurring, that: Section 1. The Economic Development Agreement by and between the City and the Company, in the form presently on file with the Clerk of Council, providing for, among other things, the provision of certain economic development incentives in consideration for the Company's agreement to renew a lease for a facility within the City for the retention and expansion of an office and its and its affiliated entities' associated operations and workforce within the City, which will result in the retention and creation of new jobs and employment opportunities, is hereby approved and authorized with changes therein not inconsistent with this Ordinance and not substantially adverse to this City and which shall be approved by the City Manager. The City Manager, for and in the name of this City, is hereby authorized to execute that Economic Development Agreement, provided further that the approval of changes thereto by that official, and their character as not being substantially adverse to the City, shall be evidenced conclusively by the execution thereof. This Council further authorizes the City Manager, for and in the name of the City, to execute any amendments to the Economic Development Agreement, which amendments are not inconsistent with this Ordinance and not substantially adverse to this City. Section 2. This Council further hereby authorizes and directs the City Manager, the Director of Law, the Director of Finance, the Clerk of Council, or other appropriate officers of the City to prepare and sign all agreements and instruments and to take any other actions as may be appropriate to implement this Ordinance. RECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No. 30043 Ordinance No. 98-15 Passed Page 2 of 2 .20 Section 3. This Council finds and determines that all formal actions of this Council and any .� of its committees concerning and relating to the passage of this Ordinance were taken in open meetings of this Council or committees, and that all deliberations of this Council and any of its committees that resulted in those formal actions were in meetings open to the public, all in compliance with the law including Section 121.22 of the Revised Code. Section 4. This Ordina� shall be in full force and effect on the earliest date permitted by I�,w. Signed: Mayor - Pfesiding Officer Attest: / Clerk of Council Passed: 2016 Effective: V Y�QY `� 2016 Office of the City Manager 5200 Emerald Parkway * Dublin, OH 43017-1090 isty of Dublin Phone,* 614-410-4400 * Fax: 614-410-4490 Cit Dublin City Council From,: Dana L. McDaniel, City Manag,e Date,n December 3, 2015 Alk Re: Ordinance 98-15 - Economic Development Agreement with CareWorks/York Risk Services Group Staff has been 'in discussions with CareWorks/York Risk Services Group regarding its need to renew and expand its office facilities in Dublin. The company plans to grow both its employee headcount and square footage over the next 12 years, and considered several real estate options. The company's three facilities in Dublin currently house 1,185 employees. CareWorks provides a suite of claims and medical management services for workers' compensation, disability and integrated absence management along with technology and risk management solutions. In January 2014, the CareWorks Family of Companies were purchased by York Risk Services Group headquartered in New Jersey. York first entered the Dublin market in 2011 with its acquisition of Avizent/Frank Gates Ohio located on Bradenton. These acquisitions have made York one of the largest third-party 2,dministrators in the country. This new economic development agreement replaces and extends the current EDA set to expire in 2017. The new EDA proposed to the company is a 15 percent Performance Incentive on withholdings collected (2016-2025), which is capped at $1,809,000 for the term of the agreement. In consideration, the company will retain 1, 185 jobs, and create 250 jobs in Dublin by the end of 2027. The company will also expand its footprint by 43,000 square feet at 5500 Glendon Court and renew its lease for all spaces through 2027. This agreement also includes an extension of the current Dublink IRU agreement through 2027, The City estimates it will net approximately $9.67 million in total income tax withholdings over thl.,W term of this agreement, should the company grow according to expectations. Staff recommends Council passage of Ordinance 98-15 at the second reading/public hearing on January 12, 2016. Please contact Jeremiah Gracia with any questions. V ECONOMIC DEVELOPMENT AGREEMENT a Ti- iis Ec ic DEVELOPMENT AGREEMENT (the "A�x ,reement"') is made and entered into this day of 201. 6, by mid betweenthe CITY OF DUBLIN, 01410 (the "City"), a municipal, corporation duly oroanized and validly existing under the Constitution and the laws of the State of' " and its Charter,, and CARE WOR.Ks L'I'D., an Ohio limited I iability company (.the e Ohio (the S'tate If oml)at l �!, and together with the City, the "Parlielv"') under the circumstances summarized in the folloT ing recitals. W WHEREAS, consistent with. its 'Economic vev e-lopment Strategy (the"SIrcifeir ") approved by Dublin City Council Resolution No. 07-94 adopted. on June 20, 1994, and the -updated Strategy approved by Dublin City Council Resolution No. 30-04 adopted on July 6, 2004, the City desires to encourage commercial office development and create and preserve jobs and employment opportunities within the City: and 1 WHEREAS, the City and the Company hereto-fore entered into an Economic Development Agreement dated Ma y 1 2013 (the"20.13 Agreemenl") pursuant to xvhich the City agreed to provide certain incentives to the Company,and the Company agreed to retain Jobs nd a create iand. employment opportunitles within the City; and W11ER-EAs,,, based on the results of the Company's recent comprehensive examination of 1 wo9'% rKtorce needs, and induced by and in reliance on the economic development incentives provided 0 in this Agreement, the C1,ompany desires to retain and expand. an office and its and its Afl,`iliated En A tities" (as defined below) associated o' erations and or within the City* and p WHEREAS, the, City and the Company have determined to enterinto this Agreement (whic will generally supersede the 2013 Agreement) to provide these incentives in order to induce th Company to renew a lease for a facility and retain and expand its and its Affiliated Entitie,"', operations and workforce, all within the City; Now 1"HEREFORE1, the City and the Company covenant, agree and obligate themselves as follows: Section 1. Cornpqqy's,_A14reement to Renew a f,ease !"or a Facllitv and Retain and Expand Its and Its Affiliated Entities 01 f-N erationsmcd Workforce Within the In consideration for the economic development incentives to be provided by the City herein the Company agrees that 0 01 2,3- 3ection 2. City, Agreement to Provide Incentives. Via) General. In consideratlon -for the Company s agreement to execute the I ease for ttie retention and expansion of an office and its and its Affiliated Entities' associated operations and work-force s o r within. the Cltv,, the City agree t povide co enomic development o the incentives t W - Company in accordance with this Section. (b) Workforce Creation Incentive. -2- -'14 �S 1`0 I 7 fk:-J'�' � e - -�" x- -1 P /- 6 '4 included in the computations described in this Section 2 until such -time as EXHIBITA shall have been revised in NNrritin(y by the Company to include the nan-ie of the Affiliated, Entitv and that Entity's Federal Employer Identification Number, and such revision. shall have been approved in writing by the City, which approval shall not be unreasonably conditioned, delayed or withheld. (11) Infortnation Relatiuy to Empl, es. The Company agrees that., in accordance -with the Dublin City Code, the annual pavroll reconciliation and related W-2 forms relating to its Employees will be provided to the City prior to February 28 of each calendar year. Federal, EMployer Identification Number. The Company's Federal Employer " -1 Identification Number is The Company agrees that if the'.F k eaeral Employer Identification M changes at any time during the term of this Agreement, the Company will notitv the City of such change, including the new Federal Employer Identification Number, within thirty (3 )0) days of the occurrence of such change. (REMAINDER OF PAGE INTENTIONAL1,Y LEFT BLANKI -3 "7 - 1 ( . v) Tar�4et Withholdings.and Annual CV. The'Farget Withholdings and Annual Cap for each of the calendar years 2016 through 2025 shall be: Calendar Year Target,,VV I ithholdings Annual Cap 2016 $ 1, 00,,000 $'16700 2017 1 q 078,720 170,000 2018 11098,220 1,73,000 2019 1 1. 1, 7,720 176000 2020 IJ -37,220 179,000 202 1 1, i 1571220 181"000 2022 L 178,020 186000 2023 1, W820 189.,000 2024 1 X219,620 192,000 2025 1,2401,680 1.951,000 (c) Method of Payment. The payments to be paid to the Company as provided. in this Section 2 shall be made by the City to the Company by electronic funds transfer or by such other manner as is mutually agreed to by the City and the Company. -4- Section 3 ). Miscelhtneous. (a) Assig ment. This Agreement may not assignect without the prior written consent of all. non-assigning Narte s except that the Company may assign this Agreement to an Affiliated Entity without the City's consent. (b) Binding Effect. The provisions of this Agreement shall bind* be i ing upon and inure to the benefit of the Parties and their respective successors and permitted assigns. (c) Captions. The captions and headings in this Agreement are for convenience only and in no way define, limit or descn*be the scope or intent of anv 0 . *ons of this Agreement. provisions or secti (e) Dqy for Performance. Wherever herein there is a day or t* ime period established for perfom-iance and, such day or the expiration of such tii-ne periodIs a Saturday, Sunday or legal holiday, then such time for performance shall be automatically extended to the next business day. sl),'­ 0 1 -5- assistance may be guilty of falsification, a misdemeanor of the first degree, pursuant to Ohio Revised ('...ode Section 292 )o 1. 1, 3(F)(1), which, is punishat)le by a fine of not more than $ 1,000 and/or a tern-i of 0 imprisonment of not more than six months The Parties acknowledge that a separate agreement will be executed between the Parties to provide to the Company a certain number of fibers in the City's Dublink fiber optic network. Y I Executed Countervarts. r- i nis Aareement may be executed in several counterparts, each of NNrhich shall be deemed to constitute an original., I but all of which together shall constitute but one and the same instrument. It shall not be necessary in proving this Agreement to produce or account for more than one of those counterparts. (k Governing _L . This Agreement shall. be govemed by and construed in accordance with the laws of the State of Ohio 'V v ithout regard to its principles of conflicts of laws. All claims, counterclaims, disputes and other matters in, question between the C v -J . its a ents and employees, and ., ' 9 -6- the Company,,, its employees and. agents, arising out of or relating to this Agreement or its breach will be decided iin a court of com-petentjurisdiction within Franklin County, Ohio. ( . m) Limit on fj.abilitv. Notwithstanding any clause or provision of this Agreement to th contrary,, in no event shall City or the Company be liable to each other for punitive,, specia, consequential,, or indirect damages of anv type and, regardless of whether such damages are claime W &e.21 under contract., tort (including neglio'ence and strict liabilitv) or any other theory of law. the City at: City of Dublin, Ohio 5800 Shier Rings Road Dublin, Ohio 43016-7295 Attention.* Econoinic Development Director the Company at-.- CareWork-s Ltd. "555 Glendon Court Dublin, Ohio 43016 Attention.- Chief Financial Officer The Parties, by notice given hereunder, may designate ativ further or diffierent addresses to whic subsequent notices- certificates, requests or other communications shall be sent. -7-16 Agreement to theParties hereto may be exercised. from. time to time and, as often as may be deemed expedient by the parties hereto, as the case may be. (p) Recitals. The Parties acknowledge and agree that the facts and circumstances as d.escrIbed in the Recitals hereto are an integral part of this Agreement and as such are incorporated herein by reference. (r) Survival of Representations and. Warranties. All representations and warranties of the Parties in this Agreement shall, survive the execution and delivery of this Agreement. (s) 'I'h.ird Partv Beneficiaries. Nothing in this Agreement, express or implied, is intended to or shall confer upon any other person (other than. an Affiliated Entity) anv right, benefit or remedy of any nature whatsoever under or by reason of this Agreement. (REMAINDER OF PAGE IN` EN-FIONAt.,t,y LEFT BLANK --- SIG N ATUIRE PAGE Foi-iows) INIWITNESS WHEREOF, the City and the Company have caused this Agreement to be executed in their respective names by their duly authorized representat]N,-es, all as of the date first written above. Approved as to Form.- By: .Printed--- Stephen J. Smith Title.-,- Director of Law 0 Printed: Dana. L McDaniel Title: City Manager -9- sin x Dated: 201.6 10- Angel L. Mumma Director of Finance City of Dublin, Ohio LIST OF AFFILIATED ENTITIES .Full Company Name 54-2192960 14703 05 31-1470-304 54-2193040 31-16-")'6465 31-1775640 31-161,71,55 13-1.96"36-36 13-1963636 , WWOO, man -I= I ne Clity of Dublin, Ohio, Indefeasable Right-to-Use Agreement ("IRU") by and between the City of Dublin and CareWork's Family of Companies dated May 21, 2013, is newly hereby amended as follows: It rw WHEREAS, the City of Dublin ("Dublin") lias proposea 1 11 inancial and fiber incentives to the Care Work- Family of Companies ("CareWork"); and WHEREAS, CareWork- has accepted those incentives Inc. will execute an Economic Development Agreement with the City ("E DA"); and WHEREAS, the affiliated companies listed in the EDA are set forth below.- 3. Should the York Risk Services Group leave the 5000 Bradenton location than the IRU terminates for that location. ININEMIOW11-1 IN WITNESS WHEREOF the Parties have executed and delivered this Agreement effective the day and year first above written'. CareWorks,'Fan-iily of Companies lts:� City of Dublin, Ohio, an Ohio muni.cipal corporation. By*- Its..— Steve J. Smith Law Director 1 C*ty of Dublin., Ohio MMMEM� t ty Mr. Lisle Smith, CFO Care Works 5500 Glendon Court Dublin., OH 43017 Delivered via email 5000 Bradenton Avenue, Dubli Ohio 43017 5555 Glendon Court, Dublin, Ohio 43017 5500 Glendon Court, Dublin, Ohio 43017 This letter is a further confirmation that all the terms and conditions of the existing indefeasible Right to Use Agreement are still in affect and that CareWorks intends to comply with all of those, provisions. As always, please work with the Fishel Company regarding splicing and access to the system. If you have any questions regarding this letter or any issues involving the fiber system, please do not hesitate to call. N= Colleen M. Gilger Director of Economic Development C: Dan Sullivan, President, Frank Gates Ohio, a York Risk Services Group companjo