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Ordinance 25-23RECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No. 30043 20. 25-23 Passed Ordinance No. AUTHORIZING THE CITY MANAGER TO ENTER INTO AN ECONOMIC DEVELOPMENT AGREEMENT WITH THE CITY OF COLUMBUS, OHIO WHEREAS, the City of Columbus and City of Dublin recognize the importance of planning for future growth of the two communities and of working cooperatively on issues relating to economic development as well as to utilize community resources to provide for responsible growth and development opportunities beneficial to both Columbus and Dublin; and WHEREAS, Columbus and Dublin entered into an economic development agreement in 2009 in order to change the designation of a 277-acre area, located north of State Route 161 and west of Hyland-Croy Road, from “Negotiated Expansion Area” to “Dublin Exclusive Expansion Area” whereby Dublin has the exclusive right to accept annexations of properties within the area; and WHEREAS, in order to promote economic development and job creation opportunities within the 277-acre tract, Columbus and Dublin agreed to share income tax generated in that area, designating the area as a “Revenue Sharing Area”; and WHEREAS, Columbus and Dublin have agreed to expand the previous agreement's Revenue Sharing Area to include what remains of the Columbus Exclusive Expansion Area and the Negotiated Expansion Area (an approximately 5,575-acre area located to the west of Dublin’s existing corporate boundary which will become the Dublin Expansion Area), whereby Dublin will have the exclusive right to annex the property and the Parties will share net income tax generated within the expanded Revenue Sharing Area; and WHEREAS, Columbus and Dublin acknowledge the public purpose and value to both communities in cooperating in the development of Central Ohio, and in sharing financially in the region’s economic growth and prosperity. NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, Delaware, Franklin and Union Counties, State of Ohio, “7 of the elected members concurring that: Section 1. The City Manager is hereby authorized to enter into an Economic Development Agreement with the City of Columbus, Ohio, for the purpose of expanding the “Revenue Sharing Area.” 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 other agreements and instruments and to take any other actions as may be necessary to implement this Ordinance. Section 3. This Ordinance shall be effective on the earliest date permitted by law. 3 Passed this J\ day of Joly , 2023 Mayor//Presiding Officer 7 Os. ATTEST: ClerK/of Coyftcil To: Members of Dublin City Council From: Megan D. O’Callaghan, City Manager Date: June 20, 2023 Re: Ordinance No. 25-23 Economic Development Agreement with City of Columbus Background The proposed Economic Development Agreement (EDA) pertains to approximately 5,575-acres located to the west of Dublin’s existing corporate boundary as depicted on the exhibit attached to the proposed EDA. The area consists of both the City of Columbus Exclusive Expansion Area and the Negotiated Expansion Area, as defined within the 1993 Columbus and Dublin Water and Sanitary Sewer Service Agreements. In the 1993 Agreements, both Columbus and Dublin agreed that the Negotiated Expansion Area would constitute a shared future growth area for both entities. It is important to note that this Negotiated Expansion Area can also be served by the City of Marysville for both water and sanitary sewer. Additionally, other areas in the 1993 Agreement were identified as either Exclusive Dublin or Exclusive Columbus Expansion Areas. Furthermore, the 1993 Agreements provided that neither entity would accept any annexation of property within the Negotiated Expansion Area without the mutual agreement of each respective Council. In 2009, City Council passed Ordinance 43-09 Economic Development Agreement with the City of Columbus and Ordinance 44-09 Modification of Water and Sewer Agreements with the City of Columbus. The 2009 EDA established certain terms and conditions under which a 277-acre area would become part of the Exclusive Dublin Expansion Area. This area generally includes certain property west of Hyland Croy Road/northeast quadrant northwest quadrant of the US 33/Post Road Interchange. Should Council approve Ordinance No. 27-23, this 277-acre area would then be included in the terms the new EDA. Summary The proposed EDA being presented for Council’s consideration establishes the terms and conditions under which the 5,575-acre area located to the west of Dublin’s existing corporate boundary will become the exclusive Dublin Expansion Area as shown on the attached Exhibit I. The terms and conditions relate largely to the sharing of the net income tax revenues that may result from the development in this area. Once the proposed EDA is executed, Dublin would be able to accept annexations sought by any of the owners of the parcels of land located within the 5,575– acre area. This area constitutes 100% of what remains of the Columbus Exclusive Expansion Area and 100% of the Negotiated Expansion Area. As Council is aware, Dublin has made and anticipates continued substantial investments in this area to include the US-33/Post Road interchange, Ohio University Campus, VA Data and adjacent site development, significant land purchases, and as primary investor/purchaser of the Glacier Ridge Metro Park. This presents a significant opportunity to influence the rate and type of development to occur in areas Dublin currently does not have control or influence. This also presents new opportunities for economic development that the City could not previously anticipate. The proposed EDA facilitates the orderly development of this area by: Office of the City Manager 5555 Perimeter Drive • Dublin, OH 43017 Phone: 614.410.4400 Memo Memo re. Ordinance 25-23 EDA with City of Columbus June 20, 2023 Page 2 of 3 • Allowing the annexation of properties adjacent to, and part of, areas planned for substantial economic development investments. • Provides greater influence over the development of properties not previously within Dublin’s influence. • Leverages other investments in Dublin’s infrastructure adjacent to the area. The key components of the proposed EDA are as follows: Annexation and Shared Revenue Considerations • Columbus and Dublin agree the 5,575 acres located to the west of Dublin’s existing corporate boundary and designated as the Revenue Sharing Area will allow property owners to pursue annexation of their land to Dublin only. • Dublin will require the annexation of any property within the Revenue Sharing Area seeking utility services from Dublin. • Dublin will pay Columbus $1,000 per acre, as annexed to the City of Dublin. Dublin could pass this cost along, if it chooses, to those who desire to annex as part of the City’s annexation fee policy. • Dublin shall pay to Columbus during the term of the Agreement twenty-five percent (25%) of the net income tax revenues received by Dublin from commercial, industrial, office and/or a mix of uses within the Revenue Sharing Area. Net income tax revenues is defined in the EDA. It is important to point out that later in the Agreement under Term, the obligations to make ANY payments required under this Agreement shall only begin once ten million dollars ($10,000,000.00) in revenue is generated in the Revenue Sharing Area. • Dublin will not be required to pay Columbus any sum with respect to any parcel which may be developed for single family or multi-family residential purposes. • If any multi-family development occurs in the Revenue Sharing Area, Dublin agrees to request that the Developer dedicate twenty percent (20%) of the development’s units for affordable housing. The types of housing to be developed in the Revenue Sharing Area, if any, will be determined by Dublin City Council at a later date. Governmental Services • Dublin shall provide all governmental services within the Revenue Sharing Area. • Dublin shall receive a credit of twenty-six percent (26%) of gross income tax revenues derived from the Revenue Sharing Area. Infrastructure Improvements, Facilities Management, and Planning • Dublin will be responsible for the master planning and infrastructure planning for the Revenue Sharing Area. • Dublin shall receive twenty-five percent (25%) of gross income tax revenues derived from the Revenue Sharing Area for capital improvements and ongoing maintenance. Noncompete Obligation • If a company relocates from the City of Columbus to the Revenue Sharing Area, Columbus will continue to collect 100% of the net income tax revenues generated by that company up to the amount of income tax paid to Columbus during the most recent calendar year for the term the company operates there or the term of the EDA, whichever is less. 100% of the net income tax revenues generated by the company on any net new jobs after such a Memo re. Ordinance 25-23 EDA with City of Columbus June 20, 2023 Page 3 of 3 relocation will be paid according to the previously described distribution. • If a Dublin company relocates into the Revenue Sharing Area, Dublin will continue to collect 100% of the net income tax revenues generated by that company as before. 100% of the net income tax revenues generated by the company on any net new jobs after such a relocation will be paid according to the previously described distribution. Review Team • Will consist of 6 members – 3 appointed by the Mayor of Columbus and 3 appointed by the Dublin City Manager administratively. • Shall meet annually to review the activities, performance and revenues generated in the Revenue Sharing Area. • Will prepare an annual report prior to April 1 of each year. • Will meet as otherwise needed. Term • Addresses the obligation to make payments required only once ten million dollars ($10,000,000.00) in revenue is generated within the Revenue Sharing Area. • Term is for as long as the water and sanitary sewer service agreements or fifty (50) years, whichever is longer. Recommendation Staff recommends the adoption of Ordinance 25-23 authorizing the City Manager to enter into an Economic Development Agreement with the City of Columbus which would add approximately 5,575 acres to the exclusive Dublin Expansion Area and which then may be annexed to the City of Dublin. EXHIBIT I Depiction of Revenue Sharing Area i 3 333 sa 1 5x s Cz SH137S7413 7 3 e f N Proposed Dublin Columbus Revenue Sharing Area etr t II I Proposed Revenue Sharing Area il 27715 ac Iliff Columbus Exclusive Expansion Area ti v Dublin Exclusive Expansion Area r i City of Dublin Existing Incorporated Area r 10 r L r I 5C 1000 G E clusNe Evenslon Ate We based on the 1993 DubinColumbus Water end Serer Corerecl SetmceSet 0 4 ir ettd In neceme 1 E hlb w NI un ncorocr ted lends nd loon by en MS a be t d 1 h s 14080 ac wFooNa r eiVol V 1 4 e l 4031 ac l1 trd l I1 1 d r I x i tad i o r tJSID 1 9604 ac PosrtoJ ft 3 4 i l V R e er aufyoN CU r r 7 A t l pI16lM R0 i1 rT 1 ECONOMIC DEVELOPMENT AGREEMENT BETWEEN THE CITY OF COLUMBUS, OHIO AND THE CITY OF DUBLIN, OHIO This Economic Development Agreement (“Agreement”) is made and entered into as of ___________, 2023 (“Effective Date”) by and between the City of Columbus, Ohio, a municipal corporation (“Columbus”), duly authorized by City Ordinance No. 2688- 2022, passed by its City Council on October 10, 2022 and by the City of Dublin, Ohio, a municipal corporation (“Dublin”) (collectively “the Parties”), duly authorized by City Ordinance No. ________, passed by its City Council on _________, 2023. WHEREAS, Columbus and Dublin recognize the importance of planning for future growth of the two communities and of working cooperatively on issues relating to economic development as well as to utilize community resources to provide for responsible growth and development opportunities beneficial to both Columbus and Dublin; and WHEREAS, Columbus and Dublin believe the adoption of an agreement between the two communities is important to facilitate economic development, to create or preserve jobs and employment opportunities and to improve the economic welfare of the people of the Central Ohio Region, including Columbus and Dublin; and WHEREAS, Columbus and Dublin acknowledge the public purpose and value to both communities in cooperating in the development of Central Ohio, and in sharing financially in the region’s economic growth and prosperity; and WHEREAS, Columbus and Dublin have agreed to enter into new water service and sanitary sewer service agreements pursuant to Columbus City Ordinance 2400-2022, passed by its City Council on October 10, 2022, which will replace the water service and sanitary sewer service agreements originally entered into on April 13, 1993; and WHEREAS, the new water service agreement and sanitary sewer agreements will include additional area in the Dublin service area to align with Revenue Sharing Area as established herein and will establish conditions and requirements for the provision of water and sanitary sewer service to this area; and WHEREAS, Columbus and Dublin have agreed to work cooperatively on important regional growth and water safety issues to assure that regional growth and development is served properly and environmentally responsibly by centralized water and sewer systems. NOW THEREFORE, Columbus and Dublin agree as follows: I. ANNEXATION AND SHARED REVENUE A. The Parties contemplate that the area designated as the Revenue Sharing Area on the map attached hereto and incorporated herein as Exhibit I, will be annexed to Dublin, and Dublin agrees to cooperate with the petitioners for annexation to take all actions necessary and incident to accommodate the annexations within the Revenue Sharing Area as expeditiously as possible and as permitted by applicable law after 2 petitioners file any petition for annexation. The territory comprising the Revenue Sharing Area consists of approximately 5,575 acres located to the west of Dublin’s existing corporate boundary. The Parties intend to maximize income tax revenue generating possibilities in The Revenue Sharing Area. B. Dublin will require the annexation of any property within the Revenue Sharing Area seeking utility services from Dublin, and Dublin shall be the exclusive provider of utility services within the Revenue Sharing Area. Dublin shall notify and pay Columbus $1000 per acre, of the territory comprising the Revenue Sharing Area, as annexed by Dublin. C. Dublin shall pay to Columbus during the term of this Agreement an amount equal to twenty five percent (25%) of the net income tax revenue received by Dublin from commercial, industrial, office and/or a mix of uses including any of the aforementioned located within the Revenue Sharing Area. Income tax revenue shall include all taxes collected by Dublin pursuant to Chapter 183 of the Codified Ordinances of Dublin, Ohio, and any subsequent amendments or additions thereto. Net income tax revenues shall equal gross income tax revenues net of any refunds less the percentages deducted by Dublin for governmental services, capital improvements, and ongoing maintenance (as described hereafter). Dublin shall be obligated to pay to Columbus such revenue by April 15 after the first year of income tax collections and such payments shall be due annually thereafter for the duration of the Agreement. D. Dublin shall not be obligated to pay to Columbus any sum with respect to any parcel within the Revenue Sharing Area which may be developed for single-family or multi-family residential purposes. However if any multi-family development occurs within the Revenue Sharing Area, Dublin agrees to request that the Developer dedicate twenty percent (20%) of the developments units, scattered throughout the development, for affordable housing. This commitment would be recorded with Franklin County via an Affordable Housing Requirement Restrictive Covenant that would run with the land reflecting this affordable housing commitment until the affordable housing term concludes. Such affordable housing should be maintained for a minimum period of 15 years and be split between units affordable to those earning (80%) of the Area Median Income (hereinafter AMI) (a total of 10% of all units) and units affordable to those earning sixty percent (60%) AMI (a total of 10% of all units) as determined by the U.S. Department of Housing and Urban Development (HUD). The Parties have studied and recognize the continuum of housing needs in the region. II.GOVERNMENTAL SERVICES A. Dublin shall provide all governmental services within the Revenue Sharing Area including, but not limited to, water services, sanitary sewer services, police protection, highway and street construction and maintenance, recreation, solid waste management, planning, engineering and administration. B. In exchange for providing the above services (ex cluding water and sewer services), Dublin shall receive a credit in the amount of twenty-six percent (26%) of gross 3 income tax revenues derived from the Revenue Sharing Area. C. This credit is based on the percentage of the projected income tax revenues needed to offset the cost to serve the Revenue Sharing Area. This percentage was established based on a Fiscal Impact Analysis prepared by BBC Research and Consulting. III.INFRASTRUCTURE IMPROVEMENTS, FACILITIES MANAGEMENT, AND PLANNING A.Dublin will be responsible for the master planning and infrastructure planning for the Revenue Sharing Area. B. Dublin shall receive a credit each year of the Agreement in the amount of twenty-five percent (25%) of gross income tax revenues derived from the Revenue Sharing Area to provide for capital improvements and the ongoing maintenance of public infrastructure. C. Dublin agrees to be responsible for the cost of design, acquisition and construction of public infrastructure capital improvements identified in the Plan. IV.NONCOMPETE OBLIGATION A.If a company, other than a restaurant, hotel or retail establishment, currently located in Columbus and which currently pays income taxes to Columbus relocates its operations to the Revenue Sharing Area, then Dublin will pay to Columbus one hundred percent (100%) of the net income tax revenues generated by that company in the Revenue Sharing Area, up to the amount of income tax paid to Columbus during the most recent calendar year, for the duration of the term the business operates within the Revenue Sharing Area or the term of the agreement, whichever is less. One hundred percent (100%) of the net income tax revenues generated by that company on new jobs created in the Revenue Sharing Area will be paid according to the aforementioned percentage distribution by that company in the Revenue Sharing Area. B. If a company currently located in Dublin and which currently pays income taxes to Dublin relocates its operations within the Revenue Sharing Area, then Dublin will retain one hundred percent (100%) of the net income tax revenues paid to Dublin during the most recent calendar year, for the duration of the term the business operates within the Revenue Sharing Area or the term of the agreement, whichever is less. One hundred percent (100%) of the net income tax revenues generated by that company on new jobs created in the Revenue Sharing Area will be paid according to the aforementioned percentage distribution by that company in the Revenue Sharing Area. C. The Review Team, further described in the following section, will review all Columbus and Dublin companies relocating to the Revenue Sharing Area to address any outstanding issues that may arise. V. REVIEW TEAM 4 A. A Review Team is hereby created, which shall meet annually in March the first year after this Agreement is in effect, to review performance pursuant to the Agreement. The Review Team will consist of 6 members – 3 appointed by the Mayor of Columbus and 3 appointed by the City Manager of Dublin administratively. Their respective designees may be removed by the Mayor or City Manager at will. B. The Review Team will examine the following items: 1.The annexations and rezonings that have taken place during the previous year; 2.The gross amount of income taxes, net of refunds, collected from the annexed areas within the Revenue Sharing Area; 3.The previous payments and current year estimated payments to be made to Columbus under the Agreement; 4.The companies relocating to the Revenue Sharing Area from either Dublin or Columbus; 5.Those specific portions of Dublin’s approved Five Year Capital Improvement Program that pertain to the Revenue Sharing Area; 6.Whether the land uses approved for the annexed areas are compatible with the land uses set forth in the Dublin Community Plan as it existed on the effective date of this Agreement; and 7.Any other matters that may affect the Agreement. C. The Review Team will prepare an annual report accounting for the total income tax revenues, the amount credited to Dublin for providing the governmental services, the amount credited to Dublin for capital improvements, and the amount of revenues to be paid to Columbus. Such annual report will be issued and mutually agreed upon prior to April 1 of each year and prior to the issuance of any payments, as outlined in Section I.D. D. The Review Team may meet at other times during the year as they deem necessary to discuss matters that arise under the Agreement. VI.TERM Except as otherwise set forth herein, the obligations to make any payments required under this Agreement shall begin once ten million dollars ($10,000,000.00) in income tax revenue is generated within the Revenue Sharing Area and will continue for as long as the Water Service Contract and the Sewer Service Contract, between the Parties, is 5 in effect or fifty (50) years, whichever is longer. The Review Team will certify the payment start year, with remittance of the initial payment, in which $10,000,000 in income tax revenue is generated within the Revenue Sharing Area. Notwithstanding the foregoing and obligations set forth below, this Agreement and all obligations hereunder shall cease upon the termination of both the Water Service Contract and the Sewer Service Contract between Parties. VII.NO THIRD PARTY BENEFICIARY Columbus and Dublin agree that this Agreement and the rights, duties, and obligations hereunder, shall not inure to the benefit of, nor otherwise create any claim, right of privilege to or for any person or entity not a party to this Agreement, nor shall this Agreement be deemed an inducement to any Third Party to act in reliance upon the terms and conditions hereof. VIII.ENTIRE AGREEMENT/MODIFICATION Columbus and Dublin agree that the foregoing provisions constitute the entire understanding and Agreement between the Parties regarding the growth, development, and sharing of revenue applicable to the areas which are the subject hereof, and that this Agreement shall not be modified, changed, or otherwise altered without the express written consent of Columbus City Council and Dublin City Council by the ordinance first enacted. IX.APPLICABLE LAW; VENUE This Agreement shall be governed by and construed in accordance with the laws of the State of Ohio as to all matters, including, but not limited to, matters of validity, construction, effect, and performance. The Parties consent to the exclusive jurisdiction of the courts of the State of Ohio in Franklin County, and the United States District Court for the Southern District of Ohio, Eastern Division, and waive any contention that any such court is an improper venue for enforcement of this Agreement. X. ASSIGNMENT This Agreement may not be assigned or transferred in whole or in part by either Party. Any purported assignment in contravention of the terms of this provision is void. XI.FURTHER ACTS Consistent with the terms and conditions hereof, each Party shall execute and deliver all instruments, certificates, and other documents and shall perform all other acts which any other Party may reasonably request in order to carry out this Agreement and the transactions contemplated hereby. IN WITNESS WHEREOF, the City of Columbus, Ohio by its Director of the Department of Development and Department of Utilities, and City of Dublin, Ohio by its 6 City Manager have hereunto set their signatures as of the Effective Date. THE CITY OF COLUMBUS, OHIO By: Director of Development THE CITY OF COLUMBUS, OHIO By: Director of Public Utilities THE CITY OF DUBLIN, OHIO By: City Manager APPROVED AS TO FORM: City Attorney, City of Columbus Date: Law Director, City of Dublin Date: