44-09 OrdinanceRECORD OF ORDINANCES
44-09
Orclirzance No. P~tssecl
20
AN ORDINANCE AUTHORIZING THE CITY MANAGER TO
ENTER INTO A MODIFICATION OF THE WATER AND SEWER
AGREEMENTS WITH THE CITY OF COLUMBUS, OHIO,
AND DECLARING AN EMERGENCY
WHEREAS, the City of Columbus and City of Dublin entered into an agreement for
sanitary sewer service on April 13, 1993, pursuant to Ordinance No. 136-92 passed by the
City of Dublin on December 21, 1992, and pursuant to Ordinance No. 2692-92 passed by
the City of Columbus on December 14, 1992; and
WHEREAS, the City of Columbus and City of Dublin entered into an agreement for
water service on April 13, 1993, pursuant to Ordinance No. 135-92 passed by the City
of Dublin on January 4, 1993, and pursuant to Ordinance No. 2693-92 passed by the
City of Columbus on December 14, 1992; and
WHEREAS, the water and sewer agreements included an Exhibit "A," which
delineated areas as the "Exclusive Columbus Expansion Area," "Exclusive Dublin
Expansion Area," and "Negotiated Expansion Area;" and
WHEREAS, as to the "Negotiated Expansion Area," the agreements provide that this
area is a shared future growth area, and that neither party shall initiate or accept
annexation from that area without the mutual agreement of the Columbus and Dublin
City Councils; and
WHEREAS, the City of Dublin desires to allow any owners of parcels located within
an approximate 277-acre area, located north of State Route 161/Post Road and west of
Hyland-Croy Road to pursue annexation of their land to the City of Dublin; and
WHEREAS, the Columbus City Council, pursuant to Ordinance No. 0448-2009,
passed by the City of Columbus on July 13, 2009, has authorized the Columbus
Director of Public Utilities to enter into a modification of the Water and Sewer
Agreements with the City of Dublin, Ohio, and to consent to the annexation of
approximately 277 acres located north of State Route 161/Post Road and west of
Hyland-Croy Road to the City of Dublin.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin,
State of Ohio, ~ of the elected members concurring:
Section 1. That the City Manager be, and hereby is, authorized to enter into a
modification of the Water and Sewer Agreements with the City of Columbus, Ohio to
include a modified Exhibit "A," which would add approximately 277 acres, located
north of State Route 161/Post Road and west of Hyland-Croy Road to the Exclusive
Dublin Expansion Area and which then maybe annexed to the City of Dublin.
Section 2. That this Ordinance is declared as an emergency necessary for the immediate
preservation of the public peace, health, safety or welfare, and in addition, this legislation
directly impacts pending litigation. Therefore, this ordinance shall be effective
immediately upon passage.
Passed this l -f day of , 2009
Mayor -Presiding Officer
ATTEST:
Clerk of Council
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017-1090 M e m o
CITY OF DUBLIN. Phone: 614-410-4400 • Fax: 614-410-4490
To: Members of Dublin City Council
From: Terry Foegler, City Manager
Date: July 30, 2009
Initiated By: Marsha I. Grigsby, Deputy City Manager/Finance Director
Paul A. Hammersmith, P.E., Director of Engineering/City Engineer
Re: Ordinance 43-09 Economic Development Agreement with City of Columbus
Ordinance 44-09 Modification of Water and Sewer Contracts with City of Columbus
Background
This proposed Economic Development Agreement (EDA), and associated modification to the Water and
Sewer Service Agreements, is in regard to a 277-acre area depicted on the exhibit attached to the proposed
EDA (see both as attached). The area is located within the Negotiated Expansion Area, as defined within
the 1993 Columbus and Dublin Water and Sewer Service Agreements, and is adjacent to the US Route 33
Corridor at its intersection with State Route 161 and Post Road. In the 1993 Agreements, both Columbus
and Dublin agreed that the Negotiated Expansion Area would constitute a shared future growth area for
both entities. 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 City Council.
Summary
"1'he proposed EDA being presented for Council's consideration establishes the terms and conditions under
which the 277-acre area will become part of the Exclusive Dublin Expansion Area (as shown on the
attached revised Exhibit A). The terms and conditions relate largely to the sharing of the income tax
revenues, which will result from the development in this area. Once the proposed EDA and modifications
to the existing water and sewer service agreements are executed, Dublin would be able to accept
annexations sought by any of the owners of the parcels of land located within the 277-acre area.
The 277-acre area constitutes approximately six percent of the Negotiated Expansion Area, as depicted on
the exhibit attached to the proposed EDA. The water and sewer service agreements always contemplated
that this area would be served by the Columbus and Dublin water and sewer systems, subject to a future
negotiated agreement, such as the one being proposed at this time.
The site is located just north of State Route 161, at its intersection with US Route 33. As Council is aware,
Dublin has been considering making a very substantial investment in the improvement of this interchange,
where a significant portion of the abutting property is still located outside of Dublin's corporate limits. The
rate at which this interchange improvement occurs will likely be affected by the rate at which annexations
provided for in this proposed EDA occur. As is the case with the areas currently designated as Exclusive
Dublin Expansion Area in the 1993 Agreements, the proposed EDA would pt'ovide the opportunity (but not
Memo re. Ord. 43-09 and Ord 44-09 - Colwnbus 13DA &
Modification of Columbus Water-Sewer Agreements
July 30, 2009
Page 2 of 3
t7re requirement) for owners of property within the 277-acre area to annex to the City of Dublin, and
thereby be provided with Dublin's water and sanitary sewer services.
The proposed EDA and modifications to the existing water and sewer service agreements facilitate the
orderly development of this area by:
• Allowing for the annexation of properties adjacent to, and part of, areas planned for substantial
economic development investments.
• Providing the opportunity for greater influence over the development of properties located adjacent
to both existing Dublin neighborhoods and a proposed major interchange improvement.
• Providing utilization of Dublin utility infrastructure, which has been sized and located to serve the
area.
The key components of the proposed EDA are as follows:
Annexatimr and Shared Revenue Considerations
• Columbus and Dublin agree the 277 acres designated as t11e Revenue Sharing Area will allow
property owners to pursue annexation of their land to Dublin.
• Dublin will pay to Columbus au Equity Share of $1 million upon final acceptance of annexations
within the 277 acres.
• The Equity Share shall be obtained by dividing the acreage of the amrexation parcel by the acreage
of the proposed EDA (277 acres) times $1 million.
• Dublin and Columbus will equally share (50/50) the net income tax revenues derived from the
proposed EDA.
• Net income tax reve~rues will be gross income tax revenues less the percentage to Dublin for
governmental services (26 percent), less the percentage to Dublin for capital improvements (25
percent),lcss refwrds.
Nmt Compete Considerations
• 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 gross 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, and one hundred percent (100%) of the net
income tax revenues generated by that company on new jobs created in the Revenue Sharing Area.
• If a company currently located in Dublin and which currently pays income taxes to Dublin relocates
its operations to within the Revenue Sharing Area, then Dublin will retain one hundred percent
(100`%,) of the net income tax revenues generated by that company iu the Revenue Sharing Area.
• It is the intent of the Dublin administration to avoid the targeting and relocating of any such
Columbus-based operations to the subject area.
Water and Sanitary Sewer Services Provisio^
• The 277 acres will be served by Dublin with existing water and sanitary sewer capacities within the
Dublin utility system, and as such Dublin would be the exclusive provider of utility services within
the 277 acres.
Memo re. Ord. 43-09 and Ord 44-09 -Columbus EDA &
Modification of Columbus Water-Sewer Agreements
July 30, 2009
Page 3 of 3
• Dublin would require annexation of those properties within flee 277 acres requesting utility services.
Capital Improvement Plan
• Dublin and Columbus will establish a Capital hmprovement Plan (Plan) for the 277 acres to identify
necessary transportation and utility iufi~astructure improvements.
• Dublin shall be responsible for the cost of design, acquisition and construction of all capital
improvements identified in the Plan, including project costs directly attributable to the 277 acres.
• An amount equal to 25 percent of gross income tax revenues derived fiom the proposed EDA shall
be credited to Dublin each year to reimburse Dublin for all improvements and provide for the cost
of on-going maintenance of the improvements.
Governmental Services
• Dublin shall provide all governmental services to the District, including water services, sanitary
sewer services, transportation-related construction and maintenance, police protection, recreatimr,
planning, engineering and administration.
• An amount equal to 26 percent of gross income tax revenues derived from the proposed EDA shall
be credited to Dublin each year as reimbursement for the provision of governmental services, other
than utility and bansportafion services.
• 'T'his credit shall account for the fact that lands within the Revenue Sharing Area will be in Dublin,
requiring Dublin fo manage all concerns thereof, including resolving unforeseen issues that cannot
be quantif ed in any operating cost calculation.
Joint ;Economic Development District (JEDD)
• Columbus and Dublin agree to use t9ieir best efforts to form a JEDD for areas located north and
west of the 277 acre area within the next two years.
• Columbus and Dublin agree that neither party will enter into a JEDD contract for areas located
north and west of the Revenue Sharing Area unless both entities are party to the JEDD contract.
Agreement Term
• "the initial Perm of this Agreement shall temlinate on April 13, 2043, unless otherwise terminated
prior to That date.
On July 13, 2009, Columbus City Council approved ordinances authorizing the proposed EDA and the
associated modification to the existing water and sewer service agreements.
Recommendation
Staff recommends the adoption of Ordinance 43-09 authorizing the City Manager to enter into an
Economic Development Agreement wit7r the City aF Columbus. Furthermore, staff recommends the
adoption of Ordinance 44-09 authorizing the City Manager to enter into a modification of the water and
sewer service agreements with the City of Columbus, to include a modified Exhibit A which would add
approximately 277 acres, located north of State Route 161/Post Road and west ofHyland-Croy Road, to the
Exclusive Dublin Expansion Area and which then maybe annexed to the City of Dublin.
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CITY OF DUBLIN
PREPARED BY THE CITY Or DUBLIN
DEPAR'PMENT Or DEVELOPMENT 3-20-93