Ordinance 01-12RECORD OF ORDINANCES
Dayton Le l Blank. In
Ordinance No. 01 -12
Passed
-FD= No. 30043
20
AN ORDINANCE AUTHORIZING THE PROVISION OF CERTAIN
INCENTIVES TO ASK CHEMICAL LP TO INDUCE IT TO RETAIN
A MAIN OFFICE AND 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
or preserve jobs and employment opportunities within the City; and
WHEREAS, ASK Chemical LP (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 retaining an existing facility and leasing an additional facility, all within the
City, to retain a main office and 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 retain an existing facility and lease an additional facility, all within the City, and
retain a main office and associated operations and workforce within the City, which will
result in the creation of new jobs and employment opportunities and the preservation
of existing 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, THEREFORE, 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 retain an existing facility and lease an additional
facility, all within the City, for the retention of a main office and associated operations
and workforce within the City, which will result in the creation of new jobs employment
opportunities and the preservation of existing 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
RECORD OF ORDINANCES
Davtoo L� ^al BIanA, Inc. ru No. 390.1'
Ordinance No
01 -12
Page 2 of 2
Passed 20
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.
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 Ordinance shall be in full force and effect on the earliest date
permitted by law.
Signed:
L:Aa
Mayor - Pre id ng Officer
Attest:
Clerk of Council
Passed: 2012
Effective. 2012
I cityof Dublin
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017 -1090
Phone: 614 - 410 -4400 • Fax: 614 - 410 -4490
To: Members of Dublin City Council
From: Marsha I. Grigsby, City Manager \lam
Date: January 5, 2012
Initiated By: Colleen Gilger, Economic Development Manager
Memo
Re: Ordinance 01 -12 — ASK Chemical Economic Development Agreement
Summary
Staff has been in discussions with ASK Chemical (ASK) regarding the retention and expansion of the
company's Dublin office. The company's expansion plan includes the relocation of their offices from the
Ashland Inc. campus to more suitable leased space within Dublin, and the addition of four new jobs to
the Dublin facility. This expansion project is in competition with other Central Ohio communities. The
project will also retain 69 current employees.
ASK was spun off from Ashland Inc. in 2010 into a 50 -50 joint venture between Ashland and Clariant, a
Swiss company. ASK has three facilities in Ohio producing over one million pounds of foundry chemical
products annually, of which more than 30 percent is exported outside the United States. The young,
global company is active in 24 countries with 30 locations, 16 production plants and a total of
approximately 1,600 employees. Their portfolio encompasses a broad and innovative range of foundry
resources such as binders, coatings, feeders, filters and release agents, as well as metallurgical
products including inoculants, inoculation wires and master alloys for iron casting.
The Economic Development Agreement proposed by the City to ASK includes a five -year, 12 percent
Performance Incentive on withholdings collected (2012- 2016), which is capped at $67,500 for the term
of the agreement. In consideration, ASK agrees to retain 69 jobs and create four new jobs in Dublin
by the end of 2016. The company must reach predetermined annual withholdings targets to qualify for
these performance incentives.
The City estimates it would net approximately $495,406 in income tax withholdings over the
agreement's five -year term, should the company grow according to expectations.
Recommendation
Staff recommends Council approve Ordinance 01 -12 at the second reading /public hearing on January
23, 2012. Please contact Colleen Gilger regarding any questions you may have.
ECONOMIC DEVELOPMENT AGREEMENT
THIS ECONOMIC DEVELOPMENT AGREEMENT (the `Agreement") is made and entered into
this day of , 2012, by and between the CITY OF DUBLIN, OHIO (the "City"), a
municipal corporation duly organized and validly existing under the Constitution and the laws of
the State of Ohio (the "State ") and its Charter, and ASK CHEMICAL LP, a Delaware limited
partnership (the "Company" and together with the City, the "Parties "), under the circumstances
summarized in the following recitals.
RECITALS:
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 or preserve jobs and employment
opportunities within the City; and
WHEREAS, based on the results of the Company's recent comprehensive examination of
workforce needs, and induced by and in reliance on the economic development incentives provided
in this Agreement, the Company desires to retain a main office and associated operations and
workforce within the City; and
WHEREAS, pursuant to Ordinance No. 01 -12 passed on , 2012 (the
"Ordinance "), the City has determined to offer the economic development incentives described
herein to induce the Company to retain an existing facility and lease an additional facility, all
within the City, for the retention of a main office and associated operations and workforce within
the City, which will result in the creation of new jobs and employment opportunities and the
preservation of existing jobs and employment opportunities to improve 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; and
WHEREAS, the City and the Company have determined to enter into this Agreement to
provide these incentives in order to induce the Company to retain an existing facility and lease an
additional facility, and retain its operations and workforce, all within the City;
Now THEREFORE, the City and the Company covenant, agree and obligate themselves as
follows:
Section 1. Companv's Agreement to Retain an Existing Facility and Lease an
Additional Facility and Retain Its Operations and Workforce Within the City In consideration for
the economic development incentives to be provided by the City herein, the Company agrees that it
will retain an existing facility and lease an additional facility, all within the City, for the retention
of a main office and associated operations and workforce within the City, all consistent with the
terms of this Agreement. The Company expects to create four (4) new employee positions within
the City by December 31, 2013. The average annual wage of these employees is estimated to be
Eight -Five Thousand Dollars ($85,000), with total estimated payroll withholdings of approximately
SSD #815992v2: 12 -02 -2011
Six Thousand Eight Hundred Dollars ($6,800) annually. The Company also expects to retain sixty -
nine (69) existing employee positions within the City. The average annual wage of these employees
is estimated to be Seventy -Six Thousand Nine Hundred Dollars ($79,600), with total estimated
payroll withholdings of approximately One Hundred Six Thousand Dollars ($106,000) annually.
The Company agrees that the City's obligations to remit payments pursuant to Section 2 of this
Agreement shall be contingent upon (a) the Company delivering to the City afully executed copy of
an agreement evidencing the Company's lease of an additional facility within the City for a period
of at least seven (7) years and (b) such other conditions as set forth in Section 2.
Section 2. City Agreement to Provide Incentives
(a) General In consideration for the Company's agreement to retain an existing facility
and lease an additional facility, to retain a main office and associated operations and workforce,
and to create and preserve jobs and employment opportunities, all within the City, the City agrees to
provide economic development incentives to the Company in accordance with this Section.
(b) Workforce Retention and Creation Incentive
(i) Calculation of Actual Pavroll Withholding Taxes On or before March 15 of
each of the years 2013 through 2017, the City shall calculate the actual payroll withholding
taxes collected and received during the preceding calendar year and in respect of that
preceding calendar year by the City from all Employees (as defined below). For purposes of
that calculation, the Company acknowledges and agrees that the total amount of actual
payroll withholding taxes in respect of any calendar year shall be determined based solely
upon the amount of payroll withholding tax payments actually received by the City from the
Company during that calendar year. The Company agrees that the determination of whether
to include in such calculation any amount received by the City in respect of any calendar
year but following the conclusion of that calendar year, shall be solely within the discretion
of the City. For purposes of this Section 2, `Employees" shall include only those individuals
employed by the Company and working within the City.
(ii) Information Relating to Employees The Company agrees that, in
accordance with the Dublin City Code, the annual payroll reconciliation and related W -2
forms relating to its Employees will be provided to the City prior to February 28 of each
calendar year.
(iii) Annual Incentive Payments to the Company If the actual payroll
withholding taxes collected and received by the City during the then preceding calendar year
and in respect of that preceding calendar year from all Employees, net of refunds (such
amount being referred to as the `Actual Withholdings "), equal or exceed the Target
Withholdings (as defined in subsection 2(b)(iv)) for that preceding calendar year, the City
shall, on or before April 15 of the then current calendar year, pay to the Company, solely
from nontax revenues (as defined in subsection 2(d)), an amount equal to the Annual
Incentive Payment (as defined in subsection 2(b)(iv)); provided, however, that (A) the City
shall not be required pursuant to this subsection 2(b) to remit a payment to the Company in
any calendar year in excess of the Annual Incentive Payment, and (B) the aggregate amount
SSD #8I5992v2 : I2-02 -2011 -2-
of all Annual Incentive Payments remitted pursuant to this subsection 2(b) by the City to the
Company shall not exceed Sixty -Seven Thousand Five Hundred and 00 /100 Dollars
($67,500.00).
(iv) Target Withholdings and Annual Incentive Payments The Target
Withholdings and Annual Incentive Payment for each of the calendar years 2012 through
2016 shall be:
Annual
Calendar Year Target Withholdings Incentive Pavment
2012 $ 106,184 $ 12,500
2013 109,984 13,000
2014 112,738 13,500
2015 115,556 14,000
2016 118,444 14,500
(v) Forfeiture of Right to Receive Workforce Retention and Creation Annual
Incentive Payments The Company agrees and acknowledges that Annual Incentive
Payments provided for in subsection 2(b) are being made by the City to the Company in
consideration for the Company's agreement to retain an existing facility and lease an
additional facility, to retain a main office and associated operations and workforce, and to
create and preserve jobs and employment opportunities, all within the City. The Company
further agrees that if the Target Withholdings requirement is not met for any given calendar
year as set forth in subsection 2(b)(iv), the City shall not be obligated to make an Annual
Incentive Payment to the Company for the calendar year in respect of which the Target
Withholdings requirement was not satisfied. Failure to satisfy the Target Withholdings
requirement in respect of any one calendar year does not prohibit the Company from
receiving an Annual Incentive Payment for any subsequent calendar year in respect of
which the Target Withholdings requirement is satisfied.
(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.
(d) City's Obligation to Make Payments Not Debt: Payments Limited to Non -Tax
Revenues Notwithstanding anything to the contrary herein, the obligations of the City pursuant
to this Agreement shall not be a general obligation debt or bonded indebtedness, or a pledge of
the general credit or taxes levied by the City, and the Company shall have no right to have
excises or taxes levied by the City, the State or any other political subdivision of the State for the
performance of any obligations of the City herein. Consistent with Section 13 of Article VIII,
Ohio Constitution, any payments or advances required to be made by the City pursuant to this
Section 2 shall be payable solely from the City's non -tax revenues. Further, since Ohio law
limits the City to appropriating monies for such expenditures only on an annual basis, the
obligation of the City to make payments pursuant to this Section 2 shall be subject to annual
appropriations by the City Council and certification by the Director of Finance of the City as to
the availability of such non -tax revenues. For purpose of this Agreement, "nontax revenues"
SSD #8I5992v2 : I2-02 -2011 - 3 -
shall mean, all moneys of the City which are not moneys raised by taxation, to the extent
available for such purposes, including, but not limited to the following: (i) grants from the
United States of America and the State; (ii) payments in lieu of taxes now or hereafter authorized
to be used for the purposes by State statute; (iii) fines and forfeitures which are deposited in the
City's General Fund; (iv) fees deposited in the City's General Fund from properly imposed
licenses and permits; (v) investment earnings on the City's General Fund and which are credited
to the City's General Fund; (vi) investment earnings of other funds of the City that are credited
to the City's General Fund; (vii) proceeds from the sale of assets which are deposited in the
City's General Fund; (viii) rental income which is deposited in the City's General Fund; and (ix)
gifts and donations.
Section 3. Miscellaneous.
(a) Assignment This Agreement may not be assigned without the prior written consent
of all non - assigning Parties.
(b) Binding Effect The provisions of this Agreement shall be binding upon the
successors or assigns of the Parties.
(c) Captions The captions and headings in this Agreement are for convenience only
and in no way define, limit or describe the scope or intent of any provisions or sections of this
Agreement.
(d) Day for Performance Wherever herein there is a day or time period established for
performance and such day or the expiration of such time period is a Saturday, Sunday or legal
holiday, then such time for performance shall be automatically extended to the next business day.
(e) Entire Agreement This Agreement embodies the entire agreement and
understanding of the Parties relating to the subject matter herein and therein and may not be
amended, waived or discharged except in an instrument in writing executed by the Parties.
(f) Events of Default and Remedies Except as otherwise provided in this Agreement,
in the event of any default in or breach of this Agreement, or any of its terms or conditions, by any
Party hereto, such defaulting Party shall, upon written notice from any non - defaulting Party,
proceed immediately to cure or remedy such default or breach, and, in any event, within thirty (30)
days after receipt of such notice. In the event such default or breach is of such nature that it cannot
be cured or remedied within said thirty (30) day period, then in such event the defaulting Party shall
upon written notice from any non - defaulting Party commence its actions to cure or remedy said
breach within said thirty (30) day period, and proceed diligently thereafter to cure or remedy said
breach. In case such action is not taken or not diligently pursued, or the default or breach shall not
be cured or remedied within a reasonable time, the aggrieved non - defaulting Party may institute
such proceedings as may be necessary or desirable in its opinion to cure and remedy such default or
breach, including, but not limited to, proceedings to compel specific performance by the defaulting
Party.
SSD #8I5992v2 : I2-02 -2011 -4-
(g) Executed Counterparts This Agreement may be executed in several counterparts,
each of which shall be deemed to constitute an original, 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.
(h) Extent of Covenants; No Personal Liability All covenants, obligations and
agreements of the Parties contained in this Agreement shall be effective to the extent authorized and
permitted by applicable law. No such covenant, obligation or agreement shall be deemed to be a
covenant, obligation or agreement of any present or future member, officer, agent or employee of
the City or the Company other than in his or her official capacity, and neither the members of the
legislative body of the City nor any official executing this Agreement shall be liable personally
under this Agreement or be subject to any personal liability or accountability by reason of the
execution thereof or by reason of the covenants, obligations or agreements of the City and the
Company contained in this Agreement.
(i) Governing Law This Agreement shall be governed by and construed in accordance
with the laws of the State of Ohio or applicable federal law. All claims, counterclaims, disputes and
other matters in question between the City, its agents and employees, and the Company, its
employees and agents, arising out of or relating to this Agreement or its breach will be decided in a
court of competent jurisdiction within Franklin County, Ohio.
0) Legal Authority The Parties respectively represent and covenant that each is legally
empowered to execute, deliver and perform this Agreement and to enter into and carry out the
transactions contemplated by this Agreement. The Parties further respectively represent and
covenant that this Agreement has, by proper action, been duly authorized, executed and delivered by
the Parties and all steps necessary to be taken by the Parties have been taken to constitute this
Agreement, and the covenants and agreements of the Parties contemplated herein, as a valid and
binding obligation of the Parties, enforceable in accordance with its terms.
(k) Limit on Liability Notwithstanding any clause or provision of this Agreement to
the contrary, in no event shall City or the Company be liable to each other for punitive, special,
consequential, or indirect damages of any type and regardless of whether such damages are claimed
under contract, tort (including negligence and strict liability) or any other theory of law.
(1) Notices Except as otherwise specifically set forth in this Agreement, all notices,
demands, requests, consents or approvals given, required or permitted to be given hereunder shall be
in writing and shall be deemed sufficiently given if actually received or if hand - delivered or sent by
recognized, overnight delivery service or by certified mail, postage prepaid and return receipt
requested, addressed to the other Party at the address set forth in this Agreement or any addendum
to or counterpart of this Agreement, or to such other address as the recipient shall have previously
notified the sender of in writing, and shall be deemed received upon actual receipt, unless sent by
certified mail, in which event such notice shall be deemed to have been received when the return
receipt is signed or refused. For purposes of this Agreement, notices shall be addressed to:
ssD#8IS99zvz: I2-02 -2011 - 5 -
(i) the City at: City of Dublin, Ohio
5800 Shier Rings Road
Dublin, Ohio 43016 -7295
Attention: Economic Development Director
(ii) the Company at: ASK Chemical LP
Dublin, Ohio 4301
Attention:
The Parties, by notice given hereunder, may designate any further or different addresses to which
subsequent notices; certificates, requests or other communications shall be sent.
(m) No Waiver No right or remedy herein conferred upon or reserved to any Party is
intended to be exclusive of any other right or remedy, and each and every right or remedy shall be
cumulative and in addition to any other right or remedy given hereunder, or now or hereafter legally
existing upon the occurrence of any event of default hereunder. The failure of any Party to insist at
any time upon the strict observance or performance of any of the provisions of this Agreement or to
exercise any right or remedy as provided in this Agreement shall not impair any such right or
remedy or be construed as a waiver or relinquishment thereof. Every right and remedy given by this
Agreement to the Parties 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.
(n) Recitals The Parties acknowledge and agree that the facts and circumstances as
described in the Recitals hereto are an integral part of this Agreement and as such are incorporated
herein by reference.
(o) Severability If any provision of this Agreement, or any covenant, obligation or
agreement contained herein is determined by a court to be invalid or unenforceable, that
determination shall not affect any other provision, covenant, obligation or agreement, each of which
shall be construed and enforced as if the invalid or unenforceable portion were not contained herein.
That invalidity or unenforceability shall not affect any valid and enforceable application thereof, and
each such provision, covenant, obligation or agreement shall be deemed to be effective, operative,
made, entered into or taken in the manner and to the full extent permitted by law.
(p) Survival of Representations and Warranties All representations and warranties of
the Parties in this Agreement shall survive the execution and delivery of this Agreement.
(remainder ofpage intentionally left blank — signature page follows)
SSD #8I5992v2 : I2-02 -2011 -6-
IN WITNESS WHEREOF, the City and the Company have caused this Agreement to be
executed in their respective names by their duly authorized representatives, all as of the date first
written above.
CITY OF DUBLIN, OHIO
Printed: Marsha I. Grigsbv
Title: Citv Manager
Approved as to Form:
C
Printed: Stephen J. Smith
Title: Director of Law
ASK CHEMICAL LP
Printed:
Title:
SSD #875992v2 : I2-02 -2011 -7-
FISCAL OFFICER'S CERTIFICATE
The undersigned, Director of Finance of the City under the foregoing Agreement, certifies
hereby that the moneys required to meet the obligations of the City under the foregoing Agreement
during Fiscal Year 2012 have been appropriated lawfully for that purpose, and are in the Treasury of
the City or in the process of collection to the credit of an appropriate fund, free from any previous
encumbrances. This Certificate is given in compliance with Sections 5705.41 and 5705.44, Ohio
Revised Code.
Dated: .2012
Angel L. Mumma
Director of Finance /Deputy City Manager
City of Dublin, Ohio
SSD #8I5992v2 : I2-02 -2011 - 8-