02-95 Ordinance
ORDINANCE NO. 02-95 2/16/95
AN ORDINANCE APPROVING A MUNICIPAL INCOME TAX
REVENUE SHARING AGREEMENT BETWEEN THE CITY OF
DUBLIN AND THE DUBLIN CITY SCHOOL DISTRICT, AND
AUTHORIZING THE EXECUTION OF THAT AGREEMENT,
AND DECLARING AN EMERGENCY.
WHEREAS, the City of Dublin may, under authority of Chapter 725. or 1728.,
or Sections 3735.65 to 3735.70, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632, 5709.73,
5709.78 or 5709.84 of the Ohio Revised Code, grant an exemption from taxation for real or
tangible personal property improvements (a Project); and
WHEREAS, pursuant to Section 5709.82 of the Ohio Revised Code, the City may
negotiate and enter into an agreement with the Dublin City School District to compensate that
School District for tax revenue the School District would have received had property comprising
a Project not been exempted from taxation by the City (the Agreement); and
WHEREAS, the City has negotiated an Agreement with the School District
pursuant to Section 5709.82 of the Ohio Revised Code and determined that Agreement is in the
vital and best interest of the City and will improve the health, safety and welfare of the citizens
of the City of Dublin;
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin,
Franklin, Union and Delaware Counties, Ohio, that:
Section 1. The municipal income tax revenue sharing agreement between the City
and the Dublin City School District, in the form presently on file with the Clerk of Council,
providing for, among other things, payments by the City to the School District compensating the
School District for tax revenue the School District would have received had property comprising
a Project not been exempted from taxation by the City, is hereby approved and authorized with
changes thereto not inconsistent with this Ordinance and not substantially adverse to the City, and
which shall be approved by the City Manager and Director of Finance. The City Manager and
the Director of Finance, for and in the name of this City, are hereby authorized to execute that
Agreement, and the appr:wal of changes thereto by those officials and the character of those
changes as not being substantially adverse to the City shall be evidenced conclusively by their
execution thereof.
Section 2. fhis 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 3. This ordinance is declared to be emergency measure and necessary for
tIle immediate p;.~servation of the public peace, health, safety or welfare of this City and for the
further reason that this ordinance is required to be immediately effective in order to provide for
the impJementaJon of economic development incentives at the earliest possible time to create and
preserve jobs and employment opportunities and improve the economic welfare of the people of
the City; wherefore, this ordinance shall be in full force and effect immediately upon its passage.
I hereby certify that copies of this Ordinance/Re!6Iuliulf Wflr!' P',;"t:o ;,.'ne Signed:
City of Dublin in accordance wit" Section 731.?c jr the 6'11io RG'ii'l~tlrl elIde.
~. (--:6 C2L--u~~ ~{(L~
Clark of iCGunril ~. 'i,;;, Ohio
presie g Officer
~G--~
Clerk of Council
passed:d-f.J,(/;4.(AI''t^ 1, 1995 I heff!bv ,,,.!'tv "'1f rOH;es of ,", I)rdnonce/1t"'1O.A..liuII tiere posted in till'
City of Dublin in accordance w;,~ Sedion 731.25 of the _ill Revised Code.
Effective:,:fi/PflA.A"j Jj , 1995 ~ C!..~~J ~~
9412l583AGB.88B (IP,ftc of Coun6! O'lhlin. Ohio
,
MEMORANDUM
TO: Dublin City Council
FROM: Tim Hansley, City Manager
DATE: February 23, 1995
SUBJECT: Ordinance #02-95 and Ordinance #03-95
INITIATED BY: Mary L. Bearden, Economic Development Coordinator
c:
We are requesting that Council take action on Ordinance #02-95 approving a Municipal Income
Tax Revenue Sharing Agreement between the City of Dublin and the Dublin City School District
and Ordinance #03-95 approving a Britton Parkway Community Reinvestment Area Agreement
between the City of Dublin and Duke Realty Limited Partnership. Both ordinances must go into
effect immediately and need to be passed as emergencies at your Monday, February 27 meeting.
Approval from the Director of the Ohio Department of Development certifying the CRA will
be granted on Friday, February 24, 1995.
The only substantial change in the Revenue Sharing AgreelTlent with the School District is the
manner in which the "new employee" issue has been resolved by agreeing to share 35 percent
of the total income tax revenues from a given project versus 50 percent of income tax revenue
sharing from "new employees" by the new statute. The School District and City staff believe
that this is both equitable in dollars and far easier to implement.
The Retention and Expansion (R & E) program is moving along quite nicely, and volunteers are
being solicited from Council, Board, Commission and Staff members to serve on the business
visitation team. Volunteers will receive instructions prior to visiting businesses, with the
purpose being to gather data from the business leader first hand. The state program requires that
Council pass a "Resolution of Support" prior to undertaking the R & E activity.
Also, for your information, the Development Department participated in the Central Ohio
Technology Exposition '95 on Thursday, February 23. The overall objective of this event was
the communication of information that contributes to the economic strength of Dublin and all of
Central Ohio to foster growth, stabilize and enhance the higher paying jobs, and to increase the
awareness of technology firms, products, and services that are available through the City of
Dublin and all of Central Ohio.
EXECUTION COpy
MUNICIPAL INCOME TAX REVENUE SHARING AGREEMENT
This Agreement (the "Agreement") is made and entered into this day of
February, 1995, by and between the City of Dublin, Ohio (the "City"), a municipal corporation
with its principal offices at 6665 Coffman Road, Dublin, Ohio 43017, and the Dublin City
School District, Ohio (the "School District"), a public school district with its principal offices
located at 7030 Coffman Road, Dublin, Ohio 43017.
WITNESSETH:
WHEREAS, the City of Dublin may, under authority of Chapter 725. or 1728.,
or Sections 3735.65 to 3735.70, 5709.40, 5709.41, 5709.62, 5709.63, 5709.632, 5709.73,
5709.78, or 5709.84 of the Ohio Revised Code, grant an exemption from taxation for real or
tangible personal property improvements (a "Project"); and
WHEREAS, pursuant to Section 5709.82 of the Ohio Revised Code, the City may
negotiate and enter into an agreement with the School District to compensate the School District
for tax revenue the School District would have received had property comprising a Project not
been exempted from taxation by the City; and
WHEREAS, the City has determined that this Agreement is in the vital and best
interests of the City and will improve the health, safety and welfare of the citizens of the City
of Dublin;
NOW, THEREFORE, in consideration of the premises and covenants contained
herein the parties agree as follows:
Section 1. Definitions. As used in this Agreement, the following terms shall have
the meanings set forth below:
"Annual Payment Amount" shall mean the amount paid by the City to the School
District under Section 2 of this Agreement.
"Base Year" means, for any Project, the calendar year immediately preceding the
first Exemption Year for that Project.
"Exemption Year" means, for any Project, any calendar year in which the Project
would be taxable but for the City's authorizing for that Project any of the tax exemptions
authorized under Chapter 725. or 1728. or Sections 3735.65 to 3735.70, 5709.40, 5709.41,
5709.62, 5709.63, 5709.632, 5709.73, 5709.78, or 5709.84 of the Ohio Revised Code.
"New Employee Payroll" shall mean the difference between (a) the dollar amount
of payroll reported for any Exemption Yearby each employer which is the occupant, whether
as an owner or as a lessee, of all or any portion of a Project during such Exemption Year,
MINUS (b) the annualized dollar amount of payroll as of the date of occupancy for each such
employer.
"Property Tax. Amount" shall mean the amount of real and/or tangible personal
property tax payments derived each Exemption Year from a Project which the School District
would have received but for the City's authorizing for that Project any of the tax exemptions
authorized under Chapter 725. or 1728. or Sections 3735.65 to 3735.70, 5709.40, 5709.41,
5709.62, 5709.63, 5709.632, 5709.73, 5709.78, or 5709.84 of the Ohio Revised Code.
Section 2. Amount of City Payments. During any Exemption Year in which (i)
the School District would have received real or tangible personal property tax payments derived
from a Project (including, without limitation, a Project located in the Britton Parkway
Community Reinvestment Area or the Tuttle Crossing Community Reinvestment Area) but for
the City authorizing for that Project any of the tax exemptions referred to above, and (ll) the
New Employee Payroll resulting from the exercise of that authority equals or exceeds One
Million Dollars ($1,000,000) in that Exemption Year, the City hereby agrees to pay the School
District for that Exemption Year an amount equal to 35 % of the amount of income taxes levied
and collected by the City on payroll derived from each employer which is the occupant, whether
as an owner or lessee, of that Project; provided, however, that, except with respect to a Project
within the Tuttle Crossing Community Reinvestment Area, the Annual Payment Amount payable
for any Exemption Year shall not be less than (a) 50% of the Property Tax. Amount, MINUS (b)
the sum of
(1) the amount of ad valorem real property taxes charged and payable on any
portion of the assessed valuation of the Project that will not be exempted
from taxation (excluding the land on which the Project is located), plus
(2) the amount of taxes charged and payable on tangible personal property
located on the premises of the Project (whether payable by the owner of
the Project or by a related member, as defined in Section 5733.42 of the
Ohio Revised Code without regard to division (B) of that section) that will
not be exempted from taxation, plus
(3) the amount of any cash payment by the owner of the project or the dollar
value, as mutually agreed to by the owner and the School District, of any
property or services provided by the owner of the property to the School
District, whether by gift, loan, or otherwise; and
provided, further, that the Annual Payment Amount paid to the School District for any Project
for any Exemption Year shall never exceed the Property Tax. Amount.
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This Agreement shall not apply to any Project to which Section 5709.82 of the
Ohio Revised Code does not apply.
Section 3. Timing of Payments: Review of Records. Beginning with the calendar
year following the first Exemption Year, the City shall calculate the Annual Payment Amount
for the immediately preceding Exemption Year on or before the last day of April and shall
provide to the School District a copy of such calculations. The calculation by the City of the
Annual Payment Amount for each Project shall be conclusive absent manifest error. The City
shall pay the Annual Payment Amount to the School District on July 1st of the calendar year
after the Exemption Year for which the calculation is made. The School District may from time
to time, with reasonable advance notice, review the records of the City relating to its receipt of
municipal income taxes derived from any Project.
Section 4. Amendment: Change of Law. This Agreement may be amended or
modified by the parties only in writing, signed by both parties to the Agreement.
Section 5. Entire Agreement. This Agreement sets forth the entire agreement and
understanding between the parties as to the subject matter hereof and merges and supersedes all
prior discussions, agreements, and undertakings of every kind and nature between the parties
with respect to the subject matter of this Agreement.
Section 6. Notices. All payments, certificates and notices which are required to
or may be given pursuant to the provisions of this agreement shall be sent by the United States
ordinary mail, postage prepaid, and shall be deemed to have been given or delivered when so
mailed to the following addresses:
If to the City: City of Dublin
6665 Coffman Road
Dublin, Ohio 43017
Attn: Director of Development
If to the School District: Dublin City School District
7030 Coffman Road
Dublin, Ohio 43017
Attn: Treasurer
Either party may change its address for receiving notices and reports by giving
written notice of such change to the other party.
Section 7. Severability of Provisions. The invalidity of any provision of this
Agreement shall not affect the other provisions of this Agreement, and this Agreement shall be
construed in all respects as if any invalid portions were omitted.
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Section 8. Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same instrument, and any
party to this Agreement may execute this Agreement by signing any such counterpart.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
as of the date set forth above.
CITY OF DUBLIN, OHIO DUBLIN CITY SCHOOL DISTRICT, OHIO
By: By:
City Manager Superintendent
And: By:
Director of Finance Treasurer
By:
President of the Board of Education
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. .
FISCAL OFFICER'S CERTIFICATE
The undersigned, Director of Finance and Fiscal Officer of the City of Dublin,
Ohio, hereby certifies that the monies required to meet the obligations of the City during the year
1995 under the foregoing Agreement between the City and the Dublin City School District have
been lawfully appropriated by the Council of the City for such purposes 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.
Dated: , 1995
Marsha Grigsby, Director
of Finance
94\21583AAF.89L
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