03-95 Ordinance
. .
ORDINANCE NO. 03-95 2/16/95
AN ORDINANCE APPROVING A BRITTON P ARKW A Y
COMMUNITY REINVESTMENT AREA AGREEMENT
BETWEEN THE CITY OF DUBLIN AND DUKE REALTY
LIMITED PARTNERSHIP, AND AUTHORIZING EXECUTION
OF THAT AGREEMENT, AND DECLARING AN
EMERGENCY.
WHEREAS, by Ordinance No. 130-94 passed by this Council on February 6,
1995, this Council found and determined that the area designated as the Britton Parkway
Community Reinvestment Area (the Area) constitutes an area in which housing facilities or
structures of historical significance are located and in which new construction and repair of
existing facilities has been discouraged, and declared that the new construction in the Area of
commercial office structures consistent with the City's Economic Development Strategy to be a
public purpose and exempt from real property taxation and, in accordance with the procedures
and requirements of Section 3735.67 of the Ohio Revised Code, with that exemption to be for
up to ten years; and
WHEREAS, pursuant to Section 3735.66 of the Ohio Revised Code, this City
Council certified Ordinance No. 130-94 to the Director of Development of the State of Ohio
within 15 days after the passage of that Ordinance and the Director has determined that the
findings contained in that Ordinance are valid and the classification of structures or remodeling
eligible for exemption under that Ordinance is consistent with zoning restrictions applicable to
the Area; and
WHEREAS, pursuant to that Ordinance No. 130-94 and Section 3735.671 of the
Ohio Revised Code, the City has negotiated a Britton Parkway Community Reinvestment Area
Agreement (the Agreemnet) with Duke Realty Limited Partnership, with the Project (as defined
and described in that Agreement) to be subject to a 100% real property tax exemption for ten
years for new commercial office facilities and with those facilities being consistent with that
Ordinance No. 130-94 and the City's Economic Development Strategy; and
WHEREAS, notice of this proposed Ordinance has been delivered to the Board
of Education of each affected school district in accordance with Section 5709.83 of the Ohio
Revised Code; and
WHEREAS, the City has determined that the Agreement is vital andin the best
interests 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 City of Dublin, Franklin, Union
and Delaware Counties, Ohio, that:
Section 1: The Britton Parkway Community Reinvestment Agreement between
the City and Duke Realty Limited Partnership, in the form presently on file with the Clerk of
Council, is hereby approved and authorized with changes therein 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, provided further that the
approval 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. Pursuant to Section 3735.671(F) of the Ohio Revised Code, the Clerk
of this Council is hereby directed to deliver a copy of this Ordinance and the Agreement to the
Director of Development of the State of Ohio and the Ohio Tax Commissioner within 125 days
after the Agreement is entered into.
Section 3. This 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.
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Section 4. This ordinance is declared to be emergency measure and necessary for
the immediate preservation 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 implementation of economic development incentives for the Project at the earliest possible
time to create 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.
Signed:
~~
Presiding Officer
v
Attest: ~ (L~
Clerk of Council
Passed: d-Wyu.r;.'/~7, 1995
Effective: JJ!!f"'tiiry ; 1 , 1995
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RECEIVED
. .
MAR 2 9 1995
FINANCE DEPT: 2/27/95
EXECUTION COPY
CITY OF DUBLIN BRITTON PARKWAY COMMUNITY
REINVESTMENT AREA AGREEMENT
This Agreement (the "Agreement") is made and entered into by and between the
City of Dublin, Ohio (the "City"), a municipal corporation with its main offices located at 6665
Coffman Road, Dublin, Ohio, and Duke Realty Limited Partnership (the "Owner"), an Indiana
limited partnership with its main office located at 8888 Keystone Crossirig, Suite 1200,
Indianapolis, Indiana, WITNESSETH;
WHEREAS, the City in 1994 commissioned and undertook a comprehensive
economic development strategy (the "Economic Development Strategy") and that Striltegy
identifies as most desirable for the City commercial office development which may include
research and development operations, which development can occur at relatively intense levels;
and
WHEREAS, the City of Dublin Department of Development continuously monitors
the existing inventory of vacant commercial office space in the City, the region and the State of
Ohio, and the City Department of Development has determined, consistent with the findings of
the City's Economic Development Strategy, that there has been and is a need for development
of readily available commercial office space for leasing to prospective users desiring and needing
that space on an immediate basis; and
WHEREAS, the Council of the City of Dublin, Ohio, by Ordinance No. 130-94
passed February 6, 1995, pursuant to Chapter 3735 of the Ohio Revised Code, designated the
Britton Parkway Community Reinvestment Area (the" Area ") as a Community Reinvestment Area
for new construction of commercial office structures consistent with the City's Economic
Development Strategy; and
WHEREAS, effective February &, 1995, the Director of Development of the
State of Ohio determined that the Area contains the characteristics set forth in Section 3735.66
of the Ohio Revised Code and certified the Area as a Community Reinvestment Area under
Chapter 3735 of the Ohio Revised Code; and
WHEREAS, consistent with the City's Economic Development Strategy and the
designation of the Area, the Owner is desirous of constructing within the boundaries of the Area
(i) a new approximately 130,000 square foot commercial office facility (the "Project--Phase I"),
and (ii) thereafter, an addition to Phase lor an expansion of the Project in the minimum amount
of approximately 60,000 square feet as described below (the "Project--Phase II" and, collectively
with the Project--Phase I, the "Project"), provided that the appropriate development incentives
are available to support the economic viability of the Project; and
WHEREAS, the City, having the appropriate authority for the Project, is desirous
of providing the Owner with incentives available under Chapter 3735 of the Ohio Revised Code
for the development of the Project in the Area; and
WHEREAS, the Owner has submitted the proposed agreement application attached
hereto as Exhibit A (the "Application") to the City; and
WHEREAS, the Owner has remitted to the City the required State of Ohio
application fee of $500.00, payable to the Ohio Department of Development with the application
to be forwarded with this Agreement; and
WHEREAS, the City Director of Development has investigated the application of
the Owner and has recommended to the City Council approval of the Project and this Agreement
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on the basis th~t tIle Owner is qualified by financial responsibility and business experience to
create and preserve employment opportunities in the Area and improve the economic climate of
the City, and the Project is consistent with the City's Economic Development Strategy; and
WHEREAS, the Project Site as proposed by the Owner is located in the Dublin
City School District (the "District") and the Board of Education of the District has been notified
in accordance with Section 5709.83 of the Ohio Revised Code and been given a copy of the
Application; and
WHEREAS, pursuant to Section 3735.671(A) of the Revised Code and in
conformance with the format required under Section 3735.671 (B) of the Revised Code, the City
and the Owner desire tQ set forth their agreement with respect to matters contained herein;
NOW, THEREFORE, in consideration of the mutual covenants herein contained
and the benefit to be derived by the parties from the execution hereof, the City and the Owner
agree as follows:
1. The Owner shall construct as Phase I of the Project a new one hundred
thirty thousand (130,000) square foot commercial office facility at 5700 Glendon Court, Dublin,
Ohio. The Project--Phase I shall be constructed on Franklin County Tax Parcel No. 27300-7011
(the "Project Site"). The Project--Phase I will involve a total investment by the Owner of
Twelve Million Dollars ($12,000,000), plus or minus 10%, for construction of that facility at
the Project Site. Work on the Project--Phase I will commence by February 28, 1995, and will
be completed by June 1, 1996.
The Owner shall also construct as Phase II of the Project an additional new
commercial office facility also to be located at 5700 Glendon Court, Dublin, Ohio, which shall
be either (i) an approximately sixty thousand (60,000) square foot addition to the Project--Phase I
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or (ii) a free standing building of a minimum of approximately 75,000 square feet. The
Project--Phase II shall also be constructed on the Project Site, and will involve a total investment
by the Owner of a minimum of approximately Five Millon Four Hundred Thousand Dollars
($5,400,000) plus or minus 10%, for construction of that facility, Work on the Project--Phase II
is scheduled to commence not later than April 1, 1999 and will be completed by December 31,
1999.
Based on the Owner's anticipated schedule for lease-out of Phases I and II and
related job creation at the Project Site, a total of approximately 450 jobs will be created at the
Project within 36 months after completion of the Project, of which approximately 225 will be
"new employees" (as that term is defined in Section 5709. 82(A) (1) (b) of the Ohio Revised Code).
Based on the City's Economic Development Strategy, the City and the Owner estimate that the
total annualized payroll of all employees of occupants of the Project will be approximately
Thirteen Million Five Hundred Thousand Dollars ($13,500,000), of which approximately Six
Million Seven Hundred Fifty Thousand Dollars ($6,750,000) will be derived from new
employees as defined above. The City and the Owner estimate this increase in the number of
employees will result in approximately One Hundred Thirty-Five Thousand Dollars ($135,000)
of additional annual payroll tax revenues in the City.
Based upon representations of prospective tenants for the Project -- Phase I, the
Owner estimates that the vaJue of machinery, equipment, furniture, fixtures, and inventory used
or located at another location in the State of Ohio prior to the date of this Agreement and to be
relocated from such other location to the Project, is as follows:
4
.
Machinery $
Equipment
Furniture
Fixtures ~S~AW (.EST)
/
Inventory -/J -
2. The Owner shall provide or cause each tenant or other occupant of the
Project to provide to the proper Tax Incentive Review Council any information reasonably
required by the Council to evaluate the property owner's compliance with this Agreement,
including returns filed pursuant to Section 5711.02 of the Ohio Revised Code if requested by the
Council. The Owner further . agrees to provide, or to cause each tenant or other occupant of the
Project to provide, to the Director of Finance of the City within thirty (30) days of the
commencement of such tenant's occupancy of all or a portion of the Project, a statement of such
tenant's annualized payroll in the City of Dublin as of the day immediately preceding the date
upon which such occupancy commenced. Such statement shall be certified as to accuracy by the
officer, partner or other principal of each tenant who is responsible for filing quarterly payroll
information with the City's municipal income tax department.
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3. The City hereby grants the Owner a tax exemption for real property
improvements made to the Project Site pursuant to Section 3735,67 of the Ohio Revised Code,
which exemption shall be in the following amount for the following period:
Term of Tax Exemption Tax Exemption Amount
10 years 100%
Each identified Project improvement will receive a ten year exemption period.
The exemption commences the first year for which the real property exempted would first be
taxable were that property not exempted from taxation and shall continue for the ten-year
exemption period (each calendar year for which an exemption is granted being an "Exemption
Year"). No exemption for the Project--Phase I shall commence after December 31, 1996, and
no exemption for the Project--Phase II shall commence after December 31, 1999. No exemption
for the Project shall extend beyond December 31, 2009.
The Owner must file the appropriate tax forms (DTE 23) with the Franklin County
Auditor to effect and maintain the exemptions covered in the Agreement.
4. The City has waived the Owner's payment of annual fees to the City
pursuant to Section 3735.671(D) of the Ohio Revised Code,
5. The Owner agrees that in each Exemption Year in which (A) the amount
of taxes levied and collected for that Exemption Year on the total employee payroll of all
employers occupying all or a portion of the Project does not equal at least (B) (i) 50% of the
total amount of ad valorem real property taxes which the District would have received but for
the provisions of this Agreement, MINUS (ii) the sum of
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(a) the amount of taxes charged and payable on any portion of the assessed
valuation of the Project (but not the Project Site) that will not be exempted
from taxation, plus
(b) 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
(c) the amount of any cash payment by the Owner or any tenant or occupant
of the Project or the dollar value, as mutually agreed to by the Owner or
such tenant or occupant and the District, of any property or services
provided by the Owner or any tenant or other occupant to the District,
whether by gift, loan, or otherwise,
the Owner shall pay to the District, on behalf of the City, the difference between (B) and (A),
provided, however, that notwithstanding anything in this Section 5 to the contrary, the Owner.
shall not be required to pay for any Exemption Year more than 33 % of the total ad valorem real
property tax which would have been payable with respect to the Project for that Exemption Year,
if the exemption provided by this Agreement were not in effect. Beginning with the calendar
year following the first Exemption Year, the City shall calculate the amount due, if any, for the
immediately preceding Exemption Year on or before the last day of April and shall provide to
the Owner a copy of such calculations. The calculation by the City of the amount due pursuant
hereto shall be conclusive unless there is a mathematical error of computation. The Owner shall
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pay such amount to the District on July 1st of the calendar year after the Exemption Year for
which the calculation is made.
6. The Owner shall pay such real and tang-ible personal property taxes as .are
not exempted under this Agreement and are charged against such property and shall file all tax
reports and returns as required by law. If the Owner fails to pay such taxes or fIle such returns
and reports, or if the Owner fails to pay any amount due pursuant to Section 5 hereof, all
incentives granted under this Agreement are rescinded beginning with the year for which such
taxes or payments are charged, such reports or returns are required to be filed and thereafter.
7. The City shall perform such acts as are reasonably necessary or appropriate
to effect, claim, reserve, and maintain exemptions from taxation granted under this Agreement
including, without limitation, joining in the execution of all documentation and providing any
necessary certificates required in connection with such exemptions.
8. If the City revokes the designation of the II Area II entitlements granted under
this Agreement shall continue for the number of years specified under this Agreement, unless the
Owner materially fails to fulfill its obligations under this Agreement and the City terminates or
modifies the exemptions from taxation granted under this Agreement.
9. If the Owner materially fails to fulfill its obligations under this Agreement,
or if the City determines that the certification as to delinquent taxes required by this Agreement
is fraudulent, the City may terminate or modify the exemptions from taxation granted under this
Agreement.
10. The Owner hereby certifies that at the time this Agreement is executed, the
Owner does not owe any delinquent real or tangible personal property taxes to any authority of
the State of Ohio, and does not owe delinquent taxes for which the Owner is liable under Chapter
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5733., 5735., 5739., 5741., 5743., 5747., or 5753. of the Ohio Revised Code, or, if such
delinquent taxes are owed, the Owner currently is paying the delinquent taxes pursuant to an
undertaking enforceable by the State of Ohio or an agent or instrumentally thereof, has filed a
petition in bankruptcy under 11 U.S.C.A. 101, et seq., or such a petition has been filed against
the Owner. For the purposes of the certification, delinquent taxes are taxes that remain unpaid
on the latest day prescribed for payment without penalty under the chapter of the Revised Code
governing payment of those taxes.
11. The Owner and the City acknowledge that this agreement must be approved
by formal action of the Council of the City as a condition for the Agreement to take effect. This
Agreement takes effect upon such approval.
12. The City has developed a policy to ensure that recipients of Community
Reinvestment Area tax benefits practice non-discriminating hiring in their operations. By
executing this Agreement, the Owner is committing to following the practices set forth in Chapter
161 of the Codified Ordinances of the City of Dublin,
13. Exemptions from taxation granted under this agreement shall be revoked
if it is determined that the Owner, any successor property owner, or any related member (as
those terms are defined in Section 3735.61 of the Ohio Revised Code) has violated the
prohibition against entering into this agreement under Section 3735.671(E) or Section 3735.66,
3735.67, or 5709.63 of the Ohio Revised Code prior to the time prescribed by that division or
any of those sections.
14. This Agreement is not transferrable or assignable without the express,
written approval of the City. The City agrees that it will give its approval to the transfer or
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assignment of this Agreement if the transferee or assignee assumes, in writing, all of the
obligations of the Owner hereunder.
IN WITNESS WHEREOF, the City of Dublin, Ohio, by the City Manager and
the Director of Finance, and pursuant to Ordinances No. 130-94 and 3-95, has caused this
instrument'to be executed this ,(J'~ day of hJM~1' 1995, and Duke Realty Limited
Partnership by bON~l,.{) ~ l-\Jw11:'lt j-ftt, its ~ \ CE PM S i &2,.) .,..., has caused this instrument to
be executed on this h day of f'l\~..q{, 1995.
CITY OF DUBLIN, OHIO
By: ~~~
And:~~~.)~~
Director of Finance
DUKE REALTY LIMITED
PARTNERSHIP
By: Duke Realty Investments, Inc.
Its: General Partner
By:
Approved as to form:
~ ~,~;~:.~
Director of Law
094/21583AAE.88C
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_ ___h
OHIO DEPARTMENT OF DEVELOPMENT
George V. Voinovich Donald E. Jakeway
Governor OHIO DEPARTMENT OF DEVELOPl\1ENT Director
Suggested Application for the
COMMUNITY REINVESTMENT AREA PROGRAM
PROPOSED AGREEMENT for Community Reinvestment Area Tax Incentives between the
. CITY OF DUBLIN, OHIO located in the County of FRANKLIN
and DUKE REALTY LIMITED PARTNERSHIP
1. a. Name of property owner, home or main office address, contact person, and telep~one
number (attach additional pages if multiple enterprise participants).
DUKE REALTY LIMITED PARTNERSHIP DONALD J. HUNTER, JR.
ente:.prise name - contact person
C/O DUKE REAL Y INVESTMENTS, INC.
4700 LAKEHURST COURT, SUITE 150 614/766-2121 .
DUBLIN, OHIO 43017 telephone number
address .
b. Project site:
5555 GLENDON COURT SAME AS ABOVE
contact person
DUBLIN, OHIO 43017
telephone number
address
2. a. Nature of commercial/industrial activity(manufacturing, warehousing, wholesale or
retail stores, or other) to be conducted at the site.
COMMERCIAL OFFICE
5129
b. List primary 4 digit Standard Industrial Code (SIC) #
Business may list other relevant SIC numbers.
c. If a consolidation, what are the components of the consolidation? (must itemize the
location, assets, and employment positions to be transferred)
N/A
77 S. High St., P,O, Box 1001, Columbus, Ohio 43266-0101 (614) 466-2480
PRINTED ON RECYCLED PAPER
'. .......
d. Form of business of enterprise (corporation, .p.annership, proprietorship, or other).
,
CORPORATION
3. Name of principal owner(s) or officers of the business.
MR. ROBERT D. WALTER, CHAIRMAN AND CEO
4, a. State the enterprise's current employment level at the proposed project site: .
NONE
b. Will the project involve the relocation of employment positions or assets from one
Ohio location to another?
Yes~ No
c. If yes, state the locations from which employment positions or assets will be relocated
and the location to where the employment positions or assets will be located:
FROM DUBLIN TO DUBLIN
.
ALSO, RELOCATIONS FROM NEW YORK STATE AND CALIFORNIA.
d. State the enterprise's current employment level in Ohio (itemized for full and part-
time and permanent and temporary employees):
CARDINAL HEALTH, INC. - 207 (FTE)
e. Sta~ the enterprise's current employment level for each facility to be affected by the
relocation of employment positions or assets:
OHIO - 207; NEW YORK; AND, CALIFORNIA - 171.
f. What is the projected impact of the relocation, detailing the number and type 'of
employees and/or assets to be relocated? .ALL 207 OHIO EMPLOYEES TO BE
RELOCATED. PART OF THE NEW YORK AND CALIFORNIA EMPLOYEES TO BE RELOCATED.
5. Project Description: PHASE I - 130,000 SQUARE FOOT COMMERCIAL
OFFICE FACILITY. PHASE II - ADDITIONAL COMMERCIAL OFFICE FACILITY WHICH
SHALL BE EITHER (1) AN APPROXIMATELY 60,000 SQUARE FOOT ADDITION TO
PHASE I OR (2) A FREE STANDING BUILDING OF A MINIMUM OF APPROXIMATELY
75,000 SQUARE FEET.
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"
~ 6' Project will begin PHASE I - FEB. 2~ 19 95 .,. and be completed
. .
PHASE II - APRIL 1, 1999
PHASE I - JUNE 1 , 1995 provided a tax exemption is provided.
PHASE II - DEC. 31, 1999
7. a. Estimate the number of new employees the property owner will cause to be created
at the facility that is the project site (job creation projection must be itemized by the
name of the employer, full and part-time and permanent and temporary):
CARDINAL HEhLTH, INC. - ESTIMATED THROUGH 1998.
OHIO RELOCATION - 207; OTHER STATE RELOCATION AND NEW EMPLOYEES - 400.
APPROXIMATELY
b. State the time frame of this proj~cted hiring: 3 yrs.
c. State proposed schedule for hiring (itemize by full and part-time and permanent and
temporary employees):
1994 (BASE) 207; 1995 THRU 1996; 3 TO 7; 1997 - 50; 1998 - 43.
8. a. Estimate the amount of annual payroll such new employees win add $ 18,400,000
(new annual payroll must be itemized by full and part-time and permanent and .
temporary new employees).
.
b. Indicate separately the amount of existing annual payroll relating to any job retention
claim resulting from the proj ect: $ 13 , 700 , 000 .
9. An estimate of the amqunt to be invested by the enterprise to establish, expand, renovate
or occupy a facility:
A. Acquisition of Buildings: $ NONE
B. Additions/New Construction: $ 17,400,000.00
C. Improvements to existing buildings: $ NONE
D. Machinery & Equipment: $ 5,500,000.00
E. Furniture & Fixtures: $ IN D
F. Inventory: $ NONE
Total New Project Investment: $ 22,900,000.00
10. a.Business requests the following tax exemption incentives: 100 % for 10
years covering real * as described above. Be specific as to the rate, and term.
b. Business's reasons for requesting tax incentives (be quantitatively specific as possible)
TO BETTER ASSURE ECONOMIC VIABILITY OF THE PROJECT THEREBY MAKING IT
MORE PROBABLE THAT THE NEW JOBS DETAILED ABOVE WILL BE ABLE TO REMAIN
IN THE CITY OF DUBLIN.
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*PROPERTY IMPROVEMENTS
.
,,,
Applicant agrees to supply additional information upon request. The applicant believes
that the information contained in and submitted with this application is complete and
correct.
DUKE REALTY LIMITED PARTNERSHIP
BY DUKE REALTY INVESTMENTS, INC., ITS FEBRUARY 2 ~ , 1995
Name of Property Owner L PARTNER Date
BY DONALD J. HUNTER, VICE PRESIDENT
Signature Typed Name and Title
* A copy of this proposal must be forwarded by the local governments to the affected Board of
Education along with notice of the meeting date on which the local government will review the
proposal. Notice must be given a minimum of fourteen (14) days prior to the scheduled meeting
to permit the Board of Education to appear and/or comment before the legislative authorities
considering the request.
** Attach to Final Community Reinvestment Area Agreement as Exhibit A
Please note that copies of this proposal must be included in the finalized Community
Reinvestment Area Agreement and be forwarded to the Ohio Department of Taxation and the
Ohio Department of Development within fifteen (15) days of final approval.
-4- venial 4 ~94