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86-01 OrdinanceRECORD OF ORDINANCES Da on Legal Blank Co. Form No 86-01 Ordinance No ................................................................... Passed ................................................................ , .rte, AN ORDINANCE APPROVING A TAX CREDIT AND ECONOMIC DEVELOPMENT AGREEMENT WITH MEDEX, INC. AND AUTHORIZING, CONFIRMING AND RATIFYING THE EXECUTION OF THE AGREEMENT. WHEREAS, Medex, Inc. (the "Company") is an employer located in the City of Dublin, Ohio (the "City") at 6250 Shier Rings Road (the "Property"), and based on inducements and incentives offered by the City in an Economic Development Agreement (the "Agreement"), the Company is embarking upon a expansion of operations at their existing facility; and WHEREAS, the City, by provision of the incentives provided in the Agreement, desired and intended to induce the Company to pursue expansion of operations for the purpose of creating jobs and employment opportunities and to improve the economic welfare of the people of the State of Ohio and the City as authorized in Article VIII, Section 13 of the Ohio Constitution; and WHEREAS, pursuant to Section 122.17 of the Ohio Revised Code (the "ORC"), the State of Ohio (the "State") established the Ohio Tax Credit Authority (the "Authority") authorized to execute agreements with taxpayers of the state of Ohio for the purpose of granting these taxpayers job creation tax credits against the taxpayers' State corporate franchise or State income tax, which tax credits are provided to create new jobs in the State; and WHEREAS, pursuant to Section 122.17 ORC, on June 25, 2001, the Authority granted the Company's request for a Jobs Creation Tax Credit; and WHEREAS, pursuant to Section 718.08 ORC, a municipal corporation is authorized to grant local income tax credits to taxpayers which have received a Jobs Creation Tax Credit from the State; and WHEREAS, the granting of the tax credits by the City for the proposed expansion by the Company will create jobs and increase opportunities for employment and strengthen the economy of the City; and WHEREAS, receiving these tax credits from the State and the City is a critical factor in the Company's decision to go forward with the project; and NOW, THEREFORE, BE IT ORD~IINED by the City of Dublin, Franklin, Union and Delaware Counties, Ohio, ~'" _ of the elected members concurring: Section 1. The City hereby finds and determines that it is necessary and appropriate and in the best interests of the City to provide certain assistance to the Company for the purpose of creating jobs and employment opportunities and to improve the economic welfare of the people of the State of Ohio and the City as authorized in Article VIII, Section 13 of the Ohio Constitution. Page 1 of 2 RECORD OF ORDINANCES ~. 86-01 Ordinance No ................................................................... Passed .................................................................., ....................... Section 2. To provide the assistance and thereby induce the Company to expand their operations located at the Property, the City Manager and the Director of Finance, for and in the name and on behalf of the City, shall execute, acknowledge and deliver the Agreement by and between the City and the Company in substantially the form thereof on file with the Clerk of Council. That Agreement is approved with changes therein not inconsistent with this ordinance and not substantially adverse to the City and which are permitted by law, and shall be approved by the City Manager and the Director of Finance; provided, that the approval of those changes by such officers, and their character as not being substantially adverse to the City, shall be evidenced conclusively by their execution of those instruments. Section 3. The City Manager and the Director of Finance shall execute, deliver and, if applicable, file, for and in the name and on behalf of the City, any other materials, documents or certifications which are necessary or appropriate to consummate the transactions contemplated in this ordinance and the Agreement. Section 4. 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. Section 5. This ordinance shall take effect in accordance with Section 4.04 of the City Charter. Passed: ~~~~ ~-- ~ , 2001 Effective: ~ ~- - ~ 1 ~ , 2001 Presiding Officer thereby cea'tify that conies of this OrdinancefResolution were posterf sa tfio City of Dublin in accordance wa: Section 731.25 of the ©l~io Revised Code. ,.,,. ~~ CI of Council, Dublin, Ohio Page 2 of 2 Attest: ~~~+-~--~-.~- v~--tt=z%.~~ Clerk of Council CITY OF D[JBLIN Division of Economic Development 5800 Shier-Rings Road • Dublin, Ohio 43016-1236 Phone: 614-410-4600 • Fax: 614-761-6506 To: Dublin City Council From: Timothy C. Hansley, City Manager Date: August 8, 2001 Re: Ordinance No. 86-01 Memo Initiated by: Michael Stevens, Director of Economic Development~j~.~~ ~-L At the July 23rd City Council meeting a question was raised about the cost-benefit of the Medex Economic Development Agreement. The Medex expansion will result in 181 new jobs over the next three years. The average hourly wage of the new jobs will be $14.45. The Corporate Municipal Income Tax paid by Medex from 1996-2000 has been insignificant. If there are any concerns or questions please contact Mike Stevens, 410-4619. P:\ECON DEVUNCENTIVES\MEDEX\COUNCIL MEMO -MEDEX ORDINANCE, 2ND READING.DOC _~ - _..._ Division of Economic Development 5800 Shier-Rings Road • Dublin, Ohio 43016-1236 CITY OF DUBLIN Phone: 614-410-4600 • Fax: 614-761-6506 M e m o To: Dublin City Council From: Timothy C. Hansley, City Manager, ~~~ C~'t~~~~~...--~' i Date: July 17, 2001 Re: Ordinance No. 86-01 Initiated by: Michael Stevens, Director of Economic Development Ordinance No. 86-01 is the authorization to enter into an Economic Development Agreement with Medex, Inc. The Economic Development Agreement is to provide a municipal corporate income tax credit that will support the State of Ohio's Job Creation Tax Credit that was awarded to Medex on June 25, 2001 by the Ohio Tax Credit Authority. The municipal corporate income tax is for five years at a maximum of 50 percent. Medex is proposing to expand in Dublin by 181 new employees over the next three years. The average hourly wage of the new jobs will be $14.45. As part of the expansion, Medex plans a capital investment of $6,000,000. In 1998, Medex relocated its worldwide headquarters to its facility at 6250 Shier Rings Road. As a manufacturer and distributor of a broad range of critical care medical products and infusion systems, Medex products are used in the diagnosis and treatment of patients in hospitals and alternate site health care facilities. If there are any concerns or questions please contact Mike Stevens, 410-4619. C:\WINDOWS\TEMP\COUNCIL MEMO -MEDEX ORDINANCE.DOC ECONOMIC DEVELOPMENT AGREEMENT AGREEMENT BETWEEN THE CITY OF DUBLIN AND MEDEX, INC. August, 2001 ~,,, d. r r ECONOMIC DEVELOPMENT AGREEMENT This Agreement is entered into on ~~~t ,~-~-10.~~- ~7 , 2001 between the City of Dublin (the "City") and Medex, Inc. (the "Company") for the purpose of assisting in the Company's future expansion of its worldwide corporate headquarters located at 6250 Shier Rings Road, Dublin, Ohio. ARTICLE I. BACKGROUND The Company manufactures and distributes a broad range of critical care medical products and infusion systems. The Company's products are used in the diagnosis and treatment of patients in hospitals and alternate site health care facilities. The Company has approximately 875 worldwide employees and currently has facilities in Dublin, Hilliard, Atlanta, Germany, England, Scotland and France. The Company's Dublin presence as of May 3 ] , 2001 consists of 460 employees. The Company relocated its headquarters from Hilliard to Dublin in 1998 that resulted in significant jobs and property being transferred to Dublin along with an expansion of their Dublin facility. The Company's current plans involve completing the relocation of the Hilliard facility to Dublin which has already resulted in eighty-four (84) new full-time positions being relocated to Dublin. The current expansion and relocation plans are expected to result in an additional 181 new jobs in Dublin in the thirty-six month period beginning June 1, 2001 and ending May 31, 2004. ~~. r The City desires to enumerate specific cooperative efforts which will be undertaken to assist the Company's future expansion. This effort is being made in recognition that expansion at the Dublin facility and the creation of these new jobs will provide economic benefits to the City and will further add to the quality of this community. ARTICLE II. AGREEMENT 1. Municipal Corporate Income Tax Credit. City agrees to assist Company in its application for Job Creation Tax Credit from the State. If the Company obtains a Job Creation Tax Credit from the State for the Dublin office expansion, the City will commit to granting a 50% credit of new City income tax revenues generated by new jobs resulting from the expansion, towards up to 50% of the Company's municipal corporate income tax obligation, for a five (5) year period, commencing January 1, 2002 through December 31, 2006 and based on new jobs the Company creates in Dublin after June 1, 2001. The tax credit shall under no circumstances exceed 50°Io of the Company's corporate Municipal income tax liability. 2. Coordination. To allow for the expansion of this facility in a timely and cost-effective manner, the City will assign its Director of Economic Development to work with the Company to assist in obtaining approval for the Jobs Creation Tax Credit through the Ohio Tax Credit Authority. ARTICLE III. INTENTION OF COMPANY It is the Company's intent to carry out expansion of operations as contemplated by and set forth herein this Agreement. ~. ~, ARTICLE IV. EXPEDITIOUS ACTION The City and the Company recognize that the creation of additional jobs is a matter of highest priority, and both parties will use their reasonable best efforts to proceed as expeditiously as possible in carrying out their responsibilities hereunder. ARTICLE V. AUTHORIZATION This Agreement shall become effective when fully executed by both parties. The City Manager will sign on behalf of the City following adoption of an authorizing ordinance by Dublin City Council. CITY OF DUBLIN By: v ~ City Manager By: ~ cr..~ ~-' Director of Finance MEDEX, INC. By: Charles J. J General Counsel and Director of Tax ,{