City Council unanimously approved Ordinance 91-14 by Emergency action at the September 22 Council meeting.
The City of Dublin Economic Development staff presented Dublin City Council an economic development and real estate purchase agreement for the attraction of a large data center project at the September 8, 2014, Council meeting.
Director of Development Dana McDaniel said staff has been in discussions with Columbus 2020, which is representing a company from outside the Columbus Region, regarding a multi-state competition for a large data center attraction project interested in a parcel of City-owned land within the West Innovation District.
“Staff is proposing an Economic Development and Real Estate Purchase Agreement for Council’s consideration as a means to induce Vadata Inc. to invest in, establish and potentially expand operations within the City providing significant value to the City’s emerging Information Technology cluster, and serving as an additional anchor to the City’s West Innovation District,” said McDaniel. “We have experienced success in this area with Ohio Health’s Dublin Methodist Hospital and related medical cluster; Ohio University’s Heritage College of Osteopathic Medicine; expansion of the Nestle Quality Assurance Center laboratory; and construction of the new Amlin Substation.”
The proposed Economic Development and Real Estate Purchase Agreement includes the transfer of City-owned land for the purpose of constructing data center facilities. The total value of the land incentive is approximately $6.8 million. Additionally the City proposes a 10% Performance Incentive on employee withholdings paid, with a maximum value of $500,000 over 10 years. The City proposes to extend public water and sanitary sewer to the site via a new entry road. This infrastructure will also serve additional future development sites.
McDaniel said this project will serve as another anchor tenant in the City’s West Innovation District.
“It has the potential to attract and create an Information Technology supply chain, continuing to solidify Dublin’s position as a leader in this business sector. The project will bring significant investment in facilities, equipment, and critical infrastructure in the form of fiber optics and broadband expansion. It will also provide well paid career opportunities for the growing technology workforce. Finally, per the zoning already in place, this site and the project match the visions of both the Community Plan and West Innovation District Plan. Staff considers this project to be a highest and best use for land under consideration,” stated McDaniel.
McDaniel said a Tax Increment Financing (TIF) Ordinance to help facilitate the City’s construction of public improvements to the surrounding area will be brought before Council at a later date.
The State of Ohio Tax Credit Authority already approved state-level incentives at its August 25th meeting tied to this company and its potential location in the State of Ohio. Incentives proposed from Jobs Ohio include road/infrastructure money to the local municipality and a data center sales tax credit. Dublin would use the road/infrastructure money to defer a portion of the cost to extend to the site the public infrastructure improvements previously mentioned.
The company will create full time equivalent employees, contractors and construction workers at the site, in addition to investing in the construction of new facilities, equipment and fiber optics. The facilities associated with this project will be built out over time.
McDaniel said as a risk-mitigating tactic, the City will require certain site preparations within the first year, a re-conveyance option of the land if construction does not go as planned AND/OR a payback formula for the land should the company not finish constructing a certain amount of square footage of facilities within a prescribed time frame.
Staff recommended Council pass Ordinance 91-14 by Emergency at the second reading/public hearing on September 22, and requested waiving the 30-day waiting period.
For more information go to: https://dublinohiousa.gov/dev/dev/wp-content/uploads/2014/09/Ord_91-14.pdf
For more information, contact Sue Burness email@example.com 614.226.5382 Twitter/@sueburness @dublinohio
About the City of Dublin, Ohio USA
Dublin, Ohio, the city that’s “greener,” offers residents and corporate citizens responsive government services, attractive housing, superior public education, direct regional highway access, 120 miles of underground optical fiber network, abundant park space and a dynamic community life. Located just minutes from Ohio’s capital city of Columbus, Dublin is a desirable place for business, raising a family or enjoying professional sporting events and renowned attractions. More information about the City of Dublin at www.DublinOhioUSA.gov