Ordinance 2016-14

TO ENTER INTO AN Economic Development
INCENTIVE Grant Agreement Between the
Mayfield Community Improvement Corporation,

WHEREAS, the promotion of economic development, including the attraction of businesses to the Village, has been and continues to be a significant goal of the Village; and

WHEREAS, to accomplish this goal, the Village and the Mayfield Community Improvement Corporation (“MCIC”) have created an Economic Development Incentive Program (“Program”) through which the Village awards economic development incentive grants to designated companies in the Village; and

WHEREAS, the MCIC was first incorporated in December 1983, and continues in good standing as an Ohio not-for-profit corporation, known as a community improvement corporation, under Title XVII, Chapters 1724 and 1702 of the Ohio Revised Code; and

WHEREAS, the MCIC acts as the designated agency and instrumentality of the Village for the purpose of promoting industrial, commercial, distribution and research development in the Village pursuant to Ohio Revised Code Section 1724.10; and

WHEREAS, the Company is a distributor of wireless LED lighting products, and is exploring relocation to 600 Beta Drive, and represents that it is unlikely to relocate to Mayfield Village without any financial assistance from the Village; and

WHEREAS, the Company further represents that with the provision of financial assistance under an Incentive Grant Agreement, it is more likely to relocate to the Village and will occupy between forty-five thousand (45,000) and fifty-thousand (50,000) square feet at 600 Beta Drive, resulting in the attraction of between fifteen (15) and twenty (20) employees generating approximately Thirty Thousand Dollars ($30,000.00) in annual income tax revenue for the Village; and

WHEREAS, the Village wishes to act under its full Home Rule powers as granted by Article XVIII, Section 3 of the Ohio Constitution, as well as its economic development powers granted under Ohio Constitution Article VIII, Section 13 and Article VIII, Section 2(p) and enter into an Incentive Grant Agreement with the Company to award the Company an economic development incentive grant based on the Company’s representations concerning job creation and annual income tax revenue generated by the Company; and

WHEREAS, the Village wishes to authorize an economic development incentive grant (“Incentive Grant”) in an amount equal to Thirty Percent (30%) of the Company’s income taxes withheld on wages earned at 600 Beta Drive in the Village and/or paid to the Village in excess of Thirty Thousand Dollars ($30,000.00) based upon the Company’s final net annual payroll during the five (5) calendar years beginning January 1, 2017 and concluding December 31, 2021 (“Term”); and

WHEREAS, the MCIC, in its role as the designated agency for the Village, will be the administrator of the terms of the Incentive Grant Agreement and as the administrator will conduct an annual review and assessment of the Company’s compliance with the terms of the Incentive Grant Agreement; and

WHEREAS, all income tax revenue considered under the Incentive Grant Agreement will be income taxes withheld and/or paid directly to the Village for wages earned at 600 Beta Drive in the Village and collected and reported by the Regional Income Tax Authority (“RITA”) on the Company’s final net annual payroll.


SECTION 1.  Council authorizes the Mayor and President of Council to enter into an Economic Development Incentive Grant Agreement with Wireless Environment, LLC and the Mayfield Community Improvement Corporation, substantially similar to the copy of the Agreement attached as Exhibit “A” and incorporated by reference, for the purpose of advancing, encouraging, and promoting the industrial, economic, commercial, and civic development in the Village.

SECTION 2.   Council finds and determines that all formal actions of this Council relating to the adoption of this Ordinance have been taken at open meetings of this Council; and that deliberations of this Council and of its committees, resulting in such formal action, took place in meetings open to the public, in compliance with all statutory requirements including the requirements of Section 121.22 of the Ohio Revised Code.

SECTION 3.   This Ordinance is hereby declared to be an emergency measure immediately necessary for the health, safety and welfare of the residents of Mayfield Village, Ohio and to allow Wireless Environment, LLC to move forward with its relocation forthwith.  It shall, therefore, take effect immediately upon the passage by the affirmative vote of not less than five (5) members elected to Council and approval by the Mayor or otherwise at the earliest time allowed by law.