Explanation
Background: Pursuant to Ordinance 2932-2019 and Ordinance 2934-2019, respectively, the Director of the Department of Development entered into separate agreements dated March 11, 2019 with Pulte Homes of Ohio, LLC (the “Harlem Road Plan”) and November 22, 2019 with Cimenello Incorporated (the “Walnut Street Plan”). Pursuant to the Harlem Road Plan and the Walnut Street Plan, the Department of Development proposed establishing a tax increment financing incentive district under Ohio Revised Code (“ORC”) Section 5709.40(C) in the NE area of the City of Columbus (the “Harlem-Walnut Incentive District”). Pursuant to ORC Section 5709.4(E), not later than forty-five business days prior to City Council adopting the ordinance to establish the Harlem-Walnut Incentive District, the City delivered notice to the Franklin County, Ohio Board of County Commissioners (the “Commissioners”) of the City’s intent to exempt improvements with respect to the parcels within the Harlem-Walnut Incentive District for more than ten years and greater than seventy-five percent. Within thirty days after receipt of the City’s notice, pursuant to the Commissioners’ Resolution No. 0833-21, the Commissioners formally objected to the exemption for the number of years in excess of ten (10) until such time as either the Commissioners negotiate a mutually acceptable compensation agreement with the City, or the City proceeds to create the Harlem-Walnut Incentive District providing for compensation to the Commissioners at the default rate as set forth in ORC Section 5709.40(E)(2). The City has determined to enter into a mutually acceptable compensation agreement with the Commissioners pursuant to ORC Section 5709.40(E) (the “Compensation Agreement”), wherein the City has agreed to modify its plan to enact a fifty percent (50%) exemption rather than a one-hundred percent (100%) exemption as originally contemplated. This Ordinance approves and authorizes entering into the Compensation Agreement b...
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