Explanation
BACKGROUND: City Council passed Ordinance 1237-2015 on June 8, 2015, establishing a tax increment financing area (TIF Area) benefiting parcels near Old Dublin Road pursuant to Section 5709.40(B) of the Ohio Revised Code. This ordinance approves and authorizes a tax increment financing agreement between the City and Hallmark Dublin Road, LLC ("Developer").
FISCAL IMPACT: No City funding is required for this legislation.
Title
To approve and authorize the execution of a tax increment financing agreement between the City and Hallmark Dublin Road, LLC, to provide for the construction and financing of improvements within and around the Old Dublin Road tax increment financing area; and to declare an emergency.
Body
WHEREAS, Sections 5709.40(B), 5709.42 and 5709.43 of the Ohio Revised Code authorize this Council, by ordinance, to declare the improvement to certain parcels of real property located within the corporate boundaries of the City , to be a public purpose and exempt from taxation, require the owner of each parcel to make service payments in lieu of taxes, and specify public infrastructure improvements made, to be made or in the process of being made that directly benefit, or that once made will directly benefit, those parcels; and
WHEREAS, pursuant to Ordinance 1237-2015 passed on June 8, 2015 (the “TIF Ordinance”), this Council created a tax increment financing in the area of Old Dublin Road (the “TIF Area”) (Exhibit A Map); and
WHEREAS, Hallmark Dublin Road, LLC ("Developer") has commenced making or causing to be made private improvements within the TIF Area (collectively, the “Private Improvements”); and
WHEREAS, the City has determined that it is in the best interest of the City and its residents that certain public infrastructure improvements be made in support of those Private Improvements, which public infrastructure improvements were included in the description of Public Infrastructure Improvements in the TIF Ordinance and the Amending TIF Ordinances and are necessary and appropriate in connection with the development of the TIF Area and will directly benefit the TIF Area; and
WHEREAS, the City desires Developer to construct or cause to be constructed the Public Infrastructure Improvements; and
WHEREAS, the City intends to enter into a Tax Increment Financing Agreement with Developer (the “TIF Agreement”) to provide for, among other things the design and construction of the Public Infrastructure Improvements and disbursement of monies on deposit in the TIF Fund which constitute available TIF Funds as defined in the TIF Agreement, to pay Developer for the design and construction costs of construction of the Public Infrastructure Improvements; and
WHEREAS, an emergency exists in that this Ordinance is required to be immediately effective in order to facilitate the continuing development of the TIF Area, such immediate action being necessary for the preservation of the public health, peace, property and safety; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development, for and in the name of the City, is hereby authorized to execute the Tax Increment Financing Agreement (the TIF Agreement) between the City and Hallmark Dublin Road, LLC that is presently on file with the Director along with any changes or amendments thereto not inconsistent with this Ordinance and not substantially adverse to the City and which shall be approved by the Director and the City Attorney.
SECTION 2. That the service payments made in lieu of real property taxes and deposited in the Old Dublin Road Municipal Public Improvement Tax Increment Equivalent Fund, as established by Ordinance 1237-2015 (Fund 467), which constitute available TIF Funds as defined in the TIF Agreement, shall be deemed appropriated for the purposes set forth in the Agreement and the City Auditor is hereby authorized to make payments to the Developer upon receipt of invoices submitted in accordance with the Agreement and approved by the Director.
SECTION 3. That for the reasons stated in the Preamble hereto, which is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after the passage if the Mayor neither approves nor vetoes the same.