Explanation
BACKGROUND: Community Reinvestment Areas have been designated by Columbus City Council under the general guidelines of Resolution No. 1698-78. Such areas allow for the granting of real property tax incentives to encourage industrial, commercial and residential growth.
This resolution will designate the Easton Square Place Community Reinvestment Area which will provide the City the ability to offer real property tax exemptions for parcels within the area (depicted in Exhibit A).
Adoption of this resolution will allow the City of Columbus to offer tax incentives to business prospects interested in development in the area. The exemptions will be available to attract the new construction of commercial or industrial facilities and will be negotiated on a case by-case basis in advance of construction. The exemptions may be up to one hundred percent (100%) for ten (10) years. City Council approval of specific tax abatement for this project will be sought in a separate legislation once the CRA district has been certified by the Ohio Department of Development. The Columbus City School District has been advised of the proposed creation of this Community Reinvestment Area.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to designate the Easton Square Place Community Reinvestment Area; to authorize real property tax exemptions as established by Sections 3735.65 to 3735.70 of the Ohio Revised Code; and to declare an emergency.
Body
WHEREAS, the Columbus City Council desires to pursue all reasonable and legitimate incentive measures to assist in encouraging development in specific areas of Columbus that have not enjoyed reinvestment in remodeling or new construction; and
WHEREAS, Resolution No. 1698-78 approved August 3, 1978, authorized the Department of Development to implement a Community Reinvestment Program, pursuant to Section 3735.65 to 3735.70 of the Ohio Revised Code, and approved certain administrative procedures for the program; and
WHEREAS, the maintenance of existing and construction of new structures in the CRA constitutes a public purpose for which real property exemptions may be granted; and
WHEREAS, a survey of housing (see Exhibit B) as required by the ORC Section 3735.66 has been prepared for the area to be included in the proposed Community Reinvestment Area (CRA); and
WHEREAS, a business has expressed interest in developing a commercial/industrial project in the vicinity of the Easton area, contingent on receiving the real property tax exemption benefits of a Community Reinvestment Area; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to designate the Easton Square Place Community Reinvestment Area in order to preserve the public health, peace, property, safety and welfare; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the area designated as the Easton Square Place Community Reinvestment Area constitutes an area in which housing facilities or structures of historical significance area located, and in which new construction or repair of existing facilities has been discouraged.
Section 2. That the boundaries of the Easton Square Place Community Reinvestment Area are as described in "Exhibit A" attached hereto and incorporated herein by reference.
Section 3. That within the Easton Square Place Community Reinvestment Area tax exemption for improvements to real property as described in Section 3735.67, for each non-retail business or industrial structure that is constructed and for which a certificate of occupancy is issued, a 100% tax exemption for ten years will be granted. The particulars of the above exemption will be set forth in writing in a Community Reinvestment Area Agreement as outlined in Ohio Revised Code Section 3735.671. For every dwelling that contains not more than two family units and for which the cost of remodeling is at least $2,500, a 100% tax exemption for ten years will be granted.
Section 4. That the Housing Officer is hereby authorized and directed, on behalf of the City to petition the State Director of
Development, in accordance with O.R.C. Section 3735.66 for certification of the Easton Square Place Community
Reinvestment Area.
Section 5. That reference is hereby made to Resolution No. 1698-78 adopted by City Council on August 3, 1978, as to designation of the Housing Officer and establishment of a Community Reinvestment Area Housing Council for the Easton Square Place Community Reinvestment Area. The Community Reinvestment Area Housing Council shall make an annual inspection of the properties within the districts for which an exemption has been granted under ORC Section 3735.67 and shall also hear appeals under ORC 3735.70.
Section 6. That a Tax Incentive Review Council shall be designated pursuant to ORC Section 5709.85 and shall annually review the compliance of all agreements involving the granting of exemptions for commercial or industrial real property improvements under ORC Section 3735.671 and make written recommendations to the Columbus City Council as to continuing, modifying or terminating said agreement based upon the performance of the agreement.
Section 7. That a copy of this Resolution will be forwarded to the Franklin County Auditor by the Columbus City Clerk for information and reference and will be published in a newspaper of general circulation once a week for two consecutive weeks following its passage and approval.
Section 8. That all commercial and industrial projects are required to comply with the state application fee requirements of Ohio Revised Code Section 3735.672 © and the local annual monitoring fee of one percent of the amount of taxes exempted under the agreement-a minimum of $500 up to a maximum of $2500 annually.
Section 9. That Columbus City Council reserves the right to reevaluate the designation of the Easton Square Place Community Reinvestment Area after December 31, 2027, at which time Council may direct the Housing Officer not to accept any new applications for exemptions as described in Section 3735.67 of the Ohio Revised Code.
Section 10. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this resolution is hereby declared to be an emergency measure and shall take effect and be in force from and after its adoption and approval by the Mayor, or ten days after adoption if the Mayor neither approves nor vetoes the same.