Explanation
Background: Council, by its Ordinance No. 2117-2005 passed on December 12, 2005, approved the creation of ten tax increment financing districts to provide funding for public infrastructure improvements in the northeast area of the City. That legislation provides that the owners of relevant real property are required to make payments in lieu of real property taxes which are to be distributed to relevant school districts and to designated tax increment equivalent funds. Payments in lieu of taxes that are deposited into the tax increment equivalent funds are to be used at the direction of the City for the purpose of funding the public infrastructure improvements identified in the legislation.
The Kroger Co. (the "Developer") recently received City Council approval for the rezoning of a portion of its property located at 5167 New Albany Road to permit the development of a gasoline sales use in association with the operation of an existing grocery store. In conjunction with this rezoning, there has been recognition that the intersection nearest to the proposed development, at New Albany Road and Fodor Road, requires improvements that would serve a benefit to the northeastern area of the City.
The Developer has agreed to construct a roundabout at this intersection (the "New Albany Road Roundabout") and to contribute the sum of $130,000 toward the cost of this improvement. It also has agreed to front the costs of the roundabout improvement that are in excess of this contribution and to be reimbursed for these excess costs over time as funds are received in the tax increment equivalent fund for the "New Albany West-Central College Incentive District", which is one of the tax increment financing districts that was created pursuant to Ordinance No. 2117-2005.
The attached ordinance authorizes the Director of Development to enter into a Reimbursement Agreement with the Developer that provides the Developer's commitment to construct the New Albany Road Roundabout and to pay the first $130,000 of the cost of this improvement. The agreement also provides for the reimbursement of costs paid by the Developer that are incurred in constructing the roundabout in excess of its $130,000 contribution. Council, by its Ordinance No. 0715-2009 passed on June 8, 2009, approved the supplementing of Exhibit C - Public Infrastructure Improvements to Ordinance No. 2117-2005 to include the New Albany Road Roundabout and other public infrastructure improvements that the City deems appropriate.
Emergency action is requested to avoid a harmful delay in the development process.
Fiscal Impact: There will be no impact on the City General Fund. The City previously has foregone the real property tax revenue that it would have received from development within certain portions of the northeast area of the municipality. Instead, that revenue has been diverted to the New Albany West-Central College Tax Increment Equivalent Fund held by the City. That revenue has been and will continue to be used to pay for future public improvements benefiting the northeast area of the City.
Title
To authorize the Director of Development to enter into a Reimbursement Agreement with The Kroger Co. to provide for the reimbursement of a portion of the costs of constructing a roundabout at the intersection of New Albany Road and Fodor Road to benefit and serve the northeast area of the City; and to declare an emergency.
Body
WHEREAS, pursuant to Ohio Revised Code Sections 5709.40, 5709.42 and 5709.43, this Council by its Ordinance No. 2117-2005 passed on December 12, 2005 (the "TIF Ordinance"), approved the creation of ten tax increment financing districts to provide funding for public infrastructure improvements in the northeast area of the City by exempting from taxation the Improvements (as that term is defined in Ohio Revised Code Section 5709.40) to certain parcels of real property in that area (the " Property"), requiring the owners of the Property to make service payments in lieu of taxes and designating the types of public improvements to be made to benefit the Property; and
WHEREAS, more specifically, Council, by and through the TIF Ordinance, created the New Albany West-Central College Incentive District, requiring the owners of property within that district to make service payments in lieu of taxes, and determining the types of public improvements that can be funded from service payments in lieu of taxes required pursuant to the TIF Ordinance and deposited into the New Albany West-Central College Tax Equivalent Fund (the "TIF Fund"); and
WHEREAS, the existing intersection of New Albany Road and Fodor Road is a public infrastructure condition that requires remediation through the construction of a roundabout that will benefit the northeast quadrant of the City as well as property upon which the Developer conducts its business located at 5167 New Albany Road; and
WHEREAS, the Developer will contribute the sum of $130,000 (the "Developer Contribution") toward the costs of designing, engineering, and installing the New Albany Road Roundabout and will front all other costs in this regard that are in excess of the Developer Contribution, provided that it will be reimbursed for all such costs in excess of the Developer Contribution from payments in lieu of taxes that are collected from property owners in the New Albany West-Central College Incentive District and are deposited into the New Albany West-Central College Tax Equivalent Fund; and
WHEREAS, this Council by its Ordinance No. 0715-2009 passed June 8, 2009, has approved supplemented Exhibit C - Public Infrastructure Improvements to Ordinance No. 2117-2005 in order to provide that payments in lieu of taxes that are generated from the ten Incentive Districts established by Ordinance No. 2117-2005 may be used for various additional public infrastructure improvements, including designing, engineering, permitting, installing, and constructing the New Albany Road Roundabout; and
WHEREAS, this Council desires to authorize the City to enter into the proposed Reimbursement Agreement with the Developer to provide for the financing framework and design of the New Albany Road Roundabout; and
WHEREAS, it is understood that an Infrastructure Agreement must be negotiated by the Developer and the Columbus Public Service Department and approved by this Council before construction may begin on the New Albany Road Roundabout; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into said reimbursement agreement with The Kroger Co. to avoid a harmful delay in the development process, all for the preservation of the public health, peace, property, safety and welfare; and
NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Development, for and in the name of the City, is hereby authorized to execute the Reimbursement Agreement with The Kroger Co. in substantially the form presently on file with the Clerk, 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 Director of Development or other appropriate officers of the City are authorized to execute such other agreements and instruments and to take all actions as may be necessary to implement this Ordinance and the transactions contemplated by the Reimbursement Agreement.
Section 3. This Council hereby waives the requirements of Chapter 329 of the City Codes with respect to any agreement entered into pursuant to this Ordinance.
Section 4. The service payments in lieu of taxes and property tax rollback payments deposited in the New Albany West-Central College Tax Equivalent Fund shall be deemed appropriated for the purposes set forth in the Reimbursement Agreement and authorized to be expended therefrom in accordance with the Reimbursement Agreement, and subject to vouchers approved by the Director of Development the City Auditor is hereby authorized to make payments to the Developer or its designee from the New Albany West-Central College Tax Equivalent Fund in accordance with the Reimbursement Agreement.
Section 5. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is 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.