Explanation
BACKGROUND: The goal of a Community Reinvestment Area is neighborhood revitalization and stabilization.
This Ordinance will create the Jeffrey Square Community Reinvestment Area (see Exhibit B) and provide for real property tax exemptions for residentially-used parcels within the area.
The Ordinance will provide an exemption from real property tax on the increased valuation of a previously commercial office building and previously commercial research and development building, both of which will be converted to dwelling units, and on single and multi-family housing units within the established boundaries.
NOTE: The creation of the Jeffrey Square Community Reinvestment Area is predicated upon City Council rezoning the property from manufacturing to residential or granting variances permitting residential use. Tax exemption can not occur until proof is provided that the change in zoning or grant of variances has occurred.
FISCAL IMPACT: No fiscal impact. No funding is required for this legislation.
Title
To create the Jeffrey Square Community Reinvestment Area and to authorize real property tax exemptions as established in Section 3735.65 to 3735.70 of the Ohio Revised Code.
Body
WHEREAS, the council of the City of Columbus (hereinafter "Council") desires to pursue reasonable and legitimate incentive measures to assist and encourage development in specific areas of the City of Columbus that have not enjoyed reinvestment from remodeling or new construction; and
WHEREAS, Resolution No. 1698-78, approved August 3, 1978, as amended by Ordinance No. 1345-02, approved July 29, 2003, authorized the Department of Development to carry out a Community Reinvestment Program, pursuant to Sections 3735.65 to 3735.70 of the Ohio Revised Code, and approved certain administrative procedures for the program; and
WHEREAS, a survey of housing (see Exhibit A) as required by Ohio Revised Code (ORC) Section 3735.66 has been prepared and included in this proposed Community Reinvestment Area; and
WHEREAS, the remodeling of existing buildings for residential use and construction of new residential structures in this Community Reinvestment Area would serve to encourage economic stability, maintain real property values, and generate new employment opportunities; and
WHEREAS, the remodeling of existing buildings for residential use and the construction of new residential structures in this Community Reinvestment Area constitutes a public purpose for which real property exemptions may be granted; and
WHEREAS, This proposal is a public/private partnership intended to promote and expand conforming uses in the designated area; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. The area depicted on Exhibit B constitutes an area in which housing facilities or structures of historical significance are located, and in which new construction or repair of existing facilities has been discouraged.
Section 2. Pursuant to ORC Section 3735.66, The Jeffrey Square Community Reinvestment Area is hereby established in the following described area:
North: Fifth Avenue Second Avenue
South: First Avenue
East: Rail Road east of Fourth Street and west of Cleveland
Avenue Sixth Street
West: Fourth Street
The Community Reinvestment Area is approximately depicted as the area on the map attached to this Ordinance, marked Exhibit B; by parcel number, marked Exhibit B (1); and by this reference incorporated herein.
Only residential properties consistent with the applicable zoning regulations and variances thereto within the designated Community Reinvestment Area will be eligible for exemptions under this Program.
Section 3. All properties identified in Exhibit B as being within the designated Jeffrey Place Square Community Reinvestment Area, are eligible for this abatement if they meet the criteria stated in Sections 3 and 4 of this Ordinance: vacant residentially-zoned parcels; owner occupied residential properties; commercial properties being converted to housing units; or new or existing residential rental properties. Pursuant to ORC Section 3735.66, it is hereby stipulated that all of the foregoing uses are classified as residential uses for purposes of ORC Sections 3735.65 to 3735.70 and for purposes of the exemptions authorized thereunder.
Section 4. An A tax exemption on the increase in the assessed valuation, resulting from improvements as described herein, shall be granted upon proper application by the property owner and certification thereof by the designated Housing Officer for the following percentage respective percentages and period:
· One hundred percent (100%) of the increase in value, as determined by the County Auditor for the tax period prior to the improvement; , for each improvement creating Redevelopment Housing; and seventy-five percent (75%) of the increase in value, as determined by the County Auditor for the tax period prior to the improvement, for each other improvement meeting the requirements of Section 3 of this Ordinance.
· For a period of ten (10) consecutive years, beginning the year the property improvements first become taxable. "Redevelopment Housing" as used herein refers to housing created by and from the remodeling of existing commercial or industrial property.
Section 5. To administer and implement the provisions of this Ordinance, the Department of Development Housing Administrator, is designated as the Housing Officer as described in Sections 3735.65 through 3735.70.
Section 6. Subsequent to the effective date of this legislation, owners of residential investment delineated within this legislation, and completed after the date of this Ordinance, and before December 31, 2013, will be eligible to apply for this property tax abatement. Participation in this program shall be by formal Application, submitted to the Development Department, Housing Division.
A pre-application will be required to insure the compatibility with neighborhood plans and to insure the maintenance of existing streetscape lines, style, scale setbacks and landscaping features compatible with neighborhood
Section 7. Eligibility for abatement under this Ordinance shall terminate on December 31, 2013 and the Housing Officer is hereby directed not to accept any applications after that date.
Section 8 Each community reinvestment area real property tax exemption established pursuant to this Ordinance shall take precedence for the term of that community reinvestment area exemption over both the tax increment financing real property tax exemption and obligations to make service payments established pursuant to Ordinance No. 1608-02.
Section 9. That a Community Reinvestment Area Housing Council shall be created, consisting of two members appointed by the Mayor of the City of Columbus, two members appointed by the Council of the City of Columbus and one member appointed by the Planning Commission of Columbus. The majority of those members shall then appoint two additional members who shall be residents within the Jeffrey Square Community Reinvestment Area. Terms of the members of the Council shall be for three years. An un-expired term resulting from a vacancy in the Council shall be filled in the same manner as the initial appointment was made for the remainder of the term of the vacated seat.
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Section 10. The Community Reinvestment Area Housing Council shall make an annual inspection of the properties within the district for which an exemption has been granted under Section 3735.66 of the ORC. The council shall also hear appeals under 3735.70, of the ORC.
Section 11. The Mayor of the City of Columbus is hereby authorized to submit such documentation to the Ohio Director of Development as is necessary to confirm the findings herein.
Section 12. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.