Explanation
Background: The purposes of this ordinance are to amend Ordinance No. 1724-2005, in which the City declared improvement to certain parcels of real property to be a public purpose and exempt from taxation pursuant to R.C. Section 5709.41, and to authorize the Director of the Department of Development to enter into a First Amendment to TIF Agreement.
In Ordinance No. 1724-2005, City Council declared improvement to the parcels comprising the Grange Mutual Casualty Company ("Grange") campus to be a public purpose and exempt from taxation. This TIF was structured as a non-school TIF (payments in lieu of taxes are required to be made to the school district). The City and Grange entered into a Tax Increment Financing Agreement (the "TIF Agreement") to provide for service payments in lieu of taxes and the use of the service payments in lieu of taxes. Subsequent to the passage of Ordinance No. 1724-2005 and the execution of the TIF Agreement, Grange determined that a portion of its campus would remain undeveloped, and it would instead construct a parking garage on other parcels of real property north of Sycamore Street. As a result, it is necessary to amend Ordinance No. 1724-2005 to delete certain parcels from the scope of the TIF and to authorize the Director of the Department of Development to enter into a First Amended TIF Agreement.
A separate ordinance is being presented to Council to provide for a new R.C. Section 5709.41 non-school TIF with respect to the parcels north of Sycamore Street owned by Grange.
Fiscal Impact: No funding is required for this legislation.
Title
An ordinance amending ordinance 1724-2005 that declared the improvement of certain real property located in the City of Columbus, Ohio to be a public purpose and provided related authorizations pursuant to Ohio Revised Code Sections 5709.41, 5709.42 and 5709.43; and authorizing the execution of a first amendment to Tax Increment Financing Agreement, related to the Ordinance Amendment.
Body
WHEREAS, in City Ordinance No. 1724-2005, passed October 26, 2005, the City declared 100% of the improvement (as defined in Ordinance No. 1724-2005) of certain real property located in the City to be a public purpose and exempt from real property taxation for a period of 30 years pursuant to Ohio Revised Code ("R.C.") Section 5709.41; and
WHEREAS, Exhibit A to Ordinance No. 1724-2005 identified the parcels (the "Property") for which "Improvement" (as defined in Exhibit B to Ordinance No. 1724-2005) was declared to be a public purpose pursuant to Ordinance No. 1724-2005; and
WHEREAS, Exhibit C to Ordinance No. 1724-2005 identified certain "Designated Improvements" that would benefit or serve the Property, and Ordinance No. 1724-2005 provided that service payments in lieu of real property taxes would be used to pay for costs of construction of the Designated Improvements; and
WHEREAS, prior to the passage of Ordinance No. 1724-2005, the City obtained title to the Property from the Grange Mutual Casualty Company (the "Company") and subsequently transferred title back to the Company; and
WHEREAS, on November 22, 2005, the City and the Company executed a tax increment financing agreement (the "Original TIF Agreement"), the execution of which was authorized by Ordinance No. 1724-2005; and
WHEREAS, Ordinance No. 1724-2005 and the Original TIF Agreement indicated that the Company desired to build a 1,000-space parking garage on the Property; and
WHEREAS, subsequent to the passage of Ordinance No. 1724-2005, the Company acquired real property from the Salvation Army situated across Sycamore Street from the Property; and the Company has determined that a portion of the Property would remain undeveloped, and that instead of constructing a parking garage on the Property, the Company would construct a 1,050-space garage with additional office space on a portion of the real property acquired from the Salvation Army, provided appropriate economic development incentives are available; and
WHEREAS, City Council has determined that is in the best interests of the City to amend the definition of "Designated Improvements" in Ordinance No. 1724-2005 to reference the parking garage and office space structure to be constructed at the above property acquired by the Company for the Salvation Army; and
WHEREAS, as a result, it is necessary for City Council to pass this Ordinance to (i) amend Ordinance No. 1724-2005 to remove certain real property from the definition of the Property and to remove all references to the construction of a 1,000 space parking garage on the Property; (ii) amend the definitions of the "Improvement" and the "Designated Improvements"; and (iii) authorize an amendment of the Original TIF Agreement (the "First Amendment to TIF Agreement") to conform the provisions of the Original TIF Agreement to the amended terms of Ordinance No. 1724-2005; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. Exhibit A (defining the "Property") attached to and incorporated into Ordinance No. 1724-2005 is hereby repealed. Exhibit A-1 attached hereto and incorporated by reference herein is hereby adopted as replacement Exhibit A to Ordinance No. 1724-2005.
Section 2. Exhibit B (defining the exempt "Improvement") attached to and incorporated into Ordinance No. 1724-2005 is hereby repealed. Exhibit B-1 attached hereto and incorporated by reference herein is hereby adopted as replacement Exhibit B to Ordinance No. 1724-2005.
Section 3. Exhibit C (defining the "Designated Improvements") attached to and incorporated into Ordinance No. 1724-2005 is hereby repealed. Exhibit C-1 attached hereto and incorporated by reference herein is hereby adopted as replacement Exhibit C to Ordinance No. 1724-2005.
Section 4. Section 5 of Ordinance No. 1724-2005 is hereby repealed. The following new Section 5 is hereby adopted as replacement Section 5 to Ordinance No. 1724-2005:
"Section 5. This Council hereby establishes, pursuant to and in accordance with the provisions of Ohio Revised Code § 5709.43, the Grange Urban Redevelopment Tax Increment Equivalent Fund (the "Fund"), into which shall be deposited all of the Service Payments distributed to the City (i.e. after amounts are paid to the School District as described in Section 6 hereof) with respect to the Improvement to the Property by or on behalf of the Franklin County Treasurer, as provided in Ohio Revised Code § 5709.42, and hereby appropriates all of the moneys deposited in the Fund from time to time for payment of costs associated with the construction of the Designated Improvements.
The Fund shall remain in existence so long as Service Payments are collected and used for the aforesaid purposes, subject to the limits set forth in Section 1 hereof, after which said Fund shall be dissolved in accordance with Ohio Revised Code § 5709.43(D). Upon dissolution, any incidental surplus money remaining in the Fund shall be disposed of as provided in Ohio Revised Code § 5709.43(D)."
All remaining provisions of Ordinance No. 1724-2005 shall remain in effect as stated in Ordinance No. 1724-2005.
Section 5. The Director of the Department of Development (the "Director"), or any other authorized City official, are hereby authorized to execute on behalf of the City the First Amendment to TIF Agreement between the City and the Company, which, among other provisions, shall amend the Original TIF Agreement to: (i) conform the descriptions of the "Property," the "Improvement," and the "Designated Improvements" to the definitions in Ordinance No. 1724-2005, as amended hereby; and (ii) provide for use of service payments in lieu of real property taxes to reimburse the Company for its costs of construction of the Designated Improvements, but which reimbursements payments, together with other City incentive payments for such purpose, shall not exceed the cost to the Company to construct the Designated Improvements. The First Amendment to TIF Agreement shall be in such form as is acceptable to such officials, approved by the City Attorney, and not substantially inconsistent with the terms of Ordinance No. 1724-2005 as amended by this Ordinance.
Section 6. The Director, or any other official, as appropriate, are each authorized and directed to sign any other documents, instruments or certificates and to take such actions as are necessary or appropriate to consummate or implement the actions described herein or contemplated by Ordinance No. 1724-2005 as amended by this Ordinance, or by the Original TIF Agreement as amended.
Section 7. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.