Explanation
BACKGROUND: The purpose of this ordinance is to give the Director of the Department of Development the authority to enter into a Memorandum of Understanding (MOU) with The Board of Trustees of Franklin Township (Township). The MOU will outline the plans and certain commitments of the parties relating to the development of a casino at the site of the former General Motors/Delphi Corporation manufacturing plant. The plans and proposals remain subject to authorization pursuant to the adoption of appropriate legislation by Columbus City Council and The Board of Trustees of Franklin Township.
Under the MOU, subject to adoption of a future ordinance(s), the City will establish a JEDD (Joint Economic Development District) around the West Broad Street corridor area and the Fisher and Georgesville/Phillipi corridor areas focused on improving these corridor areas. The JEDD's term will not exceed 50 years and will include a 50 year non-annexation agreement for those properties located in the potential JEDD area. Any proposed revenue from the JEDD would not be generated from any areas which are already located in the City of Columbus and subject to the 2.5% income tax. 70% of the income tax revenue that is collected will be used to incentivize the JEDD creation effort and to undertake projects within the area. The remaining 30% of the income tax revenue will be split evenly between the Parties.
In addition, subject to adoption of an intergovernmental agreement through a future ordinance(s), the parties will establish a project fund by setting aside 2% of the total income tax revenue collected from the Delphi Site for the first five years of operation to be used to encourage businesses to participate in the JEDD, to assist in the mobilization, creation and coordination of the business working group in their effort to enhance the economic viability of the corridor area, and to make improvements in the right-of-way and other projects to revitalize the West Broad Street corridor. The City will fairly compensate the Township through service (or other) payments derived from and in an amount equivalent to the following sources:
o 10% of the construction income tax revenue from the casino construction; and
o 24% of the total income tax revenue collected from the Delphi Site for the first five years of the casino's operation and 25% for the next 45 years.
The City will reallocate the City's inside millage for all future annexations as follows:
o 100% of the City's inside millage portion of property tax will be reallocated to the Township for all future Franklin Township annexed properties except for the Delphi Site; and
o 25% of the City's inside millage portion of property tax for the Delphi Site through the end of the service payments derived from the income tax revenue collected from the Delphi Site will be reallocated to the Township. Thereafter, the Township will receive 100% of the City's inside millage portion of property tax for this site.
The City and Township will coordinate a joint planning and zoning effort with Franklin County to ensure better coordination on projects, set forth future infrastructure and public investment opportunities, joint marketing to advance economic development and a seamless look along the West Broad Street corridor. This planning effort will also help shape future City, County and Township public investment.
The City and Township will mobilize and coordinate a business working group with the business owners in the West Broad Street corridor to enhance and strengthen the economic development viability of the area.
The City and Township will maintain current response relationships as it relates to both police and fire services.
The City's agreement to provide the referenced financial assistance is contingent upon authorization pursuant to the adoption of appropriate legislation by Columbus City Council and The Board of Trustees of Franklin Township.
FISCAL IMPACT: There are no immediate costs to the City associated with the MOU. Future legislation will be submitted to authorize such expenses.
Title
To authorize the Director of the Department of Development to enter into a Memorandum of Understanding with the Board of Trustees of Franklin Township in order to outline the plans and certain commitments of the parties relating to the development of a casino at the site of the former General Motors/Delphi Corporation manufacturing plant; and to declare an emergency.
Body
WHEREAS, on November 3, 2009, Ohio voters passed Issue 3 to allow casino gambling at specific locations in 4 Ohio cities, including the Arena District in Columbus; and
WHEREAS, the passage of Issue 3 did not mandate that a casino be built at that site, but rather allowed a casino to be built at that location; and
WHEREAS, the Arena District location was selected solely by casino developer Penn National Gaming, Inc., with no community discussion or input into that decision; and
WHEREAS, various local governmental officials and central Ohio residents organized in order to ask Penn National Gaming, Inc. to work with the community to identify a better suited location for the casino; and
WHEREAS, Penn National Gaming, Inc. identified the former GM Delphi plant site as the alternative location for the development of a casino facility and the Ohio Legislature has placed Issue 2 on the May 4th ballot, which, if approved, would amend the Ohio Constitution to allow for the relocation of the casino facility from the Arena District in downtown Columbus to the former GM Delphi plant site, which has since been acquired by Penn National Gaming, Inc.'s affiliate; and
WHEREAS, The Board of Trustees of Franklin Township has indicated its willingness to enter into a Memorandum of Understanding ("MOU") which outlines the framework for an intergovernmental agreement between the City and Township and which sets forth the majority of commitments on the part of both the City and Township as it relates to the future annexation of the former GM Delphi plant site and its subsequent development for a casino facility, if Issue 2 is passed; and
WHEREAS, the City and Township believe this MOU will assist with the redevelopment and revitalization of the West Broad Street corridor; and
WHEREAS, the City desires to enter into a MOU with the Township to outline the framework for and many of the major terms of an intergovernmental agreement for the annexation of the Delphi site; and
WHEREAS, the intergovernmental agreement remains subject to authorization pursuant to the adoption of appropriate legislation by Columbus City Council and The Board of Trustees of the Franklin Township; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus, in that it is immediately necessary to authorize the Director of the Department of Development to enter into the Memorandum of Understanding with the Board of Trustees of Franklin Township for the economic development and continued improvement of the West Broad Street area., thereby preserving the public health, peace, property, safety and welfare; Now, Therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development is hereby authorized to enter into a Memorandum of
Understanding with the Board of Trustees of Franklin Township in order to outline the plans and certain commitments of the parties
relating to the development of a casino at the site of the former General Motors/Delphi Corporation manufacturing plant.
Section 2. 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 day after passage if the Mayor neither approves nor vetoes the same.