Explanation
Background: Ordinance No. 3248-2021 established a tax increment financing (“TIF”) area pursuant to Ohio Revised Code (“R.C.”) Section 5709.40(B) that encompassed ±13.886 acres at the northeast corner of Renner Road and Alton Darby Creek Road (the “Sugar Farm 40(B) TIF”). Ordinance No. 3259-2021 established two TIF incentive districts under R.C. Section 5709.40(C) including one that encompassed ±242.36 acres north of Renner Road (the “Sugar Farm Incentive District”). Ordinance No. 0643-2022 authorized the City to enter into the Norwich Township Compensation Agreement dated May 3, 2022. That agreement provides Norwich Township with service payments in lieu of taxes from the aforesaid TIFs equivalent to a certain portion of the millage from Norwich Township’s Fire & EMS levies in accordance with the Big Darby Revenue Program adopted by City Council under Resolution No. 0216X-2008. Due to a reclassification of the land-use by the property owner within the Sugar Farm 40(B) TIF from commercial apartments to single-family condos making the new use ineligible under the Sugar Farm 40(B) TIF, City Council passed Ordinance No. 2451-2025 that repealed Ordinance No. 3248-2021 to dissolve the Sugar Farm 40(B) TIF prior to its exemption application being filed and approved by the State. Ordinance No. 2451-2025 also amended Ordinance No. 3259-2021 to include the former parcels of the Sugar Farm 40(B) TIF into an expanded Sugar Farm Incentive District pursuant to the same terms and conditions of Ordinance No. 3259-2021. This ordinance will authorize the City to enter into the First Amended and Restated Norwich Township Compensation Agreement with Norwich Township regarding administrative changes thereunder caused by the repeal and expansion of the aforesaid TIFs by Ordinance No. 2451-2025.
Fiscal Impact: No funding is immediately required for this legislation. The City is appropriating and authorizing the expenditure of service payments in lieu of taxes generated by the parcels in the Sugar Farm Incentive District and Renner South Incentive District that are to be deposited in the Sugar Farm Incentive District 40(C) TIF Fund (Fund 7478) and the Renner South Incentive District 40(C) TIF Fund (Fund 7479) in accordance with the First Amended and Restated Norwich Township Compensation Agreement.
Title
To authorize the Director of the Department of Development to enter into the First Amended and Restated Norwich Township Compensation Agreement with Norwich Township regarding administrative changes to that agreement due to the repeal of the Sugar Farm 40(B) TIF and the expansion of the Sugar Farm Incentive District by Ordinance No. 2451-2025; to appropriate and authorize the expenditure of the service payments in lieu of taxes generated by the parcels in the Sugar Farm Incentive District and Renner South Incentive District that are to be deposited in the Sugar Farm Incentive District 40(C) TIF Fund and the Renner South Incentive District 40(C) TIF Fund in accordance with the First Amended and Restated Norwich Township Compensation Agreement. ($0.00)
Body
WHEREAS, by Ordinance No. 3248-2021, this Council established a tax increment financing (“TIF”) area, as permitted and provided in R.C. Section 5709.40(B), encompassing 220 multi-family apartments constructed on ±13.886 acres at the northeast corner of Renner Road and Alton Darby Creek Road (the “Sugar Farm 40(B) TIF”); and
WHEREAS, pursuant to Ordinance No. 3259-2021, this Council established two incentive districts with one encompassing ±242.36-acres north of Renner Road between Alton Darby Creek Road and Clover Groff Ditch (the “Sugar Farm Incentive District”) and the other encompassing ±87.9-acres south of Renner Road between the same boundaries as above; and
WHEREAS, subsequent to the passage of Ordinance No. 3248-2021, it was determined that the property owner within the Sugar Farm 40(B) TIF recorded a condo declaration and divided the parent parcel into about 220 separate condo parcels with a new parcel covering each of the multi-family apartment units; and
WHEREAS, the Franklin County Auditor classifies four or more residential units per parcel as a commercial land-use class while classifying three or less residential units per parcel, including the condos within the Sugar Farm 40(B) TIF, as a residential land-use class; and
WHEREAS, pursuant to R.C. Section 5709.40(B), improvements with respect to a parcel that is used or to be used for residential purposes may be declared a public purpose under that division only if the parcel is located in a blighted area of an impacted city; and
WHEREAS, the Sugar Farm 40(B) TIF is not in a blighted area, but such requirement for improvements used or to be used for residential purposes does not exist under R.C. Section 5709.40(C) for incentive districts; and
WHEREAS, this Council determined by Ordinance No. 2451-2025 that it was necessary and appropriate and in the best interest of the City to repeal Ordinance No. 3248-2021 in order to dissolve the Sugar Farm 40(B) TIF and to then amend Ordinance No. 3259-2021 to include the former Sugar Farm 40(B) TIF parcels into the Sugar Farm Incentive District to maintain a TIF exemption; and
WHEREAS, in accordance with the “Big Darby Revenue Program” established by Resolution No. 0216X-2008, the Norwich Township Fire Department and Emergency Medical Services is to be made whole for the loss of any property taxes due to an exemption from a TIF within the Big Darby Creek Watershed; and
WHEREAS, Ordinance No. 0643-2022 authorized the City to enter into the Norwich Township Compensation Agreement dated May 3, 2022 with Norwich Township; and
WHEREAS, that compensation agreement provides Norwich Township with service payments in lieu of taxes from the aforesaid TIFs equivalent to a certain portion of Norwich Township’s Fire & EMS levies millage in accordance with the Big Darby Revenue Program and the ordinances for those TIFs; and
WHEREAS, it is necessary to appropriate and authorize the expenditure of the service payments in lieu of taxes generated by the parcels in the Sugar Farm Incentive District and Renner South Incentive District that are to be deposited in the Sugar Farm Incentive District 40(C) TIF Fund (Fund 7478) and the Renner South Incentive District 40(C) TIF Fund (Fund 7479) in accordance with the First Amended and Restated Norwich Township Compensation Agreement; and
WHEREAS, it has become necessary in the daily operation of the Department of Development to authorize the Director of the Department of Development to enter into the First Amended and Restated Norwich Township Compensation Agreement with Norwich Township regarding administrative changes thereunder caused by the repeal and expansion of the aforesaid TIFs by Ordinance No. 2451-2025; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That to make administrative changes to the existing compensation agreement with Norwich Township regarding the Sugar Farm 40(B) TIF and Sugar Farm Incentive District, the Director of the Department of Development or his or her designee (together, the “Director”), for and in the name of the City, is hereby authorized to execute and deliver the First Amended and Restated Norwich Township Compensation Agreement with Norwich Township presently on file with the Director 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, provided that the approval of such changes and amendments thereto, and the character of those changes and amendments as not being substantially adverse to the City, shall be evidenced conclusively by the Director’s execution and delivery thereof.
Section 2. That the service payments in lieu of taxes and property tax rollback payments deposited into the Sugar Farm Incentive District 40(C) TIF Fund (Fund 7478) and the Renner South Incentive District 40(C) TIF Fund (Fund 7479) (collectively, the “TIF Funds”) equal to the amount of property taxes the Norwich Township Fire Department and Emergency Medicals Services would have received if not for the TIF exemption granted by Ordinance No. 3259-2021, as amended by Ordinance No. 2451-2025, and not otherwise distributed directly to Norwich Township by Franklin County shall be deemed appropriated for the purposes set forth in the First Amended and Restated Township Compensation Agreement and authorized to be expended therefrom in accordance with the First Amended and Restated Township Compensation Agreement, and the City Auditor is authorized to make payments to the Township or its designee from the TIF Funds in accordance with the First Amended and Restated Township Compensation Agreement upon order of the Director, or his or her designee, and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
Section 3. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.