Explanation
BACKGROUND: The goal of a Community Reinvestment Area is neighborhood revitalization and stabilization.
This Ordinance will amend Ordinance 1501-2007 which created the Oak Street Community Reinvestment Area (see Exhibit B) in order to continue the program, expand the area and to provide for real property tax exemptions for residentially-zoned parcels within the area.
Emergency action is requested so that current residential tax abatement application from eligible property owners can continue to be processed.
FISCAL IMPACT: No funding is required for this legislation.
Title
To renew and expand the Oak Street Community Reinvestment Area to authorize real property tax exemptions as established in the Ohio Revised Code; and to declare an emergency.
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 1698-78, approved August 3, 1978, as amended by Ordinance 1345-02, approved July 29, 2002, 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, the Oak Street Community Reinvestment Area was created by Ordinance 1501-2007; and
WHEREAS, the Community Reinvestment Area by its enabling legislation expired on December 31, 2012 and incentives for continued residential development are necessary; and
WHEREAS, the State's Department of Development has requested the inclusion of language within Section 3735.67 of the Ohio Revised Code be added to relevant sections of all Community Reinvestment Area ordinances in order to establish minimum threshold investments for abated properties located within the boundaries of each designated Community Reinvestment Area; and
WHEREAS, the area of the Community Reinvestment Area has been expanded to allow for additional residential properties in the area to benefit from the tax exemption offered by this Ordinance; and
WHEREAS, an updated 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 continued 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 housing units 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
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to renew and expand the Oak Street Community Reinvestment Area so that current residential tax abatement application from eligible property owners can continue to be processed, all for the immediate preservation of the public health, peace, property, safety and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Ordinance 1501-2007 is hereby amended in order to continue to provide for real property tax exemptions for residentially-zoned parcels within the areas. The areas identified in the Original CRA Ordinances and this Ordinance (see Exhibits 2, 3 and 4) are the areas depicted on Exhibit B constitutes areas 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 Oak Street Community Reinvestment Area is hereby reaffirmed and expanded in the following described area:
The following real estate situated in the City of Columbus, County of Franklin and State of Ohio.
All residentially-zoned properties within the following boundaries:
East: Rhoads Avenue
West: Parsons Avenue
North: Oak Street
South: Main Street
The Community Reinvestment Area is approximately depicted as the area on the map attached to this Ordinance, marked Exhibit C; by parcel number, marked Exhibit D; 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. 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 approval by the designated Housing Officer.
All properties identified in Exhibit D as being within the designated Oak Street 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 existing residential rental properties.
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 approval by the designated Housing Officer.
Abatement terms and percentages are as follows:
(a) One hundred percent (100%) for ten (10) years for the remodeling of:
· owner-occupied dwellings containing not more than two housing units and upon which the remodeling cost is at least twenty percent (20%) of the current assessed value of the existing structure (excluding land) as determined by the County Auditor for the tax year prior to the improvement and upon which the cost of remodeling is at least $2500.00 as described in ORC Section 3735.67;
· rental housing, containing not more than two housing units, upon which the remodeling cost is at least fifty percent (50%) of the current assessed value of the existing structure (excluding land) as determined by the County Auditor for the tax year prior to the improvement and upon which the cost of remodeling is at least $2500.00 as described in ORC Section 3735.67;
· conversion of rental housing to owner-occupied housing, containing not more than two units, upon which the remodeling cost is at least fifty percent (50%) of the current assessed value of the existing structure (excluding land) as determined by the County Auditor for the tax year prior to the improvement.
(b) One hundred percent (100%) for twelve (12) years for the remodeling of:
· owner-occupied dwellings containing more than two housing units and upon which the remodeling cost is at least twenty percent (20%) of the current assessed value of the existing structure (excluding land) as determined by the County Auditor for the tax year prior to the improvement and upon which the cost of remodeling is at least $5000.00 as described in ORC Section 3735.67;
· rental housing, containing more than two housing units, upon which the remodeling cost is at least fifty percent (50%) of the current assessed value of the existing structure (excluding land) as determined by the County Auditor for the tax year prior to the improvement and upon which the cost of remodeling is at least $5000.00 as described in ORC Section 3735.67;
· conversion of rental housing to owner-occupied housing, containing more than two units, upon which the remodeling cost is at least fifty percent (50%) of the current assessed value of the existing structure (excluding land) as determined by the County Auditor for the tax year prior to the improvement.
(c) One hundred percent (100%) for fifteen (15) years for newly built:
· construction of new owner-occupied dwelling.
· construction of new owner-occupied dwellings containing more than two housing units.
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 4. Eligibility for abatement under this Ordinance shall not terminate. That City Council reserves the right to re-evaluate the designation of the Oak Street Community Reinvestment Area after December 31, 2020, at which time Council may direct the Housing Officer not to accept any applications for exemptions as described in Section 3735.67 of the Ohio Revised Code.
Section 5. 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 Oak Street 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.
Section 6. 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 7. That this Council further hereby authorizes and directs the Mayor, the Clerk of Council, the Director of Development, or other appropriate officers of the City to prepare and sign all agreements and instruments and to take any other actions as may be appropriate to implement this Ordinance.
Section 8. To administer and implement the provisions of this Ordinance, the Administrator of the Department of Development's Housing Division is designated as the Housing Officer as described in Sections 3735.65 through 3735.70 of the Ohio Revised Code.
Section 9. 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 approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.