Explanation
BACKGROUND: On October 28, 2002, City Council passed Ordinance No. 1608-02 to create a tax increment financing district (the "Italian Village TIF District") for a large portion of Italian Village surrounding the proposed 43-acre development known as Jeffrey Place. The Italian Village TIF District was established to divert into a special account, for thirty years, 100% of all non-school real property tax revenues resulting from increases in assessed value of property within the Italian Village TIF District. The special account would be used to pay for infrastructure improvements identified in that TIF Ordinance.
The Columbus Department of Development believes that a residential-only community reinvestment area ("CRA") to be known as the Jeffrey Square CRA, should be established for a portion of the Italian Village TIF District. To that end, the Columbus Department of Development has submitted a proposed ordinance to City Council to create the Jeffrey Square CRA, providing for exemptions on new residential construction and remodeling. This amendment to Ordinance No. 1608-02 will make it clear that for parcels of property within the Italian Village TIF District that are also located within the Jeffrey Square CRA, the CRA exemptions will take precedence over both the TIF tax exemptions and the obligations under the TIF to make service payments.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend Ordinance No. 1608-02 to clarify that Jeffrey Square community reinvestment area exemptions take precedence over both the tax increment financing tax exemptions and the obligations thereunder to make service payments.
Body
WHEREAS, City Council desires to pursue all reasonable and legitimate incentive measures to assist and encourage residential development and redevelopment in specific areas of the City of Columbus (the "City") that have not enjoyed sufficient investment or reinvestment in residential remodeling or new residential construction; and
WHEREAS, on October 28, 2002, City Council passed Ordinance No. 1608-02 to create a tax increment financing district (the "Italian Village TIF District"), which is depicted on Exhibit A attached hereto and incorporated herein by this reference, for a large portion of Italian Village surrounding the proposed 43-acre development known as Jeffrey Place; and
WHEREAS, pursuant to Ordinance No. 1715-2003, the City is establishing within a portion of the Italian Village TIF District a residential-only community reinvestment area ("CRA") to be known as the Jeffrey Square CRA, which is depicted on Exhibits B and B(1) attached said Ordinance No. 1715-2003 and attached hereto and incorporated herein by this reference; and
WHEREAS, the City has determined that the real property tax exemptions under the Jeffrey Square CRA should take precedence over both the real property tax exemptions and the obligations to make service payments in lieu of real property tax payments established by Ordinance No. 1608-02; and
WHEREAS, in order to establish clearly such precedence, the City finds it necessary to amend Ordinance No. 1608-02; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That Section 2 of Ordinance No. 1608-02, passed by City Council on October 28, 2002, shall hereby be amended to read in its entirety as follows:
"Section 2. Pursuant to and in accordance with Section 5709.40 R.C., the City hereby finds and determines that, except as provided in the next following sentence, 100% of the increase in the assessed value of each parcel constituting the Property subsequent to the effective date of this Ordinance (which increase in assessed value as it relates to each parcel is hereinafter referred to as an "Improvement," as defined in Section 5709.40) is and shall be a public purpose. For each parcel located in the Jeffrey Square community reinvestment area established by Ordinance No. 1715-2003, the increase or portion of the increase in assessed value of remodeling or new construction to which that exemption applies shall be neither an "Improvement," as defined in Section 5709.40 nor a public purpose for purposes of R.C. 5709.40 during the term of each community reinvestment area real property tax exemption with respect to that parcel."
Existing Section 2 of Ordinance No. 1608-02 is hereby repealed.
Section 2. Pursuant to Section 5709.40(E) R.C., the City Clerk is hereby directed to deliver a copy of this Ordinance to the Director of the Ohio Department of Development and the Franklin County Auditor within fifteen days after its effective date.
Section 3. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.