Explanation
Background: The purpose of this Ordinance is authorize the City of Columbus (the "City") to enter into a tax increment financing agreement with Grange Mutual Casualty Company (the "Company") in connection with tax increment financing ("TIF") passed by City Council pursuant to R.C. Section 5709.40(C). In Ordinance No. 1721-2005, the City declared the increase in the assessed value of certain parcels of real property located in the City to be a public purpose and exempt from real property taxation for a period of 30 years.
The Company plans to construct certain public infrastructure improvements on City-owned land, which land is located adjacent to the Company's current facilities and is located in or adjacent to the TIF created by Ordinance No. 1721-2005. The purpose of the tax increment financing agreement is to (i) provide for the collection and use of payments in lieu of taxes and (ii) enable the Company to be reimbursed using TIF funds for any public infrastructure improvements constructed by the Company.
Fiscal Impact: No funding is required for this legislation.
Title
An ordinance authorizing the Director of the Department of Development to execute a Tax Increment Financing Agreement with Grange Mutual Casualty Company in connection with Ohio Revised Code Section 5709.40 Tax Increment Financing.
Body
WHEREAS, the City, by its Ordinance No. 1721-2005 (the "TIF Ordinance"), created an incentive district (the "Incentive District") pursuant to Ohio Revised Code ("R.C.") Section 5709.40(C) and declared that 100% of the increase in the assessed value of the parcels of real property described in the TIF Ordinance (the "Property", with each parcel of the Property referred to herein as a "Parcel") located within the Incentive District (which increase in assessed value is an "Improvement" as defined in R.C. Section 5709.40 and as further defined in the TIF Ordinance, but which Improvement shall not include any "CRA Exempted Improvement" or "Enterprise Zone Exempted Improvement" as such terms are defined in the TIF Ordinance) shall be a public purpose and shall be exempt from real property taxation for a period commencing January 1, 2006 and ending thirty (30) years after such date; and
WHEREAS, the TIF Ordinance requires the City to construct or cause to be constructed the public infrastructure improvements described in Exhibit B to the TIF Ordinance (the "Public Infrastructure Improvements"), and the City agrees that the Public Infrastructure Improvements will directly benefit the Property; and
WHEREAS, the City has determined that it is necessary and appropriate and in the best interests of the City to provide for the owner of each Parcel, its successors and assigns, to make payments in lieu of taxes (as further defined in the TIF Ordinance, the "Payments in Lieu of Taxes," and, together with any associated property tax roll back payments received by the City as specified in the TIF Ordinance, the "Service Payments") with respect to the Improvement; and
WHEREAS, the City has determined that, with respect to the Improvement, a portion of the Service Payments shall be paid to the Columbus City School District (the "School District") pursuant to R.C. Section 5709.42 in the amount of the real property taxes that the School District would have received if such increase in the assessed value of the Property had not been exempted from real property taxes pursuant to the TIF Ordinance; and
WHEREAS, the TIF Ordinance provides that the remaining Service Payments shall be deposited in the Brewery District II Public Improvement Tax Increment Equivalent Fund, established by the TIF Ordinance; and
WHEREAS, the City and Grange Mutual Casualty Company (the "Company") desire to enter into a tax increment financing agreement (the "TIF Agreement"), which TIF Agreement would (i) provide for the collection and use of Payments in Lieu of Taxes and (ii) enable the Company to be reimbursed, solely from the Payments in Lieu of Taxes received by the City pursuant to the TIF Ordinance, for any Public Infrastructure Improvements constructed by the Company; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. The Mayor and the Director of the Department of Development, or either of them individually, are hereby authorized to execute on behalf of the City the TIF Agreement, which TIF Agreement shall provide for: (i) the payment of the amounts due to the School District from the Service Payments; and (ii) the payment by the City to the Company, solely from the Service Payments received by the City pursuant to the TIF Ordinance, of the amounts remaining after the payments to the School District, described in (i) above, for the Company's use for any Public Infrastructure Improvements, but which payments shall not exceed the cost to the Company to construct the Public Infrastructure Improvements. The 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 this Ordinance and the TIF Ordinance.
Section 2. This Council hereby appropriates all of the moneys deposited in the Brewery District II Public Improvement Tax Increment Equivalent Fund (excepting any moneys payable to the School District pursuant to the TIF Ordinance) for the purposes stated in Section 1 of this Ordinance.
Section 3. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.