Explanation
Background: City Council passed Ordinance No. 0349-2005 establishing tax increment financing (TIF) incentive districts over properties in the Hayden Run Corridor including those in the Hayden Crossing plats north of Hayden Run Boulevard (the “Hayden Run North TIF”). Ordinance No. 1991-2006 authorized the City to enter into a Memorandum of Understanding dated November 20, 2006 (the “Hayden Run II MOU”) with Dominion Homes, Inc. (“Dominion”) concerning the development of property directly to the west of the Hayden Run North TIF. The City and Dominion (including its successors) made certain commitments to each other including, but not limited to, funding the design and construction of public infrastructure improvements identified in the Hayden Run II MOU. Pursuant to a limited warranty deed, in 2007, Dominion assigned the Hayden Run II MOU and transferred the property thereunder (hereafter known as “Jameson Estates”) to Western Property LLC (the “Developer”).
Jameson Estates was rezoned again pursuant to Ordinance No. 2921-2024 to allow the development of a mix of residential unit types on Jameson Estates not to exceed 2,050; a joint police and fire facility; commercial uses including retail uses for a convenience store with gasoline sales, daycare uses, or a restaurant; and private and public open spaces. Ordinance No. 2921-2024 also required substantially different public infrastructure improvements to be completed by the Developer for the development of Jameson Estates than what was in the Hayden Run II MOU. Therefore, the City and the Developer have agreed to terminate the Hayden Run II MOU and enter into the Jameson Estates Pay As We Grow Agreement (the “PAWG Agreement”) authorized by Ordinance No. 3217-2024. According to the PAWG Agreement, the Developer requested and the City committed from the Hayden Run North TIF to contribute a portion of the financing for the public infrastructure improvements identified in Ordinance No. 2921-2024 and the PAWG Agreement (the “Public Improvements”). This Ordinance will authorize a tax increment financing agreement (the “TIF Agreement”) between the City and the Developer to reimburse the Developer for a portion of the costs of the Public Improvements. This Ordinance will also appropriate and authorize the expenditure and transfer of the funds generated from the Hayden Run North TIF in accordance with the TIF Agreement. This Ordinance will also authorize an assignment and assumption agreement upon the Developer closing on the sale of Jameson Estates with one or more subsequent owners.
Fiscal Impact: Funding is currently available in the Hayden Run North TIF Fund. The City is appropriating and authorizing the expenditure and transfer of funds deposited or to be deposited into the Hayden Run North TIF Fund.
Title
To authorize the Director of the Department of Development to enter into the Tax Increment Financing (TIF) Agreement between the City and Western Property LLC to reimburse for a portion of the costs of public improvements described thereunder benefiting the Jameson Estates project in the Hayden Run Corridor of Columbus; to appropriate and authorize the expenditure and transfer of funds deposited or to be deposited in the Hayden Run North TIF Fund pursuant to the TIF Agreement; and to authorize the Director of the Department of Development to approve an assignment and assumption agreement to allow Western Property LLC to assign the TIF Agreement to the new owner(s) of Jameson Estates who will assume the responsibilities and obligations of the TIF Agreement. ($0.00)
Body
WHEREAS, pursuant to R.C. Section 5709.40(C) and Ordinance No. 0349-2005, City Council created, amongst others, a tax increment financing (TIF) incentive district over the Hayden Crossing plats north of Hayden Run Boulevard (the “Hayden Run North TIF”); and
WHEREAS, City Council passed Ordinance No. 1991-2006 authorizing the City to enter into a Memorandum of Understanding dated November 20, 2006 (the “Hayden Run II MOU”) with Dominion Homes, Inc. (“Dominion”); and
WHEREAS, in accordance with the Hayden Run II MOU, the City and Dominion (including their successors) made certain commitments to each other including, but not limited to, funding the design and construction of certain public infrastructure improvements described thereunder; and
WHEREAS, by limited warranty deed recorded with the Franklin County Recorder’s Office on March 30, 2007 as Instrument No. 200703300054970, Dominion assigned the Hayden Run II MOU and transferred the property thereunder (hereafter known as “Jameson Estates”) to Western Property LLC (the “Developer”); and
WHEREAS, Ordinance No. 2921-2024 approved the Developer’s request to rezone Jameson Estates again to allow up to 410 detached single-unit dwellings on platted lots; up to 395 townhouse units; up to 1,014 multi-family residential units; up to 260 single-unit dwellings without platted lots (provided that the total combined number of residential units of all types on Jameson Estates may not exceed 2,050); a joint police and fire facility; commercial uses including retail uses for a convenience store with gasoline sales, daycare uses, or a restaurant; and private and public open spaces; and
WHEREAS, Ordinance No. 2921-2024 also required the Developer to complete substantially different public infrastructure improvements for Jameson Estates than what was in the Hayden Run II MOU; and
WHEREAS, the City and the Developer have agreed to terminate the Hayden Run II MOU and enter into the Jameson Estates Pay As We Grow Agreement (the “PAWG Agreement”) authorized by Ordinance No. 3217-2024; and
WHEREAS, according to the PAWG Agreement, the Developer requested and the City committed from the Hayden Run North TIF to contribute a portion of the financing of the public infrastructure improvements identified in Ordinance No. 2921-2024 and the PAWG Agreement (the “Public Improvements”); and
WHEREAS, Ordinance No. 1555-2017 determined that satisfactory provision had been made for the public infrastructure improvements benefiting the Hayden Run North TIF parcels in order to allow those service payments to be used in support of “Neighborhood Public Improvements” as described in Exhibit B of Ordinance No. 1555-2017, which include, but are not limited to, the Public Improvements; and
WHEREAS, in order for the City to reimburse the Developer for the Public Improvements using the funds generated from the Hayden Run North TIF (the “Service Payments”), the City and the Developer will enter into a tax increment financing agreement (the “TIF Agreement”) authorized herein; and
WHEREAS, pursuant to the TIF Agreement, the City is appropriating and authorizing the expenditure and transfer of the Service Payments; and
WHEREAS, it is necessary in the usual daily operation of the Department of Development to also authorize the Director to approve an assignment and assumption agreement to allow the Developer to assign the TIF Agreement to the new property owner upon sale of Jameson Estates, so the new owner may assume the responsibilities and obligations thereunder; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development (together with his or her designee, the “Director”), for and in the name of the City, is hereby authorized to execute and deliver a TIF Agreement with the Developer, 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 execution of said TIF Agreement by the Director.
SECTION 2. That the Director or other appropriate officers of the City are authorized to take all actions as may be necessary to implement this Ordinance and the transactions contemplated by the TIF Agreement including executing the “Subsequent Agreements,” as further defined in the TIF Agreement, for the Public Improvements.
SECTION 3. That the Director is hereby authorized to approve and consent to an assignment & assumption agreement by and between the Developer and the new owner of Jameson Estates (who is expected to be Pulte Homes of Ohio LLC according to the PAWG Agreement) who will then assume the rights and obligations provided for in the TIF Agreement as assigned to it by the Developer.
SECTION 4. That the Service Payments deposited or to be deposited into the Hayden Run North TIF Fund (Fund 7426 aka the “TIF Fund”) shall be appropriated for the purposes set forth in the TIF Agreement and authorized to be expended therefrom in accordance with the TIF Agreement, and the City Auditor is authorized to make payments to the Developer, its designee, or assignee described herein, from the Service Payments in the TIF Fund in accordance with the TIF Agreement upon order of the Director, 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 5. That the City Auditor is authorized to make annual transfers of up to $5,000 per each outstanding TIF under the TIF Agreement from the Service Payments in the TIF Fund to the Business Tax Incentive Fund (Fund 2229), subject to the authorization of the Director, for the “City TIF Administrative Fee” in accordance with the TIF Agreement and Ordinance No. 1837-2025.
SECTION 6. That funds are hereby appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 7. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 8. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 9. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.