Explanation
Background: The goal of a Community Reinvestment Area is neighborhood revitalization and stabilization.
The Columbus City Council has previously by its Ordinance 1939-2006, passed November 6, 2006, created the Weinland Park-University/Area F Community Reinvestment Area (CRA) and authorized a 10-year, 100% real property tax abatement for the remodeling of specified residential properties, a 12-year, 100% real property tax abatement for the remodeling of specified residential properties, and a 15-year, 100% real property tax abatement for the construction of new owner-occupied dwellings within that CRA, with eligibility for those exemptions under that ordinance terminating on December 31, 2011. The City subsequently entered into an Economic Development Agreement with Wagenbrenner Development, Inc., dated August 29, 2008, by which the City agreed to amend Ordinance 1939-2006 to authorize a 15-year, 100% real property tax abatement for the construction of new rental housing located on those parcels, and to extend the eligibility for abatements under that ordinance until December 31, 2020. This Ordinance implements those amendments pursuant to the Economic Development Agreement.
Emergency action is requested so that current residential tax abatement applications from eligible property owners can continue to be processed.
Fiscal Impact: None. No City funding is required for this legislation.
Title
To amend Ordinance 1939-2006 creating the Weinland Park-University/Area F Community Reinvestment Area to authorize a 15-year, 100% real property tax exemption for the construction of new rental housing located on the former Columbus Coated Fabrics site and certain adjacent property and to extend the eligibility for exemptions under that ordinance until December 31, 2023; 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 significant reinvestment from remodeling or new construction; and
WHEREAS, Ordinance 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, pursuant to Sections 3735.65 through 3735.70 of the Ohio Revised Code, this Council passed Ordinance 1939-2006 on November 6, 2006 (the "Original CRA Ordinance"), creating the Weinland Park-University/Area F Community Reinvestment Area on certain parcels of real property located in the City (the "CRA") and authorizing a 10-year, 100% real property tax abatement for the remodeling of specified residential properties, a 12-year, 100% real property tax abatement for the remodeling of specified residential properties, and a 15-year, 100% real property tax abatement for the construction of new owner-occupied dwellings within the CRA, with eligibility for those exemptions under that Original CRA Ordinance terminating on December 31, 2011; 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 City subsequently entered into an Economic Development Agreement with Wagenbrenner Development, Inc., dated August 29, 2008, in which the City agreed to amend the Original CRA Ordinance to authorize a 15-year, 100% real property tax exemption for the construction of new rental housing located on the former Columbus Coated Fabrics site and certain adjacent property and to extend the eligibility for abatements under the Original CRA Ordinance until December 31, 2023; and
WHEREAS, an updated survey of housing (Exhibit 1) as required by Ohio Revised Code (ORC) Section 3735.66 and list of parcels (Exhibit 4) has been prepared and included in this Ordinance; and
WHEREAS, the continued remodeling of existing buildings for residential use and construction of new residential structures in the CRA would serve to encourage economic stability, maintain real property values, and generate new employment opportunities; and
WHEREAS, the continued remodeling of existing housing units for residential use and the construction of new residential structures in the CRA 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 areas; and
WHEREAS, an emergency exists in the usual daily operations of the Development Department in that it is immediately necessary to amend said Ordinance to continue to authorize real property tax exemptions as established in Sections 3735.65 to 3735.70 of the Ohio Revised Code, thereby preserving the public health, property, peace, safety, and welfare, NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. This Ordinance amends Ordinance Number 1939-2006 Weinland Park- University/Area F (see Exhibit 3), the Original CRA Ordinance, in order to continue to provide for real property tax exemptions for residentially-zoned or residentially used parcels within the area identified in the Original CRA Ordinance and this Ordinance (see Exhibits 2, 3 and 4). The area constitutes an area 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 CRA established by the Original CRA Ordinance is hereby reaffirmed in the following described areas in Exhibit 2:
DESCRIPTION OF PROPERTY
Weinland - Park University/ Area F
The following real estate situated in the City of Columbus, County of Franklin and State of Ohio.
Weinland Park - University/ Area F is hereby established in the following described area:
North: Bounded by Hudson Street (including by the rear property lines on the north side of Hudson).
South: Bounded by East Fifth Avenue (including rear property lines on the south side of East Fifth Avenue).
West: Bounded by Pearl Alley, east of High Street (including rear property lines on the west side of Pearl Alley).
East: Interstate 71.
The CRA is approximately depicted on the map attached to this Ordinance, marked Exhibit 3, and by this reference incorporated herein.
Only residentially zoned properties or residentially-used conversion properties consistent with the applicable zoning regulations and variances thereto within the designated CRA will be eligible for exemptions under this Program.
This Ordinance and the Original CRA Ordinance will provide an exemption from real property tax on the increased valuation on previously commercial buildings that are converted to owner-occupied housing units, on single-family homes, on multi-family owner occupied housing, on existing residential rental properties, on existing multi-family housing units within the established boundaries and on construction of new rental housing located on the property within the area identified as the CCF Property or the Adjacent Property in Exhibit 5.
Section 3. Section 3 of the Original CRA Ordinance is hereby deleted. Exhibit 2 is hereby added as Exhibit 2 to the Original CRA Ordinance and Exhibit 5 is hereby added to the Original CRA Ordinance as Exhibit 5 and Section 4 of the Original CRA Ordinance is hereby amended and restated in its entirety as follows:
All properties identified in Exhibit 2 as being within the designated Weinland Park - University/ Area F Community Reinvestment Area are eligible for this abatement if they meet the criteria stated in Section 4 of this Ordinance: including vacant residentially-zoned parcels; owner occupied residential properties; commercial properties being converted to housing units; existing residential rental properties; or new rental housing located on the property within the area identified as the CCF Property or the Adjacent Property as identified on Exhibit C. Pursuant to ORC Section 3735.66, it is hereby stipulated that all of the foregoing uses are classified as residential uses for purposes of ORC Sections 3735.65 to 3735.70 and for purposes of the exemptions authorized thereunder.
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 and upon which the cost of remodeling is at least $2500.00 as described in ORC Section 3735.67.
* conversion of previously commercial buildings to owner-occupied housing units 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 and upon which the cost of remodeling is at least $2500.00 as described in ORC Section 3735.67.
(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 and upon which the cost of remodeling is at least $5000.00 as described in ORC Section 3735.67.
* conversion of previously commercial buildings to owner-occupied housing units 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 and upon which the cost of remodeling is at least $5000.00 as described in ORC Section 3735.67.
(c) One hundred percent (100%) for fifteen (15) years for newly built:
* construction of new owner-occupied dwellings.
* construction of new owner-occupied dwellings containing two or more housing units.
* construction of new rental housing located on the property within the area identified as the CCF Property or the Adjacent Property in Exhibit 5.
The Housing Officer may require a pre-application 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. Section 5 of the Original CRA Ordinance is hereby amended and restated in its entirety as follows:
That City Council reserves the right to re-evaluate the designation of the Weinland Park - University/Area F Community Reinvestment Area after December 31, 2023, at which time Council may direct the Housing Officer not to accept any application for exemptions as described in Section 3735.67 of the Ohio Revised Code.
Section 5. That a Community Reinvestment Area Housing Council shall continue, 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 Linden/Area A Community Reinvestment Area, North of Broad/Area B Community Reinvestment Area, Southside/Area C Community Reinvestment Area, Hilltop /Area D Community Reinvestment Area, South of Main/Area E Community Reinvestment Area, Weinland Park - University/Area F and Franklinton/Area G 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. 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 8. 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 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.