Explanation
BACKGROUND: Community Reinvestment Areas have been designated by Columbus City Council under the general guidelines of Resolution No. 1698-78. Such areas allow for the granting of real property tax incentives to encourage industrial, commercial and residential growth.
This resolution will designate the Rickenbacker Community Reinvestment Area to include an area south of Williams Road in the Rickenbacker area and to authorize tax abatements within the area.
Adoption of this resolution will allow the City of Columbus to offer tax incentives to business prospects interested in development in the area. The exemptions will be available to attract the new construction of commercial or industrial facilities and will be negotiated on a case by-case basis in advance of construction. The exemptions may be up to one hundred percent (100%) and for up to fifteen (15) years for buildings in the project area which meet the minimum level of Leadership in Energy and Environmental Design (LEED) certification. City Council approval of specific tax abatement for this project will be sought in a separate legislation once the CRA district has been certified by the Ohio Department of Development. Residential uses will not be eligible for exemptions. The Hamilton and Columbus City School Districts have been advised of the proposed creation of this Community Reinvestment Area.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to designate the Rickenbacker Community Reinvestment Area; to authorize real property tax exemptions as established by the Ohio Revised Code; and to declare an emergency.
Body
WHEREAS, the Columbus City Council desires to pursue all reasonable and legitimate incentive measures to assist in encouraging development in specific areas of Columbus that have not enjoyed reinvestment in remodeling or new construction; and
WHEREAS, Resolution No. 1698-78 approved August 3, 1978, authorized the Department of Development to implement a Community Reinvestment Program, pursuant to Section 3735.65 to 3735.70 of the Ohio Revised Code, and approved certain administrative procedures for the program; and
WHEREAS, the maintenance of existing and construction of new structures in the CRA constitutes a public purpose for which real property exemptions may be granted; and
WHEREAS, a survey of housing (see Exhibit B) as required by the ORC Section 3735.66 has been prepared for the area to be included in the proposed Community Reinvestment Area (CRA); and
WHEREAS, the City of Columbus would like to encourage the construction of new buildings that meet the standards set forth by the U.S. Green Building Council's LEED certification program; and
WHEREAS, a business has expressed interest in developing a commercial/industrial project in the vicinity of the Rickenbacker area, contingent on receiving the real property tax exemption benefits of a Community Reinvestment Area; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to designate the Rickenbacker Community Reinvestment Area in order to preserve the public health, peace, property, safety and welfare; now, therefore,
BE IT RESOLVED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Rickenbacker Community Reinvestment Area has successfully met the criteria for designation as a Community Reinvestment Area.
Section 2. That the boundaries of the Rickenbacker Community Reinvestment Area are as described in "Exhibit A" attached hereto and incorporated herein by reference.
Tax parcel numbers within the above-described area have been identified and a list of the parcel numbers are set forth in Exhibit A attached hereto. The listing of tax parcel numbers in Exhibit A is for informational purposes only and the list is not intended to be inclusive of current or future tax parcels which lie within the above described area and shall not be deemed to exclude any parcels which are otherwise included within the above described areas as set forth in Exhibit A.
Section 3. That within the Rickenbacker Community Reinvestment Area tax exemption for improvements to real property as described in Section 3735.67 of the Ohio Revised Code will be granted for the following periods:
a. Up to one hundred percent (100%) not exceeding fifteen (15) years for the new construction of commercial or industrial facilities shall be negotiated on a case-by-case basis in advance of the construction occurring. For purposes of clarification, the City's criteria may include the level of investment, job creation/retention, LEED certification for qualified "green buildings" and other development policy considerations.
b. Tax abatements may only be granted for new construction completed after the effective date of this Ordinance, and prior to December 31, 2010.
Section 4. That the Housing Officer is hereby authorized and directed, on behalf of the City to petition the State Director of Development, in accordance with O.R.C. Section 3735.66 for certification of the Rickenbacker Community Reinvestment Area.
Section 5. That reference is hereby made to Resolution No. 1698-78 adopted by City Council on August 3, 1978, as to designation of the Housing Officer and establishment of a Community Reinvestment Area Housing Council for the Rickenbacker Community Reinvestment Area. The Community Reinvestment Area Housing Council shall make an annual inspection of the properties within the districts for which an exemption has been granted under ORC Section 3735.67 and shall also hear appeals under ORC 3735.70.
Section 6. That a Tax Incentive Review Council shall be designated pursuant to ORC Section 5709.85 and shall annually review the compliance of all agreements involving the granting of exemptions for commercial or industrial real property improvements under ORC Section 3735.671 and make written recommendations to the Columbus City as to continuing, modifying or terminating said agreement based upon the performance of the agreement.
Section 7. That all commercial and industrial projects are required to comply with the state application fee requirements of ORC Section 3735.672 © and the City's annual monitoring fee.
Section 8. That a copy of this Resolution will be forwarded to the Franklin County Auditor by the Columbus City Clerk for information and reference and will be published in a newspaper of general circulation once a week for two consecutive weeks following its passage and approval.
Section 9. That Columbus City Council reserves the right to reevaluate the designation of the Rickenbacker area after December 31, 2010, at which time Council may direct the Housing Officer not to accept any new applications for exemptions as described in Section 3735.67 of the Ohio Revised Code.
Section 10. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this resolution is hereby declared to be an emergency measure and shall take effect and be in force from and after its adoption and approval by the Mayor, or ten days after adoption if the Mayor neither approves nor vetoes the same.