Explanation
Background: This legislation authorizes the Director of the Department of Development to enter into a Tax Increment Financing Agreement with Coulter Properties, LLC (the “Developer”) providing for the reimbursement of soft and construction costs, including demolition, adjacent to the Rogue Fitness expansion, which such expansion is located on property co-owned by the Developer. Ordinance No. 3097-2015, as amended by Ordinance No. 1988-2023, created and expanded a non-school tax increment financing area pursuant to R.C. Section 5709.40(B) in the vicinity of the Milo-Grogan neighborhood (the “Milo-Grogan TIF”), declared that 100% of the increased value of non-residential improvements to certain parcels of real property located within the Milo-Grogan TIF to be a public purpose exempt from taxation for a period of 30 years, and required the property owners within the Milo-Grogan TIF to make service payments in lieu of taxes for the same amounts as their property taxes as if the improvements to their parcels had not been exempted. The Developer is proposing to invest a total project cost of approximately $48,245,000.00 to expand the existing corporate headquarters of Rogue Fitness by 270,000 square feet. Additionally, Rogue Fitness proposes to create 30 new full-time permanent positions with an estimated annual payroll of approximately $1,698,000.00 and retain 665 full-time jobs. Approval is requested for the transfer, appropriation, and expenditure for the reimbursement of soft and construction expenses, including demolition, of public infrastructure improvements adjacent to the Rogue Fitness expansion including, but not limited to, those costs incurred prior to the execution of the purchase order, starting January 1, 2026.
Fiscal Impact: The City is transferring, appropriating, and authorizing the expenditure of up to $81,421.83 deposited within the Milo-Grogan TIF Fund (7469) to Coulter Properties, LLC for soft and construction costs, including demolition, pursuant to the TIF Agreement with Coulter Properties, LLC.
Title
To transfer, appropriate, and authorize the expenditure of service payments in lieu of taxes deposited into the Milo-Grogan TIF Fund to Coulter Properties, LLC; to authorize the Director of the Department of Development, on behalf of the City, to enter into the TIF Agreement with Coulter Properties, LLC for up to eighty-one thousand four-hundred twenty-one dollars and eighty-three cents ($81,421.83) to reimburse them for soft costs and construction costs, including demolition, for public infrastructure improvements adjacent to the Rogue Fitness expansion; and to allow for the reimbursement of expenditures incurred prior to the Purchase Order, starting January 1, 2026. ($81,421.83)
Body
WHEREAS, this legislation authorizes the Director of the Department of Development, on behalf of the City, to enter into the Tax Increment Financing Agreement (the “TIF Agreement”) with Coulter Properties, LLC (the “Developer”) providing for reimbursement of soft and construction costs, including demolition, of public infrastructure improvements adjacent to the Rogue Fitness Expansion; and
WHEREAS, the Developer is investing approximately $48,245,000.00 to expand the existing corporate headquarters of Rogue Fitness by 270,000 square feet and will create approximately 30 new jobs and retain 665 full-time jobs; and
WHEREAS, the purpose of the TIF Agreement is to provide funding by reimbursing the Developer up to $81,421.83 for public infrastructure improvements work that was planned to be a part of the City’s Bridge Rehab - UIRF - Milo Grogan Second Avenue Improvements but have now been undertaken by the Developer; and
WHEREAS, Ordinance No. 3097-2015, as amended by Ordinance No. 1988-2023, created and expanded the Milo-Grogan TIF and declared that 100% of the increased value of non-residential improvements to certain parcels of real property located within the Milo-Grogan TIF to be a public purpose and exempt from taxation for a period of 30 years; and
WHEREAS, the Developer will be reimbursed for soft and construction costs, including demolition, pursuant to the TIF Agreement including, but not limited to, those incurred prior to the purchase order dating back to January 1, 2026; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Development that this legislation will also transfer, appropriate, and authorize the expenditure of the funds deposited within the Milo-Grogan TIF Fund (7469) for the purposes in the TIF Agreement; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the transfer of up to $81,421.83, or so much thereof as may be needed, is hereby authorized within Fund 7469 (Milo-Grogan TIF Fund), from Dept-Div 4402 (Economic Development), Project P469001-100000 (Milo-Grogan TIF) to Project P440005-102221 (Bridge Rehab - UIRF - Milo Grogan Second Avenue Improvements), in Object Class 06 (Capital Outlay), per the account codes in the attachment to this ordinance.
SECTION 2. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2026, the sum of up to $81,421.83 is appropriated in Fund 7469 (Milo-Grogan TIF Fund), Dept-Div 4402 (Economic Development), Project P440005-102221 (Bridge Rehab - UIRF - Milo Grogan Second Avenue Improvements), in Object Class 06 (Capital Outlay), per the account codes in the attachment to this ordinance.
SECTION 3. That the Director of the Department of Development, or his or her designee, on behalf of the City, is authorized to enter into the TIF Agreement with Coulter Properties, LLC. for up to $81,421.83 for the purpose of reimbursing soft and construction related costs, including demolition, of public infrastructure improvements (as defined in R.C. Section 5709.40(A)(8)) adjacent to the expansion of Rogue Fitness; expenditures incurred prior to the Purchase Order but after January 1, 2026 are authorized to be reimbursed in addition to expenditures incurred after the Purchase Order.
SECTION 4. That, pursuant to the TIF Agreement, the expenditure of up to $81,421.83, or so much thereof as may be needed, is hereby authorized in Fund 7469 (Milo-Grogan TIF Fund), Dept-Div 4402 (Economic Development), Project P440005-102221 (Bridge Rehab - UIRF - Milo Grogan Second Avenue Improvements), in Object Class 06 Capital Outlay per the account codes in the attachment to this Ordinance.
SECTION 5. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, authorized for expenditure to carry out the purposes of this ordinance, and the City Auditor shall establish such accounting codes as necessary.
SECTION 6. 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 7. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account or sub fund 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 8. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.