Explanation
Background: Community Reinvestment Areas (CRA) have been designated by the City Council under the General Policy guidelines of Ordinance 1698-78. Such areas allow for the granting of real property tax abatements to encourage industrial and commercial development.
This Ordinance will authorize the Cassady/I-670 CRA to be established and will provide the City the ability to offer real property tax exemptions for parcels within the area (depicted in Exhibit A). 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 50%, and for up to 12 years for buildings in the project area which meet the minimum level of Leadership in Energy and Environmental Design (LEED) certification, and will be subject to individual project approval by City Council. Residential uses will not be eligible for exemptions.
The proposed new CRA is located outside the City's existing enterprise zone and cannot readily be added to that zone. A business has expressed interest in developing a commercial/industrial project in the area, contingent on the availability of real property tax incentives. The Department of Development would like to be able to offer real property tax incentives to attract this project and thus is proposing establishment of the new CRA. (City Council approval of a specific tax abatement for this project will be sought in a separate piece of legislation, once the CRA district is certified by the Ohio Department of Development.)
Fiscal Impact: No funding is required for this legislation.
Title
To establish the Cassady/I-670 Community Reinvestment Area and to authorize real property tax exemptions as established by Sections 3735.65 through 3735.70 of the Ohio Revised Code; and to declare an emergency.
Body
WHEREAS, the Columbus City Council desires to pursue all reasonable and legitimate measures to assist and encourage development in specific areas of Columbus that have not enjoyed reinvestment in remodeling or new construction; and
WHEREAS, Ordinance No. 1698-78 passed August 3, 1978, authorized the Department of Development to carry out a Community Reinvestment Program, pursuant to Sections 3735.65 through 3735.70 of the Ohio Revised Code (ORC), and approved certain administrative procedures for the program; and
WHEREAS, a business has expressed interest in developing a commercial/industrial project in the vicinity of Cassady Avenue & I-670, contingent on receiving the real property tax exemption benefits of a Community Reinvestment Area; 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 maintenance of existing and construction of new structures in such area would serve to encourage economic stability, maintain real property values, and generate new employment opportunities; and
WHEREAS, the remodeling of existing structures or the construction of new structures in this CRA constitutes a public purpose for which real property exemptions may be granted; and
WHERAS, 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, an emergency exists in the usual daily operation of the Department of Development, in that it is immediately necessary to authorize the establishment of the Cassady/I-670 Community Reinvestment Area so that the City can immediately move forward with the process for state certification and offer tax incentives as soon as possible in order to attract a business development project to the city, all for the preservation of the public health, property, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF THE COLUMBUS:
Section 1. That the area depicted in Exhibit A and in Section 2, hereof designated as the Cassady/I-670 Community Reinvestment 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. That pursuant to ORC Section 3735.66, the Cassady/I-670 Community Reinvestment Area is hereby established 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 is 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 area as set forth in Exhibit A.
Section 3. That within the Cassady/I-670 Community Reinvestment Area, the percentage of the tax exemption on the increase in the assessed valuation resulting from the new construction of commercial or industrial facilities, and the term of those exemptions, shall be negotiated on a case-by-case basis in advance of the construction occurring according to the rules outlined in ORC Section 3735.67. The results of the negotiation as approved by the Columbus City Council will be set forth in writing in a Community Reinvestment Agreement as outlined in ORC Section 3735.671.
(a) Up to 50%, not exceeding 12 years, for the new construction of commercial or industrial facilities shall be negotiated on a case-by-case basis in advance of 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) For purposes of clarification, tax exemptions will only be granted for new construction that is completed by December 31, 2009.
If new construction qualifies for an exemption, during the period of the exemption the exempted percentage of the structure shall not be considered to be an improvement on the land on which it is located for the purpose of real property taxation.
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 ORC Section 3735.66 for certification of the Cassady/I-670 Community Reinvestment Area.
Section 5. That reference is hereby made to Resolution No. 1698-78 adopted by the Columbus City Council on August 3, 1978, as to designation of the Housing Officer and establishment of a Community Reinvestment Area Housing Council for the Cassady/I-670 Community Reinvestment Area. 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 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 Council 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 (C) and the City's annual monitoring fee.
Section 8. That tax abatements may only be granted with respect to new construction completed after the effective date of this Ordinance, and prior to December 31, 2009.
Section 9. That the Columbus City Council reserves the right to reevaluate the designation of the Cassady/I-670 Community Reinvestment Area after December 31, 2009, at which time Council may direct the Housing Officer not to accept any new applications for exemptions as described in ORC Section 3735.67.
Section 10. For the reasons stated in the preamble hereto, which is made a part hereof, this Ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten (10) days after passage if the Mayor neither approves nor vetoes this Ordinance.