Explanation
Background: The City is partnering with the Central Ohio Transit Authority to develop bus rapid transit from Downtown Columbus to Dublin including along Olentangy River Road (the “Northwest BRT Corridor”). The City has implemented ZoneIn Phase 1 and is implementing ZoneIn Phase 2 to allow for higher density residential and mixed-use developments along parts of the Northwest BRT Corridor. OP Development, LLC (the “Developer”), an affiliate of Crawford Hoying, Ltd., is constructing an approximately $33.16 million mixed-use five-story building with approximately 147 residential units along with associated parking and amenities (the “Cardington Flats”) on or adjacent to Franklin County Parcel ID No. 010-305900 along the Northwest BRT Corridor. The Developer requested tax increment financing (TIF) to support public infrastructure improvements including but not limited to an extension of public right-of-way for OhioHealth Parkway with utilities to the south connecting to Olentangy River Road.
City Council passed Ordinance No. 2039-2025 establishing a new TIF area over Cardington Flats and other property owned or controlled by the Developer or its affiliates (the “Olentangy 315 South TIF”). City Council also previously passed Ordinance No. 1224-2009 and Ordinance No. 2189-2011 to previously establish two additional TIF areas now adjacent to the Olentangy 315 South TIF (respectively, the “OhioHealth TIF” and the “Olentangy & North Broadway TIF”). This Ordinance will authorize a tax increment financing agreement (the “TIF Agreement”) between the City and the Developer to reimburse the Developer for the public infrastructure improvements described herein. This Ordinance will also appropriate and authorize the expenditure or transfer of the funds generated from the Olentangy 315 South TIF, OhioHealth TIF, and Olentangy & North Broadway TIF in accordance with the TIF Agreement. Future monies generated by the OhioHealth TIF and Olentangy & North Broadway TIF will be prioritized for appropriation pursuant to an anticipated separate agreement to be submitted for City Council consideration.
Fiscal Impact: Funding is currently available in the OhioHealth TIF Fund and the Olentangy & North Broadway TIF Fund. The City is appropriating and authorizing the expenditure or transfer of funds deposited or to be deposited into the Olentangy 315 South TIF Fund, OhioHealth TIF Fund, and Olentangy & North Broadway TIF Fund.
Title
To appropriate and authorize the expenditure or transfer of funds deposited or to be deposited in the Olentangy 315 South TIF Fund, OhioHealth TIF Fund, and Olentangy & North Broadway Public Improvement TIF Fund pursuant to the following agreement; and to authorize the Director of the Department of Development to enter into the Tax Increment Financing Agreement between the City and OP Development, LLC to reimburse for the costs of public infrastructure improvements described thereunder benefiting the developer’s Cardington Flats development on or adjacent to Franklin County Parcel ID No. 010-305900. ($0.00)
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WHEREAS, pursuant to R.C. Section 5709.40(B) and Ordinance No. 1224-2009, City Council created a tax increment financing (TIF) area around the OhioHealth Riverside Methodist Hospital (the “OhioHealth TIF”); and
WHEREAS, pursuant to R.C. Section 5709.40(B) and Ordinance No. 2189-2011, City Council created a TIF area along Olentangy River Road between North Broadway and Ackerman Road (the “Olentangy & North Broadway TIF”); and
WHEREAS, the City is partnering with the Central Ohio Transit Authority to develop bus rapid transit from Downtown Columbus to Dublin including along Olentangy River Road (the “Northwest BRT Corridor”); and
WHEREAS, the City has implemented ZoneIn Phase 1 and is implementing ZoneIn Phase 2 to allow for higher density residential and mixed-use developments along parts of the Northwest BRT Corridor; and
WHEREAS, OP Development, LLC (the “Developer”), an affiliate of Crawford Hoying, Ltd., is constructing an approximately $33.16 million mixed-use five-story building with approximately 147 residential units along with associated parking and amenities on or adjacent or Franklin County Parcel ID No. 010-305900 along the Northwest BRT Corridor; and
WHEREAS, Cardington Flats and other parcels owned or controlled by the Developer or its affiliates (the “Developer Parcels”) are within the OhioHealth TIF and the Olentangy & North Broadway TIF; and
WHEREAS, the Developer requested tax increment financing to support public infrastructure improvements including but not limited to an extension of public right-of-way for OhioHealth Parkway with utilities to the south connecting to Olentangy River Road (the “Public Infrastructure Improvements”); and
WHEREAS, City Council passed Ordinance Nos. 2038-2025 and 2039-2025 removing the Developer Parcels from the OhioHealth TIF and the Olentangy & North Broadway TIF and thereafter Ordinance No. 2039-2025 also established a new TIF area over the Developer Parcels (the “Olentangy 315 South TIF”); and
WHEREAS, in order for the City to reimburse the Developer for the Public Infrastructure Improvements using the funds generated from the Olentangy 315 South TIF, OhioHealth TIF, and Olentangy & North Broadway TIF (collectively, the “Service Payments”), the City and the Developer will enter into the Tax Increment Financing Agreement (the “TIF Agreement”); and
WHEREAS, pursuant to the TIF Agreement, the City is appropriating and authorizing the expenditure or transfer of the Service Payments provided that those future monies generated from the OhioHealth TIF and Olentangy & North Broadway TIF will be prioritized for appropriation and expenditure under an anticipated separate agreement to be submitted for City Council consideration; and
WHEREAS, it has become necessary in the usual daily operation the Cardington Flats and Public Infrastructure Improvements will provide support towards the creation of new housing units in close proximity to major employers such as Riverside Methodist Hospital, Wexner Medical Center, and The Ohio State University along the Northwest BRT Corridor; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development or his or her designee (collectively, the “Director”), for and in the name of the City, is hereby authorized to execute and deliver the TIF Agreement with OP Development, LLC presently on file with the Director, 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 Infrastructure Improvements.
SECTION 3. That the Service Payments deposited or to be deposited into the Olentangy 315 South TIF Fund, OhioHealth TIF Fund, and Olentangy & North Broadway TIF Fund (collectively, the “TIF Funds”) shall be deemed 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, or its designee, from the Service Payments in the TIF Funds 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 4. That the City Auditor is authorized to make annual transfers of up to $15,000.00 ($5,000 per each TIF under the TIF Agreement) from the Service Payments in the TIF Funds 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 5. That funds are hereby deemed 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 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 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.