Explanation
Background: In response to a petition from the Department of Development, City Council, by its Ordinance 2172-2005 passed on December 12, 2005, approved the creation of the Short North Incentive District. Service payments in lieu of taxes made with respect to improvements within the Short North Incentive District are diverted to the Short North Tax Equivalent Fund and are intended to finance the creation of up to 500 public parking spaces in the Short North Incentive District to relieve parking overcrowding and spur job creation. A parking study was done in 2005 that identified a need for 500 additional parking spaces in the Short North TIF District. A development has been proposed that would develop 250 of those 500 spaces. The City is committed to working to generate needed parking. This Ordinance approves and authorizes a tax increment financing agreement between the City of Columbus and Pizzuti Short North LLC to provide for the construction and financing of certain improvements within and around that TIF Area.
Fiscal Impact: No City funding is required for this legislation.
Title
To approve and authorize the execution of a tax increment financing agreement between the City of Columbus and Pizzuti Short North LLC to provide for the construction and financing of improvements within and around the Short North Incentive District; and to declare an emergency.
Body
WHEREAS, Sections 5709.40(C), 5709.42 and 5709.43 of the Ohio Revised Code authorized this Council, by ordinance, to declare the improvement to certain parcels of real property located within the corporate boundaries of the City of Columbus, Ohio (the "City"), to be a public purpose and exempt from taxation, require the owner of each parcel to make service payments in lieu of taxes, and specify public infrastructure improvements made, to be made or in the process of being made that directly benefit, or that once made will directly benefit, those parcels; and
WHEREAS, pursuant to Ordinance No. 2172-2005 passed on December 12, 2005 (the "TIF Ordinance"), this Council created a tax increment financing in the area of High Street north of Goodale Blvd. up to Fifth Ave. (the "TIF Area") (Exhibit A); and
WHEREAS, Pizzuti Short North LLC has commenced making or causing to be made private improvements within the TIF Area (collectively, the "Private Improvements"); and
WHEREAS, the City has determined that it is in the best interest of the City and its residents that certain public infrastructure improvements be made in support of those Private Improvements, which public infrastructure improvements were included in the description of Public Infrastructure Improvements in the TIF Ordinance and are necessary and appropriate in connection with the development of the TIF Area and will directly benefit the TIF Area; and
WHEREAS, the City desires Pizzuti Short North LLC to construct or cause to be constructed the Public Infrastructure Improvements (Exhibit B); and
WHEREAS, the City intends to enter into a Tax Increment Financing Agreement with Pizzuti Short North LLC to provide for, among other things, (i) the construction of the Public Infrastructure Improvements, (ii) the payment of service payments in lieu of taxes pursuant to the TIF Ordinance, and (iii) disbursement of monies on deposit in the TIF Fund to Pizzuti Short North LLC to pay costs of construction of the Public Infrastructure Improvements; and
WHEREAS, that the Director or other appropriate officers of the City are authorized to execute such other agreements and instruments and to take all actions necessary to implement this Ordinance and the transactions contemplated by the TIF Agreement; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, that it is immediately necessary to facilitate the continuing development of the TIF Area, such immediate action being necessary for the preservation of the public health, peace, property and safety; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development (the "Director"), for and in the name of the City, is hereby authorized to execute the Tax Increment Financing and Cooperative Agreement (the "TIF Agreement") 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. This Council hereby waives the requirements of Chapter 329 of the City Codes with respect to the TIF Agreement.
Section 2. That a portion of the service payments made in lieu of real property taxes and deposited in the Short North Public Improvement Tax Increment Equivalent Fund, as established by Ordinance 2172-2005 (Fund No. 449), and not previously committed to be expended by the agreement authorized by Ordinance 0902-2012 shall be deemed appropriated for the purpose set forth in the Agreement and the City Auditor is hereby authorized to make payments to the Developer upon receipt of invoices submitted in accordance with the Agreement and approved by the Director of Development.
Section 3. That the Director or other appropriate officers of the City are hereby authorized to execute such other agreements and instruments and to take all actions necessary to implement this Ordinance and the transactions contemplated by the TIF Agreement.
Section 4. 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 passage and approval by the Mayor or ten days after the passage if the Mayor neither approves nor vetoes the same.