Explanation
Background
The Short North CRA needs to be updated to reflect the recent changes made to Chapter 4565 of the City’s Code. This ordinance will modify the Short North Community Reinvestment Area by modifying the minimum investment required to apply for the Incentive and to make administrative corrections to terms to align with Chapter 4565.
FISCAL IMPACT: Not applicable.
Title
To amend the Short North Community Reinvestment Area to make modifications to align with the updates located in Chapter 4565 of the Columbus City Code (“CCC”); to modify the minimum investment required to apply for the Incentive; and to amend Ordinance No. 1292-2012, as amended by Ordinance Nos. 2194-2018 and 1884-2022. ($0.00)
Body
WHEREAS, the Council of the City of Columbus (hereinafter "Council") desires to pursue reasonable and legitimate incentive measures to assist and encourage development in specific areas of the City of Columbus that have not enjoyed reinvestment from remodeling or new construction; and
WHEREAS, Resolution No. 1698-78, approved August 3, 1978, authorized the Department of Development to carry out a Community Reinvestment Program, pursuant to Sections 3735.65 to 3735.70 of the Ohio Revised Code, and approved certain administrative procedures for the program; and
WHEREAS, Ordinance 1292-2012 created the Short North Community Reinvestment Area and authorized real property tax exemptions within it, as provided per Ohio Revised Code (“ORC”); and
WHEREAS, it has become necessary in the usual daily operation the City of Columbus wishes to make administrative updates to the Short North Community Reinvestment Area to align to updates to Chapter 4565 of CCC and to the minimum investment costs as described by the Ohio Revised Code; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Section 3 of Ordinance 1292-2012, as amended by Ordinance 2194-2018 (in Section 1 thereof) and Ordinance No. 1884-2022, is hereby amended as follows:
***
Section 3. A tax exemption on the increase in the assessed valuation resulting from improvements as described herein shall be granted upon proper application by the property owner, filed with the Housing Officer no later than two years after construction completion, and certification thereof by the designated Housing Officer for the following periods:
(a) For a Development Project involving the remodeling of a structure, or construction of a new structure, dwelling (i) containing not more than two (2) family units, upon which the cost of remodeling is at least two thousand five hundred dollars ($2500) or twenty percent (20%) of the assessed value of the structure, whichever is more; or (ii) containing not more than three (3) family Housing Units (as defined in Columbus City Codes (“CCC”) Section 4565.02), upon which the cost of remodeling is at least five thousand dollars ($5000) or twenty percent (20%) of the assessed value of the structure, whichever is more:
• One hundred percent (100%) for fifteen (15) years for Affordable Housing Units (as that term is defined in Columbus City Code (“CCC”) Section 4565.02) in areas designated Ready for Opportunity Areas, Ready for Revitalization Areas and or Market Ready Areas, subject to and contingent upon the owner of the structure and the City entering into a written agreement as described in CCC Section 4565.05, Section 4565.07, or 4565.08, or 4565.09, as applicable prior to the commencement of construction or within an extended time-frame thereafter subject to the approval of the Development Director. The abatement is revocable upon the first owner transferring title to the structure to a third party following the first owner’s initial occupancy.
• One hundred percent (100%) for fifteen (15) years in areas designated Ready for Opportunity
(b) For a Development Project involving the construction of a new dwelling containing not more than three (3) family units:
• One hundred percent (100%) for fifteen (15) years in areas designated Ready for Opportunity Areas.
• One hundred percent (100%) for fifteen years for Affordable Housing Units (as defined in CCC Section 4565.02) in areas designated Ready for Revitalization Areas, and Market Ready Areas, subject to and contingent upon the owner of the structure and the City entering into a written agreement as described in CCC Section 4565.07, or 4565.08, prior to the commencement of construction or within an extended time-frame thereafter subject to the approval of the Development Director. The abatement is revocable upon the first owner transferring title to the structure to a third party following the first owner’s initial occupancy.
(cb) For a Development pProject involving the remodeling of a structure, or construction of a new structure, of a dwelling or construction of a new dwelling containing four (4) or more family Housing uUnits:
• One hundred percent (100%) for fifteen (15) years in areas designated Ready for Opportunity Areas, Ready for Revitalization Areas and Market Ready Areas, subject to and contingent upon the owner of the structure and the City entering into a written agreement as described in CCC Section 4565.05, Section 4565.07, or 4565.08, or 4565.09, as applicable prior to the commencement of construction or within an extended time-frame thereafter subject to the approval of the Development Director.
(dc) Up to one hundred percent (100%) for up to fifteen (15) years for:
• Construction of new commercial structures (including, without limitation, retail structures and parking garages).
Designation of the Short North Community Reinvestment Area as a Ready for Opportunity Area, a Ready for Revitalization Area, or a Market Ready Area shall be made by the Development Director pursuant to CCC Section 4565.03.
The Incentives tax exemptions provided for herein shall further be governed by the terms and conditions contained in Chapter 4565 of the CCC Columbus City Codes, including any amendments thereto, as well as the requirements contained in Sections 3735.65 to 3735.70 of the ORC Ohio Revised Code, including the minimum investment requirements set forth therein. For a remodeling Development Project containing not more than two (2) Housing Units, the cost of construction must be at least two thousand five hundred dollars ($2,500.00). For a remodeling Development Project containing three (3) or more Housing Units, or for a new construction Development Project containing any number of Housing Units, the cost of construction must be at least five thousand dollars ($5,000.00)
To receive an Incentive abatement as provided herein, the applicant for the Development Project must provide documentation that it has received a Certificate of Appropriateness, or other similar approval from the City, ensuring the residential project meets the City subdivision standards for the type of residential project being constructed or remodeled.
The Incentive tax exemption provided hereunder is senior to any tax exemption provided pursuant to ORC Sections 5709.40 or 5709.41.
SECTION 2. That existing Section 3 of Ordinance No. 1292-2012, as amended by Ordinance Nos. 2194-2018 and 1884-2022, is hereby repealed, except that Sections 4 and 5 of Ordinance No. 1884-2022 shall remain effective as adopted prior to this ordinance.
SECTION 3. That upon passage, the Clerk of this Council is directed to forward a copy of this Ordinance to the Franklin County Auditor for information and reference. The Clerk of this Council is further directed to cause notice of the passage of this Ordinance in a newspaper of general circulation in the City once a week for two consecutive weeks immediately following its passage, as required by Section 3735.66 of the Ohio Revised Code.
SECTION 4. That this Council further authorizes and directs the Mayor, the Clerk of Council, the Director of Development and/or other appropriate officers of the City, to prepare and sign all agreements and documents and to take any other actions as may be appropriate or necessary to implement this Ordinance.
SECTION 5. That this Ordinance shall take effect and be in force from and after the earliest date allowed by law.