Explanation
Background: Ordinance No. 2069-2021, passed by City Council on July 26, 2021, authorized the Director of the Department of Development on behalf of the City to enter into the Memorandum of Understanding (the “MOU”) with The Ohio State University (“OSU”) concerning the redevelopment of OSU’s west campus within the City between the CSX railroad to the east, North Star Road to the west, Lane Avenue to the north, and the southern boundary of the parcels running along the south side of Kinnear Road (the “Innovation District”). Pursuant to the MOU, City Council passed Ordinance No. 3171-2021 on December 13, 2021 to establish a non-school tax increment financing (TIF) area pursuant to R.C. Section 5709.40(B) over the Innovation District (the “Innovation District TIF”). The non-school portion of those service payments in lieu of taxes from the Innovation District TIF paid to the City are to be used to reimburse OSU for public infrastructure improvements benefiting the Innovation District TIF. To provide for the reimbursement, City Council passed Ordinance No. 3247-2021 on December 13, 2021 to authorize the Tax Increment Financing Agreement dated April 8, 2022 (the “TIF Agreement”) by and between the City and OSU. Pursuant to the TIF Agreement, OSU has provided its written consent and requested that the City expand its residential tax incentive area pursuant to R.C. Sections 3735.65 through 3735.70 over the Innovation District TIF. This Ordinance will amend Ordinance No. 3171-2021 to make the Innovation District TIF subordinate to the expanded residential tax incentive area and to modify the commencement start date of the Innovation District TIF. This Ordinance will also authorize the Director of the Department of Development to amend the TIF Agreement for the same reasons.
Fiscal Impact: No funding is required for this legislation.
Title
To amend Ordinance No. 3171-2021 that created the Innovation District TIF to update the “Authorized Superior Exemptions” to the Innovation District “TIF Exemption” each described therein; to modify the commencement start date of the Innovation District TIF; and to authorize the Director of the Department of Development to execute and deliver a first amendment to the Tax Increment Financing Agreement dated April 8, 2022 by and between the City and OSU for the same reasons the ordinance is being amended. ($0.00)
Body
WHEREAS, Ordinance No. 2069-2021, passed by City Council on July 26, 2021, authorized the Director of the Department of Development on behalf of the City to enter into the Memorandum of Understanding (the “MOU”) with The Ohio State University (“OSU”) concerning the redevelopment of OSU’s west campus within the City between the CSX railroad to the east, North Star Road to the west, Lane Avenue to the north, and the southern boundary of the parcels running along the south side of Kinnear Road (the “Innovation District”); and
WHEREAS, in accordance with the MOU, on December 13, 2021, City Council passed Ordinance No. 3171-2021 pursuant to R.C. Section 5709.40(B) to establish a non-school tax increment financing (TIF) area covering the Innovation District (the “Innovation District TIF”); and
WHEREAS, the non-school portion of those service payments in lieu of taxes from the Innovation District TIF paid to the City are to be used to reimburse OSU for public infrastructure improvements benefiting the Innovation District TIF; and
WHEREAS, to provide for such reimbursement, the Director of the Department of Development on behalf of the City and OSU entered into the Tax Increment Financing Agreement dated April 8, 2022 (the “TIF Agreement”) authorized by Ordinance No. 3247-2021 passed by City Council on December 13, 2021; and
WHEREAS, pursuant to the TIF Agreement, OSU has requested the City, and provided its written consent for the City, to expand a residential tax incentive area pursuant to R.C. Sections 3735.65 through 3735.70 over the Innovation District TIF; and
WHEREAS, such expansion request requires the City to amend Ordinance No. 3171-2021 to make the TIF subordinate to the aforesaid residential tax incentive and to change the commencement start date of the Innovation District TIF; and
WHEREAS, it has become necessary in the usual daily operation to incorporate similar changes into the TIF Agreement, the City and OSU desire to enter into a first amendment to the TIF Agreement (the “First Amendment”); NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That Section 3 of Ordinance No. 3171-2021 is hereby amended to modify the list of “Superior Authorized Exemptions” as defined therein and to modify the commencement start date of the exemption for the Innovation District TIF as follows with additions in underline and deletions in strikethrough:
Section 3. Exemption. Pursuant to Ohio Revised Code (“ORC”) Section 5709.40(B), this Council hereby finds and determines that one-hundred percent (100%) of the increase in assessed value of each Parcel subsequent to the effective date of this Ordinance (which increase in assessed value is hereinafter referred to as the “Improvement” as defined in ORC Section 5709.40(A)) is hereby declared to be a public purpose and exempt from taxation for a coextensive period for all Parcels, which commences for all Parcels with the tax year that begins on January 1, 20262029 (for service payments to be first paid and collected in 20272030) and ending on the earlier of (a) thirty (30) years after such commencement or (b) the date on which the City can no longer require service payments in lieu of taxes, all in accordance with the requirements of the TIF Statutes (the “TIF Exemption”). The TIF Exemption provided by this Ordinance is subordinate to any exemption for a Parcel pursuant to ORC Sections 3735.65 through 3735.70 (CRA), Section 140.08 (public hospitals), Section 3345.12(M) (university purposed facilities or entrepreneurial projects), Section 3345.17 (state universities), Section 5709.07(A)(4) (public colleges and academies), Sections 5709.12 and 5709.121 (public or charitable purposes), Section 5709.08 (government and public property) and 5709.081 (public recreational facility) (collectively the “Authorized Superior Exemptions”). Accordingly, and in accordance with ORC Section 5709.911(B), by this duly enacted Ordinance, Council provides its duly authorized consent to any Authorized Superior Exemptions to the Parcels applied for after the TIF Exemption.
SECTION 2. That except as provided herein, all other provisions of Ordinance No. 3171-2021 shall remain in full force and effect. It is the intent of this Council that Ordinance No. 3171-2021 and this Ordinance be construed together as a single instrument.
SECTION 3. That the Director of the Department of Development, or his or her designee, (together, the “Director”) for and in the name of the City, is hereby authorized to execute and deliver the First Amendment between the City and The Ohio State University 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 , which shall be evidenced conclusively by the Director’s execution and delivery thereof.
SECTION 4. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.