Explanation
BACKGROUND: In late 2002 and early 2003, the Columbus Urban Growth Corporation acquired three parts of the former Northland Mall site from Cigna Insurance, Federated Department Stores and Sears for a total of 84 acres. Working with the
Northland Community Council, Northland Area Business Association and the
Northland Alliance the City and Columbus Urban Growth have worked to develop master plans to redevelop the former mall site into uses, which include office, retail use, educational facilities and park space.
The City and Columbus Urban Growth Corporation desire to enter into a Tax Increment Financing (TIF) and Development Agreement under Ohio Revised Code Section 5709.41 to pay for infrastructure and other development costs associated with the former Northland Mall site. Under Ordinance No. 0482-03 passed on March 31, 2003 by the Columbus City Council, the City agreed to acquire title to the property which comprises the former Northland Mall site and transfer title back to the current property owners in order to comply with the requirements for an O.R.C. Section 5709.41 TIF.
This ordinance continues the process of establishing the TIF by: establishing that improvements to the site are for a public purpose, requiring the owners to make service payments in lieu of taxes while establishing an urban redevelopment tax increment equivalent fund for the deposit of such service payments and authorizing the Director of Development to execute a TIF and Development Agreement.
FISCAL IMPACT: No funding is required for this legislation.
Title
An ordinance declaring improvements to certain parcels of real property to be a public purpose, requiring the owners thereof to make service payments in lieu of taxes, establishing an urban redevelopment tax increment equivalent fund for the deposit of such service payments, describing the improvements to be made, and authorizing the Director of Development to execute the TIF and Development Agreement to pay for infrastructure and other development costs associated with the former Northland Mall site; and to declare an emergency.
Body
WHEREAS, the City is committed to improving existing neighborhoods and providing quality commercial development to support the neighborhoods; and
WHEREAS, Columbus Urban Growth Corporation ("Columbus Urban") proposes to provide neighborhood commercial uses through the urban redevelopment of the former Northland Mall site (the "Project"), which is made up of the parcels of real estate described on Exhibit A hereto (the "Property") located at 1649, 1711 and 1811 Morse Road; and
WHEREAS, the City has determined that it is necessary to pass an ordinance declaring the Project to be a public purpose under Ohio Revised Code Section 5709.41; and
WHEREAS, Ohio Revised Code Sections 5709.41, 5709.42 and 5709.43 provide that this Council may declare improvements to a parcel of real property located in the City to be a public purpose, thereby exempting those improvements from real property taxation for a period of time, provide for the making of service payments in lieu of taxes by the owner(s) thereof, provide for the distribution of the applicable portion of those service payments to the Columbus City School District, and establish an urban redevelopment tax increment equivalent fund into which the remaining portion of such service payments shall be deposited and specify the purposes for which money in that fund shall be expended; and
WHEREAS, the City finds that certain determinations must be made prior to the adoption of an ordinance under Ohio Revised Code Section 5709.41; and
WHEREAS, Ohio Revised Code Section 5709.41 requires that the City have held title to the Property prior to the adoption of an ordinance declaring that the development of the Project is a public purpose; and
WHEREAS, pursuant to the authority of Ordinance No. 0482-03 passed on March 31, 2003, the City acquired title to the Property from Columbus Urban prior to the passage of this ordinance and may transfer title back to Columbus Urban; and
WHEREAS, in furtherance of public purposes, the City has determined to facilitate the development of the Project by passing an Ordinance declaring the development of the Project to be a public purpose under Ohio Revised Code Section 5709.41; and
WHEREAS, the City has determined that it is necessary and appropriate and in the best interests of the City to provide for service payments in lieu of taxes with respect to the Property pursuant to Ohio Revised Code Section 5709.42; and
WHEREAS, the City has determined that it may, from time to time and only when the provision of additional tax incentives will be required to facilitate the development of the Project, designate some or all of the Property as a Community Reinvestment Area (each a "Community Reinvestment Area") within the meaning of Sections 3735.65 through 3735.70 of the Ohio Revised Code (collectively, the "CRA Statute") and provide qualifying structures constructed within any such Community Reinvestment Area with real property tax exemptions pursuant to the terms of the CRA Statute (each qualifying structure is referred to herein as a "CRA Exempted Improvement" for so long and to the extent that it is exempted from real property taxation pursuant to the CRA Statute); and
WHEREAS, the City has determined that it may, from time to time and only when the provision of additional tax incentives will be required to facilitate the development of the Project, cause the creation of certain Enterprise Zones (each an "Enterprise Zone") within the meaning of Sections 5709.61 through 5709.69 of the Ohio Revised Code (collectively, the "Enterprise Zone Statute") and provide qualifying real property located within any such Enterprise Zone with real property tax exemptions pursuant to the terms of the Enterprise Zone Statute (each qualifying real property is referred to herein as an "Enterprise Zone Exempted Property" for so long and to the extent that it is exempted from real property taxation pursuant to the Enterprise Zone Statute); and
WHEREAS, this City Council finds and determines that notice of this proposed Ordinance has been delivered to all affected school districts in accordance with Ohio Revised Code Section 5709.83 and hereby ratifies the giving of that notice; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into a Tax Increment Financing (TIF) and Development Agreement under Ohio Revised Code Section 5709.41 to pay for infrastructure and other development costs associated with the former Northland Mall site, all for the preservation of the public health, peace, property, safety, and welfare NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the City has previously acquired title to the Property from Columbus Urban prior to the passage of this Ordinance and may transfer title to the Property back to Columbus Urban.
Section 2. That pursuant to and in accordance with the provisions of Ohio Revised Code Section 5709.41, this Council hereby finds and determines that 100% of the increase in the assessed value of the Property subsequent to the acquisition by the City (which increase in value is hereinafter referred to as the "Improvement" as defined in Ohio Revised Code Section 5709.41 but which Improvement shall not include the increase in assessed value of any CRA Exempted Improvement located upon the Property for so long and to the extent that such CRA Exempted Improvement is exempt from real property taxation pursuant to the CRA Statute nor shall the Improvement include the increase in assessed value of any parcel located on the Property for so long and to the extent that such parcel is an Enterprise Zone Exempted Property) is hereby declared to be a public purpose, and shall be exempt from taxation for a period of thirty (30) years commencing on the effective date of this Ordinance, all in accordance with the requirements of Ohio Revised Code Sections 5709.41 to 5709.43.
Section 3. That as provided in Ohio Revised Code Section 5709.42, the owners of the Property are hereby required to, and shall make, service payments in lieu of taxes to the County Treasurer on or before the final dates for payment of real property taxes, applicable portions of which service payments shall be (i) distributed by the Franklin County Treasurer to the Columbus City School District, or (ii) deposited in the Northland Urban Redevelopment Tax Increment Equivalent Fund established in Section 4 hereof, all pursuant to Ohio Revised Code Sections 5709.41 and 5709.42, and as provided in Section 4 of this Ordinance. Each payment shall be in the same amount as the real property taxes that would have been charged and payable against the Improvements (after credit for any other payments received by the City under Ohio Revised Code Sections 319.302, 321.24, 323.152 and 323.156, hereinafter referred to as the "Property Tax Rollback Payments") had an exemption for taxation not been granted, and shall otherwise be in accordance with Ohio Revised Code Section 5709.41 through 5709.43. Any late payments shall be subject to penalty and bear interest at the then current rate established under Ohio Revised Code Sections 323.121(B)(1) and 5703.47, as the same may be amended from time to time (the payment of penalties and interest, along with the payments in lieu of taxes are collectively referred to herein as the "Service Payments"). This Council further hereby authorizes and directs the Director of the Department of Development, the City Auditor, the Director of Law, or other appropriate officers of the City, to make such arrangements as are necessary and proper for collection from the owners of said service payments in lieu of taxes, including the preparation and filing of any necessary exemption applications.
Section 4. That pursuant to Ohio Revised Code Sections 5709.41 and 5709.42, the County Treasurer shall distribute to the Columbus City School District from the Service Payments and any Property Tax Rollback Payments, and at the same time and in the same manner as real property tax payments, amounts equal to the amounts that School District would otherwise receive as real property tax payments derived from the Improvement absent the passage of this Ordinance.
This Council hereby establishes pursuant to and in accordance with the provisions of Ohio Revised Code Section 5709.43, the Northland Urban Redevelopment Tax Increment Equivalent Fund (the "Fund"). The Fund shall be in the custody of the City and shall receive all Service Payments and Property Tax Rollback Payments not distributed to the Columbus City School District. Those Service Payments and Property Tax Rollback Payments so deposited and distributed pursuant to law as provided in Ohio Revised Code Section 5709.42 shall be used for the following purposes authorized in Ohio Revised Code Sections 5709.41, 5709.42 and 5709.43: Paying for or financing the costs of improvements to or on, or servicing the Property or the Project, including but not limited to water, sewer and storm sewer improvements; road, sidewalk and streetscape improvements; the acquisition of real estate and interests therein; and site preparation for those improvements and for the Project; and all necessary appurtenances and related costs, including but not limited to all costs enumerated in Ohio Revised Code Section 133.15(B). The Fund shall remain in existence so long as such service payments are collected and used for the aforesaid purposes, after which said Fund shall be dissolved in accordance with Ohio Revised Code Section 5709.43.
Section 5. That pursuant to Ohio Revised Code Section 5709.41, the Clerk of this Council is hereby directed to deliver a copy of this Ordinance to the Director of the Department of Development of the State of Ohio within fifteen days after its passage. On or before March 31 of each year that the exemption set forth in Section 1 hereof remains in effect, the Director of Development or other authorized officer of this City shall prepare and submit to the Director of the Ohio Department of Development the status report required under Section 5709.41(E) of the Ohio Revised Code.
Section 6. That the Director of the Department of Development, for and in the name of this City, is hereby authorized to execute a tax increment financing and development agreement by and between the City and Columbus Urban or its assignee(s) for the purpose of developing the Project on the Property, provided that any expenditure pursuant to that Agreement of amounts deposited in the Fund is subject to the expenditure restrictions and appropriation requirements of Section 27 through 31 of the City Charter.
Section 7. That this Council finds and determines that all formal actions of this Council concerning and relating to the passage of this Ordinance were taken in an open meeting of this Council and that all deliberations of this Council that resulted in those formal actions were in meetings open to the public in compliance with the law.
Section 8. That for the reasons stated in the preamble thereto, which is hereby 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 days after passage if the Mayor neither approves nor vetoes the same.