Explanation
Background: The Columbus City Council passed Ordinance 1189-2009 on September 14, 2009, establishing three residential tax increment financing incentive districts in the Gay Street neighborhood in the City pursuant to Section 5709.40(C) of the Ohio Revised Code. The attached Ordinance approves and authorizes a tax increment financing and cooperative agreement by and among the City of Columbus, One Neighborhood New Community Authority, and Gay Street Condominium, LLC, to provide for the construction and financing of certain improvements within and around those incentive districts.
Emergency action is required in order to facilitate the continuing development of the parcels.
Fiscal Impact: No City funding is required for this legislation.
Title
To approve and authorize the execution of a tax increment financing and cooperative agreement by and among the City of Columbus, One Neighborhood New Community Authority, and Gay Street Condominium, LLC, to provide for the construction and financing of improvements within and around the three residential tax increment financing districts created by Ordinance 1189-2009, passed by the City Council on September 14, 2009; and to declare an emergency.
Body
WHEREAS, Sections 5709.40(C), 5709.42 and 5709.43 of the Ohio Revised Code authorize this Council, by ordinance, to create one or more incentive districts within the corporate boundaries of the City of Columbus, Ohio (the "City"), and declare the improvement to each parcel of real property located within each incentive district 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 serve, or that once made will directly benefit or serve, parcels in the incentive districts; and
WHEREAS, pursuant to Ordinance 1189-2009, passed on September 14, 2009 (the "TIF Ordinance"), this Council created three residential tax increment financing incentive districts in the Gay Street neighborhood in the City (collectively, the "Incentive Districts"); and
WHEREAS, Gay Street Condominium, LLC (the "Developer") has commenced making or causing to be made private residential improvements within the Incentive Districts (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 Incentive Districts and will directly benefit the Incentive Districts (with those improvements, collectively with the Private Improvements, referred to herein as the "Project"); and
WHEREAS, the Developer has requested the assistance of One Neighborhood New Community Authority (the "Authority") in financing the costs of the Project; and
WHEREAS, the City intends to enter into a Tax Increment Financing and Cooperative Agreement with the Authority and the Developer to provide for, among other things, (i) the construction of the Project, (ii) the issuance of bonds (the "Bonds") by the Authority to pay costs of the Project, (iii) the payment of service payments in lieu of taxes (the "Service Payments") by the Developer pursuant to the TIF Ordinance, and (iv) disbursement of the proceeds of the Bonds for the construction of the Project and the transfer of the Service Payments by the City to the Authority to pay principal and interest and other costs relating to the Bonds; and
WHEREAS, an emergency exists in that this Ordinance is required to be immediately effective in order to facilitate the continuing development of the Parcels, 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 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.
Section 2. That the Director or other appropriate officers of the City are authorized to execute such other agreements and instruments and to take all actions as may be necessary to implement this Ordinance and the transactions contemplated by the TIF Agreement.
Section 3. That this Council hereby waives the requirements of Chapter 329 of the City Codes with respect to any agreements entered into pursuant to this Ordinance.
Section 4. That the service payments in lieu of taxes and property tax rollback payments deposited in the One Neighborhood Municipal Public Improvement Tax Increment Equivalent Fund created by Ordinance No. 1189-2009 (the "TIF Fund") 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 subject to vouchers approved by the Director of Development or the Director of Public Service, the City Auditor is hereby authorized to make payments to the Developer (as defined in the TIF Agreement) or One Neighborhood New Community Authority or its designee from the TIF Fund in accordance with the TIF Agreement.
Section 5. That for reasons stated in the preamble hereto, 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 adoption and approval by the Mayor, or ten days after adoption if the Mayor neither approves nor vetoes the same.