Explanation
BACKGROUND: Community Reinvestment Areas (CRA) have been designated by the City Council under the General Policy Guidelines of Resolution Ordinance 1698-78. Such areas allow for the granting of real property tax abatements to encourage industrial, commercial and residential growth.
This Ordinance will create the AC Humko Community Reinvestment Area (see Exhibit A) and provide for real property tax exemptions for parcels within the areas.
This measure will facilitate the new construction of approximately 300 single-family residential units.
The Columbus Department of Development proposes a real property tax incentive of 75% for 10 years on the construction of approximately 300 new single-family residences. The Columbus School District has been advised of this project.
FISCAL IMPACT: No funding is required for this legislation.
Title
To create the AC Humko Community Reinvestment Area; to authorize real property tax exemptions up to 75% for a term of 10 years on the construction of new single-family residences as established by Sections 3735.65 through 3735.70 of the Ohio Revised Code; and to declare an emergency. (AMENDED BY ORD. 1913-2008 PASSED 12/8/2008)
Body
WHEREAS, City Council desires to pursue all reasonable and legitimate incentive measures to assist and encourage development in a specific area of the City that has not enjoyed reinvestment in historic buildings, remodeling or new construction; and
WHEREAS, Resolution Ordinance No. 1698-78 adopted August 3, 1978, authorized the Department of Development to carry out a Community Reinvestment Program, pursuant to Sections 3735.65 through 3735.70 of the Ohio Revised Code, and approved certain administrative procedures for the program; and
WHEREAS, the Department of Development has received a proposal from Royal Tallow Holdings Ltd. and Harrison Park Development, Ltd. to construct approximately 300 single-family residential units and receive real property tax exemption benefits of a Community Reinvestment Area; and
WHEREAS, the City has discussed the designation of the area with the State of Ohio, and the City will submit the designation to the Director of the Department of Development of the State of Ohio and request certification for designation as a Community Reinvestment Area; and
WHEREAS, a housing survey (see Exhibit C) as required by Ohio Revised Code (ORC) Section 3735.66 has been prepared for the area to be included in the proposed Community Reinvestment Area; and
WHEREAS, the construction of new structures in such area would serve to encourage economic stability, maintain real property values and generate new employment opportunities; and
WHEREAS, the remodeling of existing structures and the construction of new structures in the Community Reinvestment Area constitutes a public purpose for which real property exemptions may be granted; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is necessary to proceed as quickly as possible to facilitate without delay the urban redevelopment of the property through the Project 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 area depicted on Exhibit A and in Section 2 hereof designated as the AC Humko Community Reinvestment Area constitutes an area in which housing facilities or structures of historical significance are located, and in which new construction or repair of existing facilities has been discouraged.
Section 2. Pursuant to ORC Section 3735.66, the "AC Humko Community Reinvestment Area" is hereby established as described in Exhibit A attached hereto and incorporated herein by reference.
A listing of tax parcel numbers within the above-described area have been identified and set forth in Exhibit B attached hereto. The listing of tax parcel numbers in Exhibit B is for informational purposes only and the list is not intended to be inclusive of current or future tax parcels which lie within the above described area, and shall not be deemed to exclude any parcels which are otherwise included within the above described area as set forth in Exhibit A.
Section 3. That within AC Humko Community Reinvestment Area tax exemptions for new construction as described in Section 3735.67 of the Ohio Revised Code will be granted for the following periods:
a. Up to 75% abatement, not exceeding 10 years, for new construction of single-family residences as described in Division D of Section 3735.67.
b. For purposes of clarification, the tax abatement will be only granted for new construction work completed by December 31, 2009, and for each tax parcel or residence will be for ten years from the completion of the construction to be abated.
Section 4. That reference is hereby made to Resolution Ordinance No. 1698-78 adopted by City Council on August 3, 1978, as to designation of the Housing Officer and establishment of a Community Reinvestment Housing Council for the AC Humko Community Reinvestment Area.
Section 5. That the Housing Officer is hereby authorized and directed, on behalf of the City, to petition the State Director of Development, in accordance with Section 3735.66 of the Ohio Revised Code, for certification of the AC Humko Community Reinvestment Area.
Section 6. That within the AC Humko Community Reinvestment Area a tax exemption on the increase in the assessed valuation resulting from improvements as described in ORC Section 3735.67 shall be granted upon proper application by the property owner and certification thereof by the designated Housing Officer. Residential applications must be filed with Housing Officer no later than six months after construction completion.
Section 7. That a copy of this Resolution Ordinance will be forwarded to the Franklin County Auditor by the Columbus City Clerk for information and reference and will be published in a newspaper of general circulation once a week for two consecutive weeks following its adoption and approval.
Section 8. Tax abatements may only be granted with respect to new construction completed after the effective date of this resolution, and before December 31, 2009.
Section 9. The City Council reserves the right to reevaluate the designation of the AC Humko Community Reinvestment Area after December 31, 2009, at which time Council may direct the Housing Officer not to accept any new applications for exemptions as described in Section 3735.67 of the Ohio Revised Code.
Section 10. That the abatement provided for the project under the Community Reinvestment Area Program shall take priority over any tax increment financing provisions that relate to the territory included in the AC Humko Community Reinvestment Area. It is the intent of Council that 75% of real property taxes related to the construction of new single-family residences shall be exempted pursuant to the Community Reinvestment Area Program, and the remaining 25% of real property taxes related to the construction of new single-family residences shall be governed by the tax increment financing program.
Section 11. That for the 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 passage and approval by the Mayor, or ten days
after passage if the Mayor neither approves or vetoes this Ordinance.