Explanation
BACKGROUND: In 2003, the City and the Columbus Urban Growth Corporation (“Columbus Urban”) desired to create a tax increment financing (“TIF”) area and to enter into a TIF agreement to pay for certain public infrastructure improvements and to otherwise support the former Northland Mall site. On December 15, 2003, Columbus City Council passed Ordinance No. 2628-2003 creating a tax increment financing area over parts of the former Northland Mall site that had also been acquired by Columbus Urban and transferred between the City and Columbus Urban (the “Northland TIF”). Ordinance No. 2628-2003 also established the Northland Urban Redevelopment Tax Increment Equivalent Fund (the “Fund”) for the deposit of non-school service payments in lieu of taxes (the “Service Payments”) to pay for or finance the costs of improvements to or on, or servicing the property or project located within the Northland TIF area. The City never entered into a TIF agreement with Columbus Urban, who is now defunct, and the Northland Mall site within the Northland TIF area and its improvements have been completed without the use of such Service Payments.
Due to the forgoing reasons, the City desires to supplement the use of the Service Payments within and to be deposited into the Fund to be used to support other urban redevelopment and public infrastructure improvements. In addition, the City requests such supplemented improvements may be within and around the greater Northland planning area described in the Northland Plan: Volume I adopted by City Council on January 29, 2001 and the Northland Plan: Volume II adopted by City Council on June 24, 2002 as generally bounded by the Worthington corporate boundary/railroad to the west, Cooke/Ferris/Morse Roads to the south, the New Albany corporate boundary to the east, and S.R. 161/Central College Road/I-270 to the north (altogether, “Northland”). The City has identified initial project locations within Northland including, but not limited to, Kilbourne Run Sports Park Roundabout project, the Linden Green Line, Elevate Northland Center, and Zone In Phase 1 mixed-use corridors along Cleveland Avenue, Morse Road, and E. Dublin-Granville Road. This ordinance will amend Ordinance No. 2628-2003 to broaden the location of where the Service Payments deposited into the Fund may be expended as described herein and supplement the eligible urban redevelopment and public infrastructure improvements payable from such Service Payments.
FISCAL IMPACT: No funding is required for this legislation.
EMERGENCY JUSTIFICATION: Emergency action is requested in order make the Northland TIF Service Payments available in a timely manner prior to the bidding of the construction for the Kilbourne Run Sports Park Roundabout expected to be during April 2025 thereby allowing the Columbus Recreation and Parks Department to commence the construction of the roundabout project without unnecessary delay by late summer or early fall of 2025, which will assist with the procurement of long lead time items such as electrical switch gear and street lighting components, all for the preservation of the public peace, health, property, safety and welfare.
Title
To amend Ordinance No. 2628-2003 that established, inter alia, the Northland TIF to broaden the location of where the Northland TIF service payments in lieu of taxes may be expended and to supplement the description of the urban redevelopment and public infrastructure improvements payable from said service payments in lieu of taxes; and to declare an emergency. ($0.00)
Body
WHEREAS, in 2003, the City and the Columbus Urban Growth Corporation (“Columbus Urban”) desired to create a non-school tax increment financing (“TIF”) area and enter into a TIF agreement to pay for certain public infrastructure improvements and to otherwise support the former Northland Mall site (the “Project”) while protecting the Columbus City School District from any loss of tax revenues; and
WHEREAS, pursuant to Ohio Revised Code Sections 5709.41, 5709.42 and 5709.43, this Council, by Ordinance No. 2628-2003 passed December 15, 2003, declared improvements to certain real property located in the Project and conveyed between Columbus Urban and the City (the “Property”) to be a public purpose, exempted those improvements from real property taxation for a period of thirty years, provided for the making of service payments in lieu of taxes from the owners of the Property, provided for the distribution of the applicable portion of those service payments in lieu of taxes to the Columbus City School District, established the Northland Urban Redevelopment Tax Increment Equivalent Fund (the “Fund”) into which the remaining portion of such non-school service payments in lieu of taxes (the “Service Payments”) would be deposited, and specified the purposes for which the Service Payments in that Fund should be expended (altogether, the “Northland TIF”); and
WHEREAS, the City and the Columbus Urban, who is now defunct, never executed a TIF agreement to pay for or finance public infrastructure improvements to or on, or servicing the Property or the Project pursuant to Ordinance No. 2628-2003; and
WHEREAS, the Project and the Property improvements were subsequently completed without the TIF agreement or use of the Service Payments from the Fund; and
WHEREAS, Ohio Revised Code Sections 5709.41, 5709.42, 5709.43 do not require the urban redevelopment improvements and public infrastructure improvements to directly benefit the Property or Project and allows the Service Payments deposited into the Fund to be used for such purposes as are authorized in the resolution or ordinance establishing the Fund; and
WHEREAS, the City has determined that the Service Payments may also be used for urban redevelopment and public infrastructure improvements including, but not limited to, Kilbourne Run Sports Park Roundabout project, the Linden Green Line, Elevate Northland Center, and Zone In Phase 1 mixed-use corridors along Cleveland Avenue, Morse Road, and E. Dublin-Granville Road; and
WHEREAS, the City has decided the Service Payments may also be used within and around the greater Northland planning area described in the Northland Plan: Volume I adopted by City Council on January 29, 2001 and the Northland Plan: Volume II adopted by City Council on June 24, 2002 as generally bounded by the Worthington corporate boundary/railroad to the west, Cooke/Ferris/Morse Roads to the south, the New Albany corporate boundary to the east, and S.R. 161/Central College Road/I-270 to the north (altogether, “Northland”) to make the Project a more attractive location and enhance the property values of the Property and Northland; and
WHEREAS, the City desires to amend Ordinance No. 2628-2003 to broaden the location of where the Service Payments deposited into the Fund may be expended for urban redevelopment and public infrastructure improvements to within and around Northland and to supplement the public improvements specified in Ordinance No. 2628-2003 to include the urban redevelopment and public infrastructure improvements and costs further described in Exhibit B to this ordinance; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to pass this ordinance as an emergency measure in order to make the Service Payments in the Fund available in a timely manner prior to the bidding of the construction for the Kilbourne Run Sports Park Roundabout expected to be during April 2025 thereby allowing the Columbus Recreation and Parks Department to commence the construction of the roundabout project without unnecessary delay by late summer or early fall of 2025, which will assist with the procurement of long lead time items such as electrical switch gear and street lighting components, all for the immediate 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 Section 4 of Ordinance No. 2628-2003 is hereby amended to allow the Service Payments and property tax rollback payments deposited into the Fund to be used for the following purposes authorized in Ohio Revised Code Sections 5709.41, 5709.42 and 5709.43 as follows, with additions in underline and deletions in strikethrough:
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 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 Projectproperty within the planning areas of the Northland Plan: Volume I adopted by City Council on January 29, 2001 and the Northland Plan: Volume II adopted by City Council on June 24, 2002 as generally bounded by the Worthington corporate boundary/railroad to the west, Cooke/Ferris/Morse Roads to the south, the New Albany corporate boundary to the east, and S.R. 161/Central College Road/I-270 to the north (altogether, “Northland”), including but not limited to those urban redevelopment and public infrastructure improvements set forth in Exhibit B, including without limitation, to pay debt charges on any securities of or loans undertaken to pay or to reimburse financing costs of those improvements set forth on Exhibit Bwater, 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 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, as may be supplemented now or in the future, after which said Fund shall be dissolved in accordance with Ohio Revised Code Section 5709.43.
SECTION 2. That existing Section 4 of Ordinance No. 2628-2003 is hereby repealed.
SECTION 3. That except as provided herein, all provisions of Ordinance No. 2628-2003 shall remain in full force and effect; it is the intent of City Council that the Ordinance No. 2628-2003 and this ordinance shall be construed together as a single instrument, as appropriate.
SECTION 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby 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.