Explanation
BACKGROUND: The City established the Stelzer-Stygler Community Reinvestment Area (CRA) in 1986 to stimulate private investment and job creation. In 1994, changes in the CRA law placed additional obligations on municipalities to compensate school districts for lost revenues arising from tax abatements. In May 2002 the City entered into a Compensation Agreement with the Gahanna-Jefferson School District to compensate the District for revenues from real property taxes forgone due to abatements on parcels in the Stelzer-Stygler CRA.
The present legislation authorizes the payment of $608,240.78 to the Gahanna-Jefferson School District as the compensation due in 2009 for previous tax years. This sum is calculated using the definitions in the Compensation Agreement and is based on four parcels (520-250980, 520-250981, 520-250982, 520-250985) in the Gahanna-Jefferson School District area of the Stelzer-Stygler CRA with building improvements and CRA tax abatements.
The abatements for parcels 520-250981 and 520-250982 commenced with tax year 1997 and terminated in tax year 2006; compensation was paid by the City commencing for tax year 2001, but compensation for the first four tax years - 1997 through 2000 - was deferred and was to be payable 2008 though 2011 (following tax years 2007 through 2010). The portion of this payment attributable to these two parcels being made in 2009 will be compensation for tax year 1998. The abatements for parcels 520-250980 and 520-250985 commenced with tax year 1999 and terminated in tax year 2008. The portion of this payment attributable to these two parcels being made in 2009 will be compensation for tax year 2008.
The total private investment in the new buildings constructed on the four parcels was approximately $89,485,000 in 2008 and the total estimated number of jobs was 3,260.
Emergency action is requested in order for the City to make the $608,240.78 payment to the Gahanna-Jefferson School District ac...
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