Explanation
Background: Council, by its Ordinance No. 2117-2005 passed on December 12, 2005, approved the creation of ten tax increment financing districts to provide funding for public infrastructure improvements in the northeast area of the City. That legislation provides that the owners of relevant real property are required to make payments in lieu of real property taxes which are to be distributed to relevant school districts and to designated tax increment equivalent funds. Payments in lieu of taxes that are deposited into the tax increment equivalent funds are to be used at the direction of the City for the purpose of funding the public infrastructure improvements identified in the legislation.
The Kroger Co. (the "Developer") recently received City Council approval for the rezoning of a portion of its property located at 5167 New Albany Road to permit the development of a gasoline sales use in association with the operation of an existing grocery store. In conjunction with this rezoning, there has been recognition that the intersection nearest to the proposed development, at New Albany Road and Fodor Road, requires improvements that would serve a benefit to the northeastern area of the City.
The Developer has agreed to construct a roundabout at this intersection (the "New Albany Road Roundabout") and to contribute the sum of $130,000 toward the cost of this improvement. It also has agreed to front the costs of the roundabout improvement that are in excess of this contribution and to be reimbursed for these excess costs over time as funds are received in the tax increment equivalent fund for the "New Albany West-Central College Incentive District", which is one of the tax increment financing districts that was created pursuant to Ordinance No. 2117-2005.
The attached ordinance authorizes the Director of Development to enter into a Reimbursement Agreement with the Developer that provides the Developer's commitment to construct the New Alb...
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