Explanation
Background: City Council passed Ordinance No. 1237-2015 (the “2015 Ordinance”) on June 8, 2015, creating a tax increment area between Dublin Road and the Heritage Trail (the “Old Dublin Road TIF”). Ordinance No. 0669-2021, passed by City Council on March 22, 2021, authorized the City to enter into the Tax Increment Financing and Cooperative Agreement dated May 12, 2021 (the “TIF and Cooperative Agreement”) by and among the City, Columbus-Franklin County Finance Authority (“CFCFA”) and Hallmark Dublin Road, LLC (the “Developer”). The Developer had completed its 270-unit apartments on Franklin County Auditor Tax Parcel ID No. 560-211803 (the “Property”). Under the TIF and Cooperative Agreement, the CFCFA agreed to issue bonds (the “Bonds”) to reimburse the Developer’s costs of the City’s P650145-100000 (Old Dublin/Trabue Sanitary Sewer Extension) involving the extension of public sanitary sewer and water lines along Trabue Road and Dublin Road to the Property. Subsequently, the City pledged the Old Dublin Road TIF revenue from the parcels exempted by the 2015 Ordinance to repay the Bonds. In addition, the City, CFCFA, and the Developer’s affiliate who owned the Property (the “Property Owner”) entered into a thereafter recorded the Declaration of Covenants and Imposition of Continuing Priority Lien (Revised Code Section 5709.91 Tax Lien) dated June 8, 2021 (the “Declaration”) for the imposition of a minimum service payment obligation against the Property in order to provide additional security for the repayment of the Bonds. As a condition of a potential buyer’s acquisition of the Property, the Developer has agreed to deliver an amount sufficient to permit the repayment of the Bonds if the CFCFA and City terminate the TIF and Cooperative Agreement and the Declaration. This legislation will authorize the City to enter into the Termination and Release Agreement by and among the City, CFCFA, Developer, and Property Owner, and execute a certificate evidencin...
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