Explanation
Background: The Department of Development has determined to facilitate the redevelopment of certain parcels of real property in the City generally known as the former Columbus Coated Fabrics Site and other nearby properties, and, in connection with that redevelopment, the City has entered into an Economic Development Agreement with Wagenbrenner Development, Inc., by which the City agreed to create a tax increment financing (TIF) incentive district on neighborhood parcels pursuant to Section 5709.40(C) of the Ohio Revised Code. As required to create TIF incentive districts under that Section 5709.40(C), the City has previously approved an economic development plan by its Ordinance No. 1966-2008 passed January 26, 2009.
In order to implement that Economic Development Agreement, the attached Ordinance creates an incentive district and provides for a 100% exemption from real property taxation on all improvements to parcels within that incentive district for a period of not more than thirty (30) years. The Columbus City School District will receive, in the same manner as usual, all amounts that it would have received in real property taxes had the tax exemption not been granted. Annual service payments in lieu of taxes will be made with respect to improvements to the TIF parcels. The applicable portion of those service payments will be distributed directly to the Columbus City School District, with the remaining non-school portion of those service payments paid to the City for deposit into the TIF fund established in the Ordinance to be used to fund public infrastructure improvements benefiting or serving the incentive district.
Fiscal Impact: No City funding is required for this legislation. The City is foregoing real property tax revenue that it would have received from development in the TIF incentive district. Instead, the non-school portion of that revenue will be diverted to the TIF fund.
Title
To create a tax increment financing incentive d...
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