Explanation
Background: The Department of Development is proposing the establishment under Section 5709.41 of the Revised Code of a tax increment financing (TIF) district at the Gowdy field site.
The attached ordinance establishes the TIF district and provides for a 100% exemption on all development within the TIF district for a period of not more than 30 years. Annual service payments in lieu of taxes with respect to development within the TIF district will be paid into a TIF Fund established in this ordinance. It is important to note that the Columbus City School District will receive, at the same time, and in the same manner as usual, all monies that it would have received in real property taxes had the TIF exemption not been granted. Revenue derived from the service payments in lieu of taxes from the TIF district will be used to find various public improvements benefiting the TIF district.
Fiscal Impact: No funding is required for this legislation. The City is foregoing real property tax revenue that it would have received in respect of development within the TIF district. Instead, that revenue will be diverted to the TIF Fund to be used for public infrastructure improvements benefiting the TIF district.
Title
An ordinance creating a tax increment financing district pursuant to Section 5709.41 of the Revised Code; declaring improvements to the real property located in the TIF district to be a public purpose; exempting from real property taxation 100 percent of those improvements; requiring the owners thereof to make service payments in lieu of taxes; establishing a municipal public improvements tax increment equivalent fund for the deposit of the service payments collected from the TIF district property owners; protecting the school district serving the TIF district against any loss of tax revenue as a result of the exemptions granted by this Ordinance; and describing the public infrastructure improvements to be made benefiting the ...
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