Explanation
Background
City Council established a tax increment financing (“TIF”) area pursuant to Ohio Revised Code (“R.C.”) Section 5709.40(B) by Ordinance No. 2179-01 to provide for a 30-year tax increment financing exemption (the “Morse Road TIF”) beginning for tax year 2004 and ending in tax year 2033 to fund public infrastructure improvements necessary for the future development needs of the Morse Road corridor in Northland. The Morse Road TIF currently generates more than $1.5 million per year in service payments made pursuant to R.C. Section 5709.42. In 2019 and 2023, the Ohio General Assembly adopted and then amended R.C. Section 5709.51, which allows City Council to extend the term of a TIF exemption for an additional period of not more than 30 years for certain TIFs like the Morse Road TIF that generates in excess of $1.5 million per year in service payments made pursuant to R.C. Section 5709.42 in the calendar year preceding the adoption of the extension amendment ordinance (provided such excess did not occur in any other year prior to the adoption of this Ordinance unless the ordinance is adopted prior to January 1, 2024), or if City Council determines that the service payments to be made pursuant to R.C. Section 5709.42 by the owner or owners of the parcel or parcels designated in the ordinance or resolution will exceed $1.5 million in any future year. This Ordinance extends the Morse Road TIF for an additional 30-year period through tax year 2063, in order to provide funding for the additional public infrastructure improvements necessary to continue to attract equitable development to the Morse Road corridor in the Northland area during those timeframes. In compliance with R.C. Section 5709.51(A)(3), the Columbus City School District and Westerville City School District will continue to receive all real property taxes they would otherwise receive absent the TIF exemptions and extensions.
Fiscal Impact
No funding is required for this legislation. T...
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