Explanation
Background
City Council established the Downtown tax increment financing (TIF) area in 2008 by Ordinance No. 0973-2008 to provide for a 30-year tax increment financing exemption beginning for tax year 2009 and ending in tax year 2038 to fund infrastructure improvements necessary for the future development needs of Downtown. The Downtown TIF area was subsequently reduced in size in 2009 by Ordinance No. 1189-2009, in 2012 by Ordinance No. 0923-2012, in 2019 by Ordinance No. 3169-2019, and in 2020 by Ordinance Nos. 2619-2020 and 2620-2020, but will be reset by passage of this Ordinance to encompass its pre-November 23, 2020 boundaries, as shown on Exhibit A attached to this Ordinance.
The Downtown TIF currently generates approximately $1.6 million per year in non-school TIF revenue after providing for the compensation payment from the county to the Columbus City School District, which receives all real property taxes it would otherwise receive absent the TIF exemption. In 2019, the Ohio General Assembly adopted Section 5709.51 of the Ohio Revised Code (“R.C.”), 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 Downtown TIF which 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.
Neither the City, nor the property owners, has filed a new tax increment financing application pursuant to R.C. Section 5709.911 on the parcels removed from the Downtown TIF by Ordinance No. 2619-2020 and Ordinance No. 2620-2020, and placed in newly authorized TIF areas, this Ordinance repeals Ordinance No. 2619-2020 and Ordinance No. 2620-2020, thereby resetting the parcels of the Downtown TIF in order to determine the proper boundaries of, and parcels within, the Downtown TIF.
This Ordinance also repeals and replaces Exhibit B attached to Ordinance No...
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