Explanation
BACKGROUND: The City established the Stelzer-Stygler Community Reinvestment Area (CRA) in 1986 to stimulate private investment and job creation. In 1994, changes in the CRA law placed additional obligations on municipalities to compensate school districts for lost revenues arising from tax abatements. In May 2002 the City entered into a Compensation Agreement with the Gahanna-Jefferson City School District to compensate the District for revenues from real property taxes forgone due to abatements on parcels in the Stelzer-Stygler CRA.
The present legislation authorizes the payment of $548,725.98 to the Gahanna-Jefferson City School District as the compensation for tax year 2004. This sum is calculated using the definitions in the Compensation Agreement and is based on four parcels in the Gahanna-Jefferson City School District area of the Stelzer-Stygler CRA with building improvements and CRA tax abatements.
The total private investment in the new buildings constructed on the four parcels was approximately $87 million in 2004 and the total estimated number of jobs was 2,972 (764 new 2,208 retained).
Emergency action is requested in order for the City to make the $548,725.98 payment to the Gahanna-Jefferson City School District according to the schedule established in the Compensation Agreement.
FISCAL IMPACT: The 2005 General Fund budget includes funding for this payment to the Gahanna-Jefferson City School District.
Title
To authorize and direct the payment of $548,725.98 to the Gahanna-Jefferson City School District to compensate for real property tax revenues forgone as a result of CRA tax abatements in the Stelzer-Stygler CRA; to authorize the expenditure of $548,725.98 from the General Fund; and to declare an emergency. ($548,725.98)
Body
WHEREAS, Ordinance No. 1698-78, approved August 3, 1978, authorized the Development Department to carry out a Community Reinvestment Program (CRA) pursuant to S...
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