Explanation
Background: The Department of Development is proposing the establishment under Ohio Revised Code Section 5709.40(C) of ten tax increment financing (TIF) incentive districts in the northeast area of Columbus.
The attached ordinance establishes those incentive districts and provides for a 100% exemption on all development within the incentive district for a period of not more than 30 years. Annual service payments in lieu of taxes with respect to development within an incentive district will be paid into special funds established for that purpose. It is important to note that the Columbus City School District and the Plain Local 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 will be used to fund public infrastructure improvements benefiting the entire northeast corridor of the City.
Fiscal Impact: No funding is required for this legislation. The City is foregoing real property tax revenue that it would have received with respect to development within the incentive districts. Instead, that revenue will be diverted to the special funds.
Title
To create ten tax increment financing incentive districts in northeast Columbus; to declare the increase in assessed valuation of the parcels within each incentive district to be a public purpose; to exempt from taxation 100 percent of that increase in assessed valuation; to describe the public infrastructure improvements to be made to benefit those parcels; to require the owners of those parcels to make service payments in lieu of taxes; to establish municipal public improvement tax increment equivalent funds for the deposit of the service payments and to protect the Columbus City School District and the Plain Local School District against any loss of tax revenue; and to declare an emergency. (AMENDED BY ORDINANCE ...
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