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 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 $801,014.02 to the Gahanna-Jefferson School District as the compensation due in 2010 for previous tax years. This sum is calculated using the definitions in the Compensation Agreement and is based on five parcels (520-250980, 520-250981, 520-250982, 520-250983, 520-250985) in the Gahanna-Jefferson School District area of the Stelzer-Stygler CRA with building improvements and CRA tax abatements.
The abatement for parcel 520-250982 commenced with tax year 1997 and terminated in tax year 2006; compensation was paid by the City commencing for tax year 2001, but compensation for the first four years - 1997 through 2000 - was deferred and was to be payable 2008 through 2011 (following tax years 2007 through 2010). The portion of this payment attributable to this parcel being made in 2010 will be compensation for tax year 1999.
The abatement for parcel 520-250981 commenced with tax year 1998 and terminated in tax year 2007; compensation was paid by the City commencing for tax year 2001, but compensation for the first three years - 1998 through 2000 - was deferred and was to be payable 2008 through 2010 (following tax years 2007 through 2009). The portion of this payment attributable to this parcel being made in 2010 will be compensation for tax year 2000.
The abatement for parcels 520-250980 and 520-250985 commenced with tax year 1999 and terminated in tax year 2008...
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