Explanation
Background: The purpose of this ordinance is to authorize the Director of the Department of Development to execute documents to allow the City to accept title to certain parcels of real property owned by Grange Mutual Casualty Company ("Grange") and to transfer the property back to Grange for the purpose of creating tax increment financing ("TIF") pursuant to R.C. Section 5709.41.
Grange plans to construct a 1,050-space parking garage and approximately 15,000 square feet of office space on certain parcels of real property in the City at a cost of between $21,500,000 and $23,500,000. This parking garage and office space would be constructed on property (the "Expansion Site") on the opposite side of Sycamore Street from Grange's main office, which is located at 650 South Front Street (the "Front Street Site").
The City desires to pass a TIF ordinance pursuant to R.C. Section 5709.41, to help pay for certain costs of construction of the combined garage/office structure, while protecting the Columbus City School District from loss of tax revenues by requiring payments in lieu of taxes to be made to the School District. R.C. Section 5709.41 requires that the City hold fee title to the property at some time prior to passing an ordinance to establish a TIF under that section. Therefore, this legislation is necessary to authorize the City to accept title to the real property comprising the site and then to transfer the property back to Grange. The TIF ordinance is being simultaneously submitted, for consideration by the City Council at a later date.
The Front Street Site is already subject to a non-school (payments in lieu of taxes are required to be made to the school district) R.C. Section 5709.41 TIF, authorized by Ordinance No. 1724-2005.
Fiscal Impact: There is no expenditure of City funds associated with the transfer of property.
Title
To authorize and direct the Director of the Department of Development to accept tit...
Click here for full text