Explanation
Background: Council, by its Ordinance No. 0670-2004 passed on April 26, 2004, approved the creation of the Harrison West Redevelopment Incentive District. Service payments in lieu of taxes made with respect to improvements within the Incentive District are diverted to the Harrison West Municipal Public Improvement Tax Increment Equivalent Fund held by the City and are intended to finance public infrastructure improvements in and around the Harrison West neighborhood, including a public park.
The attached ordinance authorizes the Director of Development to enter into a Tax Increment Financing Cooperative Agreement with the Columbus-Franklin County Finance Authority to finance the construction of these public infrastructure improvements. This agreement requires the City to pay the service payments in lieu of taxes and property tax rollback payments deposited into the Harrison West Municipal Public Improvement Tax Increment Equivalent Fund to the Finance Authority in exchange for the Finance Authority's issuance of bonds to pay for the acquisition of park property and construction of the park improvements. The bond proceeds, after payment of issuance costs, will be deposited in the Harrison West Recreation Park Fund, Fund 788. The ordinance also authorizes the Director of Development to enter into a Tax Lien Agreement with the Franklin County Treasurer to provide for the collection of delinquent service payments in lieu of taxes in the Incentive District.
Fiscal Impact: The City has foregone the real property tax revenue that it would have received with respect to development within the Incentive District. Instead, that revenue has been diverted to the Harrison West Municipal Public Improvement Tax Increment Equivalent Fund held by the City. That revenue will be paid to the Columbus-Franklin County Finance Authority to pay for bonds issued by that Authority to fund City specified public infrastructure improvements benefiting the Harri...
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