Explanation
BACKGROUND: The Department of Development is proposing the establishment of a tax increment financing (TIF) area pursuant to Section 5709.40(B) of the Ohio Revised Code in the area of Schrock Road and I 71 to be known as the Buffalo Parkway TIF. This ordinance establishes that TIF and provides for a 100% exemption from real property taxation on all nonresidential development on the TIF parcel for a period of not more than thirty (30) years. The Worthington City School District will receive, in the same manner as usual, all amounts that it would have received in real property taxes had the tax exemption not been granted. Annual service payments in lieu of taxes will be made with respect to new private nonresidential development on the TIF parcel. The applicable portion of those service payments will be distributed directly to the Worthington City School District, with the remaining non-school portion of those service payments paid to the City for deposit into the TIF fund established in the Ordinance to be used to fund public improvements benefiting the TIF parcel.
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 on the TIF parcel. Instead, the non-school portion of that revenue will be diverted to the specified TIF fund to be used for public infrastructure improvements benefiting the TIF parcel.
Title
To create a tax increment financing area on a certain parcel of real property in the area of Schrock Road and I-71 to be known as the Buffalo Parkway TIF; to declare improvements to that parcel to be a public purpose and exempt from real property taxation; to provide for the owner of that parcel to make service payments in lieu of taxes; to provide for the distribution of the applicable portion of those service payments to the Worthington City School District; to establish a municipal public improvement tax increment equivalent fund f...
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