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 $228,413.73 to the Gahanna-Jefferson City School District as the compensation due in 2015 for tax year 2014. This sum is calculated using the definitions in the Compensation Agreement and is based on one parcel (520-250983) in the Gahanna-Jefferson School District area of the Stelzer-Stygler CRA with building improvements and CRA tax abatements.
The abatement for parcel 520-250983 commenced with tax year 2009 and will terminate in tax year 2018. The portion of this payment attributable to this parcel being made in 2015 will be compensation for tax year 2014.
The total private investment subject to exemption in the new buildings constructed on parcel 520-250983 was approximately $22,450,000 in 2014 and the total estimated number of new jobs created was approximately 620.
Emergency action is requested in order for the City to make the $228,413.73 payment to the Gahanna-Jefferson City School District according to the schedule established in the Compensation Agreement.
FISCAL IMPACT: The 2015 General Fund budget (citywide account) includes funding for this payment to the Gahanna-Jefferson School District. A transfer equal to 25 percent (25%) of the payment will be transferred from the Special Income Tax Fund.
Title
To authorize and direct the City Auditor to transfer $228,413.73 within the General Fund; to authorize and direct the City Auditor to appropriate and trans...
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