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 Old Dublin Road to be known as the Old Dublin Road TIF. This ordinance establishes that TIF and provides for a 100% exemption from real property taxation on all nonresidential development on the TIF parcels for a period of not more than thirty (30) years. The TIF money will be used to finance a sanitary sewer line connecting Trabue Road to the parcels estimated to cost $1.9 million. The new sanitary sewer line will provide seven parcels currently on septic systems with the ability to connect to City sewer. This supports the Department of Public Utilities’ and Department of Public Health’s objective of eliminating onsite sewage treatment systems and requiring property owners to connect to the sanitary sewer system as new lines are constructed. The Hilliard City School District and the Tolles Career & Technical School District ("collectively the School Districts") will receive, in the same manner as usual, all amounts that they 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 School Districts, 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 parcels. 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...
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