Explanation
BACKGROUND: This ordinance authorizes the Director of the Columbus Department of Development to petition the Director of the Ohio Development Services Agency to certify of an area designated within the City of Columbus (City) as a Community Reinvestment Area (CRA). CRAs have been designated by Columbus City Council (City Council) under the general guidelines of Ordinance 1698-78. Such areas allow for the granting of real property tax incentives to encourage industrial, commercial and residential growth. This designated area will be known as the Hamilton-161 CRA.
This legislation as permitted in Sections 3735.65 to 3735.70 of the Ohio Revised Code will authorize the creation of the Hamilton-161 CRA and will provide the City the ability to offer real property tax abatements to business prospects interested in development within the proposed area shown on Exhibit A. The abatements will be available to attract the renovation or new construction of non-retail commercial or industrial facilities and will be negotiated on a case-by-case basis in advance of construction. The abatements may be up to one hundred percent (100%) and for up to twelve (12) or fifteen (15) years, depending on the type of improvement, for structures in the Hamilton-161 CRA which meet the minimum level of Leadership in Energy and Environmental Design (LEED) standards or similar standards which promote sustainability in how buildings are designed, built and operated. City Council approval of specific tax abatements within the Hamilton-161 CRA will be sought on a case-by-case basis once the Hamilton-161 CRA has been certified by the Ohio Development Services Agency. Residential uses will not be eligible for abatements. The Columbus City and the New Albany-Plain Local School Districts have been advised of this proposal.
Emergency action is requested to facilitate development of real estate within the Hamilton-161 CRA.
FISCAL IMPACT: No funding is required for this legislation.
Title
To designate the Hamilton-161 Community Reinvestment Area and to authorize the Director of the Department of Development to petition the Director of the Ohio Development Services Agency for the certification of the Hamilton-161 Community Reinvestment Area as permitted in the Ohio Revised Code; and to declare an emergency.
Body
WHEREAS, City Council desires to pursue all reasonable and legitimate incentive measures to assist in encouraging housing maintenance and community development; and
WHEREAS, Ordinance 1698-78, approved by City Council on August 3, 1978, authorized the Columbus Department of Development to implement a Community Reinvestment Program, pursuant to Sections 3735.65 to 3735.70 of the Ohio Revised Code, and approved certain administrative procedures for the program; and
WHEREAS, a survey of housing (see Exhibit B) as required by Section 3735.66 of the Ohio Revised Code has been prepared for the area to be included in the proposed Community Reinvestment Area; and
WHEREAS, the maintenance of existing and construction of new structures in such area would serve to encourage economic stability, maintain real property values and generate new employment opportunities; and
WHEREAS, the City would like to encourage the construction of new buildings that meet standards promoting sustainability in how buildings are designed, built and operated; and
WHEREAS, businesses have expressed interest in developing commercial and/or industrial projects in the area contingent on receiving the real property tax abatement benefits of the Community Reinvestment Area; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to designate the Hamilton-161 Community Reinvestment Area to facilitate development of land within the Hamilton-161 Community Reinvestment Area, all for the preservation of the public health, peace, property, safety and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Hamilton-161 Community Reinvestment Area has successfully met the criteria for designation as a Community Reinvestment Area.
SECTION 2. That the boundaries of the Hamilton-161 Community Reinvestment Area as proposed are described and shown on Exhibit A attached hereto and incorporated herein by reference. Tax parcel numbers within the above described area have been identified and a list of the parcel numbers are set forth in Exhibit A attached hereto. The list of tax parcels in Exhibit A is for informational purposes only and the list is not intended to be inclusive of current or future tax parcels which lie within the above described area and shall not be deemed to exclude any parcels which are otherwise included within the above described area as set forth in Exhibit A.
SECTION 3. That within the Hamilton-161 Community Reinvestment Area tax abatements for improvements to real property as described in Section 3735.67 of the Ohio Revised Code will be granted for the following periods and at the following rates of abatement:
A. Up to one hundred percent (100%) for a period not exceeding 12 years for the non-retail commercial or industrial renovation of existing structures upon which the cost or remodeling or renovation is at least five thousand dollars ($5,000.00), all as described in Ohio Revised Code Section 3735.67(D)(2), and shall be approved by City Council and negotiated on a case-by-case basis in advance of the renovation occurring. For purposes of clarification, eleemosynary structures are not considered to be commercial or industrial.
B. Up to one hundred percent (100%) for a period not exceeding 15 years for the construction of new non-retail commercial or industrial structures, as described in Ohio Revised Code Section 3735.67(D)(4), and shall be approved by City Council and negotiated on a case-by-case basis in advance of the construction occurring. For purposes of clarification, eleemosynary structures are not considered to be commercial or industrial.
C. Tax abatements may only be granted for non-residential, non-retail commercial or industrial renovations or new construction completed after the effective date of this legislation and will only be granted for structures which meet the minimum level of Leadership in Energy and Environmental Design (LEED) standards set forth by the U.S. Green Building Council or similar standards set forth by homologous organizations which promote sustainability in how buildings are designed, built and operated.
SECTION 4. That reference is hereby made to Ordinance No. 1698-78, adopted by City Council on August 3, 1978, as to the designation of the Housing Officer and establishment of a Community Reinvestment Area Housing Council for the Hamiltion-161 Community Reinvestment Area.
SECTION 5. That a copy of this legislation shall be forwarded by the Housing Officer to the Franklin County Auditor for information and reference, and a copy of this legislation shall be published in a newspaper of general circulation in the City once a week for two consecutive weeks immediately following its passage and approval as described in Section 3735.66 of the Ohio Revised Code.
SECTION 6. That the Housing Officer is hereby authorized and directed, on behalf of the City, to petition the Director of the Ohio Development Services Agency, not later than fifteen (15) days following passage of the legislation in accordance with Section 3735.66 of the Ohio Revised Code for certification of the Hamilton-161 Community Reinvestment Area.
SECTION 7. That all commercial and industrial projects are required to enter into a written agreement in compliance with Section 3735.671 of the Ohio Revised Code, to comply with the application fee requirements of Section 3735.672(C) of the Ohio Revised Code, to comply with the annual reporting requirements set forth in Section 3735.672 of the Ohio Revised Code and to pay the City’s annual monitoring fee.
SECTION 8. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is declared to be an emergency measure and shall take effect and be in force from and after its adoption and approval by the Mayor or ten (10) days after its adoption and approval if the Mayor neither approves nor vetoes the same.