Explanation
BACKGROUND: By its Ordinance 1224-2009 passed October 8, 2009, Council established the OhioHealth Riverside Hospital Tax Increment Finance Area (TIF Area) pursuant to Section 5709.40 (B) of the Ohio Revised Code, declared the improvements to certain parcels located within that TIF Area to be a public purpose and exempt from taxation, provided for the owner of each parcel to make annual service payments in lieu of taxes, and provided for the non-school portion of those service payments to be paid to the City for deposit into the OhioHealth Municipal Public Improvement Tax Equivalent Fund (TIF Fund) established in that Ordinance.
On December 16, 2009 Council passed Ordinance 1689-2009 authorizing the Director of the Department of Development to enter into a Tax Increment Finance Agreement with OhioHealth Corporation and on June 1, 2011 the City entered into that Agreement with OhioHealth Corporation (TIF Agreement).
The need exists to amend the TIF Agreement between the City and OhioHealth Corporation to expand the range of Public Improvements eligible for reimbursement listed on Exhibit B, by replacing Exhibit B of the TIF Agreement with Exhibit B(1) (Attached).
Emergency action is required to allow the OhioHealth Corporation to continue constructing improvements in the TIF area in a timely manner.
FISCAL IMPACT: No funding is required for this legislation.
Title
To amend the Tax Increment Finance Agreement between OhioHealth Corporation and the City of Columbus by broadening the scope of eligible public improvements; and to declare an emergency.
Body
WHEREAS, by its Ordinance 1224-2009 passed October 8, 2009, (the “TIF Ordinance”), this Council established the OhioHealth Riverside Hospital Tax Increment Finance Area (the “TIF Area”) pursuant to Section 5709.40(B) of the Ohio Revised Code, declared 100% of the increase in assessed value of certain parcels located within that Incentive Area (which increase in assessed value is referred to as the “Improvement,” as further defined in Section 5709.40(A) of the Ohio Revised Code) to be a public purpose and exempt from real property taxation, provided for the owner of certain parcels to make annual service payments in lieu of real property tax payments, including any penalties and interest (collectively, the “Service Payments”), and provided for the non-school portion of those Service Payments to be paid to the City for deposit into the OhioHealth Riverside Hospital Tax Equivalent Fund established in that TIF Ordinance (the “TIF Fund”) to fund certain public infrastructure improvements described in the TIF Ordinance which, once made, will benefit or serve the TIF Area; and
WHEREAS, December 16, 2009 Council passed Ordinance 1689-2009 authorizing the Director of the Department of Development to enter into a Tax Increment Finance Agreement with OhioHealth Corporation; and
WHEREAS, on June 1, 2011 the City entered into a Tax Increment Finance Agreement with OhioHealth Corporation; and
WHEREAS, Exhibit B of the TIF Agreement needs to be expanded to broaden the scope of public improvements; and
WHEREAS, an emergency exists in the usual daily operation of the Columbus Department of Development in that it is immediately necessary to amend the Tax Increment Finance Agreement for the preservation of public health, peace, property and safety; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development is hereby authorized to amend the Tax Increment Finance Agreement between the City of Columbus and OhioHealth Corporation by expanding the range of Public Improvements eligible for reimbursement by replacing Exhibit B of the TIF Agreement with Exhibit B(1) (Attached).
SECTION 2. For the reasons stated in the Preamble hereto, which is hereby made a part hereof, this Ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after the passage if the Mayor neither approves nor vetoes the same.