Explanation
BACKGROUND: The Department of Development is proposing the creation of two tax increment financings (“TIF”) under Section 5709.41 of the Ohio Revised Code, one composed of parcels located within the Pen West West area and to be known as the “Jaeger Site TIF,” and one composed of parcels located within the Pen West East area and to be known as the “Buggyworks TIF.” This Ordinance establishes these two TIFs and provides for a 100% exemption from real property taxation on all development on the TIF parcels for a period of not more than thirty (30) years.
The Columbus City School District will receive, in the same manner as usual, all amounts that it would have received in real property taxes had the TIF exemptions not been granted. Annual service payments in lieu of taxes will be made with respect to redevelopment on the TIF parcels. The applicable portion of those service payments will be distributed directly to the Columbus City School District, with the remaining non-school portion of those service payments paid to the City for deposit into the TIF funds established in this Ordinance.
This Ordinance removes unimproved parcels from the existing Pen West West and Pen West East TIFs and incorporates them into the new Jaeger Site and Buggyworks TIFs, respectively, thereby allowing a full 30-year TIF on those parcels.
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 redevelopment on the TIF parcels. Instead, the non-school portion of that revenue will be diverted to the specified TIF funds.
Title
To remove parcels from the existing Pen West West and Pen West East tax increment financing areas by amending Ordinances 2092-01 and 2093-01; to create the Jaeger Site and the Buggyworks tax increment financing areas; to declare improvements to those parcels to be a public purpose and exempt from taxation; to authorize the Director of the Department of De...
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