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 $225,896.26 to the Gahanna-Jefferson City School District as the compensation due in 2018 for tax year 2017. This sum is calculated using the definitions in the Compensation Agreement and is based on two parcels (520-250983 and 520-250987) 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 abatement for parcel 520-250987 commenced with tax year 2017 and will terminate in tax year 2026.
The total private investment subject to exemption in the new buildings constructed on these two parcels was approximately $23,684,700 in 2017 and the total estimated number of new jobs created was approximately 685.
Emergency action is requested in order for the City to make the $225,896.26 payment to the Gahanna-Jefferson City School District according to the schedule established in the Compensation Agreement.
FISCAL IMPACT: The 2018 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 $225,896.26 within the general fund; to authorize and direct the City Auditor to appropriate and tran...
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