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File #: 3139-2018    Version: 1
Type: Ordinance Status: Passed
File created: 11/6/2018 In control: Economic Development & Small Business Committee
On agenda: 11/19/2018 Final action: 11/21/2018
Title: To declare the improvement to certain parcels of real property south of Fifth Avenue and the Battelle campus to be a public purpose and exempt from taxation pursuant to ORC 5709.40(B); to provide for the collection and deposit of service payments in lieu of taxes and specifying the purposes for which those service payments may be expended; to require the distribution of the applicable portion of those service payments to the Columbus City School District; to establish a tax increment equivalent fund for the deposit of the remainder of those service payments; and to declare an emergency.
Attachments: 1. ORD3139-2018 Exhibit A 445-18 .40(B) TIF Ordinance Founders Park, 2. ORD3139-2018 Exhibit B 445-18 .40(B) TIF Ordinance Founders Park
Explanation
Background: The Department of Development has determined to facilitate the redevelopment of certain parcels of real property generally located south of Fifth Avenue and the Battelle campus, and, in connection with that redevelopment, the City has entered into an Economic Development Agreement with Perry Street, LLC providing for the redevelopment plan for the parcels and, as part of that plan, providing for the creation of tax increment financing (TIF) areas on the redevelopment parcels pursuant to Section 5709.40(B) of the Ohio Revised Code.

In order to implement the redevelopment plan under the Economic Development Agreement, the attached Ordinance establishes a TIF area and provides for a 100% exemption from real property taxation on all improvements to the parcels within the TIF area 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 tax exemption not been granted. Annual service payments in lieu of taxes will be made with respect to improvements to 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 applicable TIF fund established in this Ordinance, to be used to fund infrastructure improvements benefiting the TIF parcels pursuant to a separately authorized TIF and Cooperative Agreement.

Emergency Justification: Emergency legislation is required to allow for immediate effectiveness of this ordinance, which is necessary in order to enable the timely redevelopment of the above described project.
Fiscal Impact: No funding is required for this legislation. The City is foregoing real property tax revenue that it would have received from development on the TIF parcels. Instead, the non-school portion of that revenue wil...

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