Explanation
Background: The Ohio State University has entered into an agreement to purchase property located at the southeast corner of the intersection of Hamilton Road and State Route 161 on which the University intends to build a new outpatient clinic serving the northeast portion of the City. The University needs to ensure that its customary real property tax exemption is available before it can close on the property purchase and build the clinic. Since the property is located in a tax increment financing district, City Council must consent to the University’s real property tax exemption in lieu of the City’s tax increment financing exemption. The University will pay the City an upfront payment of $1,329,437 in consideration for this consent and the donation agreement for the upfront payment.
Emergency Justification: Emergency action is requested in order to allow the contemplated transaction to be completed as soon as possible in order to enable the development of the outpatient clinic.
Fiscal Impact: There is no expenditure of City funds. The City will receive an upfront payment of $1,329,437 from the University to compensate the City for foregone TIF service payments.
Title
To consent to a real property tax exemption on property on which The Ohio State University intends to construct an outpatient clinic; to authorize the Director of the Department of Development to execute agreements and instruments to implement that consent; and to declare an emergency.
Body
WHEREAS, this Council has previously passed Ordinance No. 2117-2005 on December 12, 2005 (the “TIF Ordinance”), which created ten tax increment financing incentive districts in northeast Columbus as part of the City’s “Pay As We Grow” program, including the Dublin-Granville North Incentive District which is generally located at the southeast corner of Hamilton Road and State Route 161; and
WHEREAS, The Ohio State University has entered into an agreement to purchase 31.5± acres within th...
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