Explanation
1. BACKGROUND
This legislation authorizes the appropriation and expenditure of $1,329,437.00 deposited by Ohio State University with the City as part of a Construction Guaranteed Maximum Reimbursement Agreement (CGMRA) with Hamilton Crossing LLC for a project known as East Dublin-Granville Road Improvements.
Ohio State University purchased 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. Since the property is located in a tax increment financing district, City Council needed to consent to the University’s real property tax exemption in lieu of the City’s tax increment financing exemption. Ordinance 2174-2018 provided the consent and also agreed that the University pay the City an upfront payment of $1,329,437.00, which represents the amount of TIF service payments the City expected to receive from the property.
The CGMRA Agreement with Hamilton Crossing LLC, executed on April 19, 2019, estimated the reimbursement amount at $2,821,100.10 for improvements to be made near the intersection of Hamilton Road and State Route 161 by Hamilton Crossing LLC. These improvements are listed as one of the Public Infrastructure projects called for in the TIF Agreement executed on March 20, 2017. It is anticipated Hamilton Crossing LLC will be requesting reimbursement in the near future. The $1,329,437.00 received from Ohio State University was listed in the CGMRA to be used as part of the $2,821,100.10 to be reimbursed to Hamilton Crossing LLC. It is necessary to appropriate the funds received from the University and establish an Auditor’s Certificate so the reimbursement payment can be made when requested.
2. FISCAL IMPACT
$1,329,437.00 has been deposited in Fund 7766 (Street and Highway Improvement NonBond Fund), Project P441765-100000 (East Dublin-Granville Road Improvements). An amendment to ...
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