Explanation
Background: The Department of Development has submitted for Council consideration Ordinance 1443-2020 to authorize the Director of Development to enter into an Economic Development Agreement (the “EDA”) with 1489 Rohr Holding, LLC (the “Developer”) to support the Developer’s development of a fifty six million dollars ($56,000,000) industrial/warehouse/distribution development including a minimum of approximately two million (2,000,000) square feet of industrial/warehouse/distribution space (the “Project”) on 229.993+/- acres located south of Rohr Road between the CSX railroad and Lockbourne Road (the “Site”). In order to support development of the Site and the financing of certain public infrastructure improvements in the EDA, this Ordinance will establish a new non-school TIF under Section 5709.40(B) of the Ohio Revised Code known as “Rickenbacker-317 TIF” including the Site and provide for a 100% exemption from real property taxation on all improvements to the parcels within the new TIF area for a period of not more than thirty (30) years.
Annual service payments in lieu of taxes will be made with respect to improvements to the new TIF parcels. The applicable portion of those service payments will be distributed directly to the Columbus City School District and Hamilton Local School District, in the same manner as usual, in the amount that the school districts would have received in real property taxes had the tax exemption not been granted. The remaining non-school portion of those service payments will be paid to the City for deposit into a new TIF fund established in this Ordinance to be used to fund public infrastructure improvements benefiting the new TIF parcels.
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 will be diverted to the TIF fund.
Emergency Justificatio...
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