Explanation
Background: The City Department of Development has determined to facilitate the urban redevelopment of property currently owned by the City on the Scioto Peninsula to the west of COSI into a mixed use development featuring office, hotel, and multifamily (including workforce housing) components. In connection with that redevelopment, the City has entered into an economic development agreement and a long term lease with, and agreed to transfer a certain portion of the property to, Scioto Peninsula Holdings, Ltd., a subsidiary of the Columbus Downtown Development Corporation, which is serving as master developer for the redevelopment.
In order to pay for costs of public infrastructure improvements necessary to implement the redevelopment plan for this property, the attached Ordinance establishes a tax increment financing (“TIF”) area encompassing the redevelopment area bounded by West Capital Street, West Chapel Street South Belle Street, and Starling Street 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 for each parcel. Columbus City Schools 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 Columbus City Schools, 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 th...
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