Explanation
Background: Pursuant to Ordinance 2069-2021 passed by City Council on July 26, 2021, the City and The Ohio State University (“OSU”) were authorized to enter into a memorandum of understanding (the “MOU”) to outline the City and OSU’s respective commitments for a major expansion of the OSU west campus within the City between the CSX railroad to the east, North Star Road to the west, Lane Avenue to the north, and the southern boundary of the parcels along Kinnear Road (the “Innovation District”). OSU is proposing a $3 to $4 billion capital investment of new improvements over a period of twenty to thirty years including 1,500 to 2,000 residential units; 100,000 to 200,000 square feet of retail; a 180 to 220-bed hotel; up to 500,000 square feet of medical facilities; and 4 to 6 million square feet of lab and commercial office space that will need new public water and sewer utilities that will connect the City’s existing water and sewer infrastructure to the boundary of the Innovation District (the “Off-Site Improvements”) as well as new public infrastructure improvements within the Innovation District (the “On-Site Improvements” and together with the Off-Site Improvements, the “Public Infrastructure Improvements”). Consistent with the MOU, the Department of Development has submitted for City Council consideration Ordinance 3171-2021 to establish a new tax increment financing area over the Innovation District pursuant to Ohio Revised Code Section 5709.40(B) (the “Innovation District TIF”) to exempt from taxation one-hundred percent (100%) of the improvements to each parcel within the Innovation District for up to a thirty (30) year coextensive period for all parcels; to simultaneously direct and require the owners of each parcel within the Innovation District to make annual payments in lieu of taxes (the “Service Payments”); to request the distribution of the applicable portions of those Service Payments to the Columbus City Schools and the City; and to dep...
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