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HomeMy WebLinkAbout105-97 Ordinance~,. ORDINANCE NO. /a ~ -97 AN ORDINANCE DECLARING IMPROVEMENTS TO A CERTAIN PARCEL OF REAL PROPERTY TO BE A PUBLIC PURPOSE, DESCRIBING THE PUBLIC INFRASTRUCTURE IMPROVEMENTS TO BE MADE TO BENEFIT THAT PARCEL, REQUIRING THE OWNERS THEREOF TO MAKE SERVICE PAYMENTS IN LIEU OF TAXES, AND ^^ ESTABLISHING A MUNICIPAL PUBLIC IMPROVEMENT TAX INCREMENT EQUIVALENT FUND FOR THE DEPOSIT OF SUCH SERVICE PAYMENTS, AND DECLARING AN EMERGENCY. WHEREAS, Ohio Revised Code Sections 5709.40, 5709.42 and 5709.43 provide that this Council may declare improvements to a parcel of real property located in the City to be a public purpose, thereby exempting those improvements from real property taxation for a period of time, specify public infrastructure improvements to be made to benefit that parcel, provide for the making of service payments in lieu of taxes by the owner thereof, provide for the distribution of the applicable portion of those service payments to the overlapping Dublin City School District and establish a municipal public improvement tax increment equivalent fund into which such service payments shall be deposited; and WHEREAS, Duke Realty Limited Partnership has acquired certain real property located in the City, which property is described in Exhibit A hereto (the Properly), and contemplates making improvements to the Property, and this Council expects to make the public infrastructure improvements described in Exhibit B hereto, that once made would benefit the Property; and WHEREAS, the City has determined that it is necessary and appropriate and in the best interests of the City to provide for service payments in lieu of taxes with respect to the Property pursuant to Section 5709.42 of the Ohio Revised Code; and WHEREAS, this City Council finds and determines that notice of this proposed Ordinance has been delivered to all affected school districts in accordance with Section 5709.83 of the Ohio Revised Code and '"°" hereby ratifies the giving of that notice; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, Franklin, Union and Delaware Counties, Ohio, that: Section 1. Pursuant to and in accordance with the provisions of Ohio Revised Code Section 5709.40, this Council hereby finds and determines that 100% of the increase in true value of the Property subsequent to the effective date of this Ordinance (which increase in true value is hereinafter referred to as the "Improvement" as defined in Section 5709.40) is hereby declared to be a public purpose, and shall be exempt from taxation for a period commencing on the date of passage of this Ordinance and ending with the earlier of the earlier of thirty (30) years from such date of passage or the date on which the City can no longer require semiannual service payments in lieu of taxes under Sections 5709.40 and 5709.42 of the Revised Code, all in accordance with the requirements of said Sections 5709.40 and 5709.42. Section 2. The public infrastructure improvements set forth in Exhibit B hereto and to be made by the City are hereby designated as those public infrastructure improvements that directly benefit, or that once made will directly benefit, the Property (the Infrastructure Improvements). Section 3. As provided in Section 5709.42 of the Revised Code, the owner of the Improvement is hereby required to, and shall make, service payments in lieu of taxes to the County Treasurer on or before the final dates for payment of real property taxes, applicable portions of which service payments shall be (i) distributed by the Franklin County Treasurer to the Dublin City School District, or (ii) deposited in the Rings Road Project Municipal Public Improvement Tax Increment Equivalent Fund established in Section 4 hereof, all pursuant to Ohio Revised Code Sections 5709.40 and 5709.42 and as provided in Section 4 of this Ordinance. The Tax Increment Financing Agreement between and among the City and Duke Realty Limited Partnership, in the form presently on file with the Clerk of Council, providing for, among other things, the payment of such service payments in lieu of taxes, is hereby approved and authorized with changes therein not inconsistent with this Ordinance and not substantially adverse to this City and which shall be approved by the City Manager and Director of Finance. The City Manager and Director of Finance, for and in the name of this City, are hereby authorized to execute that Agreement, provided further that the approval of changes thereto by those officials, and their character as not being substantially adverse to the City, shall be evidenced conclusively by their execution thereof. This Council further hereby authorizes and directs the City Manager, the Clerk of Council, the Director of Law, the Director of Finance, or other appropriate officers of the City, to make such arrangements as are necessary and proper for collection from the owner of said service payments in lieu of taxes. ~~ Section 4. Pursuant to Ohio Revised Code Sections 5709.40 and 5709.42, the County Treasurer shall distribute to the Dublin City School District from those payments in lieu of taxes provided for in Section 3 of this Ordinance, and at the same time and in the same manner as real property tax payments, amounts equal to the amounts that School District would otherwise receive as real property tax payments derived from the Improvement absent the passage of this Ordinance. This Council hereby establishes pursuant to and in accordance with the provisions of Section 5709.43 of the Ohio Revised Code, the Rings Road Project Municipal Public Improvement Tax Increment Equivalent Fund (the Fund). The Fund shall be in custody of the City and shall receive from those payments in lieu of ~" taxes all amounts not distributed to the Dublin City School District. Those annual service payments in lieu !' of taxes with respect to the Improvements on the Property, so deposited and distributed pursuant to law as provided in Section 5709.42 of the Ohio Revised Code, shall be used solely for the purposes authorized in Ohio Revised Code Sections 5709.40, 5709.42 and 5709.43. The Fund shall remain in existence so long as such service payments are collected and used for the aforesaid purposes, after which said Fund shall be dissolved in accordance with said Section 5709.43. Section 5. Pursuant to Section 5709.40 of the Ohio Revised Code, the Clerk of this Council is hereby directed to deliver a copy of this Ordinance to the Director of the Department of Development of the State of Ohio within fifteen days after its passage. On or before March 31 of each year that the exemption set forth in Section 1 hereof remains in effect, the Clerk or other authorized officer of this City shall prepare and submit to the Director of the Department of Development of the State of Ohio the status report required under Section 5709.40(E) of the Ohio Revised Code. Section 6. This Council finds and determines that all formal actions of this Council concerning and relating to the passage of this Ordinance were taken in an open meeting of this Council and that all deliberations of this Council that resulted in those formal actions were in meetings open to the public in compliance with the law. Section 7. This Ordinance is declared to be an emergency measure necessary for the immediate preservation of the public peace, health, safety or welfare of this City and for the further reason that this ordinance is required to be immediately effective in order to provide for the funding for the Infrastructure Improvements so that the Infrastructure Improvements may be constructed as quickly as possible, thereby enhancing traffic safety; wherefore, this ordinance shall be in full force and effect immediately upon its passage. Si d: residing Officer Attest: ~- Clerk of Council Passed: ~~ 1997 Effective: ,17 ~~ 1997 ~ i hereby certify tbaf copies of this Ordir~t~,t~e%, ~y,~ie posted in the Gty of Dublin in accordance with Section 731.25 R~ +'-~ ~` ~~ ~ ,,: ~., r~. Corte. P ~} Clerk o oun ,Dublin, io -2- .~ _.. ~4 _ _ ~~.,.. EXHIBIT A LEGAL DESCRIPTION OF PROPERTY The following real estate situated in the City of Dublin, County of Franklin and State of Ohio, as bounded and described as follows: r.,. -- U~ C ~ 1 Development Plan Rings Road Office Building 5455 Rings Road _ _ ~. _ ._ EXHIBIT B DESCRIPTION OF PUBLIC INFRASTRUCTURE IMPROVEMENTS This improvement will primarily consist of four lanes of boulevarded pavement with curb and gutter, storm sewer, bikepath, sidewalk and street lights, between I-270 and Frantz Road. Additionally, three permanent traffic signals with turn lanes will be installed at the intersections of Paul Blazer Parkway and Rings Road, Frantz Road and Rings Road, and Paul Blazer Parkway at Parkcenter Drive. Improvement will also include temporary traffic signal installations on Rings Road at Paul Blazer Parkway and Frantz Road. Driveway and median curb cut on Paul Blazer Parkway will be re-aligned between the Dublin water tower and the BMW building. July 16. 1997 Draft TAX INCREMENT FINANCING AGREEMENT This Tax Increment Financing Agreement (the Agreement), made and entered into as of this _ day of , 1997, by and among the City of Dublin, Ohio (the City), a municipal corporation organized and existing under the constitution and the laws of the State of Ohio, and Duke Realty Limited Partnership (the Owner), an Indiana limited partnership. WITNESSETH: WHEREAS, the Owner has acquired by general warranty deed (the Deed) certain real property located in the City, which property is described in Exhibit A attached hereto (the Property); and WHEREAS, the Owner intends to make the private improvements thereto described in Exhibit B attached hereto (the Project); and WHEREAS, the Owner desires that the public infrastructure improvements described in Exhibit C attached hereto (the Public Improvements) be constructed and installed by the City, and agree that the Public Improvements will benefit the Property; and WHEREAS, the City has determined that it is necessary and appropriate and in the best interests of the City to provide for the Owner, its successors and assigns to make service payments in lieu of taxes with respect to the Property and for the construction by the City of the Public Improvements or distribution to the Dublin City School District, pursuant to and in accordance with Revised Code Sections 5709.40, 5709.42 and 5709.43 (collectively, the Act), and the City by its Ordinance No. -97 passed 1997 (the Ordinance), has declared that the increase in true value of the Property brought about by the Owner's acquisition of the Property and the construction of the Project and other improvements is a public purpose and declared to be exempt from taxation commencing on the date of passage of such Ordinance and ending on the earlier of thirty years from such date or on the date on which the City can no longer require service payments in lieu of taxes in accordance with the Act; and WHEREAS, in order to provide for the collection of such payments in lieu of taxes and to enable the Project to be carried out, the parties desire to enter into this Agreement on the terms as hereinafter provided; NOW, THEREFORE, in consideration of the premises and covenants contained herein, and to induce the City to proceed with the construction of the Public Improvements, the parties hereto agree as follows: Section 1. [Right of Way. The Owner hereby agrees to convey or cause to be conveyed by deed or dedication plat to the City any portion of the Property necessary for right-of-way for the Public Improvements. ] Section 2. Covenant to Make Payments in Lieu of Taxes. The Owner, for itself and any successors in interest to the Property, or any part thereof or interest therein, hereby agrees to make for the Property semiannual service payments in lieu of taxes (the Service Payments) with respect to the "Improvements", as that term is used and defined in the Act, pursuant to and in accordance with the requirements of the Act, and pursuant to the Ordinance and any subsequent amendments or supplements thereto. Such Service Payments shall be made semiannually to the County Treasurer (or to the Treasurer's designated agent for collection of the Service Payments) on or before the date on which real property taxes would otherwise be due and payable for the Improvements. Any late payments shall bear interest at the then current rate established under Ohio Revised Code Sections 323.121(B)(1) and 5703.47, as the same may be amended from time to time, or any successor provisions thereto as the same may be amended from time to time. Each semiannual payment shall ~"* f be in the same amount as the real property taxes that would have been charged and payable against the Improvements had an exemption from taxation not been granted, and otherwise shall be in accordance with the requirements of the Act. The Owner shall not, under any circumstances, be required for any tax year to pay both real property taxes with respect to the Improvements and payments in lieu of taxes with respect to the Improvements, whether pursuant to Ohio Revised Code Section 5709.42 or this Agreement. It is intended and agreed, and it shall be so provided by the Owner in the Deed and in any future deed from the Owner conveying the Property or any part thereof, that the covenants provided in this Section shall ,,,.,, be covenants running with the land and that they shall, in any event and without regard to technical classification or designation, legal or otherwise, be binding to the fullest extent permitted by law and equity, ~ for the benefit and in favor of and enforceable by, the City, whether or not this Agreement remains in effect ~+r or whether or not such provision is included by the Owner in any succeeding deed to the Owner's successors and assigns. It is further intended and agreed that these agreements and covenants shall remain in effect for the full period of exemption permitted in accordance with the requirements of the Act and the City's ordinances enacted pursuant thereto. Such covenants running with the land in the Deed shall have priority over any other lien or encumbrance on the Property, except for such title exceptions as are approved in writing by the City, and the Owner shall cause any and all holders of mortgages or other liens existing on the Property (if any) as of the time of recording of the Deed, to subordinate such lien to the covenants running with the land provided in the Deed. Section 3. Exemption Application. The Owner further agrees for itself and its successors and assigns to assist and cooperate with the City in the preparation and filing by the Owner of all necessary applications and supporting documents to obtain the exemption from real property taxation for the Improvements authorized by the Act and the City, and to enable the City to collect Service Payments thereunder, and the City shall cooperate with the Owner in connection with the preparation and filing of the initial and any further applications required to accomplish that purpose. That initial application shall be made no later than December 31, 1997, unless the City agrees to a later date. Section 4. Title Evidence. At the City's option and at its request, the Owner hereby agrees to provide such title evidence at no cost to the City as is necessary to demonstrate to the City's satisfaction that """'" the covenants running with the land provided in Section 2 hereof are set forth in the Deed to the satisfaction of the City and are prior and superior to any other liens, encumbrances or other title exceptions, except for those which are approved in writing by the City. Section 5. Release. Upon satisfaction of the Owner's obligations under this Agreement and termination of the Owner's obligations to make the Service Payments, the City shall, upon the request of Owner, execute an instrument in recordable form evidencing such termination and releasing the covenants running with the land set forth in the Deed. Section 6. Estoppel Certificate. Upon request of the Owner, the City shall execute and deliver to the Owner or any proposed purchaser, mortgagee or lessee of the Property, a certificate stating: (a) that the Agreement is in full force and effect, if the same is true; (b) that the Owner is not in default under any of the terms, covenants or conditions of the Agreement, or, if the Owner is in default, specifying same; and (c) such other matters as the Owner reasonably requests. Section 7. Representations of Owner and Lessee. The Owner hereby represents that it is the owner in fee simple of the Property and has full power and authority to enter into this Agreement and carry out its terms. -2- Section 8. Successors. This Agreement shall be binding upon the Owner, and its respective beneficiaries, successors and assigns. Section 9. Amendments,Changes and Modifications. This Agreement may only be amended by written instrument executed by all parties to this Agreement. IN WITNESS WHEREOF, the City and the Owner have caused this Agreement to be executed in their respective names by their duly authorized officers, as of the date hereinabove written. Witness Witness Approved as to Form: CITY OF DUBLIN, OHIO By: City Manager Bv: Director of Finance Director of Law Witness Witness -3- DUKE REALTY LIMITED PARTNERSHIP By: Title: STATE OF OHIO ) SS: COUNTY OF FRANKLIN ) The foregoing instrument was acknowledged before me this day of 1997, by Timothy C. Hansley and Marsha J. Grigsby, the City Manager and Director of Finance, respectively, of the City of Dublin, Ohio, a municipal corporation, on behalf of said municipal corporation. Notary Public STATE OF OHIO ) SS: COUNTY OF FRANKLIN ) by The foregoing instrument was acknowledged before me this day of and the ,respectively, of ,the _ as its , on behalf of said 1997, and of Notary Public -4- ~• EXHIBIT A The following real estate situated in the City of Dublin, County of Franklin, and State of Ohio as bounded and described as follows: EXHIBIT B PRIVATE IMPROVEMENTS [DESCRIPTION TO BE PROVIDED BY DUKE REALTY LIMITED PARTNERSHIP] PUBLIC IMPROVEMENTS This improvement will primarily consist of four lanes of boulevarded pavement with curb and gutter, storm sewer, bikepath, sidewalk and street lights, between I-270 and Frantz Road. Additionally, three permanent '"""' traffic signals with turn lanes will be installed at the intersections of Paul Blazer Parkway and Rings Road, Frantz Road and Rings Road, and Paul Blazer Parkway at Parkcenter Drive. Improvement will also include temporary traffic signal installations on Rings Road at Paul Blazer Parkway and Frantz Road. Driveway and median curb cut on Paul Blazer Parkway will be re-aligned between the Dublin water tower and the BMW building. ^.r