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HomeMy WebLinkAbout56-02 Ordinance RECORD OF ORDINANCES D vton Legal Blank Co Form No. 30043 Ordinance No.......5.6.-02 Passed 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 OWNER THEREOF TO MAKE SERVICE PAYMENTS IN LIEU OF TAXES, ESTABLISHING A MUNICIPAL PUBLIC IMPROVEMENT TAX INCREMENT EQUIVALENT FUND FOR THE DEPOSIT OF SUCH SERVICE PAYMENTS, AND AUTHORIZING THE EXECUTION OF A TAX INCREMENT FINANCING AGREEMENT. WHEREAS, Hospital Properties Inc. (the "Owner") now owns certain parcels of real property (a depiction of which is attached hereto as Exhibit A and referred to herein as the "TIF Area", with the parcels comprising the real property within the TIF Area referred to herein as the "Parcels" and each individually as a "Parcel") in the City; and WHEREAS, the Owner, or its successors or assigns, has or will develop various commercial projects in the TIF Area (collectively, the "Project") and this Council expects to make the public infrastructure improvements described on Exhibit B hereto, that once made will directly benefit the TIF Area; and 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, 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 TIF Area pursuant to Section 5709.42 of the Ohio Revised Code; and WHEREAS, this Council has determined to provide for the execution and delivery of a Tax Increment Financing Agreement to provide for the development of the TIF Area; and WHEREAS, this Council finds and determines that notice of this proposed Ordinance has been delivered to all affected school districts in accordance with Sections 5709.40 and 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, Delaware, Franklin and Union Counties, Ohio, ~ of the elected members concurring that: Section 1. Tax Exemption. 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 assessed value of each Parcel subsequent to the effective date of this Ordinance (which increase in assessed 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 of thirty (30) consecutive calendar years commencing with the first calendar year subsequent to the passage of this Ordinance in respect of which an application for tax exemption is filed for that Parcel. Section 2. Payment of Service Payments. As provided in Ohio Revised Code Section 5709.42, the owner of each Parcel is hereby required to, and shall make, service RECORD OF ORDINANCES Dayton Legal Blank Co. Form No. 30043 56-02 Page 2 Ordinance No Passed payments in lieu of taxes with respect to the Improvements allocable thereto to the Franklin County Treasurer (the "County Treasurer") on or before the fmal dates for payment of real property taxes. Each service payment in lieu of taxes shall be charged and collected in the same manner and in the same amount as the real property taxes that would have been charged and payable against that Parcel if it were not exempt from taxation pursuant to Section 1. Any late payments shall be subject to penalty and 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 (the payment of penalties and interest are collectively referred to herein with the service payments in lieu of taxes as the "Service Payments"). The Service Payments, and any other payments in respect of each Parcel which are received by the Franklin County Treasurer in connection with the reduction required by Ohio Revised Section 319.302, 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 (the "Property Tax Rollback Payments"), shall be allocated and deposited for credit to the Fund (as defined below) in accordance with Section 3 of this Ordinance. Section 3. Distribution of Payments. Pursuant to Ohio Revised Code Sections 5709.40 and 5709.42, the County Treasurer shall distribute the Service Payments and the Property Tax Rollback Payments as follows: • to the Dublin City School District, an amount equal to the amounts the Dublin City School District would otherwise receive as real property tax payments (including the applicable portion of any Property Tax Rollback Payments) derived from the Improvement absent the passage of this Ordinance, and • to the City, all remaining amounts for further deposit into the Fund. All distributions required under this Section 3 shall be made at the same time and in the same manner as real property tax distributions. Section 4. Creation of TIF Fund. This Council hereby establishes pursuant to and in accordance with the provisions of Ohio Revised Code Section 5709.43, the Perimeter Loop Project Municipal Public Improvement Tax Increment Equivalent Fund (the, "Fund"). The Fund shall be maintained in the custody of the City and shall receive all distributions required to be made to the City pursuant to Section 3. Those Service Payments and Property Tax Rollback Payments distributed with respect to the Improvements on the Parcels, so deposited and distributed pursuant to law as provided in Ohio Revised Code Section 5709.42, 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 and Property Tax Rollback Payments are collected and used for the aforesaid purposes, after which time said Fund shall be dissolved and any surplus funds remaining therein transferred to the City's General Fund, all in accordance with Ohio Revised Code Section 5709.43. Section 5. Public Infrastructure Improvements. 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 TIF Area (the "Infrastructure Improvements"). Section 6. TIF Agreement. The Tax Increment Financing Agreement relating to the TIF Area, in the form presently on file with the Clerk of Council, providing for, among other things, the payment of such Service Payments, 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 Interim City Manager. The Interim City Manager, for and in the name of this City, is hereby authorized to execute that Tax Increment Financing Agreement, provided further that the approval of changes RECORD OF ORDINANCES Dayton Legal Blank Co. Form No. 30043 56-02 Page 3 Ordinance No Passed thereto by that official, and their character as not being substantially adverse to the City, shall be evidenced conclusively by her execution thereof. This Council further hereby authorizes and directs the City Manager (Interim or otherwise), 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 of said Service Payments from the owners of Parcels. Section 7. Further Authorizations. This Council further hereby authorizes and directs the City Manager (Interim or otherwise), the Clerk of Council, the Director of Law, the Director of Finance, or other appropriate officers of the City to prepare and sign all agreements and instruments and to take any other actions as may be appropriate to implement this Ordinance. Section 8. Notification of Passage. Pursuant to Ohio Revised Code Section 5709.40, 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 9. Open Meetings. 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 10. Effective Date. This Ordinance shall take effect and be in force in accordance with Section 4.04(a) of the Dublin City Charter. Signed: residing Officer Attest: Clerk of Council - Passed: ~ , 2002 Effective: f ~ Z 2 , 2002 I hereby certify that copies of this Ordinance/Resolution were posted in the City of Dublin in accordance with Section 731.25 of the Ohio Revised Code. • rk of Council, Dublin, Ohio EXHIBIT A DESCRIPTION OF TIF AREA The following real estate situated in the City of Dublin, County of Franklin and State of Ohio, as bounded and described as follows: Tax Parcels No. 273-010471 and No. 273-010474 JOSEPH W. TESTA FRANKLIN COUNTY AUDITOR , :MAP AREA :MAY DATE APR 3, ?002 I. t ~ - - ~ yr a ~ i ~I - - - raxa r. } r ~ i _ I ! 1 1 i I ~ t I I~ L is-.i ~ t I ~ ~ ~~l - _ ~ ~ ` ,.r, ' ~ i. ti ~ ~ ~ ~ ~ ~ y L L1L O ' 1 / q k\ t fit, ~ ? ~ ~ I ~ ~ ~ ~ ~ ~ h IU~iI? ~ rc O t ~ ~ ~ L 4 4 t t ~ ~ ~ 1 ~ ~ 1 1~1 k ~ ~ f; * ~ ~ ~ ~V ~ ~ } G ~ ,d aaeaarr -r ~ - . i ~ ~j ~'J-- i ~ ~i 1'1 i 1 !I i .j G15~~rIMER CSC-LE - This ^tCD prepUfep t'~e reC~ prCpKt1 m•entorr atn~n tn~s COvct~. !t '.s CCmpdeG from retorOetl oeeCi. .a;a~.,i sur. ay .'+pl s, prtC Jther CuChC reG Or os pn;; COtp. Ueifs C} Clan mAD ore nu t'heC ttlCt the puOhC pntTlor~ V~~ F9 `H F~ ,nf Cr T:7ticr. sCUrc OS sncu`.C. be nsu4ep 7Cr vehl.cot~on J1 tn• mlOr mpt~Gn cOnt J~nep C(+ t!1~s ntpG. Tne Count) Cn0 the rngpp~nC~ cOm00ni05 pSSUme nt leQpl re SpOn)~G J~Gls 7Gr tha ~nf Crl-,pion cpntp~MQ 0^ tins Tpp. ~ F;erse not+f, the Prpni;in Cc~-•t/ v1S G .~s~cn of ony O~screpan;,les I IVI I N EXHIBIT B DESCRIPTION OF INFRASTRUCTURE IMPROVEMENTS The Infrastructure Improvements include the construction of: • Perimeter Loop Road westerly from its existing western terminus to its existing southern terminus, • improvements to the existing Avery Road -Perimeter Loop Drive intersection, and • improvements to the existing Avery Road -Perimeter Drive intersection, by constructing and installing curbs and gutters, public utilities which include water mains, sanitary sewer, and storm sewer, street lighting, sidewalks, bikeways, and landscaping, traffic signalization, and including design and other related costs, any right-of--way acquisition, erosion and sediment control measures, grading and other related work, survey work, soil engineering and construction staking, and in each case, all other costs and improvements necessary and appurtenant thereto. B-1 Office of the City Manager 5200 Emerald Parkway -Dublin, Ohio 43017-1006 Phone: 614-410-4400 -Fax: 614-410-4490 M e m o CITY OF DUBLIN To: Dublin City Council From: Marsha I. Grigsby, Interim City Manager/Finance Director \`c~d3- Date: Apri13, 2002 Re: Ordinance No. 56-02 G-~ i Initiated by: Michael Stevens, Director of Economic Development ~ (/r Ordinance No. 56-02 authorizes the establishment of a Tax Increment Finance District (TIF) District for the 3.3 + acres parcel on Perimeter Loop Road that is being developed by Hospital Properties Inc. for Ohio Health. The TIF ordinance also defines the private and public improvements to be constructed and provides for service payments in lieu of property taxes to be collected and used as the funding source to pay for the public improvements. The ordinance will create a "non-school" TIF; meaning that the schools will continue to receive the property tax value that would be due if a TIF district was not in place. As you are aware, the office development on this site is underway. However, the County Auditor's appraisal of the property does not recognize any improvements to the site. The City has the opportunity to TIF the property and receive service payments based on the increase in the incremental value. The increase in real property value as a result of private improvements is estimated to be $4.9 million. Service payments in the amount of approximately $49,000.00 will be collected annually, based on the estimate and the current tax rates. Currently no timetable is in place for the public improvements. The City will accrue the service payments and apply them to the cost of public improvements when constructed. Formal notice, as required by Section 5709.40 of the Ohio Revised Code, has been given to the Dublin City School District and the Central Ohio Joint Vocational School District. TAX INCREMENT FINANCING AGREEMENT This TAX INCREMENT FINANCING AGREEMENT (the "Agreement"), made and entered into as of this day of , 2002, by and between the CITY OF DUBLIN, Oxlo (the "City"), a municipal corporation organized and existing under the constitution and the laws of the State of Ohio, and Hospital Properties, Inc. (the "Owner"), a Ohio not-for-profit corporation with offices located in Columbus, Ohio. WITNESSETH: WHEREAS, the Owner has acquired by deed certain real property located in the City (which property is depicted in Exhibit A attached hereto and referred to herein as the "Property"); and WHEREAS, the Owner has made or will 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 agrees that the Public Improvements will benefit the Property; and WHEREAS, prior to the passage of the Ordinance (as defined below), the City provided notice of the proposed passage of the Ordinance to any affected school districts as required by Ohio Revised Code Sections 5709.40 and 5709.83; 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, and its successors and assigns, to make service payments in lieu of taxes with respect to the Property to pay costs of the construction by the City of the Public Improvements or for distribution to the Dublin City School District, all pursuant to and in accordance with Ohio Revised Code Sections 5709.40, 5709.42 and 5709.43 (collectively, the "Act"), and the City, by its Ordinance No. 56-02 passed April 8, 2002 (the "TIF Ordinance"), has declared that 100% of the increase in assessed value of the Property after the effective date of the TIF Ordinance (including but not limited to any portion of that increase in assessed value resulting from Owner's construction of the Project and other improvements) is a public purpose and declared to be exempt from taxation for a period of thirty (30) consecutive calendar years commencing with the first calendar year subsequent to the passage of the TIF Ordinance in respect of which an application for tax exemption is filed for the Property, all 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 Owner to proceed with the Project and the City to proceed with the construction of the Public Improvements, the parties hereto agree as follows: Section 1. 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 that the then current owner shall make for the Property semiannual service payments in lieu of taxes with respect to the "Improvement" (including the Project), 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. Any late payments shall be subject to penalty and 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 (the payment of penalties and interest are collectively referred to herein with the payments in lieu of taxes as the "Service Payments"). Such Service Payments shall be made semiannually to the County Treasurer of Franklin County, Ohio (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 Improvement. Each semiannual payment shall be in the same amount as the real property taxes that would have been charged and payable against the Improvement (after credit for any other available payments received by the City under Ohio Revised Code Section 319.302 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, herein the "Property Tax Rollback Payments") 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 Improvement and payments in lieu of taxes with respect to the Improvement, whether pursuant to Ohio Revised Code Section 5709.42, the Ordinance, this Agreement or any other applicable law. It is intended and agreed, and it shall be so provided by the Owner in a declaration filed and of record in the office of the County Recorder of Franklin County, Ohio (the "Declaration"), 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 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 Ordinance enacted pursuant thereto. The Owner and its successors shall only be responsible for making Service Payments due and payable during their respective periods of ownership. Such covenants running with the land in the Declaration shall have priority over any mortgage or other lien on the Property, 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 Declaration, to subordinate such lien to the covenants running with the land provided in the Declaration. -2- Section 2. 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 City of all necessary applications and supporting documents to obtain the exemption from real property taxation for the Improvement authorized by the Act and the City, and to enable the City to collect Service Payments thereunder, and the Owner shall cooperate with the City in connection with the preparation and filing of the initial and any frther applications required to accomplish that purpose. The initial application shall be made by the City no later than December 31, 2002, unless the City determines a later date is permissible. Section 3. Tax Increment Equivalent Fund. The City and the Owner acknowledge the creation, pursuant to the TIF Ordinance, of the Perimeter Loop Municipal Public Improvement Tax Increment Equivalent Fund (the "Fund") to be maintained in the custody of the City. The City and the Owner agree that the Fund shall receive all Service Payments and Property Tax Rollback Payments payable to the City in respect of the Property as described in Section 1, with all such Service Payments and Property Tax Rollback Payments being used to finance or pay the costs of the Public Improvements. Any incidental surplus remaining in the Fund shall be disposed of as provided in Section 5709.43(D) of the Revised Code. Section 4. 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 Declaration. Section 5. 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 6. Representations of Parties. 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. The City hereby represents that the Ordinance was passed by the City Council on April 8, 2002. Section 7. Successors. This Agreement shall be binding upon the Owner, and its respective beneficiaries, successors and assigns, all as and to the extent provided for herein. Section 8. Information Reporting. The Owner shall cooperate in all reasonable ways with and provide necessary and reasonable information to the designated Tax Incentive Review Council (the "TIRO") to enable the TIRC to review and determine annually during the term of this Agreement, the compliance of the Owner with the terms of this Agreement. Any information supplied by the Owner shall be provided solely for the purpose of monitoring its compliance with this Agreement. -3- Section 9. Agreement Binding on Parties; No Personal Liability; City Consents. All covenants, obligations and agreements of the City and the Owner contained in this Agreement shall be effective to the extent authorized and permitted by applicable law. No such covenant, obligation or agreement shall be deemed to be a covenant, obligation or agreement of any present or future member, officer, agent or employee of the City in other than their official capacity or of any individual person who is an officer, director or shareholder of the Owner other than in their capacity as an officer, director or shareholder, and neither the members of the City Council nor any City official executing this Agreement, or any individual person executing this agreement on behalf of the Owner, shall be liable personally by reason of the covenants, obligations or agreements of the City or the Owner contained in this Agreement. Any consent of the City to be given under this Agreement may be given by the City Manager, and shall be given in writing. Section 10. Amendments. This Agreement may only be amended by written instrument executed by all of the parties to this Agreement. Section 11. Notices. Except as otherwise specifically set forth in this Agreement, all notices, demands, requests, consents or approvals given, required or permitted to be given hereunder shall be in writing and shall be deemed sufficiently given if actually received or ifhand-delivered or sent by recognized, overnight delivery service or by certified mail, postage prepaid and return receipt requested, addressed to the other party at the address set forth in this Agreement or any addendum to or counterpart of this Agreement, or to such other address as the recipient shall have previously notified the sender of in writing, and shall be deemed received upon actual receipt, unless sent by certified mail, in which event such notice shall be deemed to have been received when the return receipt is signed or refused. The parties, by notice given hereunder, may designate any further or different addresses to which subsequent notices, certificates, requests or other communications shall be sent. The present addresses of the parties follow: (a) To Owner at: with a copy to: -4- 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. CITY OF DUBLIN, OHIO By: Printed: Marsha I. Grigsby Title: Interim City Manager Approved as to Form: By: Printed: Stephen J. Smith Title: Director of Law HOSPITAL PROPERTIES, INC. By: Printed: Title: -6- FISCAL OFFICER'S CERTIFICATE The undersigned, Director of Finance of the City under the foregoing Agreement, certifies hereby that the moneys required to meet the obligations of the City during the year 2002 under the foregoing Agreement have been appropriated lawfully for that purpose, and is in the Treasury of the City or in the process of collection to the credit of an appropriate fund, free from any previous encumbrances. This Certificate is given in compliance with Sections 5705.41 and 5705.44, Ohio Revised Code. Dated: , 2002 Director of Finance -7- EXHIBIT A JOSEPH W. TESTA FRANKLIN COUNTY AUDITOR MAP AREA :MAY DATE APR 3, 2002 w , ~ ; ~ ~ ,.x, rr. r. r-----"-J ~ ~ ~ ' I t ~ ~ I , ` o 1 ~ ! + r ` ~ j ' h 10'1 `1 t ' ` D t:'~ I aL a1~ ` v 't I I 1 ;1 1 O ~ / i ~ + . •w~r;r -r / ~ ` ~ (l I ~ , ~ ~ 1 ~ r i. - t\ O ~ x _ ~ ~ ->4. t ~ ~ I ~iis~_;.IMER ';SOLE ~ ~ Z~' Tn~s 'ncD 's :repart^. tar ±nt rtci pr opertl ~n~.entorr +itn~n tn;3 [ovrtty. It compdsa from rat Grata aesas. uC+:'~~ sw~sy pats, ar;a other p~tti•c recorGS cna aato. UsKS o+ tc~s moG are not'~f,ec tract Ne Ouahc Drimarr pgiw rip ; ~nfarmat;an sources Shau`.', hit cGnS~iltC +af :tr~I~aat~Ort at th6 ~nl0rmat~tn COnta+nta a~ tn•s neap, Tne -.S1 count; ona the mapD~ny tcmpames ossume nc iegW rt5pGn5~t)~i~f~t5 tar the lnlarmat•cr, ccntaneC on this map. Plecse net~f,. the Frana<6r ;,c„n:y G~5 G.~3~cn of any a~sreDa^c~es I IVI I N EXHIBIT B PROJECT The Project is expected to include approximately 33,300 square feet of medical office space, associated parking and landscaping improvements and other related improvements. -9-