HomeMy WebLinkAboutOrdinance 045-15r�
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RECORD OF ORDINANCES
Dayton Legal Blank, Inc. Form No. 30043
45 -15
Ordinance No. Passed 20
AN ORDINANCE CREATING A TAX INCREMENT FINANCING INCENTIVE
DISTRICT; DECLARING IMPROVEMENTS TO THE PARCELS WITHIN THE
INCENTIVE DISTRICT TO BE A PUBLIC PURPOSE AND EXEMPT FROM REAL
PROPERTY TAXATION; REQUIRING THE OWNERS OF THOSE PARCELS TO
MAKE SERVICE PAYMENTS IN LIEU OF TAXES; ESTABLISHING A
MUNICIPAL PUBLIC IMPROVEMENT TAX INCREMENT EQUIVALENT FUND
FOR THE DEPOSIT OF THOSE SERVICE PAYMENTS; SPECIFYING THE
PUBLIC INFRASTRUCTURE IMPROVEMENTS THAT BENEFIT OR SERVE
PARCELS IN THE INCENTIVE DISTRICT; AUTHORIZING COMPENSATION
PAYMENTS TO THE DUBLIN CITY SCHOOL DISTRICT AND THE TOLLES
CAREER AND TECHNICAL CENTER; AND DECLARING AN EMERGENCY.
WHEREAS, the City has prepared a strategy for comprehensive development within an area of the
City known as the Bridge Street District (which area is referred to herein as the "D/stricfD and has
endeavored to work collaboratively with public entities, including the Dublin City School District
("Dub /in School DistitfD and the Tolles Career and Technical Center (" To/ %s Career Centel % and
private entities to plan for and facilitate the development of the District; and
WHEREAS, the City's strategy for development within the District is primarily focused on creating
a new, more urban core for the City, including a dynamic mix of commercial and residential
development types generally not currently available within the City; and
WHEREAS, the City and Crawford Hoying Development Partners, LLC have proposed to enter into
a development agreement and other related agreements which will generally provide for the
redevelopment of the Parcels (as defined below) and the construction of a redevelopment project
which will include various uses, including but not limited to, 112 new owner - occupied residences
(collectively, the "Project l; and
WHEREAS, to facilitate the development of the Project, and pay the associated costs of
improvements and related incentives, this Council has determined pursuant to Ohio Revised Code
Sections 5709.40, 5709.42 and 5709.43 (collectively, the "77F Statutes l to declare the
improvement to each parcel of real property located within the incentive district to be a public
purpose and exempt from taxation, require the owner of each parcel to make service payments in
lieu of taxes, provide for the distribution of the applicable portion of those service payments to
Franklin County, Ohio, establish a municipal public improvement tax increment equivalent fund for
the deposit of the remainder of those service payments, specify public infrastructure improvements
made, to be made or in the process of being made that benefit or serve, or that once made will
benefit or serve, parcels in the incentive district, and to provide for the distribution of an applicable
portion of such service payments to the Dublin School District and Tolles Career Center; and
WHEREAS, this Council has determined to create the Bridge Park Residential Incentive District, a
residential incentive district (the "Incentive Distrito, the boundaries of which will be coextensive
with the boundaries of, and will include, the parcels of real property specifically identified and
depicted in ExHisrr A attached hereto (as currently or subsequently configured, the "farce /s", with
each of those parcels referred to herein individually as a "Parse /D; and
WHEREAS, by Ordinance No. 15 -13 passed on July 1, 2013, this Council approved a Bridge Street
District Area Plan (the "Economic DevelopmentP/ar/�, which Economic Development Plan is on file
in the City Department of Development; and
WHEREAS, the City Engineer has certified to this Council that (i) the Incentive District is less than
300 acres in size and enclosed by a contiguous boundary, and (ii) the public infrastructure serving
the Incentive District is inadequate to meet the development needs of the Incentive District as
evidenced by the Economic Development Plan; and
WHEREAS, this Council has determined to provide for the construction of public infrastructure
improvements described in ExHiBrr B attached hereto (the "Publiclnfrasimcture Improvements',
which Public Infrastructure Improvements, once made, will benefit or serve the Parcels; and
WHEREAS, the Board of Education of the Dublin School District has heretofore adopted a resolution
on April 14, 2014 waiving the provision of certain notices, approving the tax exemption of the
Improvements (as described in Section 3), authorizing an agreement (which has heretofore been
executed) between the City and the Dublin School District providing for the remission of certain
payments to the Dublin School District (the "Dub /in School DishictAgreemenfl and making other
findings with respect to the tax exemption; and
RECORD OF ORDINANCES
Dayton Legal Blank, Inc. Form No. 30043
45 -15
Ordinance No.
Page 2 of 4
Passed '0
WHEREAS, the Board of Education of the Tolles Career Center has heretofore adopted a resolution
on June 26, 2014 waiving the provision of certain notices, approving the tax exemption of the
Improvements, authorizing an agreement (which has heretofore been executed) between the City
and the Tolles Career Center providing for the remission of certain payments to the Tolles Career
Center (the " Tolles Career Center Agreementl and making other findings with respect to the tax
exemption; and
WHEREAS, notice of this proposed ordinance has been delivered to the Board of County
Commissioners of Franklin County, Ohio in accordance with and within the time periods prescribed
in Section 5709.40(E) of the Ohio Revised Code; and
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio,
of the elected members concurring, that:
Section 1. Incentive District Projects: Creation of Incentive District. This Council
finds and determines that the Project will place additional demand on the Public Infrastructure
Improvements. This Council further finds that the sum of the taxable value of real property in
the Incentive District for tax year 2014 and the taxable value of all real property in the City that
would have been taxable in tax year 2014 were it not for the fact that the property was in an
existing incentive district and therefore exemption from taxation, does not exceed twenty-five
percent of the taxable value of real property within the City for tax year 2014. Pursuant to the
TIF Statutes, this Council creates the Incentive District, the boundaries of which are coextensive
with the boundaries of, and include, the Parcels specifically identified and depicted in ExHIBrrA.
Section 2. Public Infrastructure Improvements. This Council designates the Public
Infrastructure Improvements described in ExHiBrr B attached hereto, and any other public
infrastructure improvements hereafter designated by ordinance, as public infrastructure
improvements made, to be made or in the process of being made by the City that benefit or
serve, or that once made will benefit or serve, the Parcels.
Section 3. Authorization of Tax Exemption; Life of Incentive District. Pursuant to
and in accordance with the provisions of Section 5709.40(C) of the Ohio Revised Code, this
Council hereby declares 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(A) of the Ohio Revised Code) is a public
purpose and exempt from taxation for a period coextensive with the life of the Incentive District.
The life of the Incentive District commences with the first tax year that begins after the effective
date of this Ordinance and in which an Improvement attributable to a new structure would first
appear on the tax list and duplicate of real and public utility property for any Parcel within the
Incentive District were it not for the exemption granted in this Ordinance and ends on the earlier
of (a) 30 years after such commencement or (b) the date on which the City can no longer require
service payments in lieu of taxes, all in accordance with the requirements of the TIF Statutes.
Notwithstanding any other provision of this Ordinance, the exemption granted pursuant to this
Section 3 and the payment obligations established pursuant to Section 4 of this Ordinance are
subject and subordinate to any tax exemption applicable to the Improvement approved by the
City pursuant to Sections 3735.65 through 3735.70 of the Ohio Revised Code.
Section 4. Service Payments and Property Tax Rollback Payments. Subject to any
tax exemption applicable to the Improvement approved by the City pursuant to Sections 3735.65
through 3735.70 of the Ohio Revised Code, and pursuant to Section 5709.42 of the Ohio Revised
Code, the owner of each Parcel is hereby required to make annual service payments in lieu of
taxes with respect to the Improvement to that Parcel to the Treasurer of Franklin County, Ohio
(the "County Treasurers on or before the final dates for payment of real property taxes. Each
service payment in lieu of taxes, including any penalties and interest at the then current rate
established for real property taxes (collectively, the "Service Paymen&J, will 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 the Improvement if it were not exempt from taxation
pursuant to Section 3 of this Ordinance. The Service Payments, and any other payments with
respect to each Improvement that are received by the County Treasurer in connection with the
reduction required by Sections 319.302, 321.24, 323.152 and 323.156 of the Ohio Revised Code,
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 Paymen&J, will be
deposited and distributed in accordance with Section 6 of this Ordinance.
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Dayton Legal Blank, Inc.
45 -15
Ordinance No.
RECORD OF ORDINANCES
Form No.30043
Page 3 of 4
Passed _, _ , '0
Section 5. TIF Fund. This City Council establishes, pursuant to and in accordance
with the provisions of Ohio Revised Code Section 5709.43, the Bridge Park Incentive District
Municipal Public Improvement Tax Increment Equivalent Fund (the "TIFFund�. The TIF Fund
shall be maintained in the custody of the City and shall receive all distributions to be made to
the City pursuant to Section 6 of this Ordinance. Those Service Payments and Property Tax
Rollback Payments received by the City with respect to the Improvement of each Parcel and so
deposited pursuant to Ohio Revised Code Section 5709.42 shall be used solely for the purposes
authorized in the TIF Statutes or this Ordinance (as it may be amended or supplemented). The
TIF 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 the TIF Fund shall
be dissolved and any incidental surplus funds remaining therein transferred to the City's General
Fund, all in accordance with Ohio Revised Code Section 5709.43.
Section 6. Distribution of Funds. Pursuant to the TIF Statutes, the County Treasurer
is requested to distribute the Service Payments and the Property Tax Rollback Payments as
follows:
(a) to Franklin County, Ohio, any amounts payable pursuant to Section
5709.40(E)(3) of the Ohio Revised Code or as otherwise established in a compensation
agreement between the City and Franklin County, Ohio; and
(b) to the City, all remaining amounts for further deposit into the TIF Fund
for (i) payment of costs of the Public Infrastructure Improvements, including, without
limitation, debt charges on any notes or bonds of the City issued to pay or reimburse costs
of those Public Infrastructure Improvements or finance costs for those improvements
and /or (ii) payments pursuant to the Dublin School District Agreement and the Tolles
Career Center Agreement.
All distributions required under this Section are requested to be made at the same time
and in the same manner as real property tax distributions.
Section 7. Further Authorizations. This City Council hereby authorizes and directs
the City Manager, the Director of Finance, the Director of Law, the Director of Development, the
Clerk of Council or other appropriate officers of the City to make such arrangements as are
necessary and proper for collection of the Service Payments and the Property Tax Rollback
Payments. This City Council further hereby authorizes and directs the City Manager, the Director
of Finance, the Director of Law, the Director of Development, the Clerk of Council or other
appropriate officers of the City to prepare and sign all documents and instruments and to take
any other actions as may be appropriate to implement this Ordinance.
Section 8. Tax Incentive Review Council. The applicable Tax Incentive Review
Council, with the membership of that Council to be constituted in accordance with Section
5709.85 of the Ohio Revised Code, shall, in accordance with Section 5709.85 of the Ohio Revised
Code, review annually all exemptions from real property taxation granted by this Ordinance and
any other such matters as may properly come before that Council, all in accordance with Ohio
Revised Code Section 5709.85.
Section 9. Filings with Ohio Development Services Agency. Pursuant to Ohio Revised
Code Section 5709.40(I), the City Manager is hereby directed to deliver a copy of this Ordinance
to the Director of the Ohio Development Services Agency within fifteen days after its effective
date. Further, and on or before March 31 of each year that the tax exemption authorized by
Section 3 remains in effect, the Director of Development or other authorized officer of the City
is directed to prepare and submit to the Director of the Ohio Development Services Agency the
status report required under Ohio Revised Code Section 5709.40(I).
Section 10. Open Meetings. This City Council finds and determines that all formal
actions of this City Council and any of its committees concerning and relating to the passage of
this Ordinance were taken in an open meeting of this City Council or any of its committees, and
that all deliberations of this City Council and any of its committees that resulted in those formal
actions were in meetings open to the public, all in compliance with the law including Ohio Revised
Code Section 121.22.
Section 11. Effective Date. This Ordinance is declared to be an emergency measure
necessary for the immediate preservation of the public peace, health, safety, and welfare of the
City, and for the further reason that this Ordinance is required to be immediately effective in
Blank, Inc.
Ordinance No.
RECORD OF ORDINANCES
Form No.30043
45 -15 Page 4 of 4
Passed _ '20-
order to facilitate the orderly and timely development of the Project and the related Public
Infrastructure Improvements; wherefore, this Ordinance shall be in full force and effect
immediately upon its passage.
Signed:
yor - Presiding Officer
Attest:
Clerk of Council
Passed:
Effective
2015
2015
EXHIBIT A
IDENTIFICATION AND MAP OF THE PARCELS
The enclosed area on the following map specifically identifies and depicts the Parcels and
the boundaries of the Incentive District, and constitutes part of this EXHiBrr A. The Parcels
include, without limitation, the tax parcels identified on the following map (as they existed in the
County Auditor's records on June 1, 2015), and are included for ease of reference only.
EXHIBIT B
PUBLIC INFRASTRUCTURE IMPROVEMENTS
The Public Infrastructure Improvements consist of any "public infrastructure
improvement" defined under Section 5709.40(A)(7) of the Ohio Revised Code and that benefits
or serves parcels in the Incentive Districts and specifically include, but are not limited to, the
"Public Improvements" described in any Development Agreement between the City and a
developer of the Parcels (as may be amended from time to time) and any of the following
improvements that benefit or serve parcels in the Incentive Districts and all related costs of those
permanent improvements (including, but not limited to, those costs listed in Section 133.15(8) of
the Ohio Revised Code):
Roadways. Construction, reconstruction, extension, opening, improving, widening,
grading, draining, curbing or changing of the lines and traffic patterns of roads, highways,
streets, intersections, bridges (both roadway and pedestrian), sidewalks, bikeways,
medians and viaducts accessible to and serving the public, and providing signage
(including traffic signage and informational /promotional signage), lighting systems,
signalization, and traffic controls, and all other appurtenances thereto within the Bridge
Street District, including those improvements indicated in the City of Dublin Thoroughfare
Plan, including, without limitation (a) the relocation of Riverside Drive (b) construction of
John Shields Parkway from Riverside Drive to Village Parkway, (c) improvements to Tuller
Road from Riverside Drive to Tuller Ridge Drive, (d) improvements to Riverside Drive
between Emerald Parkway and SR 161, (e) improvements to the Riverside Drive/Tuller
Road intersection, (f) construction of a roundabout at the intersection of US 33 /Riverside
Drive /SR 161, (g) improvements to accommodate on- street parking throughout the Bridge
Street District, and (h) aesthetic improvements to roadways within the Bridge Street
District;
• Parking Facilities. Construction or reconstruction of public parking garages or other
facilities supporting the Improvements to the Parcels;
• Water /Sewer. Construction, reconstruction or installation of public utility improvements
(including any underground municipally owned utilities), storm and sanitary sewers
(including necessary site grading therefore), water and fire protection systems, and all
appurtenances thereto;
•
Environmental/ Health. Implementation of environmental remediation measures
necessary to enable the construction of the Project and the construction of public health
facilities, including, without limitation, stream remediation;
• Utilities. Construction, reconstruction or installation of gas, electric and communication
service facilities and all appurtenances thereto;
• Stormwater. Construction, reconstruction and installation of stormwater and flood
remediation projects and facilities, including such projects and facilities on private property
when determined to be necessary for public health, safety and welfare, including, without
limitation, stream remediation;
• Demolition. Demolition, including demolition on private property when determined to
be necessary for public health, safety and welfare;
Parks and Trails. Construction or reconstruction of one or more public parks and
recreation trails, including grading, trees and other park plantings, park accessories and
related improvements, together with all appurtenances thereto, including, but not limited
to (a) pedestrian bridges and underpasses and (b) improvements to the new public parks
to be located between relocated Riverside Drive and the Scioto River;
Streetscape /Landscape. Construction or installation of streetscape and landscape
improvements including trees, tree grates, signage, curbs, sidewalks, scenic fencing,
street and sidewalk lighting, trash receptacles, benches, newspaper racks, burial of
overhead utility lines and related improvements, together with all appurtenances thereto,
including, but not limited to streetscape improvements in conjunction with and along the
roadway improvements described in "Roadways" above;
• Real Estate. Acquisition of real estate or interests in real estate (including easements)
(a) necessary to accomplish any of the foregoing improvements or (b) in aid of industry,
commerce, distribution or research; and
• Professional Services. Engineering, consulting, legal, administrative, and other
professional services associated with the planning, design, acquisition, construction and
installation of the foregoing improvements and real estate.
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EXHWIT A
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THE BRIDGE PARK RESIDENTIAL
pow 41 MA �°° ` ftWO 6""°°" INCENTIVE DISTRICT
annssuna.en Tawas®ensu® mo M"201114U
Office of the City Manager
5100 Emerald Parkway • Dublin, OH 43017 -1090
City of Dublin Phone: 614- 410 -4400 • Fax: 614 - 410 -4490
To: Members of Dublin City Council
From: Dana L. McDaniel, City Maria
Date: July 10, 2015
Initiated By: Angel L. Mumma, Director of Finance
Summary
Memo
Re: Ordinance No. 45 -15 — Establishing a Tax Increment Financing
Incentive District (Bridge Park Incentive District)
In conjunction with Ordinance No. 44 -15, which authorizes the City Manager to enter into a
Development Agreement with Crawford Hoying Development Partners, LLC (`Developer') for the
development of property within the Bridge Street District ("BSD'I, Ordinance 45 -15 proposes the
establishment of the Bridge Park Incentive District for the project known as Bridge Park.
Authorized under Ohio Revised Code 5709.40(C), an Incentive District is a type of Tax Increment
Financing (TIF) that applies to owner - occupied housing. Like commercial TIFs, improvements to a
parcel are considered a public purpose and exempt from taxation. Property owners are required to
make service payments in lieu of the incremental increase in taxes (referred to as PILOTS —
payments in lieu of taxes or Service Payments). The amount of these payments is equal to the
taxes that would have been due had the Incentive District not been in place. Therefore, a
property owner pays no more or less in property taxes /service payments as a result of an
Incentive District.
Bridge Park Incentive District
While the Bridge Park Incentive District will only apply to the owner - occupied housing portions of
the Bridge Park project, the boundaries of the Incentive District will match the entire Bridge Park
Development (see Exhibit A of Ordinance 45 -15). This is done so that in the future, apartment
units, which are considered commercial for taxation purposes, could be converted to owner -
occupied condominiums.
Currently, owner - occupied housing is only planned on Block Z (west side of the Scioto River) and
Block H (east side of the Scioto River). For the purposes of projecting potential service payments,
staff has estimated that the market valuation of the owner - occupied private improvements will be
$52.6 million. Based on the current millage, and assuming no growth in property valuations, it is
estimated that the Incentive District will generate approximately$1,575,000 annually in years 16-
30 — prior to any County or School compensation (see discussion below). A negligible amount of
service payments is anticipated in years 1 -15 of the Incentive District as a result of a 15 -year,
100% property tax abatement on owner - occupied housing, as outlined in the Development
Agreement.
The service payments generated within the Incentive District will be used to fund the public
roadway improvements, parking garages and a conference /events facility. The Development
Agreement, and more specifically, Exhibit E, "Application of Service Payments and NCA Revenues,"
indicates how the service payments generated from the improvements will be applied.
Memo re. Ord. 45 -15 — Bridge Park Incentive District
July 10, 2015
Page 2of3
The proposed Bridge Park Incentive District is within the defined area covered by the Bridge Street
District Cooperative Agreement between the Dublin City School District (DCS) and the City. As a
reminder, the Cooperative Agreement permits the City to authorize various tax incentives,
including TIFs, within the BSD that provide for the following (for each incentive authorized):
■ Years 1 -15 — DCS agrees to forgo 100% of the applicable real estate taxes in respect of the
improvements to any particular parcel within the applicable tax incentive district.
■ Years 16 -30 — DCS will receive 10% of what it would have received if the applicable tax
incentive district had not been in place.
Additionally, as part of the Cooperative Agreement, DCS waived any right to receive notification of
the passage of any Ordinance or legislation authorizing the real property tax exemptions.
However, staff has notified Dublin City Schools that this new Incentive District within the Bridge
Street District is being considered by City Council.
Incentive Districts differ from commercial TIFs in that there are some property tax levies that are
protected by statute. These include levies approved after January 1, 2006 for MRDD, senior
services, ADAMH, the library, children's services, and the zoo. Additionally, ORC stipulates if there
is not a mutually agreed upon compensation agreement with the Board of County Commissioners,
a prescribed compensation amount must be paid to the County in years 11 -30 of the Incentive
District.
The City and the developer have proposed a tax sharing plan with Franklin County, which was
rejected by the Franklin County Board of Commissioners on June 16, 2015. Such rejections are
not unusual for these proposals, and the County's resolution contemplates continued negotiations
toward a mutually acceptable compensation agreement with the City of Dublin. If such
negotiations prove unsuccessful, the Ohio Revised Code 5709.40(C) establishes the formula for
compensation to the "protected" levies. The financial models used by the developer and the City
have assumed worst case scenarios, based upon these statutory provisions.
Any compensation that is due to the County will be paid directly from the service payments
received within the Incentive District.
Process to establish an Incentive District
State statute provides the process, which must be followed in order to create an Incentive District.
The steps are as follows:
1. Notice must be provided to the real property owners whose property is located within the
boundaries of the Incentive District. This notice must include a date that a Public Hearing
will be conducted.
Status: Notices were mailed via first class mail on March 12, 2015 to the then property
owners whose property was located within the boundaries of the proposed Incentive
District. The property owners included.• City of Dublin, Crawford Hoying Development
Partners, LL C, and the Central Ohio Transit A uthority (CO TA). The notice indicated that the
public hearing would be held on April 13, 2015.
2. A public hearing must be conducted.
Status. A Public Hearing was conducted on April 13, 2015. The minutes from that meeting
are attached for reference.
Memo re. Ord. 45 -15 — Bridge Park Incentive District
July 10, 2015
Page 3 of 3
3. City Council will consider an Ordinance to create the Incentive District
Status. First reading of the Ordinance to create the Incentive District is scheduled for
Monday, July 13, 2015, with second reading /public hearing scheduled for Monday,
August 10, 2015. Staff will recommend approval of Ordinance 45 -15 as an emergency on
August 10, 2015.
Recommendation
Staff recommends that City Council adopt Ordinance No. 45 -15 by emergency at the second
reading /public hearing on August 10, 2015.
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EXHWIT A
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THE BRIDGE PARK RESIDENTIAL
pow 41 MA �°° ` ftWO 6""°°" INCENTIVE DISTRICT
annssuna.en Tawas®ensu® mo M"201114U
RECORDyR�OCEDiNGS
Minutes of m Meeting
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April 13, 2015
Held —_ —_._
CALL 7o ORDER
Mayor Keatart called the Monday, April 13, 2015 Regular Meeting of DA& City Council to
order at 6:00 p.m. at the Dublin Murddpel Building.
ROLL CALL
Merbes present were Mayor Keertart, Vice Mayor Gerber, Ms. ChhtM I- Zuerdw, Mir.
Laddider, Mr. Patterson, Mr. Reiner and Ms. Seloy.
Staf F members present were Mr. McDafdd, Mr. Srrdth, Mr. Foegler, Ms. Mumme, Chid vat
PrimIsberg, Ms. Crandall, Ms. O'Callaghan, Mr. HWm, ML Pudmrdk, Mr. Eammi, Mr.
Langwortty, Mr. Harm ersnillk Ms. Ratrdh and Mr. Kridler. Also present was Mr. Daniels
of Squires Patton Boggs.
AD3�IRN11@twRiO NXBL7lT1VE 4 1 1 0
Mayor Keenen moved to adjourn to s ecutve sesiforh to discuss the purchase of property
br public purposes, omfts with an summery for the public body aoncendrhg disputes
Invdvhng the pnbik body that are the a bW of pending or Imminent court action, and
persmu matters relaxed to the appointment of a pubk ollicial.
Mts. C Mnrdd- Zuendner norm rhded t s ,.Ww .
Vote on the motion: Mr. Leddlder, ye; Ms. Chlnnid- Zuercher, Mr. Peterson, Veer: Vim
Mtn Gertw, yes; Mayor Keenan, yes, Mr. Rainer, yes, and Ms. Setay, yes.
The meeting wras recomeehed st 6:30 p.m.
PU=l OR ALLE6ZANCE
Ms. Chhtnkl -Zuerdw led the Pledge of Allegiance.
PUK3C NEAIIIIW
• Proposed Taos Inawmeht RnwWq Inca 0ve Disbud — Ohio Rued Code Section
5709.40(C)
Ms. Mumme 1 11 P - ed an overview. On Mm dh 23, she provided Coundl with an
lydbrrnatlonal prno tAHorh rago ru h TIN treated under Section 5709.40(C) of the Ohio
Revised Cade. That pour setsiah address TFs an r -I'm tal properly, also ref n ed
m as Incentive districts, which Is the sulrW of this ptrb9c hearing.
She noted that developer Cmwbrd Haying and the City are proposing the use of a 40(C)
TIF within the Bridge Park dewelopment. This will allow hmprovenmuts within the
residential parcels b be eansldsred a public purpose and ehaenpt *= taxation, but in its
place, have a so change levied or payment in lieu of tear W which would be used to
f ence publk Impr vemenb. The Crewwbnd Haying Bridge Pak development currently has
approximately 111 ow nw- ommled wills proposed — 41 urdtt on the wart side of the riveter
and 70 un is on the Hest side of the river. The process to establish an Incentlwa dlstkt
under 5709.40 (C) hndurdes rneilll-IfOn to the property owners. Those rout( allons wee
sent via fhshcleas mall an March 12, 2015 to CNA, Crawford Haying arM the City of
Dublin, as the property owners wRhin the proposed dM kL The public hearing, which is
being theta this evening, Is the nett step In the proem After the public hearing, staff will
bring fbrvmd for Courted corhgderaton an ordnance that wlP treste the hroentve dtse t.
Currently, there are ongoing negotletbns with Fronk bh County to come m an agreement
with respect to revenue sharing, as r a gulrad under Code. The proposal for this tax
Inc�r ennatnt finerndrng Incentive d d t Is over the entire Bridge Park development site.
ti 10 b wi l only apply to ownerooaupled ressdahtlP faclifthm R does preserve the ability
that at soma fiMn point in time► the developer could convert any aperbrre is or multl-
fanhly commercial units to owmeraocupled resbeh"a . Any such change would be subject
m provbkm tart wwould be rnegatatod wwitdn a development agre rnent.
After the public hearing tonight;, staff will conSt ue negotatorns with the Freud& County
commissioners. Staff anticipates bringing forward a TIF ordinance fbr not only this
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Minutes of Meeting_
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bnoentive district but alw a regular TiF dish td for first reading an" 4 vft a moronic
reading an May 18. These ear estimated dates at this point In time.
Mayan Keenan Invited public testimony
misted that OF past performance Is the best
YhdiCator for f11M bdwAw, one should bane a looit at sortie of the dw*pment around
Cahurhbus that is as trendy as the one being comer >pletad In this T7. The My Center Moil
opened in 19M at a cog of $110 moron to flwg tarharhts and fssrtfare - that was tIs best
day. Two* years War In 2009, the awwrhas of the mall gave the dev lopmeot bads to the
Cty of Co umM free of dwge. The "cetdh° vr®s It would am* tahpayers $10 moon to
War It down. The total lass In value aver those 20 years vets $120 million. The reason
given for Its fblltue ore the construWan of new mails dew to the suburbs and doing
aline In the downtown are. The Cord rent opened In 1972 and rues brgdy torn down In
1990 with similar Invaone ht loss. A few struoft hshesses. and apwbneds remain on
the property tofy. The reslderdW rents began at aptanodmet iv the senor tevel as those
being proposed In the dowdopmerht aontenhplet x this evening. The ,a mom given for the
falluv a of The Caftwnt were high tenth and tralk prnbienna Closer to home, Tenwas at
Cmwon had predicted nasty 40096 higher then cmwA mar vaW% resulting
In a raft $7.2 mMm Xidgmant against the developer. The rseson given for Ils IMure
vies the flall ue of the nelghboring devabpment, Cw mn. Tordit the City of Dublin Is
contanpletng s 3l),ow stralght TIF that will raise no Increments! value fluids to the
school system, fire and BIS sendoes„ and the 10 other err "No funded by property taoaes.
The dlfltaetnoe betaNm this TIP and the ones that have been used sumeviftdy in the pest
Is that this TIF b bdng used to brig more a"ti.w t hooting to the Clly of Dubgn -
housbng that the CRy of Dt> *ft Tirht Administration calls a revenue laser. The land It alts
on will only no -caste a Bile over $ 160, 000 /year for the school dbbt&- At today§ cost,
that wM only educate 12 stuckff . That e& ration cost will almod ow tatny li m 200.
500 percent aver the net 30 years. Yet the funding vd remain largely, ft line developer
s mere 20-30 &Ad= Ift In this 800-w* aparbywt CwnpNL VVIO She does
not agreethat only 800 one, two and ilwatbedtoam apwtw is vA generate
one dhtld, the result vA undoubtedly be studerhb attehdtrhg DuW Schools vrfth no
funding to pay for their education; r -I l a rs In need of fire and OG care with no f unding
to prowtde l4 and otnw social service agwrdes wNhout funding to serve the pophdatlan.
The choice is very dear to the reoide . of Dublin, should CSy Catmdl proceed with Its
recent pattern of allowing this trendy development using the Sdhools, the Township and
other entity funds to construct a poor quality version of the trendy apartment boom. The
dwice to be made Is to have a reduction in the quality of the schools, fire and EMS
reenter tme and od w sovtoss„ or to pay more In taxes. MtftrdO VMOM the C RO first
reel Poll's dol devdopme nt used no TIF dollars to fund Its deveopmmeht -the
deveapmwht suss ardrdy funded by the developer In the early 19704 derdoper Howard
Adarre was advocating for the developmert to the Village of Dulftls leaders He
Indiasted there would be no children In MtIrfleld Village because the houses wouuld be so
ehhperhslve that ho. would not be able to afford to Uwe M them. The average horns In
Muirfleld Is now 30 years old. imagine If DW*n Schools lard no llnding generated by tart
development to pay fw all the students that ten been educated over the past 30 yews.
She requests that Council not use this Idnd of TIF to promote this iced of development an
this Idnd of real estate in DAM - this reel estate is some of the best the Cty has on lis
rNe *onL The dtlaehs will ultimately have to pay for the unintended amumrences.
Mayor IGeehan pointed out that compering the &idea Suet dwalopmeht to the Ciry
Center Mall and The Continent Is really comparing apples to oranges_ There are many
good reasons for pursuing this project which Cotndl has been revIcAft for the past
four4m years. In regent to the 5dnoois, payments of $50 nd m will be made to the
Schools aver the 30-m Wad - $1.5 n0on/yew. He Invited staff to comment
Ms. Mumma dwffiW that the C RA cam pemation agreement with the School D does
not call for a sbaigi t TIF for a 30-yer period. kx%wd, in years one through 15 of any TIP
a not Rd, the City would capture 100 Meant of that In years 16 through 30, the Schools
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capture ion Pmt of what they would have noel had the Ownptmh not been put in
ph= That W regardless of whether it Is a CRA or a TIF, beca both are ehhempfbns.
This is In addition to the $1.5 million annually paid to the School Dlsbic4 which will botd
$50 MMIM.
W. Wiftler stated that his underslarmling is that the property in question with respect to
the Crawford Hwft px op me Is currenify generating $4WACQM er in Property tax
revrenue to the Schools.
Ms. Mumma responded that It is estimated as go - am between $3904400,000 for the
property owned by OvA)rd Haft at this time. There are some add wW parcels that
the City owns that are generem revenue, but tat W ordy because the momnptlma have
not corrhe through, based on the CILy's ownership. In order for the Scihool Mss to
receive $1.5 million in revenue in any given year, based on todays commerdal tax rates, it
—mall as appradmatdy $65 mMm in rrew valuation babhg seated.
Mayor Kea= stated that the vast 1116ofty of TIR used In Dublin have prows to be of
greet beneltt to all the trdtff Was — the Salhool DMxkt, the Township and the cry, over many
years.
preserhi in a letter from
the Board to Council and read R Into the reow They have great flltih that Dublin WM
honor their longstanding relationship and find a solution to the Issues nrl,ed. She
appaedataa the opporhrrdhr to testify, as Council axWders the pros and amps of
ImplenwOng a new type of tax lrmm nt flnendng dlst M, utilizing a Community
R,eir estment Area ((MA), and moving forward Wth the Mtge Park flaw Comnuvft
Authority. The Township understands that the C6ys motivation Is to entlae pdvate
went and finance cepits! tmprovmnents within tine bounce of the City of DAft
and V4W* porn Township, since the boundaries of the tRy and Wbd*vton Township are
largely co-terminwis. The erhtitles have a long history of collaboreft for the bad
outoonhes for our cmramndt)r. The low Intends to axwey the Trustees' deeds to corM ue
to build on this fotmdafimn of trust and reciprocity for the benefit of the 43,000 eitlaens the
City and Township share. For decades„ the Township has sanved as Dublbh's primary fine
and EMS seMoe prwAder. In this role, the Township has raa* a fled to Dublin's fbsl~paced
growth by ensuring that reslderhh and corporate partners receive the high qualify
emergency se vices that they destine. Last year, time services Included answering neatly
5,000 amergency eaRs, ore for every 17 residents and btmineeaes wwIft the community,
and Inspecting over 2,000 businesses for fire code compliance. The Township also
supports the MV by noAAewing bt lift and dle plans,, a fl action altl , 'in fire and 0
safety. They also deliver safety education programs to Dubift businahwes, reeiderhts and
schools. These senAoes help protect over $5.6 billion In appn min d real estate► ulfy and
f Propel W asserts, and an undetermbreble value In human ffe, tuner, the
Township delivers all of Its Rre services at a cost of "lWraddent per year. The CWs
desire to ufte econo nk development Incentives that Impact the property tax dWbAm
Is a slgntRaruht concern to the Townshdp. Development such as the one proposed with the
DRC 5M.40(C) TIF, Community ReI nvestmerht Arm and the Now Cammahfly Authority
will demand more fire service, EMS and ad* service than the development pamerns
assigned to tat land today. The new pattern of land use will not soarer these bhaeass
service demands for at least 30 yeas. In 2014, the City reported that the total assessed
vauatmh for the OW9 TIF districts In Fraddbh County was M million. That vWMon W
exempt ftan the TowwndWs property traces. That W a total of 22 paoent of the
Township's FW Wlh County tax base — more than the Township had ertpecied. Further, the
use of a Common ty Rehnresbra t Aran with a TIP ships the Township from receiving any
nirmnue from the con vroual building owners or Individuals who will be residing within the
CRA fbr up b 15 yeas. WRh these future flail and corpmations reileved of their
share of the cost of emergency services, the cost burden will shf t to the remaining
property bet - paying nealdad and bu dnesses. The CWs egg asslve approach to funding
public laftestructure with properly tat woriptions Is not without consequences to the
community. At a time when the lily seeks growth, the Townsidp Is Wertu;" to plan
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Minutoo Meeting_
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diligently to On within the resources approved by vola s. If growth occurs wRtMPA a way
to osplo n revenue from the growth, the Township will have to employ one or both of the
lbllowing optlons. (1) reduce the level of services and Increase emet9enLy response
tbnes, (2) seep vote approval for a tax increase and/or Institute a flee for services.
Anotrer key oormrrh to the Township is a change in Site lew In 2013, which removes the
Stele ftuhding for property tax rollbacks under artahh scenarios. Property tax owners who
aft these rollback provhMoro — as much 12.996, will again become amble for tense
paymerft K the Township ,heeds to pursue a replacement or Ihscreased mMege In a levy.
The levy flve-year cyds Is up again this November. Under these scenarios, the Township
does not neatrsally eeWwice VOIcent Satins In revethue. Ratlher, the NO fianding
match Is lost under that new Inv, and the properly owner acohhpts the 12.996 hhcreased
tax h wdah. This shift in tax burden vmxM be aPPrmdffwbdy $40 for evmy $100 (note:
later corrected to $40 fbr every $10V W of ,rw value for a property. The average
property value in Dublin Is wroxirnelely $300, 000. The My's continued used of property
tax eaawrhptlons f n set: the likelihood that the Township will have to Ihhcrease the mftp
for Fire and ENS services to maintain them at the same level. While the City has the ability
to offset with other revenues, notably tls hncorne tax, the Township has no
rewurse. The Rm Deparhruhnt a purabes on Its temporary Ave fear level. Their request is
simple. As community ham, they ask that the Cty communicate w8h the Township
regarding the CRO desdes and goals for the use of property tax aorrgtlohs. They also
ask that the atV reoogrh ze and remedy the negative impacts of redecng the Fire
Deparbnaft property tax funding for doialoiarmt
Mayor Keenmh stated that when he began service as a Weshhgton Township trustee In
1983, thueir budget was approftud ey $300,01M Today, the TovmsFhlp budget Is well Into
the $24 million range. Dublin has always udbed tax ircement fhhencing anti, In large
pat, the growth of Dublin Is due to those medhenlsrns. The Township has beheNbed
Immensely over the years. CRY Council will review this, shift to the Now Community
Aut houlty Issue related to Tartan West. City Council will take the Trustees' fter under
advisement
Mr. Leddider Inqubed about the Townsl1 'a anent amnal revenaes versus a pendibsres.
Ms. Khg espotded that the annual aupend Wres for the Fire Deparbnant are
apProodtraately $21 nMoh. The TownahIp Is In the proaass of divesting ball' of the Parks
Deparbra t In order W concce Irate on the nub services of Rre and EMS. The Parks
Departneht budget Is $ 600, 000. The remaining belem Is being used to prolong the levy,
so that the voters do not have to be asked for as much as soon.
Mayor Keerm hhxplred about the toil budget for the Township.
MS. Iarg t mpg fin that the total arhnual budget Is approdmately, $2425 million.
Mr. Leddider asked for the total revenue figures.
Ms. King asked Washhom Towhift Ad M*bvtor Ott to reMond.
M. Ott stated that she would provide 2014 actual numbers. Fire Fund revanms were
$20.124 million, w9waftires were $20.007 million. She has heard mere to the find
balance for the Tawwhsthip. The Inn ent Is to spend down that Ruud bdertce and put R to use
In lieu of haft to ask for an Increase In the bevy. Dgigrht spehdhg will allow that to
happen, but the urlohowm factor Is what will occur with addlbend tax atemptlons In the
community. The Towwnship would like to work with the City to tdehtlly a posltive resolution.
Mayor IGeenan Inquired the tarot revenue amount for the Tow nsh1p.
Ms. Ott responded that she doses not have those figures that Include the n*odwwA
small funds — Roads and Bridges. Total ravehue last year was $22 to $225 million.
Mayor Keenan Inquired K dot Includes IrWde millage In the General Fund.
Ms. Ott responded that it does. The General Fund and Fire Fund are $22.5 million.
Mr. Leddlder asked, to the aktrnt teak this aunt ftfts to the overall heft of the kxW
economy — K the Increase in non - exempt could be signlltcant over time. The
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Mayor made refty to tiw many Tffs the Ck tree had In pleas ova the yem and fire
slgrdfkant Wease in Townnship revenues over that sane period of time.
Ms. Ott responded that the Tote's aurernt valuation just rem.Uy matched prior 2006
valuadora, wdh just over $2 bMm for Iarcable vadatlon for dw Tomnahip. if the My
would Mere to work wdh the Township to identify whist the number Is, tine TmnsNp would
be very open to tint. Is there some attributable flat or? Yes. At some pob8, however,
there Is a saturation point when 22 percent of an en WS tax base Is not cembibu m
bereuse didr flmds are befog ra tr P cl P Into the pllot payments In pea of that properly
tart. The TowrwhWs concern Is drat If the trend teatimes, that point of 22 pera a* will
dimb, sfngting the tax burden to the mst of the property owners wf fdn fhe Township's
WW I(aerrrr stabbed tW the MO conoem Is makdakdng the hwO of the cumeret
corporet@ dtiserts who pay a lags share of the hix. To that end, the corsLdtwft have
trndicated Owt the My needs this kW of developrnerrt to have the work faros Ihat will
serve those tech and blosderroe businesses that want to knrets to Dublbr. It is a broader
pktiure them just aria development. It Is an overall strategy that Coundl Is a mpoytng.
Ms. Ott responded that tine Townddp is not opposed to growth. Instead, they are asi ft
for dialogue and support M remedAng the revenue Issue that accompanies the service
dernartds that the Towrnd" will have due to that growth.
Mayor Keenan inquired what the current fiord balance Is for tine Township.
Ms. OR responded did the 2014 yearend We Rmd balance was $19 million.
Ms. Chbvdd -Zumx wr sued tip currently, the MC reads that Rre Dapart menu are
®carpi: from TIPS„ urdess otharwiae identified.
Ms. Ott responded that Townddps are not afforded the same protection as County
ago I or School dftb!. under dW TIF IBvv.
Ms. Odnrdd -Zuerdw sWed Vat Owe is rev legislation proposed to correct than
Ms. Ott responded that Is correct The Ohio Tarrr>shlp AssocOm has been advocating for
about elglut years for a dnange to the stehute to , ddn < that Issue.
Mayor Keenan stated d at the Townsft" letter will serve as a beginning of some dialogue
on this Issue.
Mr. McDaniel f w6ced this Waftigton Township Umstees and Ms. Ott fbr needib sit and
salting staff to attend dtelr meelfngs roost*. TW has not yet occurred because he wads
to have the correct numbers in band. The proposed devolopmeni needs to be a Me
more mature in tenure cf 1t corm to evolci ding Inoo .I numbers. He
adowwlaW t h* Mv*Wm and City staff will ddlnl* attend soon wdh the needed
hftnradm He also pointed out diet Ms. Ianp had mentioned $40 for every $100 of
marls value property. it Is $40 for every — he warms the record to be correct.
To make Counndi aware of how tier numbers are toad ft at this ft% the total value of
property wltidn the Bridge S>reet DWM Is approoe>frretely $321 mfWan.Ilis estimated
revenues that will be generated for the Township we $1.2 million per year, apprafteely
sIx per cei of ft total revenue. The Crawford Hcying parcels under cwvWuaftn
currently ge ante about $78.000 per Year to the Tomwfdp. If the proposed
improvernerds occur, It could generate as much as $800,000 per year to the Twado.
However, the would not be realized for a few years, and there could be service demands
In tine interim. Stahl reaognbars Viet and will ark wdh the Towrtstdp relative to those
pataM Inaeeses In service durands. However, dwse Idruds of tools are altical to
corer when disc ng redevelopment. RevkR*, this CRY of Dubin has not leversoed
these kinds of eeww* development toils wdh opportunities for redevelopment, because
those opportunities have not eedsted. As this d" 6c wdc Development Dhedor for ten
years,, he was unable to addeve any moven d on tiller property until the &Woe Street
DWAd was oraated. He was surprised that the Dubin V&p Canter was not m eraloned
as an a m npie of fbHure, as it has agerfermed dedkft property values for hire past
RECORgUF W �OC�EDINGS
Minutes of Meeting.
04Tfou Urx OUW =—FOW NO 10w _
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decades. These Issues need to be addressed reletve W bringing value that does ultimately
hey sdrools, towmllps and other to collect revenua: In the future.
Ms. Salay stated that the total Bridge Street Dlst: lc t currently generabas $321 million In tax
.am us, with $1.2 mMm going to the Township. The part under consideration tralft
brings $78,000 in revenues to the Township at this point versus potm daly $800,000 In
+� the Hines,— should the development occur.
Mr. Md)anld raw wAW that the TowrshIp's point Is that with the proposed TIF, they will
not nedae that revenue *r a number of yasrs. However, that level of revenue Is what
couid potentially be generated in the flubhue.
Ms. Selay stated that the central question Is If the community Is going to grow and change
or not. In order to remain healthy and vleble, a community must grow, and dhhhrhge The
Issue Is how R it going to do that? The City can redevelop or grow out The City Is
choosing to redevelop what ardsts — Dublin Wlage Canter and Bridge Pobhbe Shopping
Center. Hve to sic years ago, Council began to consider carefully the future of Dublin and
what was rheeded to keep the City as economically sand going forward as it has been In
the past The five years of study has brought the City to this point tordght >R Is fhstr ting,
however, when t';:. =Ps Ran insinuation that Council Is not being fiscally mpg �le.. That
cold not be furthes from the truth.
Mayor Keenan stated that he was recently visiting with a Mend In Knocvft who had
traveled to GnmrN e, SC — the corn munIty Council vislbed several years ago b view their
d-dop He shared fret t errvlpe Is vibrant with an Incredible downtown. Dublin
Is trying to achieve something sbn8er with Bridge We&
Mayor KGeeheh dosed the public hearing. He acknowledged TRSbee Bostic and Chid
Oronnell who were In the audience as wall.
PROCIAMAT>DOM /SPECIAL RECOON1171WH
• NaRahel Vduntes Week — Apr812 -18
Mayor Keerm presented a prodenatkm in honor of National Vdunbw Weak to David
Frise % Director of Government Relations and Corporate Nfts, The Wendy's Company.
The Wendy's Company has been an h sthume dal volunteer group over the yews for the
Dublin community. In 2014, associates volunteered in the City's parks system with a large
benutf rs" m plan ft st Avery Park In the trap, they dispersed to all 56 perks fbr °A Walt
In the Park," where they provided On wab -based fbedbedt on park conditions and
"Oh to arhae. Wendy's will once again be conducting a parks pi in May of 2015.
SP■CIAL PR To l0
IiMea■I cNlaeta f wvwi — mom sep insta w saheb a As■ocIONG
Martin preserhted the results of the National Citizen
survey ( arnd a of the findings regarding the Bridge Street District from several
fbrurrs and surveys. The National Mm Survey was conducted by the Nations! Research
Center. The Bridge Street DRtrict section contains some data drat his firm collected and
also cones from the custom questions from the NCS. He shared r mulls for the community
in total, but noted that the raanlbs are also avatlaie by ward.
ApproAnstety 2,000 Dublin ihouseholds received questionnaires via map in the flrst week
of Janurary . The questionnalm contained more than 130 Individual question. By mld-
Februaary, 780 questionna Tres had been rebmied — a response rift of 4O%. Fora map
survey, that is a goad response rate. Part of the response rate Is due to the NO Into
nature of the survey. The NCS Is strudured on three plilers.
(1) Community characters - what makes a community livable, attractive, and a
ph= PasPIS want to be.
(2) Governance — how well does the City govemme t meet the 4 and
speddlons of Its resldehh (Papas, Are, snow removal, garbage collection).
(3) Participation — are the resfdetts of Dublin canedhad to the community and each
other.
The results of the survey are compared with NCS 82 benchmark dlsbicts across the
country.