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HomeMy WebLinkAbout44-03 Ordinance RECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No. 30043 Ordinance No. 44-03 (Amended) Passed . 20 AN ORDINANCE AMENDING ORDINANCE NO. 57-94 PASSED JUNE 20, 1994, AS AMENDED BY ORDINANCE NO. 62-94 PASSED JUNE 27, 1994, TO SUPPLEMENT THE PUBLIC IMPROVEMENTS TO BE MADE TO BENEFIT THE PARCELS IDENTIFIED IN THAT ORDINANCE AND PROVIDE FOR PAYMENT OF A PORTION OF THE SERVICE PAYMENTS RECEIVED TO THE DUBLIN CITY SCHOOL DISTRICT. WHEREAS, pursuant to Ohio Revised Code Sections 5709.40, 5709.42 and 5709.43, this Council on June 20, 1994 passed Ordinance No. 57-94 and amended such ordinance by its Ordinance No. 62-94 passed on June 27, 1994 (collectively and as amended, the TIF Ordinance) thereby declaring improvements to parcels of certain real property located in the City (as described and depicted in the TIF Ordinance and referred to therein as the Property) to be a public purpose, exempting those improvements from real property taxation for a period of time, specifying public infrastructure improvements (as described in the TIF Ordinance and referred to therein as the Infrastructure Improvements) to be made to benefit those parcels, providing for the making of service payments in lieu of taxes (the Service Payments) by the owner(s) thereof, and establishing a municipal public improvement tax increment equivalent fund (the Fund) into which those Service Payments were to be deposited; and I WHEREAS, this Council desires to specify additional public infrastructure improvements benefiting those parcels and provide for payments to the Dublin City School District out of those Service Payments; and WHEREAS, notice of this amendment to the TIF Ordinance has been timely delivered to the Dublin City School District and the Central Ohio Joint Vocational School District in accordance with Ohio Revised Code Section 5709.83; 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. Section 1 of the TIF Ordinance is hereby amended to provide as follows: "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 a public purpose, and all of said Improvement is hereby declared t o be a public purpose for a period of 30 years and exempt from taxation commencing on the date of passage of this ordinance and ending on the earlier of 30 years from such date or on the date o n w hich t he C ity c an n o t onger r equire service p ayments i n l ieu o f taxes u nder Section 5709.40 and 5709.42 of the Revised Code, all in accordance with the requirements of said Sections 5709.40 and 5709.42. The indicated portion of those service payments in lieu of taxes shall be distributed to the Dublin City School District as follows: i i (i) Commencing with tax year 2003 (collection year 2004), the City shall distribute to the Dublin City School District from the service payments in lieu of taxes received from the Headquarters Building (located on parce1273-007487) amounts equal to the amounts that School District would otherwise receive as real property tax payments derived from the Headquarters Building Improvements absent the passage of this Ordinance. (ii) Commencing with the tax collection year next following the year in I~ which the City Director of Finance certifies in writing that the City has been fully reimbursed out of the service payments in lieu of taxes for all costs of the Phase I and Phase II Public Improvements including any debt service on bonds or notes issued to finance the costs of those Public Improvements and any other costs of permanent improvements as defined in Ohio Revised Code Section 133.15(B), Ohio, the Franklin 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. The remaining RECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No. 30043 ordinance No. 44-03 (amended) Passed Page 2, 20 monies shall be deposited into the Fund and used for the purposes set forth in Section 3 of this Ordinance. Reference is made to that certain Tax Increment Financing and Economic Development Agreement dated as of June 30, 1995 between The Alter Group Ltd., New Par and the City (the Alter Agreement). Capitalized terms not otherwise defined herein have the meanings given in the Alter Agreement. " Section 2. Existing Section 1 of the TIF Ordinance is hereby repealed. Section 3. The public infrastructure improvements set forth in Exhibit B to the TIF Ordinance and to be made or caused to be made by the City shall also include (i) extending and improving Emerald Parkway east of the River to its terminus by widening, grading, draining, curbing and paving, together with all necessary appurtenances, and acquiring real estate and interests in real estate therefore, and (ii) acquiring real estate for parks and recreational purposes, which benefits, or that once made will benefit, the Property (as defined in the TIF Ordinance). Section 4. Except as provided herein, all other provisions of the TIF Ordinance shall remain in full force and effect and the City Manager and Director of Finance are directed to make such arrangements as are necessary and proper for collection of the Service Payments. The City Manager and the Director of Finance are authorized to prepare or cause to be prepared and to submit to this Council for approval (a) any agreement between the City and the Dublin City School District necessary to implement clause {i) of Section 1 of the TIF Ordinance as amended, and (b)any amendments or supplements to the Alter Agreement and that certain Tax Increment Financing and Economic Development Agreement among the City, Whitmire Distribution Corporation and Cardinal Health, Inc. dated June 30, 1995, which amendments or supplements i may be in the form of a separate agreement, and providing for the payment of further costs of the Public Infrastructure Improvement permitted and contemplated by this Ordinance. Those City officials are further authorized to provide such information and to execute, certify or furnish such j other documents, and to do all of the things as are necessary for and incidental to carrying out the provisions of this Ordinance. Section 5. Pursuant to Section 5709.40 of the Ohio Revised Code, the Clerk of Council isI 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. 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 shall be in full force and effect on the earliest date permitted by law. Signed: I ayor -Presiding Officer i Attest: - ~'i Clerk of Council Passed: i ~ ~ , 2003 I hereby certify that copies of thi ' Ordinance/Resolution were posted in th City of Dublin in accordance with Sectio 731.25 of the Ohio Revised Code. Effective: , 2003 ~dCZ,CI of Council, Dublin, Ohio Director of Finance 5200 Emerald Parkway • Dublin, OH 43017 Phone: 614-410-4400 • Fax: 614-410-4490 CITY OF DUBLIN M e m o To: Members of Dublin City Council From: Jane S. Brautigam, City Manager~~ 5 , Date: April 14, 2003 Initiated By: Marsha I. Grigsby, Director of Finance ~5~1~~ Re: Ordinance No. 44-03, An Ordinance Amending Ordinance No. 57-94 As Amended by Ordinance No. 62-94 (McKitrick Tax Increment Financing (TIF) District) SUMMARY: As mentioned at the April 7, 2003 City Council meeting, Ordinance No. 44-03 has been amended to clarify the timing associated with the implementation of a "non-school TIF" after the terms of the "straight TIF" expire. The implementation of a "non-school TIF" will be based on the City's reimbursement of the Phase I and Phase II public improvements. Section 1 has been amended to distinguish between the timing associated with the two (2) phases. The City will be reimbursed for the Phase I improvements after the service payments for tax year 2002 have been received in 2003. The added language identifies that the "non-school TIF" will be implemented for the parcel associated with the Phase I improvements commencing with tax year 2003. A "red-lined" copy of the Ordinance is also attached for reference. RECOMMENDATION: It is recommended the Ordinance No. 44-03, as amended, be adopted by City Council at the second reading on Apri121, 2003. T:\2003\034-ORD-044-03 MEMO-Amend.doc Director of Finance 5200 Emerald Parkway • Dublin, OH 43017 Phone: 614-410-4400 • Fax: 614-410-4490 CITI' OF DUBLIN M e m o To: Members of Dublin City Council From: Jane S. Brautigam, City Manager ~Ja.v~.-s• ~Ja,w~) Date: Apri12, 2003 Initiated By: Marsha I. Grigsby, Director of Finance Re: Ordinance No. 44-03, An Ordinance Amending Ordinance No. 57-94 As Amended by Ordinance No. 62-94 (McKitrick Tax Increment Financing (TIF) District) SUMMARY: Ordinance No. 44-03 provides for amendments to the existing legislation that established the McKitrick TIF District. The McKitrick TIF District was established in 1994 to provide a funding mechanism for the construction of Emerald Parkway Phase I and Phase II, connecting Dublin Road to Coffinan Road. The construction of the roadway was a critical component of the incentive package assembled for Cardinal Health Inc. and Verizon, then Cellular One. The modifications proposed by Ordinance No. 44-03 provide for the implementation of a "non-school TIF" after the terms of the "straight TIF" expire and the addition of Emerald Parkway from Riverside Drive to Sawmill Road to the Description of the Public Improvements. These modifications will extend the period of time that service payments will be received and allow the service payments that will be received from the "non-school TIF" to be utilized for costs related to the construction of Emerald Parkway east of Riverside Drive, including acquisition and design costs. The construction of Emerald Parkway from Riverside Drive to Hard Road is not currently in the City's five-year Capital Improvements Program and the portion of Emerald Parkway from Hard Road to Sawmill Road will be development driven and may occur in the near future. Modifying the existing legislation will allow the City to begin collecting and reserving the service payments from the "non- school TIF" for the future construction of this roadway as identified in the City's Thorough Fare Plan. The existing TIF is separated based on Phase I and Phase II improvements as identified in the TIF Agreements executed in 1995. The City will be reimbursed for the Phase I improvements, the first 2,000 feet of Emerald Parkway east of Coffman Road, at the end of 2003. Ordinance No. 44-03 will allow the City to continue receiving service payments in 2004 based on the non-school district millage and reserve those funds for the future project. It is currently estimated that the City will be reimbursed for the Emerald Phase II improvements at the end of 2009. Based on current building values and millages, the Phase Inon-school TIF will generate approximately $140,000 per year in service payments and the Phase II non-school TIF will generate approximately $560,000 per year in service payments. Very preliminary estimates for the construction of the roadway are $12 million. We also anticipate a future TIF district will be established for the commercial property along the new roadway. Memorandum April 2, 2003 Page Two The modification of the TIF district and the reservation of the service payments from the non-school TIF do not result in any obligation to initiate the construction of Emerald Parkway east of Riverside within a certain period of time. The required notice has been sent to the Dublin City School District and the Central Ohio Joint Vocational School District. We have also discussed the modifications with Cardinal Health and the owners of two Verizon Buildings. The construction of Emerald Parkway east of Riverside Drive is an important future roadway for the City. With Cardinal Health's potential for future expansion it will be important to begin planning for the construction of this roadway. RECOMMENDATION: It is recommended that Ordinance No. 44-03 be adopted at the public hearing scheduled for April 21, 2003. T:\2003\030-ORD-044-03 MEMO.doc i 1 1 ~ D ,p t,. 1 o- r fl G~ ~ _ 0 { d ~7 O r- M SUM T VIEW RD O ~ ~ \ RgND 12D Z ~ ' - J d 2 r. Q , / OG ~ N q 6Z w _ ~ J o I_~~o _ # - PC` O + ~ O 4 ~ _ _ ~ ~ s us s s;sP ,s, - - /~J`-- n to SHIER-RINGS RD ~ ~ 11 12 =fix 1 --:`;K` I 13 n ~O O i y _ ~ 1..--- y 14 i D ~ tl O _ D O _ RINGS RD ~ ~ i a i > ~ , i w ~ Q ~ 0 1 r---- - \ 1. PERIMETER WEST 10. UPPER METRO PLACE 2. PERIMETER CENTER 1 t. SAFETY SOLUTIONS 3. METATEC 12. P¢ZUTI (ONE METRO PLACE SOUTH) TIF PdICd15 4. RUSCILLI 13. WOERNER-TEMPLE 5.APPLiEDTECHNOLOGY 14.THOMASA(OHLER D ~ 6. MCKITRICK 15. DUKE REALTY INVESTMENT smNrsr>gwl~>~tot~ 7. EMBASSY SUITES 16. RINGS ROAD 8. COOKER RESTAURANTS 17. CARDINAL HEALTH • SOUTH CAMPUS xoN-so~oo~~ 9. LEES INN 18. RINGS/FRANTZ CAMPUS 19. HISTORIC DUBLIN PARKING l~T Ci of Dublin ~ by the City of Dublin Division of Information Technology TlF Parcels ~~phD ce ~ oo s~~ 0 3500 7000