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HomeMy WebLinkAbout44-05 Ordinance AMENDED RECORD OF ORDINANCES D~iyton LcQ ii Blank Inc Form No. 30043 44-05 (Amended) Ordinance No. Passed 2~ AN ORDINANCE DECLARING IMPROVEMENTS TO CERTAIN REAL PROPERTY TO BE DEVELOPED AS THE SHOPPES AT RIVER RIDGE 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, PROVIDING FOR THE FRANKLIN COUNTY TREASURER TO DISTRIBUTE SERVICE PAYMENTS TO THE DUBLIN CITY SCHOOL DISTRICT IN THE AMOUNT IT WOULD OTHERWISE RECEIVE ABSENT THE EXEMPTION, CREATING A MUNICIPAL PUBLIC IMPROVEMENT TAX INCREMENT EQUIVALENT FUND FOR THE DEPOSIT OF THE BALANCE OF SUCH SERVICE PAYMENTS, AND AUTHORIZING THE EXECUTION OF A TAX INCREMENT FINANCING AGREEMENT. WHEREAS, the Shoppes at River Ridge, LLC (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 "TIFArea", with the parcels comprising the real property within the TIF Area referred to herein as the "Parcels" and each individually as a "Parcel") which are located in the City; and WHEREAS, the Owner, or its successors or assigns, has or will develop various commercial projects in the TIF Area, including, but not limited to, a retail and restaurant development expected to consist of approximately 17,400 square feet of restaurant space and approximately 85,100 square feet of retail space (collectively, the "Project") and this Council expects to make the public infrastructure improvements described on Exhibit B 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 directly 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 the balance of 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 Ohio Revised Code Section 5709.42; and WHEREAS, the City has determined that a portion of the service payments shall be paid to the Dublin City School District in an amount equal to the real property taxes that the Dublin City School District would have been paid if improvements to the Parcels had not been exempted from taxation pursuant to this Ordinance; 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 Ohio Revised Code Sections 5709.40 and 5709.83 and hereby ratifies the giving of that notice; RECORD OF ORDINANCES D rvton Legal Blank, Inc. Form No. 30043 44-OS (Amended) Page 2 Ordinance No. Passed 20 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 that term is further defined in Ohio Revised Code Section 5709.40) is hereby declared to be a public purpose and shall be exempt from taxation for a period commencing with the first tax year that begins after the effective date of this Ordinance in which an Improvement due to a Project structure first appears on the tax list and duplicate of real and public utility property and ending on the earlier of (a) thirty (30) years after such exemption commenced 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 Ohio Revised Code Sections 5709.40 and 5709.42. 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 payments in lieu of taxes with respect to the Improvements allocable thereto to the Treasurer of Franklin County, Ohio (the "County Treasurer") on or before the final 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 of this Ordinance, including any penalties and interest (collectively, the "Service Payments"). The Service Payments, and any other payments with respect to each Parcel that are received by the County Treasurer in connection with the reduction required by Ohio Revised Code Sections 319.302, 321.24, 323.152 and 323.156, 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 distributed in accordance with Section 3 of this Ordinance. Section 3. Distribution of Payments to School District and City. Pursuant to Ohio Revised Code Sections 5709.40 and 5709.42, the County Treasurer is requested to 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 to the Parcels located within the Dublin City School District absent the passage of this Ordinance, and • to the City, all remaining amounts for further deposit into the Fund (as defined in Section 4 of this Ordinance). All distributions required under this Section 3 are requested to 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 River Ridge 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 of this Ordinance. Those Service Payments and Property Tax Rollback Payments received by the City with respect to the Improvements on the Parcels and so deposited 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 RECORD OF ORDINANCES Dxvton Leoal Blank, Inc. Form No. 30043 Ordinance No. _ d Passed 20 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 and any other public infrastructure improvements hereafter designated by ordinance are hereby designated as those public infrastructure improvements that directly benefit, or that once made will directly benefit, the Parcels (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 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 City Manager. The 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 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, the Clerk of Council, the Director of Law, the Director of Finance or other appropriate officers of the City to make such arrangements and take such actions as are necessary and proper for collection of the Service Payments from the owners of Parcels. Section 7. Further Authorizations. This Council further hereby authorizes and directs the City Manager, the Clerk of Council, the Director of Law, the Director of Finance or other appropriate officers of the City to prepare and sign all agreements and instruments and to take any other actions as maybe appropriate to implement this Ordinance. Section 8. Notification of Passage. Pursuant to Ohio Revised Code Section 5709.40, the Clerk of 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 of this Ordinance remains in effect, the Clerk of Council 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 Ohio Revised Code Section 5709.40. Section 9. Open Meetings. This Council finds and determines that all formal actions of this Council and any of its committees concerning and relating to the passage of this Ordinance were taken in an open meeting of this Council or committees, and that all deliberations of this 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 10. Effective Date: This Ordinance shall be in full force and effect on the earliest date permitted by law. i ed: residing Officer Atte Clerk of Council Passed:~~ , 2006 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. Effective: ~~i~` 2006 Dep Clerk 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 Parcel No. 273008269 A-1 EXHIBIT B DESCRIPTION OF INFRASTRUCTURE IMPROVEMENTS The Infrastructure Improvements include the construction of the following improvements and all related costs (as defined in Ohio Revised Code Section 133.15(B)): • intersection improvements (including widening) at SR 161 and Riverside Drive; • stormwater improvements along Riverside Drive and Dale Drive; • installation of a pedestrian path along the east side of the Scioto River from the Emerald Parkway bridge to connect to the existing Kiwanis Riverway Park just south of SR 161; and • a pedestrian connection between the Project and the existing historic district; together with constructing and installing curbs and gutters, public utilities which include water mains, sanitary sewer, and storm sewer, stormwater improvements, burial of utility lines, gas, electric and communications service facilities (including fiber optics), street lighting, sidewalks, bikeways, landscaping (including public art work), traffic signalization, and including design and other related costs, any right-of--way or real estate acquisition, erosion and sediment control measures, grading, drainage and other related work, survey work, soil engineering and construction staking, and in each case, all other costs and improvements necessary and appurtenant thereto. City Manager 5200 Emerald Parkway • Dublin, OH 43017 Phone: 614-410-4400 • Fax: 614-410-4490 CITY OF DLBLIN M e m o To: Members of Dublin City Council From: Jane S. Brautigam, City Managei~Tcw.~ s• Date: August 31, 2006 Initiated By: Marsha I. Grigsby, Director of Finance Re: Ordinance 44-05, An Ordinance Establishing a Tax Increment Financing District for The Shoppes at River Ridge Development. (Amended) SUMMARY: Ordinance 44-OS was originally introduced at the August 15, 2005 City Council meeting. This Ordinance was tabled at the second reading on September 6, 2005 as a result of the Shoppes at River Ridge development being delayed due to engineering changes to the site. A copy of the previously prepared memos and the minutes from both City Council meetings are attached for reference. As directed by City Council, the Ordinance was tabled until development of the project was initiated. Site work has been initiated and building permits have been issued for Building B and Building C. These two buildings are along the southern property line of the project. As previously discussed, this Ordinance establishes anon-school tax increment financing (TIF) district. The value of the private improvements are estimated to be approximately $16.8 million. Based on the tax rates for tax year 2005 (the current rates), it is estimated the City will receive approximately $169,500 in annual service payments. These service payments will be utilized to fund the public infrastructure improvements identified in Exhibit B to the Ordinance. The improvements include the intersection improvements at SR 161 and Riverside Drive, stormwater improvements along Riverside Drive and Dale Drive, the installation of a pedestrian path along the east side of the Scioto River from the Emerald Parkway bridge to the existing Kiwanis Riverway Park (Riverwalk project in the 2007 2011 CIP), and a pedestrian connection between the project and the Historic District. The total estimated value of these improvements is $4.25 million. The Ordinance has been amended to make a few minor clean-up modifications as recommended by Squire, Sanders and Dempsey, (SSD), the City's bond counsel. A copy of the "red-lined" Ordinance is included for reference. SSD is also reviewing whether or not additional language is required to utilize service payments to incorporate public art into the project. If additional language is necessary we will have it available at the City Council meeting. The notices to the Dublin City School District (the School District) and the Tolles Joint Vocational School District were previously delivered as required. The New Jobs/Income Tax Revenue information provided in the August 23, 2005 memo has not changed. The only substantial change in the Financial Impact on Other Government Jurisdictions is the increase in service payments that will be received by the School District. Their annual service payments are estimated to increase from $241,150 to $282,040. This increase is the result of a voter approved Memorandum August 31, 2006 Page Two operating levy. It is important to emphasize the new private improvements values are considered "exempt" for property tax purposes and therefore are not reflected in the School District's assessed valuation. This is beneficial to the School District because as assessed valuation increases, the State school foundation aid payments made to the School District are decreased. As a result of the TIF district being established, the School District will receive approximately $135,240 more in total revenue annually than they will receive if the TIF district is not established. RECOMMENDATION: It is recommended that City Council adopt Ordinance No. 44-OS at the September 5, 2006 City Council. meeting. TAX INCREMENT FINANCING AGREEMENT This Tax Increment Financing Agreement (the "Agreement"), made and entered into as of by and among the City of Dublin, Ohio (the "City"), a municipal corporation organized and existing under the constitution and the laws of the State of Ohio, and the Shoppes at River Ridge, LLC, an Ohio limited liability company (the "Owner"). WITNESSETH: WHEREAS, the Owner has acquired certain real property located in the City, a depiction of such real property is attached hereto as Exhibit A, with each current or future parcel of such real property referred to herein as a "Parcel" and together with all parcels of such real property the "Parcels"; and WHEREAS, the Owner contemplates making or having made private improvements to the Parcels which are more fully described in Exhibit B attached hereto (the "Project"); and WHEREAS, it is necessary to construct or to cause to be constructed certain public infrastructure improvements (as described in Exhibit C attached hereto and referred to herein as the "Public Infrastructure Improvements"), which the City and the Owner agree will directly benefit the Project and the Parcels; and WHEREAS, the City, by its Ordinance No. passed (the "Ordinance"), has declared that 100% of the increase in the assessed value of each Parcel subsequent to the effective date of the Ordinance (such increase hereinafter referred to as the "Improvement" as further defined in Ohio Revised Code Section 5709.40 and the Ordinance) is a public purpose and is exempt from taxation for a period commencing with the first tax year that begins after the effective date of this Ordinance in which an Improvement due to a Private Improvement structure first appears on the tax list and duplicate of real and public utility property and ending on the earlier of (a) thirty (30) years after such exemption commenced 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 Ohio Revised Code Sections 5709.40 and 5709.42 (the "TIF Exemption"); 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 of each Parcel to make service payments in lieu of taxes with respect to any Improvement allocable thereto (the "Service Payments") to the Treasurer of Franklin County, Ohio (the "County Treasurer"), which Service Payments will be used to pay costs of construction of the Public Infrastructure Improvements and distributed to the Dublin City School District (the "School District"), all pursuant to and in accordance with Ohio Revised Code Sections 5709.40, 5709.42 and 5709.43 (collectively, the "TIF Statutes"); and WHEREAS, to provide for the collection of the Service Payments and to enable the Project and Public Infrastructure Improvements to be developed, the parties desire to enter into this Agreement on the terms as hereinafter provided; NOW, THEREFORE, in consideration of the premises and covenants contained herein and to induce the City to proceed with the construction of the Public Infrastructure Improvements, the parties hereto agree to the foregoing and as follows: Section 1 -Service Payments. The Owner hereby agrees to make Service Payments attributable to its period of ownership of the Parcels, all pursuant to and in accordance with the requirements of the TIF Statutes, the Ordinance and any subsequent amendments or supplements thereto. Service Payments will be made semiannually to the County Treasurer (or to such treasurer's designated agent for collection of the Service Payments) on or before the final dates for payment of real property taxes for the Parcels. Any late payments will bear penalties and interest at the then current rate established under Ohio Revised Code Sections 323.121 and 5703.47 or any successor provisions thereto, as the same maybe amended from time to time. Service Payments will be made in accordance with the requirements of the TIF Statutes and the Ordinance and, for each Parcel, will be in the same amount as the real property taxes that would have been charged and payable against the Improvement to that Parcel (after credit for any other payments received by the City under Ohio Revised Code Sections 319.302, 321.24, 323.152 and 323.156, or any successor provisions thereto, as the same may be amended from time to time, and are referred to herein as the "Property Tax Rollback Payments") if it were not exempt from taxation pursuant to the TIF Exemption, including any penalties and interest. The Owner will not, under any circumstances, be required for any tax year to pay both real property taxes and Service Payments with respect to any portion of the Improvement, whether pursuant to Ohio Revised Code Section 5709.42 or this Agreement. The City and the Owner agree that the River Ridge Project Municipal Public Improvement Tax Increment Equivalent Fund created in Section 4 of the Ordinance (the "Fund") will receive all Property Tax Rollback Payments and Service Payments made with respect to the Improvement to each Parcel that are payable to the City. Section 2 -Declaration of Covenants; Priority of Lien. It is intended and agreed, and it will be so provided by the Owner in a declaration relating to the Parcels (the "Declaration"), recorded by the Owner within 15 days of the date hereof, that the covenants provided in Sections 1, 2, 3 and 6 of this Agreement are covenants running with the land and that they will, 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 and any third party beneficiaries against any owner of a Parcel with respect to that owner's period of ownership of that Parcel, whether or not this Agreement remains in effect or whether or not such provision is included by an owner in any deed to such owner's successors and assigns. It is further intended and agreed that these agreements and covenants will remain in effect for the full period of exemption permitted in accordance with the requirements of the TIF Statutes and the Ordinance enacted pursuant thereto. Such covenants running with the land will have priority over any other lien or encumbrance on a Parcel and any improvements thereon, except for such title exceptions as are approved in writing by the City, and the Owner will, upon the City's request, cause any and all holders of mortgages or other liens existing on a Parcel as of the time of recording of the Declaration to subordinate such mortgage or lien to those covenants running with the land. The -2- parties acknowledge that the provisions of Ohio Revised Code Section 5709.91, which specify that the Service Payments will be treated in the same manner as taxes for all purposes of the lien described in Ohio Revised Code Section 323.11 including, but not limited to, the priority of the lien and the collection of Service Payments, will apply to this Agreement and to the Parcels and any improvements thereon. The Owner hereby agrees to provide such title evidence within 30 days of the date hereof, at no cost to the City, as is necessary to demonstrate to the City's satisfaction that the covenants running with the land provided in the Declaration are prior and superior to any other liens, encumbrances or other title exceptions, except for those which are approved in writing by the City. Upon satisfaction of the Owner's obligations under this Agreement and termination of the Owner's obligation to make the Service Payments, the City will, upon the request of a owner of a Parcel, execute an instrument in recordable form evidencing such termination and releasing the covenants running with the land set forth in the Declaration with respect to that Parcel. Section 3 -Exemption Applications. The City and the Owner agree to cooperate in the preparation, execution and filing of all necessary applications and supporting documents to obtain from time to time the TIF Exemption and to enable the City to collect Service Payments with respect to the Parcels. The City and the Owner each agree to perform such acts as are reasonably necessary or appropriate to effect, claim, reserve and maintain the TIF Exemption and collect the Service Payments including, without limitation, joining in the execution of all documentation and providing any necessary certificate required in connection with the TIF Exemption or the Service Payments. The Owners authorize the City to file any applications necessary to obtain from time to time the TIF Exemption as provided in the TIF Ordinance. Section 4 -Estoppel Certificate. Within thirty (30) days after a request from any owner of a Parcel, the City will execute and deliver to that owner or any proposed purchaser, mortgagee or lessee of such Parcel, a certificate stating that with respect to such Parcel, if the same is true: (a) that this Agreement is in full force and effect; (b) that the requesting owner is not in default under any of the terms, covenants or conditions of this Agreement, or, if that owner is in default, specifying same; and (c) such other matters as that owner reasonably requests. Section 5 -Representations of Owner. The Owner hereby represents that it owns the Parcels and has full power and authority to enter into this Agreement and carry out its terms. Section 6 -Provision of Information. The Owner agrees to cooperate in all reasonable ways with, and provide necessary and reasonable information to, the designated Tax Incentive Review Council to enable that Tax Incentive Review Council to review and determine annually during the term of this Agreement the compliance of the Owner with the terms of this Agreement. The Owner further agrees to cooperate in all reasonable ways with, and provide necessary and reasonable information to the City to enable the City to submit the status report required by Ohio Revised Code Section 5709.40(I) to the Director of the Ohio Department of Development on or before March 31 of each year. -3- Section 7 -Nondiscriminatory Hiring Policy. The Owner will comply with the City's nondiscriminatory hiring policy adopted pursuant to Ohio Revised Code Section 5709.832. The City will provide a copy of that policy and any updates to that policy to the Owner. Section 8 -Notices. All notices or other correspondence relating to this Agreement must be in writing (including a-mail or facsimile) and must be delivered or sent guaranteed overnight delivery, by facsimile or e-mail (to be followed by personal or overnight guaranteed deliver, if requested) or by postage prepaid registered or certified mail, return receipt requested, and will be deemed to be given for purposes of this Agreement on the date such writing is received by the intended recipient. Unless otherwise specified in a notice sent in accordance with this section, all communications in writing must be given to the parties at the following addresses: (i) the City at: City of Dublin, Ohio 5800 Shier Rings Road Dublin, Ohio 43016-7295 Attention: Economic Development Director (ii) the Owners at: Section 11-Successors; Assignment; Amendments, Changes and Modifications. This Agreement will be binding upon the Owner and its successors and assigns and the City and its successors and assigns. The parties may only assign this Agreement with the consent of all parties hereto, provided, however, that nothing in this Agreement prevents the Owner from transferring any or all of its interest in the Project or the Parcels to another person or entity. This Agreement may only be amended by written instrument executed by all parties to this Agreement. Section 12 -Extent of Covenants; No Personal Liability. All covenants, stipulations, obligations and agreements of the parties contained in this Agreement are effective and enforceable to the extent authorized and permitted by applicable law. The obligations of the City maybe enforced to the extent permitted by law by mandamus or any suit or proceeding in law or equity. No such covenant, stipulation, obligation or agreement will be deemed a covenant, stipulation, obligation or agreement of any present or future member, officer, agent, or employee of any of the parties hereto in their individual capacity. Section 13 - Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable, said provision will be fully severable. This Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part of this Agreement and the remaining provisions of this Agreement will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance from this Agreement. Furthermore, in lieu of such illegal, invalid or unenforceable provision, there will be added automatically as a part of this Agreement a provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible that is and will be legal, valid and enforceable. -4- Section 14 -Separate Counterparts. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered will be an original, but all such counterparts will together constitute one and the same instrument. Section 15 -Entire Agreement. This Agreement constitutes the entire agreement between the parties with respect to the matters covered herein and supercedes prior agreements and understandings between the parties. Section 16 -Governing Law and Choice of Forum. This Agreement will be governed by and construed in accordance with the laws of the State of Ohio. All claims, counterclaims, disputes and other matters in question between the City, its employees, contractors, subcontractors and agents, and the Owner, its employees, contractors, subcontractors and agents arising out of or relating to this Agreement or its breach will be decided in a court of competent jurisdiction within the State of Ohio. (Remainder of page intentionally left blank -signatures begin on following page) -5- IN WITNESS WHEREOF, the City and the Owner have caused this Tax Increment Financing 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: Jane Brautigam Title: City Manager By: Printed: Marsha I. Grigsby Title: Director of Finance Approved as to Form: By: Printed: Stephen J. Smith Title: Director of Law SHOPPES AT RIVER RIDGE, LLC By: Printed: Title: FISCAL OFFICER'S CERTIFICATE The undersigned, Director of Finance of the City under the foregoing Tax Increment Financing Agreement, certifies hereby that the moneys required to meet the obligations of the City during the year 2006 under the foregoing Tax Increment Financing Agreement have been appropriated lawfully for that purpose, and are 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 Ohio Revised Code Sections 5705.41 and 5705.44. Dated: , 2006 Marsha I. Grigsby Director of Finance City of Dublin, Ohio EXHIBIT A Parcels [Include Parcel Depiction] t~ ~ ~ U L~I~ RtDG 'r ~ Imo - Q ~ m -F ~ ~ ~ ~ _ ~ ' ~ ~ ~ _ ~ ~ ~ DALE DR ~ `I ~ ~o _ ~ m i _ ii - - _ _ BRIDG ST tR W DUBLIN-GRANVILLE RD ~ t, O W DUBLIN-GRgNViLLE RD ~ fi t ~ t~ i' Y ; `Q S ~ ~ - Y ~q l ~ `r ~ ~ , ~ ~ ~ fi ~ m ~ ~ ~ ~ ~ i-` ~e _ ~ o ReTW ~ a J o MARTIN RO ~ MARTIN RD Q ~R~N t T ST N ~ RD OR ; ~ z SH ~ ) MARTIN RD ~ ~ € , m ~ _ ~ ~ ~ S sw ~1 ~1 ~ % Q~` ~ ~ - - w ~ ~ - Al`lIN ~'~~T'l1N ~AV ~ `o` i v EXHIBIT B PROJECT The Project consists of various commercial projects, including, but not limited to, a retail and restaurant development expected to consist of approximately 17,400 square feet of restaurant space and approximately 85,100 square feet of retail space. EXHIBIT C PUBLIC INFRASTRUCTURE IMPROVEMENTS The Public Infrastructure Improvements include the construction of the following improvements and all related costs (as defined in Ohio Revised Code Section 133.15(B)): • intersection improvements (including widening) at SR 161 and Riverside Drive; • stormwater improvements along Riverside Drive and Dale Drive; • installation of a pedestrian path along the east side of the Scioto River from the Emerald Parkway bridge to connect to the existing Kiwanis Riverway Park just south of SR 161; and • a pedestrian connection between the Project and the existing historic district; together with constructing and installing curbs and gutters, public utilities which include water mains, sanitary sewer, and storm sewer, stormwater improvements, burial of utility lines, gas, electric and communications service facilities (including fiber optics), street lighting, sidewalks, bikeways, and landscaping, including public art work, traffic signalization, and including design and other related costs, any right-of--way or real estate acquisition, erosion and sediment control measures, grading, drainage and other related work, survey work, soil engineering and construction staking, and in each case, all other costs and improvements necessary and appurtenant thereto. Columbus/446747.1 CERTIFICATION OF NOTICE OF OHIO REVISED CODE SECTION 5709.40(B) PROPOSED TAX INCREMENT FINANCING FOR RIVER RIDGE DEVELOPMENT In connection with Ordinance No. _-O5, I hereby certify that the attached Notices of Ohio Revised Code Section 5709.40(B) Proposed Tax Increment Financing for River Ridge Development along with a copy of proposed Ordinance No. _-OS were delivered to the Board of Education of each of the Dublin City School District and the Central Ohio Joint Vocational School District on , 2005. 2006 Marsha I. Grigsby Director of Finance City of Dublin, Ohio . City Manager 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 Date: August 23, 2005 Initiated By: Marsha I. Grigsby, Director of Finance Re: Ordinance No. 44-05, An Ordinance Establishing a Tax Increment Financing District for the The Shoppes at River Ridge Development SUMMARY: As previously noted, Ordinance No. ~i~{~C~ establishes anon-school tax increment financing (TIF) district for The Shoppes at River Ridge development at the southeast corner of SR 161 and Riverside Drive. At the August 15, 2005 City Council meeting, questions about the time frame for the private development, new jobs and income tax revenue that would be generated as a result of the development, and the financial impact the TIF will have on the other governmental jurisdictions included in the TIF were raised. The following information is in response to those questions. Timing of the Private Development The site plan permit application has been submitted and reviewed by City staff. The review comments have been forwarded to the K2 Group, the applicant. Jim Cramer, a representative from the K2 Group, stated they recently changed general contractors and they are reviewing engineering issues, such as the rock and the topography, related to the site. He stated they anticipate some engineering changes to the site but these changes would not change the buildings. The changes have not yet been submitted to the City staff for review. If it is determined the changes do not need to go back to the Planning and Zoning Commission (P&Z) for review, their schedule is to break ground in November. If they need to go back to P&Z they are hopeful that they will be able to break ground in early 2006. Mr. Cramer stated he would be contacting planning staff in the near future to review the status of the project. New Jobs/Income Tax Revenue New jobs and new income tax revenue will be generated as a result of this project. The applicant has estimated there will be 150 full-time equivalent jobs created resulting in approximately $78,000 in income tax revenue. As with the Kroger Centre TIF, this project will create an additional revenue stream for public infrastructure improvements that benefit the community. S.R. 161 and Riverside Drive, a project identified in the Description of Infrastructure Improvements, was identified as a high priority intersection in the intersection analysis and improvement study completed in 2004. Financial Impact on Other Government Jurisdictions As stated above, the proposed The Shoppes at River Ridge TIF will be anon-school TIF. As a result, the Dublin School District (the School District) will receive service payments based on their total effective millage which includes both inside and outside millage. The service payments will be calculated the same as property taxes and will be distributed to the School District at the same time that property tax revenues are distributed. Based on the 2004 effective tax rates, the School District will receive annual service payments in the amount of approximately $241,150. These revenues are credited to their General Fund. The new private improvement values are considered "exempt" for property tax purposes and therefore are not reflected in the School District's assessed valuation total. This is beneficial to the School District because as assessed valuation increases the State school foundation aid payments made to the School District are decreased. N-;morandum August 23, 2005 Page Two The other governmental jurisdictions in the proposed TIF district are: Franklin County, Tolles Joint Vocational School District, Washington Township and the City of Dublin. These governmental entities have both inside (unvoted) and outside (voted) millage. The outside or voted millage, approximately 88% of the total effective millage in this taxing district, is adjusted annually by a reduction factor in accordance with State law (House Bill 920, passed in 1976). The State law requires that as property values go up, either by the County Auditor's reappraisal adjustments or new construction, the outside or voted millage goes down to offset the increase in values. Therefore, the new property value from The Shoppes at River Ridge development would not result in additional property tax revenue to the governmental entities identified if the TIF district was not established. By not including the new property value from The Shoppes at River Ridge development in the assessed valuation for the governmental entities, the adjustment to their voted millage will be slightly less. Based on the estimated value of $16.8 million for the private improvements in the TIF districts the annual impact from the inside or unvoted millage would be as follows: Franklin County $ 8,644 Tolles Joint Vocational School District 2,990 Washington Township 2,940 City of Dublin 10,290 $24,814 With exception of the City, the revenues are credited to the governmental entities' General Fund. The inside millage is not subject to the reduction factor that is set by the State each year to adjust for increases in property values. As a result, the above amounts will be directed to the City as service payments for the defined public infrastructure improvements instead property tax revenues to the governmental entities identified. The Franklin County Auditor has recently completed their reappraisal process for tax year 2005. I have attached an article from the Dublin Villager and a portion of a notice sent to property owners by the Franklin County Auditor that discusses property value increases and their effect on voted millage. RECOMMENDATION: Based on site changes anticipated by the developer and the fact these potential changes have not been reviewed by City staff, staff is recommending that Ordinance No. 44-OS be tabled until it is determined that the project site work can be initiated. City Manager 5200 Emerald Parkway • Dublin, OH 43017 Phone: 614-410-4400 • Fax: 614-410-4490 f,ITY OF DUBLIN M e m o To: Members of Dublin City Council From: Jane S. Brautigam, City Manager Date: August 10, 2005 Initiated By: Marsha I. Grigsby, Deputy City Manager/Director of Finance Re: Ordinance No. 44-05, An Ordinance Establishing a Tax Increment Financing District for the Shoppes at River Ridge Development SUMMARY: Ordinance No. 44-OS establishes anon-school tax increment financing (TIF) district for the Shoppes at River Ridge development at the southeast corner of S.R. 161 and Riverside Drive. The private improvements to be constructed as part this development are estimated to be approximately $16.8 million. Based on the current tax rates, it is estimated the City will receive approximately $170,000 in service payments per year to fund the public infrastructure improvements included in the Description of Public Infrastructure Improvements. As provided for in the Ohio Revised Code, the non-school TIF district will be in place for a period of 30 years or until the City is reimbursed for the public improvements. Based on our current preliminary estimated costs for the public improvements, we are projecting the TIF to be in effect for at least 25 years. The notice to the school district is being prepared and will be delivered to them at least 14 days prior to the passage of this legislation as required by the Ohio Revised Code. We have contacted Chris Mohr, Treasurer and Business Manager for the school district, and made him aware of our intent to establish this TIF district. We have also notified Washington Township of our intent to establish this TIF district. The TIF district was not established earlier in an effort to maximize the collection of service payments. Improvement values as of January 1 in any given year, the County Auditor's lien date, are used as the basis for determining service payments and January 1, 2006 will be the first lien date reflecting private improvement values. The building permit for this project has not been issued; however, the plans have been submitted for review. RECOMMENDATION: It is staff's recommendation the City Council adopt Ordinance No. 4~-OS at the September 6, 2005 City Council meeting. Dublin City Council September 6, 2005 Page 9 Mr. Keenan stated that a class action suit would seem to indicate that this was not an isolated incident. He would not want to spend this money without knowing more about this incident. Chief Epperson responded that it is somewhat similar to the initial use of chemical agents now commonly used. There was similar reaction in the community when they were used, and there are still claims that mace and pepper spray cause death. In almost every case, they point out that it was not the use of the chemical agent responsible for the death. Similarly, with lasers where serious injury or death has occurred, they are finding that some other condition caused the injury or death. Mr. Keenan stated that the article indicates that there are at least 20 lawsuits claiming wrongful death or injury. There are other alarming statistics in the article. In addition, the stock of the manufacturing company has dropped dramatically since December. These are important things to consider. Chief Epperson stated that the Chicago area case also involved serious lack of training and an older device. The newer technology is greatly improved. Staff would follow strict protocol about its use. He can provide more information to Council. Mrs. Boring added that she, too, is interested in more information about lasers. Why does a community such as Dublin require this kind of weapon? Chief Epperson stated that it provides for another alternative for a less than lethal weapon. Every agency they have researched has found that injuries to both officers and suspects decreased with the use of lasers. Mrs. Boring commented that she was disheartened to see that the Veterans' monument was postponed in the CIP. She asked for additional information. Ms. Grigsby responded that the discussion at the CIP meetings was that due to the need for a coordinated effort involving all of the interested parties on site selection and planning of an appropriate monument, this project will likely not be constructed until 2007. For that reason, it was not programmed in 2006. Mr. Keenan asked if the Dublin Arts Council would be involved in this. Ms. Brautigam responded that they are likely one of the stakeholders that would be involved. Mayor Chinnici-Zuercher summarized that there has been one proposed revision to the document, based on Council's discussion. Ms. Grigsby clarified that staff has been directed to evaluate and review the skate park design as part of the operating budget, understanding that Council's desire is to redirect these monies for the accessible playground. Vote on the Ordinance: Mr. Reiner, yes; Mr. Keenan, yes; Mrs. Boring, yes; Mayor Chinnici-Zuercher, yes; Ms. Salay, yes; Mr. McCash, yes; Mr. Lecklider, yes. TAX INCREMENT FINANCING AGREEMENT Ordinance 44-OS Declaring Improvements to Certain Real Property to be Developed as the Shoppes at River Ridge 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, Providing for the Franklin County Treasurer to Distribute Service Payments to the Dublin City School District in the Amount it Would Otherwise Receive Absent the Exemption, Creating a Municipal Public Improvement Tax Increment Equivalent Fund for the Deposit of the Balance of Such Service Payments, and Authorizing the Execution of a Tax Increment Financing Agreement. Ms. Brautigam stated that, based upon the questions raised by Council at the first reading, staff investigated the status of the project and learned that the property owner and developer are not ready to move forward. Staff is therefore recommending that this be tabled until such time as they are ready to proceed. Mr. Reiner moved to table the ordinance. Ms. Salay seconded the motion. Vote on the motion: Ms. Salay, yes; Mr. Lecklider, yes; Mr. Reiner, yes; Mayor Chinnici- Zuercher, yes; Mr. McCash, yes; Mrs. Boring, yes; Mr. Keenan, yes. Dublin City Council August 15, 2005 Page 4 COMMUNITY REINVESTMENT AREA HOUSING COUNCIL APPOINTMENT Ordinance 43-05 Appointing Members to the Community Reinvestment Area Housing Council and Amending Ordinance 18-96 (Amended). Mrs. Boring suggesting that the language in Section 2 state, "Mayor's appointments" instead of "Mayor Chinnici-Zuercher's appointments" so that it names the position, not a specific person holding the office at this time. It was the consensus of Council to amend the ordinance to clarify the language as suggested. Vote on the Ordinance as Amended: Mayor Chinnici-Zuercher, yes; Mr. Keenan, yes; Mr. Reiner, yes; Mrs. Boring, yes; Mr. Lecklider, yes; Ms. Salay, yes; Mr. McCash, yes. INTRODUCTION/FIRST READING -ORDINANCES TAX INCREMENT FINANCING AGREEMENT Ordinance 44-05 Declaring Improvements to Certain Real Property to be Developed as the Shoppes at River Ridge 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, Providing for the Franklin County Treasurer to Distribute Service Payments to the Dublin City School District in the Amount it Would Otherwise Receive Absent the Exemption, Creating a Municipal Public Improvement Tax Increment Equivalent Fund for the Deposit of the Balance of Such Service Payments, and Authorizing the Execution of a Tax Increment Financing Agreement. Mr. Lecklider introduced the ordinance. Ms. Grigsby stated that this is anon-school TIF district being established for the River Ridge development at the corner of SR 161 and Riverside Drive. Based upon the estimated value of the public improvements at $16.8 million, it is estimated that the City will receive approximately $170,000 per year in service payments. These payments will be used to reimburse the City for the public infrastructure improvements needed in that area. Those improvements were highlighted in the recent CIP workshops and are listed in an attachment to the ordinance. Ms. Salay stated that she understands the benefit of a TIF, but thought that the underlying justification for a TIF would always be economic development purposes. These improvements seem to be benefiting a specific development. Has the thought process changed over time? She has the same question regarding the Kroger Centre. Ms. Grigsby responded that both of these projects serve public purposes. There are additional jobs created and these private developments create additional demand on the City's infrastructure. The improvements identified for each of these benefit the properties within the TIF district as well as the community overall. The City's policy has been and continues to be to ensure that there is benefit to the developing property but also to the community as a whole. Mrs. Boring noted that there have been TIF's done for residential areas as well, correct? Ms. Grigsby responded that the City's only residential TIF has been for Tartan West. Mrs. Boring stated that if this agreement is approved at the next meeting, the 30-year timeframe begins at that point. However, she understands that a building permit has not yet been issued for the project. Ms. Grigsby stated that the plans have been submitted and staff anticipates issuance of the building permit in the near future. The developer anticipates beginning construction yet this year. Mrs. Boring has heard some concerns in regard to the building permit issuance and she is uncomfortable with passage of the ordinance at this time. Ms. Grigsby stated that staff can follow-up, but her discussions with Building Division staff last week indicated that the application had been submitted and the permit was to be issued shortly. Mr. McCash noted that TIF agreements have typically been done for office developments where there is a high volume of income tax revenues anticipated. This project is predominantly, if not entirely, retail. Could staff, at the next meeting, provide a breakdown of the projection of income tax dollars to be generated by this development during this time period and how much tax revenue the fire services, MRDD and other entities will not receive because of the TIF? Ms. Grigsby responded that staff would address this. Dublin City Council August 15, 2005 Page 5 ' Mayor Chinnici-Zuercher added that this type of information should be included with all TIF's that are proposed in the future. Mr. Lecklider expressed similar concerns with the River Ridge and Kroger Centre, which seem to be somewhat "pushing the limits" in terms of the present policies for TIF's. There will be a second reading/public hearing at the September 6 Council meeting. TAX INCREMENT FINANCING AGREEMENT Ordinance 45-05 Declaring Improvements to Certain Real Property to be Developed as Kroger Centre to be a Public Purpose, Describing the Public Infrastructure Improvements to be Made to Benefit the Parcels of Such Development, Requiring the Owner Thereof to Make Service Payments in Lieu of Taxes, Providing for the Franklin County Treasurer to Distribute Service Payments to the Dublin City School District in the Amount it Would Otherwise Receive Absent the Exemption, Creating a Municipal Public Improvement Tax Increment Equivalent Fund for the Deposit of the Balance of Such Service Payments, and Authorizing the Execution of a Tax Increment Financing Agreement. Ms. Salay introduced the ordinance. Ms. Grigsby stated that this is anon-school TIF district and currently, it is estimated that the private improvements will be approximately $16 million in value. Based upon that, the City should receive $162,000 per year in service payments to be applied toward the infrastructure improvement agreements listed in the ordinance and the TIF agreement. Mrs. Boring noted that she recalls from the CIP that this project will help to open up Emerald Parkway for development. If more applications for office development are received, would those be included in the TIF to facilitate an earlier payoff? Ms. Grigsby stated that as Emerald Parkway develops between Riverside and Hard Road, staff anticipates bringing back additional requests for establishment of TIF districts, resulting in an earlier payback. Mr. Lecklider asked if there is land zoned for office in that area. Mrs. Boring responded that the Community Plan anticipates office use between Emerald Parkway and I-270 south of Bright Road in that area. There will be a second reading/public hearing at the September 6 Council meeting. LAND APPROPRIATION Ordinance 46-05 Appropriating a 0.10 Acre, More or Less, Fee Simple Interest from Continental Sawmill Limited Partnership, Located West of Village Parkway and South of Tuller Road, City of Dublin, County of Franklin, State of Ohio, and Declaring an Emergency. (Request to dispense with public hearing) Ms. Salay introduced the ordinance. Mr. Smith stated that this is a companion ordinance to legislation approved at the last meeting. He believes the case is settled, but requests that Council pass this in case it is needed. It is all being paid for privately. Ms. Salay moved to dispense with the public hearing and treat this as emergency legislation. Mr. Lecklider seconded the motion. Vote on the motion: Mrs. Boring, yes; Mr. Keenan, yes; Mr. Reiner, yes; Mayor Chinnici- Zuercher, yes; Mr. McCash, yes; Mr. Lecklider, yes; Ms. Salay, yes. Vote on the Ordinance: Mr. McCash, yes; Ms. Salay, yes; Mrs. Boring, yes; Mr. Keenan, yes; Mayor Chinnici-Zuercher, yes; Mr. Lecklider, yes; Mr. Reiner, yes. ROAD VACATION Ordinance 47-05 Vacating 3.575 Acres, More or Less, of Perimeter Loop Road Located West of Avery Road and South of Perimeter Drive, City of Dublin, County of Franklin, State of Ohio, and Declaring an Emergency. Mr. Lecklider introduced the ordinance.