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HomeMy WebLinkAboutOrdinance 02-24RECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No. 30043 Ordinance No. 02-24 Passed , 20 CREATING A TAX INCREMENT FINANCING INCENTIVE DISTRICT FOR THE TOWNS ON PARKWAY; 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; AND AUTHORIZING COMPENSATION PAYMENTS TO THE DUBLIN CITY SCHOOL DISTRICT AND THE TOLLES CAREER AND TECHNICAL CENTER 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 “ District’) and has endeavored to work collaboratively with public entities, including the Dublin City School District (‘Dublin School District") and the Tolles Career and Technical Center (“Tolles Career Center’), 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, 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 “7ZF Statutes”) 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 Towns on the Parkway Incentive District, a residential incentive district (the “Jncentive District’), the boundaries of which will be coextensive with the boundaries of, and will include, the parcels of real property specifically identified and depicted in EXHIBIT A attached hereto (as currently or subsequently configured, the “Parcels”, with each of those parcels referred to herein individually as a “Parce/’); and WHEREAS, by Ordinance No. 54-13 passed on July 1, 2013, this Council approved an Bridge Street District Area Plan and supplemented that plan by approval of the final plat for Section 1 by Resolution 31-23 passed on April 10, 2023, the final plat for Section 2 by Resolution 83-23 passed on November 27, 2023, and the preliminary plat for Section 3 by Resolution 84-23 passed on November 27, 2023; 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 EXHIBIT B attached hereto (the “Public Infrastructure Improvements"), which Public Infrastructure Improvements, once made, will benefit or serve the Parcels; and RECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No. 30043 02-24 Page 2 Ordinance No. Passed __,20 WHEREAS, pursuant to Ordinance 116-14 passed on January 5, 2015 (the “Prior TIF Ordinance”), this Council determined pursuant to the TIF Statutes to declare the improvement to some or all of the Parcels to be a public purpose and exempt from taxation, required the owner of each parcel to make service payments in lieu of taxes and no such payments have been remitted to the County Treasurer (defined below) since the inception of the exemptions, therefore those Parcels constitute “Nonperforming Parcel” as defined in Section 5709.40(A) of the Ohio Revised Code and upon the effective date of this ordinance, the Nonperforming Parcels are no longer exempted from taxation pursuant to the Prior TIF Ordinance and shall be exempted from taxation pursuant to this ordinance and the TIF Statutes; 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/lin Schoo! District Agreement’) and making other findings with respect to the tax exemption; and 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 “7ol/es Career Center Agreement’) 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, al of the elected members concurring, that: Section 1. Incentive District_Findings and Determinations; Creation of Incentive District. This Council hereby: (i) accepts and adopts the City Engineer’s certification to this Council and the City Engineer’s findings set forth therein (a) that 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 (b) that the Incentive District and the related overlay area is less than 300 acres in size and enclosed by a contiguous boundary, (ii) finds and determines that the construction of the planned 154 attached single family residences will place additional demand on the Public Infrastructure Improvements, (iii) finds and determines that the City sent written notice of the public hearing regarding this ordinance by first class mail to each owner of real property within each proposed Incentive District at least 30 days prior to such hearing, which notice included a map of the proposed Incentive District as well as the overlay area required by ORC Section 5709.40(C)(2), (iv) finds and determines that this Council has not received a request from the owner of any real property within any proposed Incentive District to exclude that owner’s property from the Incentive District, and (v) finds and determines that notice of this ordinance has been delivered to the Franklin County Board of County Commissioners within the time periods prescribed in ORC Section 5709.40. This Council further finds that the sum of the taxable value of real property in the Incentive District for tax year 2023 and the taxable value of all real property in the City that would have been taxable in tax year 2023 were it not for the fact that the property was in an existing incentive district and therefore exempt from taxation, does not exceed twenty-five percent of the taxable value of real property within the City for tax year 2023. 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 as depicted on EXHIBIT A attached hereto. RECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No. 30043 02-24 Page 3 Ordinance No. Passed __,20 Section 2. Public Infrastructure Improvements. This Council designates the Public Infrastructure Improvements described in EXHIBIT 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 of at least $3,000,000 in market value ($1,000,000 of assessed value) 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 Treasurer’) 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 Payments”), 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 Payments"), will be deposited and distributed in accordance with Section 6 of this Ordinance. Section 5. TIF Fund. This City Council establishes, pursuant to and in accordance with the provisions of Ohio Revised Code Section 5709.43, the Towns on the Parkway Incentive District Municipal Public Improvement Tax Increment Equivalent Fund (the “TIF Fund’). 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. RECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No. 30043 02-24 Page 4 Ordinance No. Passed , 20 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 Department of Development. 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 Department of Development 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 Department of Development the status report required under Ohio Revised Code Section 5709.40(1). 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 shall be effective on the earliest date permitted by law. RECORD OF ORDINANCES Dayton Legal Blank, Inc. Form No. 30043 02-24 Page 5 Ordinance No. Passed __, 20 Signed: A S— Mayor - Presiding Officer Attest: ok of Céuncil Passed: hon | LL , 2024 Effective: (ow Lh , 2024 EXHIBIT A IDENTIFICATION AND MAP OF THE PARCELS The enclosed area (in yellow) on the following map specifically identifies and depicts the Parcels and the boundaries of the Incentive District, and constitutes part of this EXHIBIT A. The Parcels include, without limitation, parcel 273-013211, 273-008811 and 273-013510 (as they existed in the County Auditor’s records on July 23, 2023) and are included for ease of reference only. EXHIBIT B PUBLIC INFRASTRUCTURE IMPROVEMENTS The Public Infrastructure Improvements include any “public infrastructure improvement” defined under ORC Section 5709.40(A)(8) and all related costs of those permanent improvements (including, but not limited to, those costs listed in ORC Section 133.15(B)) and the following: Roadways. Construction, reconstruction, extension, opening, improving, maintaining, 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, including, but not limited to, improvements to John Shields Parkway. Parking. Construction, reconstruction, improving, and equipping of surface or structured public parking facilities. 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 private improvements on the Parcels or the Public Infrastructure Improvements, and the construction of public health facilities. Utilities. Construction, reconstruction, burial or installation of gas, electric and communication service facilities and all appurtenances thereto, including, but not limited to mechanical relocations for electric and communications facilities necessary for the development of the Property, and those associated with improvements described in “Roadways” above. Stormwater. Construction, reconstruction, relocation, modification and installation of stormwater and flood remediation projects and facilities, both for storm water quantity and quality, including the payment and reimbursement for such projects and facilities on private property when determined to be necessary for public health, safety and welfare. Demolition. Demolition, including demolition of the existing structures on the Parcels. Parks. Construction or reconstruction of one or more public parks and park or recreational facilities, including grading, trees and other park plantings, park accessories and related improvements, multi-use trails and bridges, together with all appurtenances thereto. 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, including acquisition of interests in the Parcels necessary for redevelopment of the Parcels. 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.