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HomeMy WebLinkAboutOrdinance 50-25RECORD OF ORDINANCES Form 6220S BARRETT BROTHERS - DAYTON, OHIO Ordinance No. = Passed , DECLARING THE IMPROVEMENT TO CERTAIN PARCELS OF REAL PROPERTY IN THE CITY’S BRIDGE STREET DISTRICT TO BE A PUBLIC PURPOSE AND EXEMPT FROM TAXATION; PROVIDING FOR THE COLLECTION AND DEPOSIT OF SERVICE PAYMENTS AND SPECIFYING THE PURPOSES FOR WHICH THOSE SERVICE PAYMENTS MAY BE EXPENDED; 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 (“7o/les 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, 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 in Section 1) and the construction of redevelopment project which will include various uses (the “Project’); and WHEREAS, to facilitate redevelopment throughout the District, including but not limited to the Project, and pay the associated costs of improvements and related incentives, this Council has determined pursuant to Ohio Revised Code Sections 5709.41, 5709.42 and 5/09.43 (collectively, the “ 7ZF Statutes’) to declare the improvement to certain parcels of real property located within the Project area to be a public purpose and exempt from taxation, require the owner of each parcel to make service payments in lieu of taxes, establish an urban redevelopment tax increment equivalent fund for the deposit of the those service payments, specify the purposes for which money in that fund will be expended, and provide for the distribution of an applicable portion of such service payments to the Dublin School District and Tolles Career Center: and WHEREAS, Ohio Revised Code Section 5709.41 requires that the City hold fee title to the Parcels prior to enacting this Ordinance; and WHEREAS, prior to the passage of this Ordinance, the City accepted title to the Parcels (as defined in Section 1) and pursuant to the development agreement, the City has or will transfer title to the Parcels to Crawford Hoying Development Partners, LLC or its designee; 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 “Dublin School 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 “ 7o//es Career Center Agreement’) and making other findings with respect to the tax exemption; and RECORD OF ORDINANCES F 220S BARRETT BROTHERS - DAYTON, OHIO orm 6: 50-25 Page 2 Ordinance No. Passed , NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, of the elected members concurring, that: Section 1. Parcels. The parcels of real property subject to the exemption granted by this Ordinance are identified and depicted in EXHIBIT A attached hereto (each, as currently or subsequently configured, individually, a “Parce/’ and collectively, the “Parcels"). This Council finds that the City acquired the Parcels while engaged in urban redevelopment. Section 2. Urban Redevelopment Costs. Money deposited into the TIF Fund (as defined in Section 5) may be used to pay for or finance the costs of improvements to or on, or servicing, the Parcels or the Project, including but not limited to water, sewer and storm sewer improvements, parks and recreation improvements, roadway improvements, parking facilities, the acquisition of real estate and interests in real estate, and site preparation, for those improvements and for the Project, together with all necessary appurtenances and related costs, including but not limited to all costs enumerated in Ohio Revised Code Section 133.15(B), together with any other costs hereafter designated by ordinance (collectively, the “Urban Redevelopment Costs"). Section 3. Authorization of Tax Exemption. This Council hereby finds and determines that 100% of the increase in assessed value of each Parcel subsequent to the acquisition of that Parcel by the City (which increase in assessed value is hereinafter referred to as the “Improvement' as defined in Ohio Revised Code Section 5709.41) is hereby declared to be a public purpose and will be exempt from taxation for a period commencing for a period commencing with the first tax year that begins after the effective date of this Ordinance and in which an Improvement valued at $5,000,000 or more attributable to a new structure on that Parcel first appears on the tax list and duplicate of real and public utility property were it not for the exemption granted by this Ordinance and ending on the earlier of (a) thirty (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 (separate exemption period for each Parcel). 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 Ohio Revised Code Section 5709.42, the owner of each Parcel is hereby required to and shall 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 subject to the exemption granted in 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 allocated and distributed in accordance with Section 6 of this Ordinance. Section 5. TIF Fund. This City Council hereby establishes, pursuant to and in accordance with the provisions of Ohio Revised Code Section 5709.43, the Bridge Park — Block J Urban Redevelopment Tax Increment Equivalent Fund (the “7ZF 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 RECORD OF ORDINANCES Fr 6220S BARRETT BROTHERS - DAYTON, OHIO orm 50-25 Page 3 Ordinance No. Passed , 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. 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. Distributions. Pursuant to the TIF Statutes, the County Treasurer is requested to distribute the Service Payments and Property Tax Rollback Payments to the City for further deposit into the TIF Fund for (a) payment of Urban Redevelopment Costs, including, without limitation, debt charges on any securities of the City issued to pay or reimburse financing costs or Urban Redevelopment Costs, (b) remission, on a pro rata basis, to the Dublin School District in accordance with the Dublin School District Agreement and the Tolles Career Center in accordance with the Tolles Career Center Agreement and (c) any other lawful purpose. 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 5709.41(E), 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 5709.41(E). 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 at the earliest date provided by law. EXHIBIT A IDENTIFICATION AND MAP OF THE PARCELS The area described below specifically identifies and depicts the Parcels and constitutes part of this ExHIBIT A. The Parcels include, without limitation, a portion of tax parcel 273-012911 (for tax year 2024), and are included for ease of reference only. The Parcels consist of Lot Number Twenty (20) of Bridge Park East Section 8, as the same is numbered and delineated upon the recorded as Instrument Number , Recorder’s Office, Franklin County, Ohio, as shown on the following map. —. — —— _—_— ——. 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N New| aap A, a IN. 201412040161343 <4 — ; aT P.B. 118, P. 40 em iticd ; a \ \ CENTRAL OHIO sit al \ \ TRANSIT AUTHORITY 19295" R=7a.00 7% \ \ LN. 201712110173878 Ne=26.54° kt ChBrg=NO6°06"40°W \ S Chnzeay’ RECORD OF ORDINANCES BARRETT BROTHERS - DAYTON, OHIO Form 6220S 50-25 Page 4 Ordinance No. Passed Signed: (Lh a_* Mayor - Presiding Officer Passed: Jinan 5 , 2023 ib Effective: Februan, 4 , 2025 To: Members of Dublin City Council From: Megan O'Callaghan, City Manager Date: November 11, 2025 Initiated By: Matt Rubino, Chief Financial Officer/Director of Finance Re: Ordinance 50-25 Establishing a Commercial Tax Increment Financing District (Bridge Park J Block) Summary This ordinance would establish the tax increment financing (TIF) district for the parcel of Bridge Park J Block that will be used for commercial purposes. The City proposes creating the commercial TIF district as authorized by Ohio Revised Code Section 5709.41 for the office building component of the development. Revenues from this TIF will be used to fund the public infrastructure provided for in Ordinance 09-25 which approved the development agreement between the City and Crawford Hoying Development Partners on April 21, 2025. The proposed commercial TIF district is in addition to the two residential incentive districts proposed in TIF Ordinance 46-25 that had a first public hearing at the October 20, 2025 Council meeting. The J Block Project continues the City’s strategy of comprehensive development with the Bridge Street District by creating a new, more urban, walkable core, including a dynamic mix of commercial and residential development types generally not previously available within the city. The Developer is in the planning stage for the J Block Project, located at the southeast corner of Dale Drive and Bridge Park Avenue in the Bridge Street District. Refer to Figure 1 below. The J Block Bridge Street District project will include the construction of four buildings, including 109,057 SF of class A office space and retail/restaurant space, 193 condo units in two buildings, and a 508-space parking garage on 8.37 acres. Construction on the J Block Development commenced in September 2025 and is anticipated to be fully completed by the end of 2027. The office building proposed as part of J Block’s future development is intended to be occupied by Cenovus Energy Inc., which is a Canadian integrated oil and natural gas company. An Economic Development Agreement was approved by City Council in April 2024 (Ordinance 07-24), which included performance incentives for withholdings and a requirement that the company occupies the facility by April 15, 2027. The J Block commercial TIF district is within the defined area of the Bridge Street District (BSD) Office of the City Manager 5555 Perimeter Center • Dublin, OH 43017-1090 Phone: 614-410-4400 • Fax: 614-410-4490 Memo Commercial TIF District Residential TIF District Ph 1 Residential TIF District Ph 2 Figure 1 Memo re. Establishing A Tax Increment Financing District (Bridge Park J Block Commercial TIF) November 12, 2025 Page 2 of 2 Cooperative Agreement between the Dublin City School District (DCS) and the City. 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 forego 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. In exchange for this TIF structure, the City will continue to pay $50 million to DCS over a 33-year time period (from 2014 – 2046 with $1.5 million paid annually in years 2014 through 2045, and $2 million paid in 2046). 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, as a courtesy and in the spirit of partnership, the City proactively reached out to DSC to inform them of the creation of the new commercial TIF district prior to the first reading and public hearing. TIF Ordinance and Service Payments The City agreed to pass the requested TIF Ordinance to create a commercial tax increment financing district within the J Block Project area. The proposed Ordinance is related to the office building and is authorized pursuant to ORC 5709.41. The service payments received will be applied pursuant to the approved Development Agreement and will be secured with a minimum service payment (MSP) from the Developer. Total service payments from the commercial TIF are expected to generate approximately $29.6 million over 30 years. The first payment related to the commercial building will commence in calendar year 2028 with annual payments averaging approximately $900,000 over the first 15 years once full valuation is reached. After the abatement period the TIF service payments attributable to the office building will generate approximately $1.0 million annually. Service payment revenue from the proposed TIF district will provide funding for public infrastructure improvements that total approximately $44.4 million as previously identified, with any excess revenues (approximately $21 million) available to fund future infrastructure within the Bridge Street District as authorized in Section 2 of the Ordinance. For details regarding the public improvements please see the information included in the Description of Public Infrastructure Improvements. A separate Ordinance (46-15) was placed on the October 20, 2025 Council agenda for a first public hearing. Provisions in ORC 5709.40 require at least 30 days between the first public hearing and the meeting in which City Council approves the TIF Ordinance. Recommendation Staff recommends that Council adopt Ordinance 50-25 at the second reading/public hearing on December 8, 2025.