Ordinance 014-16RECORD OF ORDINANCES
Dayton Legal Blank, Inc.
Ordinance No. 14 -16 (Amended)
Form No. 30043
Passed , 20
AN ORDINANCE 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 WHICU
THOSE SERVICE PAYMENTS MAY BE EXPENDED; AUTHORIZING
COMPENSATION PAYMENT'S TO THE DUBLIN CITY SCHOOL
DISTRICT AND THE TOLLES CAREER AND TECHNICAL CENTFRU
WHEREAS, the City has prepared a strategy for comprehensive development within an area
of the City known as the Bridge Street District (which area is referred to herein as the
"D)strict`? and has endeavored to work collaboratively with public entities, including the
Dublin City School District ("Dub /in School District') and the Tolles Career and Technical
Center (" To/ %s Career Centef'�, a nd private entities to pla n for a nd faci I itate 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, ITC 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
5709.43 (collectively, the "77F 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 "Dub /in 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 " To/ %s Career Center Agreement) and making other
findings with respect to the tax exemption; and
NOW THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio,
of the elected members concurring, that:
Section 1. 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
RECORD OF ORDINANCES
Dayton Legal Blank, Inc. Form No. 30043
Ordinance No. 14 -16 (Amended) Passed Page 2 of 3 , 20
subsequently configured, individually, a "Parcel' and collectively, the "Parcels'7. 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(8),
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 on the effective date
of this Ordinance with respect to that Parcel and ending 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 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 Treasurel'� 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'7,
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 redaction required by Sections 319.302, 321.24, 323.152 and 323.156 of
the Ohio Revised Code, as the same may be amended from time to time, or any successor
provisions thereto as the same may be amended from time to time (the "Property Tax Rollback
Paymen&s , 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 A Urban
Redevelopment 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. 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
RECORD OF ORDINANCES
Dayton Legal Blank, Inc.
Farm No. 30043
Ordinance No. 14 -16 (Amended) Passed Page 3 Of 3 , 20
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 i n accordance with Ohio
Revised Code Section 5709.85.
Section 9. Filings with Ohio Development Services Agency. 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 Development Services Agency within fifteen days after its effective
date. Further, and on or before March 31 of each year that the tax exemption authorized by
Section 3 remains in effect, the Director of Development or other authorized officer of the City
is directed to prepare and submit to the Director of the Ohio Development Services Agency the
status report required under Ohio Revised Code Section 5709.41(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; provided, however, pursuant to the authority granted to this Council by Section 4.04(b)
of the City Charter, Section 3 of this ordinance is effective as to each parcel commencing with
the first tax year an Impr ement to that Parcel attributable to a new structure appears on the
tax list and duplicate (rcVardless of tax exempt status).
Si
ayor - Presiding Officer
Attest:
X�� � d'
Clerk of Council
Passed. �'� !! , 2016
Effecf:ivc : 12016
Office of the City Manager
(�� 5200 Emerald Parkway � Dublin, OH 430171090
1.�� �� Dt�blln Phone; 614. 410-4400 «Fax. 614.410 -4490
To: Members of Dublin City Council
From Dana L. McDaniel, City Mana
9J�
Date, April 7, X016
Initiated By. Angel L, Mumma, Director of Finance
Terry D. Foegler, Director of Strategic Initiatives/Special Projects
Jennifer D. Readier, Assistant Law Director
Summary
Rey Ordinance No. i4�16 (Amended).. Establishing a Tax Increment
Financing District (Bridge Park) (Block A)
Ordinance Na, 14 -16 proposes the establishment of the Bridge Park Tax Increment Financing
District for Block A within the Bridge Park development During the first reading of the
Ordinance, Council requested additional information regarding the emergency passage requested
bY staff,
The staff request was based on a recommendation from the City's bond counsel, The rationale
for the emergency was the following;
Without emergency language, the 30 -year timeframe far the i1f begins immediatel y, regardless
of when improvements are reflected on the tax duplicate. This would likely result in the loss of
TlFrevenues if the impravements on each parcel were not to begin immediately, With
emergency language, the exemption becomes effective as to each parcel commencing with the
first tax year an improvement to that parcel attributable to a new structure appears on the tax
list and duplicate. This will allow for the maximum generation of 17F revenue The previous TIF
ordinances established under ORC 5709, 41 have been approved as an emergency for the same
reason.
Based an previous experience with other Ohio municipalities, bond counsel believed only
emergency legislation could provide the appropriate language delaying the start date of the TIF
in order to maximise the revenues generated. The Law Director's office reviewed the issue with
bond counsel subsequent to the first reading, It is the Law Director's opinion that, based upon
the specif=ic provisions of the Dublin Charter, emergency legislation is not necessary in order to
provide the language that will delay the start date of the TIF,
Dublin Charter Section 4.04(b) provides the following;
CJnless otherwise provided in the Revised Charter, all other ordinances shall become
effective thirty days after their adoption or at any later date sped�ed by Council.
As a result of this language, the Law Director's office believes it is advisable to adopt this TIF via
Memo re, Ordinance No, 14.16 — Establishing a Tax Increment Financing District (Bridge Park) (Block A)
April 7, 2016
Page 2 of 2
regular legislation, specifying the conditions that define the effective dates, Therefore,
emergency legislation is not necessary, Absent such language specifically authari�ing Dublin City
Council to specify such dates or conditions other than 30 days after adoption, the standard
statutory provisions would have applied and the emergency action would have been required,
Bond counsel was not aware of this Charter section, but agrees with the Law Director's office
that emergency legislation is no longer necessary.
It is imperative that the language implementing the TIF provide that each exemption will became
effective on each parcel the first tax year in which improvements to that parcel appear on the tax
list and duplicate, There are significant and meaningful potential financial implications and
impacts upon the financing of important public improvements and community facilities if the
proposed exemption were to begin immediately, Each year in which the construction of the
office does not take place, for example, would result in approximately $34,250 in lost TIF
revenues, undermining the financial model established and approved far the public and
community facilities needed in Bridge Park, Additionally, should there be any delay in the
construction of the hotel there would be an additional $409,000 lass per year of TIF revenues,
The TIF revenues generated within Blocks A, D, F, G, H, and � are dedicated to fund the
community facilities (the five parking structures and the canference�events facliry, as well as the
internal public and private roadways on these blocks), Ta the extent that insufficient revenues
are available from the TIF proceeds to fund the debt service an the community facilities, the NCA
would be required to levy a charge, or a higher charge on Bridge Park properties within the NCA
boundaries (potentially harming the market competitiveness ofthese properties),
Recommendation
Staff believes the appropriate implementation of this TIF can now be accomplished by non -
emergency legislation, As such, staff recommends approved of Ordinance No, 14-16 (Amended),
which removes all emergency language, at the second reading an April 11,
EXHIBIT A
IDENTIFICATION AND MAP OF THE PARCELS
The shaded area an the following map specifically identifies and depicts the
Parcels and constitutes part of this Eur��s��' A, The Parcels include, without Hmitation,
the following tax parcels: 273 - 009155, 273- 008867, 273 - 008868, 273 - 008998, 273-
008994, 273 - 008834, 273. 012463, and 273 - 0012464 (as they existed in the County
Auditor`s retards on August 27, 2015), and are included far ease of reference only,
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