Ordinance 043-16RECORD OF ORDINANCES
Dayton Legal Blank, Inc. Form No. 30043
Ordinance No. 43 -16
Passed , 2Q
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
WHICH THOSE SERVICE PAYMENTS MAY BE EXPENDED;
SPECIFYING THE PUBLIC INFRASTRUCTURE IMPROVEMENTS
DIRECTLY BENEFITING THE PARCELS; 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`s and has endeavored to work collaboratively with public entities,
including the Dublin City School District ( "Dublin School Districf � and the Tolles Career
and Technical Center ("To/ %s Career Centel''}, 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 development throughout the District and pay the associated
costs of infrastructure improvements and related incentives, this Council has
determined pursuant to Ohio Revised Code C'ORC� Sections 5709.40, 5709.42 and
5709.43 (collectively, the TIFStatute§ to declare the improvement to certain parcels
of real property located within the City 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 an applicable portion of such service payments to the
Dublin School District and Tolles Career Center, establish a municipal public
improvement tax increment equivalent fund for the deposit of the those service
payments, and specify public infrastructure improvements made, to be made or in the
process of being made that directly benefit, or that once made will directly benefit,
those parcels; 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 defined 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 DistrictAgreemenf 7 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 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 " Tolles Career Center Agreemenf� and making other
findings with respect to the tax exemption.
NOW, TH EFORE, 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 "Parcel' and collectively,
the " Parcels'? .
Dayton Legal Blank, Inc.
Ordinance No.
43 -16
RECORD OF ORDINANCES
Form No. 30043
Passed Page 2 of 3 20
Section 2. Public Infrastructure Improvements. This Council hereby
designates the public infrastructure improvements described in EXHIBIT B attached
hereto (the "Public Infrastructure Improvements' 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 directly benefit, or
that once made will directly benefit, the Parcels.
Section 3. Exemption. 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 defined in Ohio Revised Code Section 5709.40(A)) is hereby declared
to be a public purpose and shall be exempt from taxation in accordance with Ohio
Revised Code Section 5- 709.40(6) for a period commencing on the date an Improvement
attributable to a new structure on that Parcel first appears on the tax list and duplicate
were it not for the exemption granted in 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.
Section 4. 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 Improvement allocable thereto to the
Treasurer of Franklin County, Ohio (the "County Treasurel-`� on or before the final dates
for payment of real property taxes. The service payments 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 collected against that Improvement if it were
not exempt from taxation pursuant to Section 3, including any penalties and interest
(collectively, the "Service Payments'. 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 Ohio Revised Code Sections 319.302, 321.241
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 Payment -!V j, shall be allocated and distributed in accordance with
Section 6.
Section 5. TIF Fund. This Council hereby establishes, pursuant to and in
accordance with the provisions of Ohio Revised Code Section 5709.43, the Penzone
Municipal Public Improvement Tax Increment Equivalent Fund (the "TIF Fund7. 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. 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) 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, (b)
payment of costs of the Public Infrastructure Improvements, including, without
limitation, debt charges on any securities of the City issued to pay costs of those Public
Infrastructure Improvements and (c) any other lawful purpose.
Section 7,, Further Authorizations. This Council hereby authorizes and directs
the City Manager, the Director of Finance, the Director of Law, the Director of
RECORD OF ORDINANCES
Dayton Legal Blank, Inc. Form No. 30043
Ordinance No. 43 -16
Passed Page 3 of 3 20
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 Property Tax Rollback Payments. This 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 agreements and instruments and to take any other actions as may be
appropriate to implement this Ordinance.
Section 8. Tax Incentive Review Council. The City's Tax Incentive Review
Council will review annually all exemptions from real property taxation granted by this
Ordinance in accordan(:e with the requirements of Ohio Revised Code Section 5709.850
Section 9. Reports. Pursuant to Ohio Revised Code Section 5709.40(I), the
Director of Development is hereby directed to deliver a copy of this Ordinance to the
Director of the Ohio Development Services Agency within 15 days after its effective date.
Further, and on or before March 31 of each year that the exemption set forth in this
Ordinance remains in effect, the Director of Development or other authorized officer of
the City shall prepare and submit to the Director of the Ohio Development Services
Agency the status report required under Ohio Revised Code Section 5709.40(I).
Section 10. 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 are open meeting of this Council or any of its
committees, and that all deliberations of this Council and any of its committees that
resulted in those formal actions w;,pre 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 in full force and effect on
the earliest date permitted by law.
oe
Clerk of Council
P�ss��i: / / � l) E%�'r�-� 7 2016
,
Effective: 1��� ���' l , 2016
a I
Office of the Cifty Manager
1200 Emerald Parkway * Dublin, OH 43017-109*
U"Nit y o f D u b 1i nPhone: 614-410-4400 * Fax: 614-410-4490
Cit
To.,v Members of Dublin City Council
From:, Dana L. McDaniel, City Mana
Dates, November 3, 2016
Re: Ordinance No. 43-16 — An Ordinance Establishing a Tax Increment Financing
District (Penzone)
Ordinance No. 43-16 proposes the establishment of the Penzone TIF. During the first reading of
the Ordinance, there was discussion regarding the landowner's future use of the existing
property, with discussion centering on lot splits and demolition of the existing salon.
In the event that the property owner splits the one parcel into multiple parcels,, the County woulloi
likely distribute the base value proportionally between the new parcels.
While we do not anticipate either of the above-mentioned scenarios taking place, property
owners have the right to split parcels and demolish structures and could do so at any point in
time. As is the case with all TIFs, staff will monitor the performance and report to the Tax
Incentive Review Council and City Council on an annual basis4
Staff recommends that Ordinance No. 43-16 be adopted by City Council at the second reading-
public hearing on November
b.-
Office of the City Manager
o 5200 Emerald Parkway * Dublin, OH 43017-1090
ity of Dublin Phone: 614-410-4400 * Fax: 614-410-4490
7cit
To: Members of Dublin City Council e"
From: Dana L. McDaniel, City Mana
11
Initiated By: Angel L. Mumma, Director of Finanot
Re: Ordinance No. 43-16 — An Ordinance Establishing a Tax Increment Financing
District (Penzone)
Charles Penzone is proposing a new 12,600 square foot Grand Salon to be constructed on
approximately 1.8 acres next to the existing Grand Salon located at 6671 Village Parkway. The
Planning & Zoning Commission approved the basic site and development plans on June 9, 2016
and the Site Plan Review was approved on October 13, 2016,, This was the final approval
necessary before applying for building permits.
Although Charles Penzone is not requesting assistance from the City in terms of public
infrastructure improvements, the City is proposing to create a Tax Increment Finance (TIF) district
as authorized by Ohio Revised Code Section 5709.40. Ordinance No. 43-16 proposes the
establishment of the Penzone TIF,
The location of the Penzone TIF is currently within the same parcel as their existing location, which
is within the defined area of the Bridge Street District Cooperative Agreement between the Dublin
City School District (DCS) and the City. As a reminder, 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 I — 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.
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.
As you are aware, other governmental jurisdictions are impacted by the establishment of TIF
Memo re. Ordinance No. 43-16 — An Ordinance Establishing a Tax Increment Financing District (Penzone)
October 20, 2016
Page 2 of 2
districts and the resulting deferral of property tax revenue. In Franklin County, several agencies
have operating levies. For those agencies, the Penzone TIF will result in the following estimated
annual property tax deferrals:
It is important to keep in mind how these dollars compare to the overall tax revenue collected by
these agencies. The total assessed valuation for all of the City's established commercial TIF
districts within Franklin County is $502 million, which is less than one percent of Franklin County's
total assessed valuation (per the Franklin County 2015 CAFR).
Additionally, Washington Township is impacted by the establishment of TIFs. The Penzone TIF will
result in an estimated annual property tax deferral of $9,332 to the Township.
Staff recommends that Ordinance No. 43-16 be adopted by City Council at its second reading/
public hearing on November
EXHIBIT A
PARCELS
The shaded area surrounded by the red border on the following map specifically identifies
and depicts the Parcels and constihrtespart ofthis Exemn A. The Tax IENumberforthe Parcels
is 273- 009119 as shown on the Franklin County Auditors website on October 14, 2016, and is
included for reference only and do not limit me Parcels subject to this Ordinance
Fir
A -1
EXHIBIT B
PUBLIC INFRASTRUCTURE IMPROVEMENTS
The Public Infrastructure Improvements include the following improvements and all
related costs of those improvements (including, but not limited to, those costs listed in Section
133.15(B) of the Ohio Revised Code):
• Construction of roadways and other infrastructure improvements within the Bridge Street
District, including those improvements indicated in the City of Dublin Thoroughfare Plan.
Examples include but are not limited to the following:
o Construction of John Shields Parkway from Riverside Drive to Village Parkway,
o Construction of a roadway connecting Dale Drive and Tuller Ridge Drive,
o Improvements to Tuller Road from Riverside Drive to Tuller Ridge Drive,
o Improvements to Riverside Drive between Tuller Road and SR 161,
o Improvements to Tuller Ridge Drive,
o Improvements to Dale Drive,
o Construction of a roundabout at the intersection of US 33 /Riverside Drive /SR 161,
and
o Construction of a roadway connecting Dale Drive to Village Parkway,
• Improvements to accommodate on- street parking throughout the Bridge Street District,
• Construction of the Scioto River pedestrian bridge,
• Improvements to and/or replacement of the existing Bridge Street vehicular bridge,
• Construction of anew vehicular bridge across the Scioto River,
• The construction of public parking (including acquisition of interests in real property and
related design),
• Aesthetic improvements to roadways within the TIE area,
• Constructing of civic facilities including but not limited to an arts facilities, and municipal
government facilities,
• Land acquisition for public purpose, and
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• Construction of public parks and open space plazas,
each together with constructing and installing curbs and gutters, turn lanes, bridges or tunnels,
any pumping mechanisms required for atunnel or other items as necessary, retaining walls, railing,
the installation of any necessary traffic signal(s), public utilities which include water mains,
sanitary sewer, and storm sewers, stormwater improvements, burial of utility lines, gas, electric
and communications service facilities (including fiber optics), street lighting and signs, business
signage restoration or improvements, landscaping, and any other related costs, sidewalks,
bikeways, preparation of environmental documents, preliminary engineering, design, right -of -way
plans and any related costs, right -of -way acquisition, erosion and sediment control measures,
grading and other related work, survey work, soil engineering and construction staking, and all
other necessary costs and improvements, each together with all other necessary appurtenances
thereto, which improvements will benefit the Parcels.
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