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Ordinance 069-19RECORD OF ORDINANCES BARRETT BROTHERS - DAYTON, OHIO Form 62205 Ordinance No. 69-19 Passed AN ORDINANCE DECLARING THE IMPROVEMENT TO CERTAIN PARCELS OF REAL PROPERTY KNOWN AS THE CORNERS DEVELOPMENT 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; AUTHORIZING COMPENSATION PAYMENTS TO THE DUBLIN CITY SCHOOL DISTRICT AND THE TOLLES CAREER AND TECHNICAL CENTER; AND REPEALING ORDINANCE NO. 83-00. WHEREAS, the City has prepared a strategy for comprehensive development for certain real property in the City described and depicted in ExHisrr A hereto and generally known as the Corners Development (the "Proper[y� and has endeavored to work collaboratively with private entities to plan for and facilitate the development of the Property; and WHEREAS, the Parcels are currently subject to a tax increment financing exemption pursuant to Ordinance No. 83-00 passed June 19, 2000, which exemption was enacted as part of the prior development of the Parcels and which exemption must be repealed as part of the new tax increment financing provided for in this Ordinance; and WHEREAS, to facilitate development of the Property and pay the associated costs of infrastructure improvements and related incentives, this Council has determined pursuant to Ohio Revised Code Sections 5709.40, 5709.42 and 5709.43 (collectively, the "TIF Statutes' 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 a portion of such service payments to the Dublin School District and Tolles Career and Technical 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, notice of this Ordinance has been timely delivered to the Dublin City School District and the Tolles Career and Technical Center in accordance with Ohio Revised Code Sections 5709.40 and 5709.83; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, �Z - 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' . Section 2. Public Infrastructure Improvements. This City 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. Authorization of Tax Exemption. This City 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 RECORD OF ORDINANCES BARRETT BROTHERS - DAYTON, OHIO Form 6220S Ordinance No. 69-19 Passed PaaP 2 of G , 5709.40(A)) is hereby declared to be a public purpose and shall be exempt from taxation in accordance with Ohio Revised Code Section 5709.40(6) for a period commencing for each Parcel with the first tax year that begins after the effective date of this Ordinance and in which an Improvement 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. Ordinance No. 83-00 passed June 19, 2000, and the tax increment financing exemption granted therein, is hereby repealed effective for each Parcel with the tax year that the exemption granted by this Section commences. Section 4. Service Payments. Pursuant to 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 Treasurer`) 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 of this Ordinance, including any penalties and interest (collectively, the "Service Payments'). The Service Payments shall be allocated, distributed and deposited 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 Corners Municipal Public Improvement Tax Increment Equivalent Fund (the "77FFund). 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 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 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 to each of the Dublin City School District and the Tolles Career and Technical Center in an amount equal to the respective amount each school district would otherwise have received as real property tax payments derived from the Improvement to that Parcel if the Improvement had not been exempt from taxation pursuant to this Ordinance. The County Treasurer is requested to distribute all remaining Service Payments to the City for further deposit into the TIF Fund for (payment of costs of the Public Infrastructure Improvements, including, without limitation, debt charges on any securities of the City issued to pay or reimburse financing costs or costs of those Public Infrastructure Improvements and any other lawful purpose. 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. 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. BARRETT BROTHERS - DAYTON, OHIO OrdinafiseiYo. RECORD OF ORDINANCES Pu. -3 of ti , 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. Filinqs with Ohio Development Services A_ encu. 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 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 5709.40(I). 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 inclining Ohio Revised Code Section 121.22. f Sectio40ate I. Effective Date. earlie permitted by""i'a Sig A r - Pres' ing Officer Attest: Clerk of Council s Ordinance shall be in full force and effect on the Passed:�� IM ��2019 Effective: OaPV4R.rq,/-1 20),6A Form 6220S EXHIBIT A IDENTIFICATION AND MAP OF THE PARCELS The shaded area on the following map specifically identifies and depicts the Parcels and constitutes part of this Exhibit A. The Parcels include, without limitation, the following tax parcel: 273-01074900 (as it existed in the County Auditor's website on November 11, 2019. Parcel ID Map Flouting No Owner Location 27301074900 2730111E CITY OF DUBLIN OHIO RINGS Rd 00205 G tib' �L _- _.r= - -- iNGBRANCH_f31 .r^ jfjxf ' fe v_ I 11i �! I, I I Itis � r �, IIIIi II II `I II III III IIII II I I Ijll II f I �II II 11 ,I. 'r l f '1 I ' I S-CJ'ae S: l tl �- .,E ,. i^-'�, r`1'�. � �.?'�1=•.T !- `.I:? aC.2M, i.iTl,'tES(CKIC a, _ ttvl �_ �;Ril"L-tc)j d the GIS L ser C�^,2^ii , cra^ lir+ �y�r5tre Qlt1'IfIK This dra-wing is prepared for the real property inventory within this county. It is compiled from recorded deeds, survey plats, and other public records and data Users of this drawing are notit'ied that the public primary enformation source should be consulted for verification of the information contained on this drawing. Thecounty and the mapping companies assume No legal responsibilities for the inf3rmation contained on this drawing. Please notify the Franklin County GIS Divismn a( any discrepancies. A-1 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)), including, without limitation, the improvements to be undertaken by the City and the developer of the Property pursuant to an Infrastructure Agreement and the following. - 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. Real ins, 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. 7City of Dublin Office of the City Manager 5200 Emerald Parkway • Dublin, OH 43017-1090 Phone: 614.410.4400 • Fax: 614.410.4490 To: Members of Dublin City Council From: Dana McDaniel, City Manager Date: November 12, 2019 Initiated By: Matthew L. Stiffler, Interim Director of Finance Summary Memo Re: Ordinance No. 69-19 — Establishing a Tax Increment Financing Area (The Corners TIF) and Repealing the Rings/Frantz TIF The Rings/Frantz Tax Increment Financing (TIF) Area was established in 2000 provide a funding mechanism for the extension of Tuttle Crossing Boulevard, the widening of Rings Road and traffic management improvements necessary for ingress and egress to the property. In 2016, the City acquired approximately 24 acres in the Rings/Frantz TIF. As part of the continued promotion of economic development in the Rings\Frantz area, the City issued a Request for Proposals to develop a portion of the acquired area. The Daimler Group, Inc. successfully responded to the City's Request for Proposal. They are planning to construct $3.365 million worth of public improvements including parkland, pond enhancements and other improvements in addition to the construction of a minimum of $10.4 million in private improvements in the form of retail commercial buildings on the project site. Future development will also allow for the construction of two office buildings on the site. As part of the discussions surrounding the Development Agreement with The Daimler Group, Inc., the City and the Developer agreed to use $1.6 million in cash on hand from the Rings\Frantz TIF with the additional $1.765 million financed by the developer. Service payment revenue from the Rings\Frantz TIF and The Corners TIF will be used to reimburse the Developer approximately $230,000 annually for ten years. In order to maximize the TIF service payment revenue and recoup the City's investment of Rings\Frantz TIF service payment revenue in the project, Staff is proposing to repeal the existing Rings\Frantz TIF and create a new TIF District on this site, which will be in place for up to 30 years. Given that the existing TIF on the project site is the non -school Rings\Frantz TIF, the City is proposing the new TIF be non -school as well. As Council is aware, a 'Non -School TIF' means the school district is made whole. The estimated value of The Corner's commercial retail space is approximately $10.4 million. Using that valuation, over a 30 year time period under the proposed structure, Dublin City Schools would receive approximately $7.1 million, Tolles would receive approximately $190,000, and the City would receive $3.8 million. As Council is aware, other governmental jurisdictions are impacted by the establishment of TIF districts and the resulting deferral of property tax revenue. In Franklin County, several agencies have operating levies. For those agencies, The Corners TIF will result in the following estimated Memo re. Ordinance No. 69-19 — An Ordinance Creating a Tax Increment Financing Incentive District (The Corners TIF) November 12, 2019 Page 2 of 2 annual property tax deferrals (based on valuation of $10.5 million): • County General Fund $ 5,843 • Children's Services $ 17,193 • ADAMH $ 7,786 • FCBDD $ 24,774 • Metro Parks $ 2,654 • Office on Aging $ 6,452 In addition to Franklin County, there are other agencies that have operating levies in place. The annual property tax deferrals (based on valuation of $10.5 million) for those agencies are as follows: • Columbus Zoo $ 2,468 • Columbus Metropolitan Library $ 9,959 • Washington Township $ 36,354 Recommendation Staff recommends that Ordinance 69-19 be adopted by City Council at the second reading/public hearing on December 2, 2019.