102-93 Ordinance
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ORDINANCE NO. 102 _93
AN ORDINANCE DECLARING IMPROVEMENTS TO A CERTAIN PARCEL OF REAL PROPERTY
TO BE A PUBLIC PURPOSE, DESCRIBING THE PUBLIC INFRASTRUCTURE IMPROVEMENTS
TO BE MADE TO BENEFIT THAT PARCEL, REQUIRING THE OWNERS THEREOF TO MAKE
SERVICE PAYMENTS IN LIEU OF TAXES, AND ESTABLISHING A MUNICIPAL PUBLIC
r IMPROVEMENT TAX INCREMENT EQUIVALENT FUND, FOR THE DEPOSIT OF SUCH SERVICE
" PAYMENTS, AND DECLARING AN EMERGENCY.
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WHEREAS, Ohio Revised Code Sections 5709.40, 5709.42 and 5709.43 provide
that this Council may declare improvements to a parcel of real property located
in the City to be a public purpose, thereby exempting those improvements from
real property taxation for a period of time, specify public infrastructure
improvements to be made to benefit that parcel, provide for the making of service
payments in lieu of taxes by the owner thereof, and establish a municipal public
improvement tax increment equivalent fund into which such service payments shall
be deposited; and
WHEREAS, Shamrock II Development Company, an Ohio general partnership,
intends to acquire certain real property located in the City, which property is
described in Exhibit A hereto (the property), and contemplates making
improvements to the property and leasing that Property to Safety Solutions, Inc.,
and this Council expects to make the public infrastructure improvements described
in Exhibit B hereto, that once made would benefit the property; and
WHEREAS, the City has determined that it is necessary and appropriate and
in the best interests of the City to provide for service payments in lieu of
taxes with respect to the Property pursuant to Section 5709.42 of the Ohio
Revised Code; and
WHEREAS, notice of this proposed ordinance has been delivered to the Board
of Education of each affected School District in accordance with section 5709.40
of the Ohio Revised Code;
r NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin,
Franklin, Union and Delaware Counties, Ohio, that:
~ Section 1. pursuant to and in accordance with the provisions of Ohio
Revised Code Section 5709.40, this Council hereby finds and determines that 100%
of the increase in true value of the property subsequent to the effective date
of this ordinance (which increase in true value is hereinafter referred to as the
"Improvement" as defined in Section 5709.40) is a public purpose, and all of said
Improvement is hereby declared to be a public purpose for a period of 30 years
and exempt from taxation commencing on the date of passage of this ordinance and
ending on the earlier of 30 years from such date or on the date on which the City
can no longer require service payments in lieu of taxes under Sections 5709.40
and 5709.42 of the Revised Code, all in accordance with the requirements of said
Sections 5709.40 and 4709.42.
section 2. The public infrastructure improvements set forth in Exhibit B
hereto and to be made by the City are hereby designated as those public
infrastructure improvements that benefit, or that once made will benefit, the
Property (the Infrastructure Improvements) .
Section 3. As provided in section 5709.42 of the Revised Code, the owner
of the Improvement is hereby required to, and shall make, service payments in
lieu of taxes to the County Treasurer on or before the final dates for payment
of real property taxes, which service payments shall be deposited in the Safety
Solutions, Inc. Project Municipal Public Improvement Tax Increment Equivalent
Fund established in Section 4 hereof. The Agreement between and among the City,
the Shamrock II Development Company and Safety Solutions, Inc., in the form
presently on file with the Clerk of Council, providing for, among other things,
the payment of such service payments, is hereby approved and authorized with
changes therein not inconsistent with this ordinance and not substantially
,... adverse to this. City and which shall be approved by the City Manager and Director
\ of Finance. The City Manager and Director of Finance, for and in the name of
i this City, are hereby authorized to execute that Agreement, provided further that
~ the approval of changes thereto by those officials, and their character as not
being substantially adverse to the City, shall be evidenced conclusively by their
execution thereof. This council further hereby authorizes and directs the City
Manager, the Clerk of Council, the Director of Law, the Director of Finance, or
other appropriate officers of the City, to make such arrangements as are
necessary and proper for collection from the owner of said service payments in
lieu of taxes.
Section 4. This Council hereby establishes pursuant to and in accordance
with the provisions of Section 5709.43 of the Ohio Revised Code, the Safety
Solutions, Inc. Project Municipal Public Improvement Tax Increment Equivalent
Fund (the Fund), into which shall be deposited all of the service payments in
lieu of taxes distributed to the City with respect to the Improvements on the
Property by or on behalf of the County Treasurer as provided in Section 5709.42
of the Ohio Revised Code, and hereby provides that all of the moneys deposited
in the Fund shall be used solely for the following purposes:
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. . Ordinance 102-93
(i) To pay the cost of constructing the Infrastructure Improvements; and
(ii) To pay the interest on and principal of bonds or notes issued by the
City in order to finance the Infrastructure Improvements until such notes or
bonds are paid in full.
The Fund shall remain in existence so long as such service payments are
collected and used for the aforesaid purposes, after which said Fund shall be
dissolved in accordance with said Section 5709.43.
Section 5. Pursuant to Section 5709.40 of the Ohio Revised Code, the Clerk
r- of this Council is hereby directed to deliver a copy of this ordinance to the
~ Director of the Department of Development of the State of Ohio within fifteen
'-' days after its passage. On or before March 31 of each year that the exemption
set forth in Section 1 hereof remains in effect, the Clerk or other authorized
officer of this City shall prepare and submit to the Director of the Department
of Development of the State of Ohio the status report required under Section
5709.40(D) of the Ohio Revised Code.
Section 6. This Council finds and determines that all formal actions of
this Council concerning and relating to the passage of this ordinance were taken
in an open meeting of this Council and that all deliberations of this Council
that resulted in those formal actions were in meetings open to the public in
compliance with the law.
Section 7. This ordinance is declared to be an emergency measure necessary
for the immediate preservation of the public peace, health, safety or welfare of
this City and for the further reason that this ordinance is required to be
immediately effective in order to provide for the funding for the Infrastructure
Improvements so that the Infrastructure Improvements may be constructed as
quickly as possible; thereby permitting the Improvement to be constructed as
quickly as possible, providing necessary jobs and employment opportunities and
improving the economic welfare of the people of the City; wherefore, this
ordinance shall be in full force and effect immediately upon its passage.
Signed:
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Attest: ~ (1.~
Clerk of Council
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Passed: De.eem-ht'Y/', 199 2>
Effective: ])ee~/)\.he... & , 1993
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EXHIBIT A
LEGAL DESCRIPTION OF PROPERTY
The following real estate situated in the City of Dublin, County of
Franklin and State of Ohio, as bounded and described as follows:
DESCRIPTION OF 7.610 ACRES
r SHAMROCK II
\.. Situated in the State of Ohio, County of Franklin, City of Dublin, and being part
of RESERVE "A" (34.750 acres) as delineated upon the plat of SHAMROCK I I, of
record in Plat Book 57, Page 7, records of the Recorder's Office, Franklin
County, Ohio and being more particularly described as follows:
Beginning for reference at an iron pin in a southerly line of Shier-Rings Road
at the northwesterly corner of Lot Number 3 of said SHAMROCK II and a
northeasterly corner of an 17.710 acre tract conveyed to Columbus and Southern
Ohio Electric Company by deed of record in Deed Book 3011, Page 115;
Thence S 5' 12' 04" W, a distance of 1056.01 feet along the common line of said
SHAMROCK II and said 17.710 acre tract, to an iron pin at a southwesterly corner
of an 11.927 acre tract conveyed to Equity Dublin by deed of record in O.R.
270003; said iron pin being the point of true beginning of the herein described
tract;
Thence S 84 ' 47' 56" E, a distance of 818.71 feet along the southerly line of
said 11.927 acre tract to an iron pin on a curve, in a westerly right-of-way line
of Interstate Route 270 and an easterly line of said RESERVE itA" ;
Thence along said westerly right-of-way line of Interstate Route 270 and easterly
line of RESERVE "A", with a curve to the left having a radius of 7623.36 feet,
a central angle of 30 11' 13", the chord to which bears S 120 46' 38" W, a chord
distance of 423.96 feet to an iron pin;
Thence N 84' 47' 56" W, a distance of 762.82 feet across said RESERVE "A" to an
iron pin in the common line of RESERVE "A" and said 17.710 acre tract;
r Thence N 5 ' 12' 04" E, distance of 420.26 feet along said line of
a common
RESERVE HA" and the 17.710 acre tract to the point of true beginning of the
........... herein described tract, containing 7.610 acres, more or less, and being subject
to all easements, restrictions and rights-of-way of record.
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EXHIBIT B
DESCRIPTION OF PUBLIC IMPROVEMENTS
The improvements consist of a 450-foot extension of Shamrock Court from its current
terminus (at a point approximately 900 feet south of the intersection of Shamrock Court and
Sheir-Rings Road) to the south and includes a 36-foot pavement width, including curb and
gutter, and an extension of a water line, relocation of a sanitary sewer line, and the installation
of storm sewer facilities, The project also includes the related design costs, erosion and
sedimentation control measures, grading and related earth work, survey work, construction
staking, right-of-way dedication plats, and a portion of the costs associated with easements and
right-of-way.
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MEMORANDUM
TO: City Council
FROM: Tim Hanley, City Manager
DATE: December 2, 1993
SUBJECT: Safety Solutions - Tax Increment Financing
INITIATED BY: Vince Papsidero, AICP, Senior Planner
Development Department
Please find attached an ordinance proposing a Tax Increment Financing (TIF) District for Safety
Solutions, Inc., which is proposing to construct a new expanded warehouse, distribution and
office facility on Shamrock Court, Safety Solutions is a national distributor and service provider
of safety-related equipment, such as protective clothing. The company's present facility is
located at 400 East Wilson Bridge Road in Worthington and contains approximately 46,000
square feet.
1. Private Improvements - The new facility will be 65,000 square feet in size, containing
13,000 square feet of office space and 52,000 square feet of warehouse space, The
building exterior is proposed to be finished with stucco and metal panels on the front and
split face concrete block and metal panels on the rear and sides. The building's front
elevation will face 1-270, A total of 62 persons will be employed at the Dublin facility.
2. Tax Impact
A. payroll- The company estimates a Dublin payroll of about $1.6 million, with an
estimated City income tax payment (annual) of about $32,000.
B. Personal Property Tax - The company estimates a personal property tax payment
(annual) of about $53,000.
C. Real Property Tax - The estimated net increase resulting from the Safety
Solutions improvements is $39,000.
3. Public Improvements - The TIP agreement calls for the City to construct a 450-foot
extension of Shamrock Court from its current terminus, which includes a 36-foot
pavement width, including curb and gutter, and an extension of an existing water line,
relocation of an existing sanitary sewer line, and construction of storm sewer facilities.
The project also includes the related design costs, erosion and sedimentation control
measures, grading and related earth work, survey work, construction staking, and right-
of-way dedication plats.
4. TIF Payback - Under TIF provisions, the net increase in real property taxes resulting
from the private investment is captured by the City as an income stream to repay the City
AS SUBMITTED TO COUNCIL
DEe 02 1993 nEe Q 6 1993
FOR MEETING ON . ,
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Council - Safety Solutions
December 1, 1993
Page 2
for the necessary public improvements. Although the Ohio Revised Code, allows capture
periods to extend for a 30-year period, the City's payback periods for TIPs has been less
than five years.
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The estimated public improvement costs are $180,000. The estimated tax increment
~ (annual) resulting from the Safety Solutions investment (building and equipment) is
$39,000. The resulting payback period therefore is about 4.6 years, based on 1993 tax
rates.
The school districts will continue to receive property taxes based on the site's existing
valuation and will also receive new personal property taxes currently estimated by the
company as an annual payment of $53,000.
5. Notification - As required under ORC provisions, notification of the establishment of the
TIP District for Safety Solutions has been forwarded to the Dublin City School District
and Central Ohio Vocational School District. Development Department staff has met
with Dublin district staff to review the project and its revenue and employment impacts.
6. Necessitv of an Eme~ency Measure - Packaging this project involved extensive
negotiations on the part of the Staff, the company and its developer. Negotiations
involved adjacent property owners on the north and south, to resolve access and utility
easement issues and right-of-way dedications. These negotiations have delayed property
acquisition. The company has a planned project completion date of October 1, 1994, and
expediting the ordinance will facilitate their process and the City's ability to install the
public improvements.
7. Results - As a result of this project, the Dublin community will receive the following:
A. A new, growing employer (warehouse, distribution facility).
B. Sixty-two full time jobs with an average salary of around $25,700.
C. Increased personal property tax payment (annual) of $53,000.
D. Increased property tax payment (annual) of $39,000 sometime after year 4.5,
E. Increased personal income tax payment (annual) of $32,000.
P. Public improvements (road, water, and stormwater improvements, sanitary sewer
relocation) financed by the private sector.
G. Additional development stimulus in the Shamrock Court area, which can be
expected to encourage additional economic development.
Please contact Terry Poegler, AICP, Development Director, or Vince Papsidero for additional
information.
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