Ordinance 051-14RECORD OF ORDINANCES
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
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")
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 ( " Tolles
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, Vrable Land Holding Dublin LLC and Tuller Henderson LLC have
heretofore executed a Development and Tax Increment Financing Agreement dated June 25,
2013 which generally provides for the construction of project which will include skilled nursing
facility uses, assisted living uses and office uses, and the construction of various public
infrastructure improvements (the "Vrable Development"); and
WHEREAS, to facilitate development throughout the District, including but not limited to the
Vrable Development, and pay the associated costs of infrastructure improvements and related
incentives, this Council has determined pursuant to Ohio Revised Code ( "ORC") 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 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 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 a l. % 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 "Tolles Career Center Agreement") and making other findings with
respect to the tax exemption; and
NOyV, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio,
of the elected members concurring, that:
ton Legal Blank, Inc.
51 -14
Ordinance No.
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 "Parcer' and collectively, the "Parcels').
RECORD OF ORDINANCES
Dayton Legal Blank, Inc. Form No. 30043
Ordinance No.
51 -14
Passed Page 2 .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 5709.40(B) 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
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, 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, 321.24, 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 Payments "), 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 Vrable Municipal Public Improvement 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. 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 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.
RECORD OF ORDINANCES
Legal Blank, Inc.
Form No. 30043
Passed Page 3 . 20
Ordinance No.
51 -14
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
accordance with the requirements of Ohio Revised Code Section 5709.85.
Section 9. Reports Pursuant to Ohio Revised Code Section 5709.40(1), 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(1).
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 an 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 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 in full force and effect on the earliest date
permitted by law.
Signed:
�1 t�Mayor - Presi ' g Officer
Attest:
Clerk of Council
Passed: 1 2014
Effective: , 2014
EXHIBIT A
PARCELS
The shaded area on the following map specifically identifies and depicts the Parcels and
constitutes part of this EXHIBIT A. The Tax ID Numbers for certain Parcels are included on the
following page for reference only and do not limit the Parcels subject to this Ordinance.
A -1
1w
Lu
Lu
ill
II
av
0 188 376
1 1 Feet
N
E
CITY OF DUBLIN
Vrable TIF
Parcel 273-012446
EXHIBIT A
MINIM r �7OFe
r r W-1 "r I
41.1
v a ii M3 i r n 13
t
�
n W
j �
'"W*w
Gomm
FUL RD
1w
- wo o ,
Lim
AN
Lu
ui
--j
—9
P--
, J;S H
J .
Vrable TIF
Parcel 273-012446
EXHIBIT A
MINIM r �7OFe
r r W-1 "r I
41.1
v a ii M3 i r n 13
t
�
n W
j �
'"W*w
Gomm
FUL RD
1w
- wo o ,
Lim
TAX ID NUMBERS
A -2
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 Improvements to the Riverside Drive / Tuller Road intersection,
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 the existing Bridge Street vehicular bridge,
• Replacement of the existing Bridge Street vehicular bridge,
• Construction of a new 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 TIF area,
M .
• Constructing of civic facilities including but not limited to a public library, arts facility,
and municipal government facility,
• Land acquisition for public purpose,
• Construction of public parks and open space plazas, and
each together with constructing and installing curbs and gutters, turn lanes, bridges or
tunnels, any pumping mechanisms required for a tunnel 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.
MN
Office of the City Manager
5200 Emerald Parkway • Dublin, OH 43017 -1090
City of Dublin Phone: 614 - 410 -4400 • Fax: 614 - 410 -4490
To: Members of Dublin City Council
From: Marsha I. Grigsby, City Manager v&4�-
Date: June 5, 2014
Initiated By: Angel L. Mumma, Director of Finance
Memo
Re: Ordinance No. 51 -14 - An Ordinance Establishing a Tax Increment Financing
District ( Vrable)
Summary
On June 10, 2013, City Council approved Ordinance No. 39 -13 authorizing the execution of a
development and tax increment financing (TIF) agreement (Agreement) with Vrable Land Holding
Dublin LLC (Developer). That agreement provided for the development of the 6.34 +/- acre
property located at the southwest corner of Tuller Road and Tuller Ridge Drive with skilled nursing,
assisted living and office uses (the Project). The Agreement required the Developer to donate
certain real property for new roads and set forth the responsibilities of each party for the
construction of certain roads and utilities.
Key points of the Agreement provided for the following:
The donation of the property necessary to construct the proposed John Shields Parkway
from Tuller Ridge Drive to the realigned Riverside Drive and for the proposed Mooney
Street from Tuller Road to the new John Shields Parkway, to the City by the Developer at
no cost.
Status: The property was donated as a result of the final development plan
approval and recorded plat.
City will construct, at its expense, the new John Shields Parkway in two phases. The first
phase, from Tuller Ridge Road on the east to a point along the eastern edge of the planned
Mooney Street, must be completed by the time the Developer receives a certificate of
occupancy for the Project. The second phase, from the terminus of the first phase on the
east to the realigned Riverside Drive on the west, must be completed by December 31,
2018.
Status: Detailed design has been completed; the construction contract is
currently out for bid with the bid opening scheduled for June 17, 2014 and
Council awarding of the contract at the July 1 meeting.
■ The Developer will construct, at its expense, Mooney Street in the future,
contemporaneously with the development of the property between the proposed Mooney
Street and Riverside Drive. Additionally, the developer is required to construct the
necessary waterline and extend the necessary laterals to the existing sanitary sewer.
Memo re. Ordinance No. 51 -14 — An Ordinance Establishing a Tax Increment Financing District (Vrable)
June 5, 2014
Page 2of2
Status: The Developer is constructing the water lines and sewer extensions in
conjunction with the construction of the Project.
The Agreement also provides that the City shall undertake a tax increment financing pursuant to
the TIF Statute to facilitate the construction of the public improvements, as defined within the TIF
Ordinance. Ordinance No. 51 -14 proposes the establishment of the Vrable TIF.
This TIF will be the first to be created 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 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.
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.
For purposes of projecting potential service payments, staff has estimated that the value of the
private improvements will be approximately $14 million (which was established within the
Agreement as the basis for minimum service payments to be made for a period of time). Based on
the current milla4e it is estimated the TIF will generate approximately $491,250 annually in years
1— 15 and $458,800 annually in years 16 — 30. These service payments will provide funding for
public infrastructure improvements included in the Description of Public Infrastructure
Improvements, Exhibit C to the Ordinance. These improvements not only incorporate the
construction of John Shields Parkway, as part of this specific Agreement, but also other Bridge
Street District infrastructure improvements.
As you are 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 Vrable TIF will result in the following estimated
annual property tax deferrals:
• Children's Services $24,443
• ADAMH 10,780
• MRDD 34,300
• Metro Parks 3,675
• Zoo 3,653
• Office on Aging (Senior Options) 6,370
• Library 13,720
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 TIF districts within
Franklin County is $489 million, which is less than two percent of Franklin County's total assessed
valuation (per the Franklin County 2012 CAFR).
Recommendation
Staff recommends that Ordinance No. 51 -14 be adopted by City Council at its second reading/
public hearing on June 23, 2014.