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A RESOLUTION AMENDING SUBSTITUTE RESOLUTION 24-96 TO PROVIDE THAT THE DURATION OF ALL FUTURE REAL PROPERTY TAX EXEMPTIONS AUTHORIZED BY SECTIONS 3735.65 THROUGH 3735.70 OF THE OHIO REVISED CODE AND GRANTED FOR IMPROVEMENTS TO CERTAIN REAL PROPERTY LOCATED WITHIN COMMUNITY REINVESTMENT AREA #1 SHALL BE LIMITED TO TEN YEARS.
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WHEREAS, it has been and is in the best interests of the City and the Gahanna-Jefferson City School District (the "School District") for the City to designate certain areas for commercial and other business development; and
WHEREAS, Section 5709.40, 5709.42 and 5709.43 of the Ohio Revised Code ("Revised Code") provide that this Council may declare improvements to parcels 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 the parcels; provide for the making of service payments in lieu of taxes by the owners thereof; provide for payments to the School District; and establish a municipal public improvement tax increment equivalent fund into which such service payments shall be deposited; and
WHEREAS, this Council under the authority of Section 5709.40, Revised Code, enacted Ordinance No. 990164 on August 16, 1999 and Ordinance No. 990427 on September 20, 1999 (collectively, the "TIF Ordinance"), and therein designated an area within the City as the "Eastgate Industrial Center TIF District" (the "Eastgate TIF District", with the parcels comprising the real property within the Eastgate TIF District referred to herein as the "Parcels" and, each individually as a "Parcel", and with the Parcels in the aggregate referred to herein as the "Property"); and
WHEREAS, the City expects that the owners of the Parcels have constructed or will construct or cause to be constructed certain projects upon those various Parcels thereby improving each Parcel (each improvement having the meaning as set forth in Section 5709.40, Revised Code, and collectively referred to herein as the "Private Improvements") consistent with the objectives stated in the TIF Ordinance; and
WHEREAS, the City expects to make or cause to be made the public infrastructure improvements (as described in the TIF Ordinance and referred to herein as the "Infrastructure Improvements"), that once made would directly benefit the Property with all of the incremental demand placed upon the Infrastructure Improvements being directly attributable to the Private Improvements; and
WHEREAS, the City and the School District will derive substantial and significant benefits from the Private Improvements and the Infrastructure Improvements; and
WHEREAS, in the TIF Ordinance, the City declared the Private Improvements to be a "public purpose" and exempted 100% of the assessed valuation of the Private Improvements from real property taxation for a period of 30 years in accordance with Section 5709.40, Revised code; provided, however, that:
(i) during the first 10 years of each exemption under the TIF Ordinance, the School District will receive from the City service payments in lieu of taxes such that, for the Private Improvements that cannot be the subject of the CRA #1 exemption referred to below, the effective percentage of that TIF exemption will be 75% as to the School District; and
(ii) during years eleven (11) through thirty (30) of each exemption under the TIF Ordinance, the School District will receive, pursuant to Section 5709.40(B)(1) of the Revised Code, payments in lieu of taxes under Section 5709.42 of the Revised Code in the amount of the taxes that would have been payable to the School District if the Private Improvements subject to the TIF Ordinance had not been exempted from taxation; and
WHEREAS, the Eastgate TIF District overlaps with Community Reinvestment Area #1 (the "Eastgate CRA"), a community reinvestment area within the meaning of Sections 3735.65 through 3735.70, Revised Code, as previously designated by the City in Substitute Resolution No. 24-96 adopted July 2, 1996; and
WHEREAS, under the authority of Section 5709.82(B), Revised Code, the City and the School District negotiated an agreement (the Compensation Agreement) providing compensation to the School District as specified therein for tax exemptions on the Private Improvements; and
WHEREAS, pursuant to Section 3 of Substitute Resolution No. 24-96, qualifying structures constructed within the Eastgate CRA were eligible for 100% real property tax exemptions for up to 15 years, but as further consideration for the School District entering into the Compensation Agreement, the City has determined to adopt this legislation providing that any real property tax exemptions after August 16, 1999 pursuant to Substitute Resolution No. 24-96 granted in those sections of the Eastgate CRA which overlap with the Eastgate TIF District will be for ten (10) years or less.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF GAHANNA, COUNTY OF FRANKLIN, STATE OF OHIO:
Section 1. That Section 3 of Substitute Resolution No. 27-96 is amended to read as follows:
Section 3. That within Community Reinvestment Area #1 tax exemptions for improvements to real property as described in Section 3735.67 of the Ohio Revised Code will be granted for the following periods:
(a) Ten (10) years for the remodeling of every dwelling containing not more than two family units upon which the cost of remodeling is at least two thousand five hundred dollars ($2,500) as described in Section 3735.67(D)(1) of the Ohio Revised Code in effect prior to July 1, 1994.
(b) Twelve (12) years for the remodeling or expansion of every dwelling containing more that two units and commercial or industrial properties upon which the cost of remodeling is at least five thousand dollars ($5,000) as described in Section 3735.67(D)(2) of the Ohio Revised Code in effect prior to July 1, 1994.
(c) Fifteen (15) years for the construction of every dwelling, and commercial or industrial structure as described in Section 3735.67(D)(3) of the Ohio Revised Code in effect prior to July 1, 1994.
provided, however, that with respect to any tax exemption for improvements within Community Reinvestment Area #1 granted by the City after August 16, 1999, for which the parcel covered by such exemption is located in both the Eastgate CRA and the Eastgate TIF District (each as defined in SR-0003-2001) then such tax exemption will be granted for the following periods:
(a) Ten (10) years for the remodeling of every dwelling containing not more than two family units upon which the cost of remodeling is at least two thousand five hundred dollars ($2,500) as described in Section 3735.67(D)(1) of the Ohio Revised Code in effect prior to July 1, 1994.
(b) Ten (10) years for the remodeling or expansion of every dwelling containing more than two units and commercial or industrial properties upon which the cost of remodeling is at least five thousand dollars ($5,000) as described in Section 3735.67(D)(2) of the Ohio Revised Code in effect prior to July 1, 1994.
(c) Ten (10) years for the construction of every dwelling, and commercial or industrial structure as described in Section 3735.67(D)(3) of the Ohio Revised Code in effect prior to July 1, 1994.
Section 2. That the existing Section 3 of Substitute Resolution No. 24-96 is hereby repealed.
Section 3. That a copy of this Resolution will be forwarded to the Franklin County Auditor by the Clerk of Council for information and reference.
Section 4. That this Resolution shall be in full force and effect at the earliest period allowed by law.