Label
Amend Ord. 315-94 to extend TIF period
Development/Law
B. Sehlhorst (x1692) / E. Granata (x1020)
Revised
Title
Amending Ordinance No. 315-94 as amended by Ordinance Nos. 585-94 and 486-13, which declared improvements to the site of the Owens Corning World headquarters to be a public purpose and authorized the use of tax increment financing (TIF) under Ohio Revised Code Sections 5907.41, 5907.42 and 5709.43 with respect to improvements on the included property, to extend the time period of the TIF authorized thereunder as permitted under Ohio Revised Code Section 5709.511; authorizing amendments to the Tax Increment Service Agreement between the City of Toledo, Toledo Lucas County Port Authority and Owens Corning dated March 1, 1995, as amended, and the execution of other necessary documents; requiring a compensation agreement with Toledo Public Schools; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
Consistent with a blight declaration and the Urban Redevelopment Plan for the Middlegrounds Development Area adopted by the City of Toledo pursuant to Ordinance No. 364-94 to advance the redevelopment of the Middlegrounds and development of the Owens Corning World Headquarters site, Toledo City Council passed Ordinance No. 315-94 approving the use of tax increment financing (TIF) with respect to the project in accordance with the provisions of Ohio Revised Code section 5709.41, 5709.42 and 5709.43. The Ordinance declared improvements to certain parcels of property to be a public purpose, required service payments in lieu of taxes, and established an urban development tax increment equivalent fund for the deposit of service payments. Council later passed Ordinance No. 585-94 which amended Ord. 315-94 to add additional land parcels which had been acquired by the City since the enactment of Ord. 315-94. All of the property parcels authorized for tax exemption under these ordinances were included in the Redevelopment Plan for the Middlegrounds to eliminate and prevent the reoccurrence of blight. Subsequently, Ordinance No. 486-13 amending Ord. 315-94 was enacted on October 20, 2013 and authorized an extension of the TIF through December 31, 2024.
In light of the need to support continued investment in the Middlegrounds and the Owens Corning World Headquarters site, to retain 1,036 jobs currently supported at the site and to encourage the creation of additional jobs and a commitment by Owens Corning to invest $250 million dollars in operations at the site the City has determined that it is appropriate and in the best interests of the City to extend the tax exemptions authorized by Ordinance No. 315-94, as amended by Ordinance Nos. 585-94 and 486-13 for an additional thirty (30) year period as authorized under Ohio Revised Code Section 5709.511, conditioned on the retention of the Owens Corning World Headquarters for the full extended term of the exemption. Owens Corning and Toledo Public Schools have agreed to terms of a payment agreement to run concurrently with the extended period of the TIF in accord with Toledo City Schools Resolution 111-2007 and the provisions of Ohio Revised Code 5709.82.
Summary
NOW THEREFORE Be it ordained by the Council of the City of Toledo:
SECTION 1. That Section 1 of Ordinance No. 315-94, as amended by Ordinance Nos. 585-94 and 486-13, which reads:
Section 1. Improvements. Pursuant to and in accordance with the provisions of Section 5709.41, Ohio Revised Code, this Council hereby finds and determines that 100% of the increase in true value of the Properties subsequent to the acquisition of the Properties by this City (which increase in true value is hereinafter referred to as the “Improvement” as defined in said Section 5709.41) is a public purpose, and all of said improvement is hereby declared to be a public purpose for a period ending December 31, 2024, and exempt from taxation commencing on the effective date of this ordinance and ending on December 31, 2024, which date is specified as the date the Improvement ceases to be a public purpose, all in accordance with the requirements of said Sections 5709.41 and 5709.42.
is repealed.
SECTION 2. That an amended Section 1 of Ordinance 315-94 is enacted to read:
Section 1. Improvements. Pursuant to and in accordance with the provisions of Section 5709.41, Ohio Revised Code, this Council hereby finds and determines that 100% of the increase in true value of the Properties subsequent to the acquisition of the Properties by this City (which increase in true value is hereinafter referred to as the “Improvement” as defined in said Section 5709.41) is a public purpose, and all of said improvement is hereby declared to be a public purpose for a period ending December 31, 2054, and exempt from taxation commencing on the effective date of this ordinance and ending on December 31, 2054, which date is specified as the date the Improvement ceases to be a public purpose, all in accordance with the requirements of said Sections 5709.41 and 5709.42 and 5709.511.
SECTION 3. That except as expressly set forth in this Ordinance with respect to the amendments of Section 1 of Ordinance No. 315-94, as amended by Ordinance Nos. 585-94 and 486-13, all of the terms and provisions of Ordinance No. 315-94 as amended by Ordinance Nos. 585-94 and. 486-13, remain in effect and are applicable to the properties as specified in those Ordinances. The true and accurate copies of Ordinances 315-94, 585-94 and 486-13 are attached as Exhibit A, B and C respectively and incorporated herein by reference.
SECTION 4. That an existing compensation agreement between Owens Corning and Toledo Public Schools shall be amended by Owens Corning and Toledo Public Schools, and signed or acknowledged by the City of Toledo, providing for payment to Toledo Public Schools covering the period beginning tax year 2025 through 2054, consistent with the requirements of Ohio Revised Code section 5709.82
SECTION 5. That the Mayor is authorized to execute additional amendments to the Tax Increment Service Agreement among the City of Toledo, Toledo-Lucas County Port Authority and Owens Corning dated March 1, 1995, as amended on December 23, 2013 and May 17, 2016, and to execute and deliver such other agreements, documents or instruments as necessary and proper to carry out the purposes of this Ordinance.
SECTION 6. That the Clerk of Council is authorized to deliver a copy of this Ordinance to the Director of Development for the State of Ohio within 15 days after its passage as required by Ohio Revised Code section 5709.41(E) and 5709.511(D).
SECTION 7. That it is found and determined that all formal actions of this Council concerning and relating to the passage of this Ordinance were adopted in an open meeting of this Council, and that all deliberations of this Council and of any of its committees or subcommittees that resulted in such formal action were in meetings open to the public in compliance with law.
SECTION 8. That this Ordinance is declared to be an emergency measure and shall be in force and effect from and after its passage. The reason for the emergency lies in the fact that the same is necessary for the immediate preservation of the public peace, health, safety and property, and for the further reason that the Ordinance must be immediately effective to provide funding for the Improvements and to carry out the public purpose of preserving jobs and employment opportunities in the City of Toledo.
Vote on emergency clause: yeas _____, nays _____.
Passed: _________________, as an emergency measure: yeas _____, nays _____.
Attest: ________________________ __________________________________
Clerk of Council President of Council
Approved: _____________________ __________________________________
Mayor
I hereby certify that the above is a true and correct copy of an Ordinance passed by Council ________________________.
Attest: ________________________
Clerk of Council