Label
Amend Maumee-Toledo JEDZ/20A at I-475 Interchange Funding
Department of Law
Paul F. Syring (x1025)
Revised
Title
Authorizing the Mayor to enter into an amended Joint Economic Development Zone Contract between the City of Toledo, City of Maumee, and the Board of Trustees of Monclova Township for the purpose of extending the term of the contract 20 years with 10 year options to renew thereafter; authorizing the Board of Directors of the Toledo-Maumee-Monclova Township JEDZ Board to expend an annual amount not to exceed $128,000 for a period not to exceed 18 years from the City’s distributable share of JEDZ tax proceeds for the City of Toledo’s local match contribution to the US 20A-I-475 interchange project; authorizing the Mayor to execute and deliver needed instruments for the City’s participation in funding the project; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
The Ohio Department of Transportation and the Toledo Metropolitan Area Council of Governments have identified an 8.5 mile stretch of interstate I-475 as the focus of efforts to increase motorist safety, ease of commuting, economic development, and access to current and future businesses. To maximize the positive impact, an interchange at US 20A and I-475 is recommended. The lack of existing interchanges in this vicinity contributes to mainline traffic congestion, increased traffic crashes, and difficulty of access to existing businesses. Local municipalities will benefit significantly by this interchange through economic development that will create jobs and grow income tax, specifically in the immediately adjacent Toledo-Maumee-Monclova Township JEDZ. Local transportation experts recommend, for optimal impact, the interstate widening project and the interchange project should be constructed in the same timeframe. There exists a funding shortage to pay for the cost of both the widening and interchange projects. Considering local stakeholder, businesses and municipalities benefit from the addition of the interchange, ODOT has implemented a policy requiring local contribution of 50% matching funds to the interchange projects. The projected construction cost of the US 20A-I-475 interchange is currently $30 million requiring a local match of $15 million. The local project sponsor is a transportation improvement district (“TID”) created by Lucas County (“LCTID”). Financial commitments from local stakeholders, businesses, and municipalities are being sought for the US 20A-I-475 interchange. Considering the City of Toledo’s participation in the adjacent Joint Economic Development Zone and that zone generating approximately $500,000 in annual revenue to the City of Toledo, the LOCTID has requested the City to participate in the local match in the amount of $128,000 per year over 18 years. The proposal is to allow the Joint Economic Development Zone to distribute this amount to the project directly from the City of Toledo’s annual distributed share of the income and net profits tax proceeds generated by the JEDZ.
The fiscal impact of this ordinance is as follows:
- The total amount of funds requested: $2,304,000
- The expenditure budget line item: N/A
- New revenue generated (operational revenue, grants, if any): none
- Revenue budget line item (if any):
- Are funds budgeted in the current fiscal year (yes/no)?: the funds for this contract would come directly from the City of Toledo’s annual distributed share of the JEDD income over the contract life
- Is this a capital project (yes/no)? No
- If yes, is it new or existing (new/existing)? N/A
- What section of the City’s Strategic Plan does this support:
o Excellence in Basic Services (yes/no) No
o Quality Community Investment (Livable City, Development) (yes/no) Yes o Workplace Culture & Customer Service (yes/no) no
o Environment (yes/no): Yes
Summary
NOW, THEREFORE, Be it ordained by the Council of the City of Toledo:
SECTION 1. That the Mayor is authorized to enter into an amended Joint Economic Zone Contract between the City of Toledo, the City of Maumee, and the Board of Trustees of Monclova Township for the purpose of extending the term of the contract 20 years with 10 year options to renew thereafter.
SECTION 2. That the Mayor is authorized to execute and deliver needed instruments to authorize the Board of Directors of the Maumee-Monclova-Toledo JEDZ to expend from the City of Toledo’s distributive share of JEDZ tax proceeds an annual amount not to exceed $128,000 for a period not to exceed 18 years for the purpose of the City of Toledo’s contribution to the local match of the US 20A-I-475 interchange project.
SECTION 3. That this ordinance be an emergency measure and shall be in force and effect after its passage. The reason for the emergency lies in the fact that this ordinance is necessary for the immediate preservation of public peace, health, safety and property and for further reason that this ordinance must be immediately effective in order to timely continue the funding and construction of the US 20A-I475 interchange project.
Vote on emergency clause: yeas 12, nays 0.
Passed: September 3, 2019, as an emergency measure: yeas 12, nays 0.
Attest:
Gerald E. Dendinger Matt Cherry
Clerk of Council President of Council
Approved: September 3, 2019
Wade Kapszukiewicz
Mayor