Pickerington Area Taxpayers Alliance

The TIF continued

?“The road (Stonecreek Drive) is part of our master plan for the area and we hope to eventually connect it to Refugee Road east of the police station,?” said Wisniewski. ?“This would help alleviate traffic on state Route 256, especially at the intersection with Refugee Road.?”
Wisniewski said there is no financial risk to the city with the proposed TIF. He said the developer assumes the risk by building the road and improving the property by developing it.
A word of caution
Equity Inc. is requesting that council approve the TIF ordinances in June so it can close on the properties and begin work on the development this summer.
However, a construction agreement has not yet been ironed out with the city and Mayor David Shaver cautioned the developer that the city will not sign the TIF agreement until city officials know all the development details and a construction contract is in hand. If the TIF goes unsigned by city officials it will not go into effect.
Council will hold a special work session at 7 p.m. June 6 prior to its regular council meeting to further discuss the TIF. It will then consider the legislation at its regular meeting beginning at 7:30 p.m.

Service Payments??

I have wondered for some time about TIFs and the service payments the City makes to the school district. Maybe it would be good to ask that question here.

A few years ago the City administration touted the fact that these TIF service payments made to the PLSD, ''did not affect the school's property valuation thus was actually more revenue coming to the school''.

If we build say a $1,000,000 dollar property here in the PLSD. Lets say for argument's sake the school would receive $10,000 in property taxes based on what ever their effective millage is. The problem is most or all of the school district's assessments on property is outside millage. Even though the new property pays them $10,000 in taxes the school's dollar amount received remains the same because the effective millage on all the other properties in the district is reduced.

I understand that the current TIF which includes the new Kohl's store actually pays the school district $50,000 per year in service payments. Judging by the square footage of the NEW proposed TIF area I suspect the new project will be at the minium around $5 Million. If this project pays the schools $50,000 per year will that actually be an increase in revenue to the school district or would it just be figure into the total dollar amount the schools get from the current bond and operating levies and be part of the effective Millage?

More on the TIF

Pickerington TIF progresses
June 12, 2006

TIF plan helps schools?’ revenue; gets city a road

By Rick Palsgrove

Southeast Editor

Pickerington City Council took the first steps at its June 6 meeting to enact a tax increment finance agreement that will help both the city and Pickerington Local Schools.
Council heard the first two readings of two ordinances that will amend a current tax increment finance (TIF) district and institute a new TIF agreement for two parcels totaling about 17 acres that Equity Inc. is planning to develop commercially along Stonecreek Drive west of state Route 256.

The third readings will be held at council?’s June 20 meeting.
The speedy council action is being taken to allow Equity Inc. to close on the properties and begin work on the development this summer.

Unlike other TIFs, this new agreement is for a non-school TIF that is beneficial to public schools because the school district will continue to receive funding just as if the taxes had been collected without the TIF.

Councilman Keith Smith said he has received positive feedback from the community about the new TIF.

?“People like it because it helps the schools,?” said Smith.
?“We?’re pretty excited about this because the schools are not hurt by it and there is no risk to the city,?” added Councilman Brian Wisniewski.

Councilman Ted Hackworth, who has opposed TIFs in the past, supports this TIF because it helps both the city and the schools.

?“It?’s a huge step forward,?” said Hackworth.

What?’s a TIF?

According to the state of Ohio, Tax Increment Financing (TIF) is an economic development mechanism used by local governments to finance public infrastructure improvements.

A TIF locks in the taxable worth of real property at the value it holds at the time the legislation is approved.
Payments derived from the increased assessed value of any improvement to real property beyond that amount are directed towards a separate fund to finance the construction of public infrastructure defined within the TIF legislation.

Local governments may authorize TIFs to fund a number of infrastructure needs including public roads and highways, water and sewer lines, remediation, land acquisition, demolition, provision of gas, electric, and communications service facilities, and the enhancement of public waterways.

The TIF plan

The 17 acres in consideration for the new TIF are located just west of state Route 256 and will involve the extension and accompanying improvements of Stonecreek Drive 1,143 feet westward from state Route 256.

Equity Inc. plans to renovate existing office buildings in the area as well as develop: three to five new office buildings of approximately 8,000 square feet each; a strip shopping center of approximately 44,600 square feet of retail stores; and an outlot development of two to three buildings aggregating 7,000 square feet.

Attorney Steve Grasbaugh explained to the finance committee on May 30 that one ordinance will remove the 17 acres from the existing 10 year, 75 percent TIF which expires in six years; and place them into a new non-school, 30 year, 100 percent TIF, which would be enacted by ordinance.

Shaver added that the impact fees have not adversely affected commercial growth in the city as he cited that, for 2006 through May, development valued at $2.7 million has come to the city.