An agreement that will help fund infrastructure within the Bridge Street District got the OK from Dublin City Council and the Dublin Board of Education this week.
Both council and board members unanimously approved an agreement April 14 that will allow the city to establish tax-increment financing districts, within the Bridge Street District until Dec. 31, 2046.
The city has already used TIF districts to help fund infrastructure projects, but the TIFs within the Bridge Street District will not reimburse the school district for property taxes.
TIFs help pay for infrastructure by putting any increases on property taxes in the district into a TIF fund that reimburses the city for money spent on infrastructure.
Per the agreement approved this week, any TIF districts created in the Bridge Street District will put funds from property tax increases towards infrastructure.
The school district, which is primarily funded by property taxes, will continue to receive the amount of property taxes it gets when the TIF is created; increases in property tax revenues, however, will go to the city through the TIFs.
According to the new agreement, Dublin will provide Dublin City Schools with funding for technology needs for allowing TIF districts.
Dublin will pay the school district $1.5 million annually from 2014 to 2045 and $2 million in 2046. The school district will get at least $50 million over the term of the agreement.
The money is expected to be used for technology improvements throughout the district.
According to the agreement, Dublin schools will also receive 10 percent of property tax increases in TIF districts between years 16 and 30.
The Bridge Street District, which is expected to add urban-style, walkable redevelopment to Dublin's core, needs roads and other improvements, which will be funded partially with TIFs.
"This could not move forward without this agreement," said Stephen Osborne, Dublin City School District treasurer.
School Board President Lynn May applauded the city and the school district for working creatively to find a solution that benefits both entities.
"This gives us a way of not asking for that future bond/levy (for technology)," May said.
"This is an alternate revenue source for the district right now," Osborne said, adding it will ease the burden on taxpayers.
The city must notify the school district if any changes occur in plans for the Bridge Street District; any changes would be subject to a public review process.
"We want to make sure we know any changes to the type of buildings or Bridge Street District plan," Osborne said. "If we know we'll be able to respond to it."