The first tax-increment financing district in the Bridge Street District got the city's OK this week.
Dublin City Council members this week approved a TIF district forabout 6 acres on the southwest corner of Tuller Road and Tuller Ridge Drive that will fund infrastructure throughout the Bridge Street District.
"This is the first development agreement of a TIF district being created within the parameters of the Bridge Street agreement entered into with Dublin City Schools," Dublin Finance Director Angel Mumma said, adding the TIF is part of a development agreement the city made with Vrable Land Holdings to build a skilled nursing center on the 6 acres.
"As part of the agreement the city agreed to construct John Shields Parkway in two phases," she said. "As part of that development agreement, projected TIF revenues will fund the public infrastructure improvements."
According to the agreement, Vrable donated property that will be needed for John Shields Parkway from "Tuller Ridge Drive to the realigned Riverside Drive and for the proposed Mooney Street from Tuller Road to the new John Shields Parkway."
With the land donated, per the agreement, the city will construct "the new John Shields Parkway in two phases," the memo to council stated.
"The first phase from Tuller Ridge Road on the east to a point along the eastern edge of the planned Mooney Street, must be completed by the time the developer receives a certificate of occupancy for the project," the memo said.
The second phase, which will take the east-west running John Shields Parkway to the realigned Riverside Drive, has to be completed by Dec. 31, 2018.
The road has been designed and city staff anticipated awarding a construction contract next month, the staff report said.
Dublin officials anticipate the TIF will generate about $491,000 for the first 15 years of the agreement and $458,000 for the final 15 years, for a total of more than $14 million.
"Included is a broad list of public improvements, ones that will allow us to use these TIF dollars throughout the Bridge Street District," Mumma said.
TIF districts generate funds by collecting property taxes on improvements done within the district, although full property taxes usually go to school districts and county services.
Dublin has an agreement with Dublin City Schools that will pay the district about $50 million for allowing TIFs within the Bridge Street District through 2046.
Council members also this week approved a similar TIF agreement with Tolles Career and Technical Center.
"We're required by Ohio law to compensate the tech center the same as we do Dublin City Schools," Mumma said, adding that the agreement provides Tolles about $1.2 million over the next 33 years.
"In return, the city can have TIF districts and receive property taxes generated on improvements in the Bridge Street area."