Pickerington City Council voted 7-0 April 15 to pass legislation adopting three separate 30-year tax-incremental financing arrangements that will re-direct tax dollars to the upgrade of state Route 256.
The legislation provides that the owners of the properties in question make payments into a TIF fund. That money will then be utilized for the improvement of the public infrastructure in lieu of taxes.
Properties subject to the legislation are the Hunter's Ridge Shopping Center located at the corner of Route 256 and state Route 204, Pickerington Eyecare at 141 Clint Drive and the new 8.6-acre commercial subdivision located on the northwestern corner of Diley Road and Hill Road North, of which Midas is the only current tenant.
"(Pickerington) will utilize the commercial tax revenues generated by these commercial properties to upgrade and maintain (Route) 256," said Bill Vance, Pickerington city manager.
Vance said without the TIFs, tax revenue would otherwise have been paid to the city, Violet Township and Fairfield County.
He said all three properties are now 30-year non-school TIFs, meaning the Pickerington Local School District will still be collecting full property taxe revenues from the parcels.
Vance said the city simply had to notify the school district it was pursuing the TIFs, which it did in March.
City Councilman Jeff Fix stated at a March 19 meeting of City Council's Finance Committee that the TIF's arose out of a need to generate revenue to deal with some of the road issues that will be coming about as a result of the city's growth.
Vance said estimated revenues generated by the TIF's over the next 30 years cannot be estimated because "Fairfield County has yet to formally assess the values of these commercial properties."
"The city of Pickerington does not require permission from Violet Township to redirect commercial township tax revenues into dedicated city-controlled 30-year TIFs," Vance said.