A 5.3-acre tax-increment-financing district established in Dublin's Bridge Street District is estimated to generate approximately $61.8 million during its 30-year period, according to Dublin finance director Angel Mumma.
Dublin City Council on Jan. 22 approved an ordinance establishing the TIF district for Block D of Crawford Hoying's Bridge Park development.
All council members present approved the ordinance. Council member John Reiner was absent.
A TIF is an economic-development mechanism available to local governments to finance public-infrastructure improvements and, in certain circumstances, residential rehabilitation, according to the Ohio Development Services Agency.
A TIF locks in the taxable worth of real property at the value it holds at the time the authorizing legislation is approved, diverting resulting incremental revenue to designated uses, such as funding necessary improvements or infrastructure to support a new development.
Revenue that exceeds the locked-in valuation of the land is diverted from the entities that typically receive property-tax revenue, including school districts, parks districts, libraries and fire departments.
Per a 2014 agreement between the city and Dublin City Schools, the city may use TIFs anywhere in the Bridge Street District but will compensate the school district $1.5 million each year until 2046, for a total of $50 million.
The school district is funded primarily by property taxes, and it will continue to receive the property-tax revenue currently collected.
Under the agreement, however, the district will not receive the additional revenue that would be generated from increased values of the properties. The school district would forgo all applicable real-estate tax revenue related to improvements to any parcel within the TIF district for years 1 to 15 of the agreement, according to a Jan. 2 memo to council members about the TIF ordinance.
For years 16 to 30 of the agreement, the school district would receive 10 percent of what it would have received if the TIF district were not in place, according to the memo.
According to the memo, in exchange for the TIF structure, Dublin would pay $50 million to the school district over a 33-year period from 2014 to 2046, with $1.5 million paid each year from 2014 through 2045 and $2 million paid in 2046.
The improvements funded by the TIF revenue would include all community facilities in the Bridge Street District, such as parking garages, a conference/events center and a public market, along with roadway improvements, Mumma said.
Additionally, TIF revenues can be used to fund other improvements within the Bridge Street District, including, but not limited to, the pedestrian bridge, the roundabout at Riverside Drive and state Route 161, the realignment of Riverside Drive, other roadway improvements and Riverside Crossing Park.
The district layers two types of TIFs on top of each other – one for residential property and one for commercial property, to account for housing stock that is either owner-occupied (residential) or rental (commercial), Mumma said. The layering ensures TIF revenue could be captured under either scenario.
Dublin currently has seven active TIF zones within the Bridge Street District. A map on the city's website shows the other six, as well as other active TIF zones around Dublin.