An Ordinance Repealing Ordinance No. 31346-14 and Describing

AN ORDINANCE Repealing Ordinance No. 31346-14 and Describing the Boundaries of the Midpark Community Reinvestment Area in the City of Dayton, and Declaring an Emergency. WHEREAS, this Commission desires to pursue all reasonable incentives to assist and encourage construction and remodeling in parts of the South Park and University Park Neighborhoods of the City of Dayton; and, WHEREAS, Sections 3735.65 through 3735.70 of the Ohio Revised Code ("R.C.") provide that a municipality may grant certain exemption from real property taxation for new construction or remodeling efforts within an area that is designated by the legislative authority of the municipal corporation as a Community Reinvestment Area ("CRA"); and, WHEREAS Ordinance 31346-14 establishing the Downtown Dayton CRA was passed by the Dayton City Commission on November 12, 2014; and, WHEREAS, the geographical boundaries of the proposed CRA are depicted in the map attached hereto as Exhibit A and incorporated herein by this reference; and, WHEREAS, R.C. Section 3735.66 requires the City to conduct a survey of the housing located in the geographical boundaries of the proposed CRA; and, WHEREAS, the remodeling of existing structures and the construction of new structures in the proposed CRA would serve to encourage economic stability, maintain real property values, and generate new employment opportunities, and constitutes a public purpose for which real property tax exemptions may be granted; and, WHEREAS, Section 44.20 of the Revised Code of General Ordinances requires that any real property tax exemption shall conform to the requirements of the ORC.; and, WHEREAS, the properties contained within the geographical boundaries of the CRA (the "Midpark CRA") are located in the South Park and University Park neighborhoods and are located within a Planning District or a Community Development Area; and, WHEREAS, it is necessary that this Ordinance take effect immediately upon its adoption in order to facilitate development in a timely manner and for the immediate preservation of the public peace, property, health and safety; now, therefore, BE IT ORDAINED BY THE COMMISSION OF THE CITY OF DAYTON: Section 1. That the Midpark CRA described in Section 2 of this Ordinance constitutes areas in which housing facilities or structures of historical significance are located and areas in which new construction or repair of existing facilities has been discouraged. Section 2. That pursuant to R.C. Section 3735.66, this Commission hereby establishes the Midpark CRA, which shall be generally described by and be referred to as follows: The point of beginning, being the intersection of Warren St. and Buckeye St. Thence southwardly along the centerline of Warren St., which become Brown St. at the intersection of Warren St. and Wyoming St. Thence southwardly along Brown St. to the intersection of Brown St. and Chambers St. Thence eastwardly along the centerline of Chambers St. to the intersection of Chambers St. and Alberta St. Thence northwardly along the centerline of Alberta St. to the intersection of Alberta St. and Wyoming St.. Thence eastwardly along the centerline of Wyoming St. to the intersection of Wyoming St. and Nathan Place. Thence northwardly along the centerline of Nathan Place to the intersection of Nathan Place and Oak St. Thence eastwardly along the centerline of Oak St. to the intersection of Oak St. and the first alley east of Nathan Place. Thence northwardly along the first alley east of Nathan Place to the intersection of the first alley east of Nathan Place and the first alley north of Adams St. Thence eastwardly along the first alley north of Adams St. to the intersection of the first alley north of Adams St. and Alberta St. Thence northwardly along the centerline of Alberta St. to the intersection of Alberta St. and Burns Ave. Thence eastwardly along south right-of-way line of Burns Ave. to County Parcel R72 01908 0026. Thence northwardly along the west boundary line of R72 01908 0026 to its northwest corner. Thence eastwardly along the north boundary line of County Parcel R72 01908 0026 to the south right-of-way line of Burns Ave. Thence eastwardly along the south right-of-way line of Burns Ave. to the intersection of Burns Ave. and Buckeye St. Thence westwardly along the centerline of Buckeye St. to the intersection of Warren St. and Buckeye St., which is the point of beginning. Only residential, commercial and/or industrial properties consistent with the applicable zoning regulations within the designated CRA will be eligible for exemptions under this Program. Section 3. That pursuant to R.C. Section 3735.66, the City's Chief Building Official is designated as the "Housing Officer" and shall be responsible for administering and implementing the provisions of this Ordinance and ORC Sections 3735.65 to 3735.70. Section 4. That all properties identified in Section 2 as being within the designated CRA are eligible for this incentive. This proposal is a public/private partnership intended to promote and expand conforming uses in the designated area. Section 5. That the owners of the residential property located in the Midpark CRA who are eligible for real property tax exemption ("residential tax exemption") as provided herein shall file an application with the Housing Officer no later than six (6) months after construction or remodeling is completed. Mixed-use projects are defined as those containing both residential and commercial components. Both the residential and the commercial/industrial components of a mixed-use project may be eligible for tax exemption, on a case-by-case basis, provided that the structures and/or remodeling are permitted by the Zoning Code. For a commercial or an industrial property, or the commercial or industrial portion of a mixed-use property, the owner of the property and the City must enter into a written agreement prior to the commencement of remodeling or construction, as required in R.C. 3735.671. All residential structures must comply with City of Dayton Building Code Regulations and Zoning Code Regulations to be eligible for exemptions under this Ordinance. The Housing Officer may deny the exemption if Building Code and/or Zoning Code violation(s) exist at a site prior to the request for tax exemptions and those identified Building Code and/or Zoning Code violation(s) will not be remedied by the proposed remodeling. The Housing Officer may revoke the residential tax exemption granted to a residential property in violation of a Building Code and/or Zoning Code Regulation where such violation(s) exists for a period in excess of six (6) months from the date of the notice of Code Violation. Property owners granted and/or seeking a tax exemption pursuant to this Ordinance must keep all real estate taxes current. In the event real estate assessments are levied against a property granted a tax exemption pursuant to this Ordinance and such tax assessments remain delinquent for a period of more than twelve (12) months, the property owner must provide evidence to the Housing Officer that the Montgomery County Treasurer's Office has approved a payment arrangement to bring such tax assessments current. If real estate tax assessments on a property granted and/or seeking a tax exemption pursuant to this Ordinance are delinquent and the owner cannot provide evidence of a payment arrangement and/or the owner of the property defaults in making the payment under a payment arrangement with the Montgomery County Treasurer's Office, the Housing Officer may deny the application for tax exemption and/or revoke the tax exemption. Section 6. Within the CRA, the percentage of the tax exemption on the increase in the assessed valuation resulting from improvements to commercial and industrial real property and the term of those exemptions shall be negotiated on a case-by-case basis in advance of construction or remodeling occurring according to the rules outlined in ORC Section 3765.67. The results of the negotiation as approved by this Council will be set in writing in a CRA Agreement as outlined in R.C. Section 3735.671. For residential property, a tax exemption on the increase in the assessed valuation resulting from the improvements as described in R.C. Section 3735.67 shall be granted upon application by the property owner and certification thereof by the designated Housing Officer for the periods authorized by this Ordinance. After receipt of an application, the Housing Officer shall verify the construction of the property structure and/or the remodeling and the facts asserted in the application. If the new construction and/or remodeling satisfies the requirements of this Ordinance, the Housing Officer shall grant a tax exemption as permitted under ORC Section 3735.67 and shall forward the application and certification stating the period and percentage of the tax exemption to the Montgomery County Auditor. The tax exemption shall vary for each type of activity to be performed in the CRA, and the period and percentage of tax exemption shall be as follows: a. For the remodeling of every residential dwelling unit containing not more than two (2) units located within the CRA identified in Section 2 and upon which the cost of remodeling is at least Five Thousand Dollars ($5,000), as described in R.C. section 3735.67, a fifteen (15) year residential tax exemption for one hundred percent (100%) of the amount by which the remodeling increased the assessed value of the property may be granted. b. For the remodeling of every residential dwelling containing more than two (2) units located within the CRA identified in Section 2 and upon which the cost of remodeling is at least Ten Thousand Dollars ($10,000), as described in R.C. section 3735.67, a fifteen (15) year residential tax exemption for one hundred percent (100%) of the amount by which the remodeling increased the assessed value of the property may be granted. c. For the construction of every residential dwelling located in the CRA identified in Section 2, as described in R.C. section 3735.67, a fifteen (15) year residential tax exemption for one hundred percent (100%) of the assessed value of the residential structure may be granted. d. For the remodeling of existing commercial and industrial facilities located within the CRA identified in Section 2 and upon which the cost of remodeling is at least Five Thousand Dollars ($5,000), as described in R.C. section 3735.67, a tax exemption up to, and including, fifteen years (15), and up to, and including, one hundred percent (100%), the term and percentage of which shall be negotiated on a case-by-case basis in advance of the remodeling occurring. e. For the construction of new commercial or industrial facilities located within the CRA identified in Section 2, a tax exemption up to, and including, fifteen years (15), and up to, and including, one hundred percent (100%), the term and percentage of which shall be negotiated on a case-by-case basis in advance of construction occurring. The residential tax exemptions granted pursuant to this Ordinance shall apply in the first year that the new construction or remodeling is taxable. In the event an owner receiving an exemption under this Ordinance transfers the property through a sale, the residential tax exemption will continue for the remainder of the original period specified and inure to the benefit of the subsequent owner. If at any time a property for which an exemption is granted under this Ordinance is not used solely for the approved use, the Housing Officer shall revoke the residential tax exemption and the remaining tax exemption shall be forfeited. Section 7. All commercial and industrial projects are required to comply with the state application fee requirements of ORC Section 3735.672(C) and the local annual monitoring fee of one percent of the amount of taxes exempted under the agreement a minimum of Five Hundred Dollars ($500) up to a maximum of Two Thousand Five Hundred Dollars ($2,500) annually unless waived. Section 8. That the Housing Officer shall make annual inspections of the properties within the Midpark CRA, which have been granted a tax exemption hereunder in accordance with R.C. Section 3735.67. If the Housing Officer finds that the property has not been properly maintained or repaired due to the neglect of the property owner, the Housing Officer may revoke the exemption at any time after the first year of the tax exemption. In the event the Housing Officer revokes the tax exemption as permitted hereunder, the Housing Officer shall notify the Montgomery County Auditor and the owner of the property that the tax exemption no longer applies, and shall provide a report of such revocation to the Tax Incentive Review Council. The report shall specify the findings as to the maintenance and/or repair of the property and the reason for revoking the tax exemption. Section 9. That pursuant to ORC Section 3735.69, the City's existing "Tax Incentive Review Council" shall function as the "Housing Council" for the CRA identified in Section 2. The Tax Incentive Review Council may authorize and/or request an annual inspection of the properties within the CRAs identified in Section 2 for which a tax exemption has been granted pursuant to this Ordinance. The Tax Incentive Review Council shall also hear appeals under R.C. Section 3735.70. Section 10. That the City Manager is directed and authorized, within fifteen (15) days from the adoption of this Ordinance, to petition the Director of Development for the State of Ohio to confirm the findings contained in this Ordinance. PASSED BY THE COMMISSION March 18, 2020 SIGNED BY THE MAYOR March 18, 2020 MAYOR OF THE CITY OF DAYTON, OHIO ATTEST: Clerk of the Commission APPROVED AS TO FORM: City Attorney 3-19,3-26/2020