[6.A. Ordinance No. 20-2019 Appropriation Authorization for Property and Easements - Northeast Gateway Project An Ordinance Authorizing the Appropriation of Property and Easements from Multiple Properties for the Public Purpose of Constructing a Roadway Project, Specifically, for the FRA-CR 84-1.36 Northeast Gateway Project, Which Such Roadway Shall be Open to the Public Without Charge. Executive Summary: This Ordinance authorizes the appropriation of certain identified parcels as part of the Northeast Gateway Project. Recommendation: Remove from the Table and Approve as Presented Legislative History: Introduced May 6, 2019; Tabled May 20, 2019]

>> OPPOSED. AUTHORIZATION FOR PROPERTY AND EASEMENT AUTHORIZING THE APPROPRIATION OF PROPERTY AND EASEMENT FROM THE MUNICIPAL PROPERTY SO CONSTRUCTING A ROADWAY PROJECT SPECIFICALLY FOR THE FRACR84-1.36 AND SUCH ROADWAY SHALL BE OPEN TO THE PUBLIC WITHOUT CHARGE.

JUST FOR OUR SCOUT'S SAKE, WHAT WE'RE TALKING ABOUT IS WE'RE -- WE'RE REWORKING THE ROADWAY. WORTHINGTON AND GALLINA AND TROT. THIS IS PART OF AUTHORIZING THE LAND ACQUISITION WE MAY FEED TO DO TO PUT THE ROAD UNDERNEATH THE BRIDGE. REALIGNING THE ROADWAY.

IT IS GOING -- IT IS GOING -- >> MEMBERS OF COUNCIL, I'LL TURN THIS NORTH GATEWAY PROJECT OVER TO MR. LINDSEY.

YEAH. I'M REFINEDED WE NEED WORK FROM

THE TABLE. >> [INDISCERNIBLE].

>> YAH. >> OPPOSED?

>> THANK YOU. >> THANK YOU.

THIS ORDINANCE IS PART OF A LEGISLATOR REQUIRED PROCESS TO -- TO MOVE FORWARD WITH THE APPROPRIATION OF ANY PROPERTIES THAT WE'RE NOT ABLE TO SUCCESSFULLY NEGOTIATE A PURCHASE PRICE. WE HAVE LISTED ALL OF THE PROPERTIES THAT AT THIS POINT IN TIME WE WOULD ANTICIPATE MIGHT NEED THAT REQUIREMENT. HOWEVER, NEGOTIATIONS HAVE CONTINUED. I'M HAPPY TO REPORT ONE OF THE

[00:05:02]

PARCELS, PARCEL NUMBER 33 HAS -- HAS - HAS -- HAS REACHED A TENTATIVE AGREEMENT SUBJECT TO -- TO SIGNATURES BY BOTH PARTIES AND THE ACTUAL CLOSING. WE WON'T REMOVE IT FROM THE ACTUAL ORDINANCE ALTHOUGH I DON'T ANTICIPATE ANY PROBLEMS BETWEEN NOW AND THE CLOSING. THAT WAS AN EXAMPLE.

NONE OF THE OTHER ONES CLOSED. I INDICATED LAST MONTH IF THEY DID WE WOULD REMOVE. THAT ONE CAME CLOSE.

WE'RE OPTIMISTIC ON A NUMBER OF THE PARCELS.

COUPLE ENTERED INTO RIGHT OF ENTRY AGREEMENTS WHICH WOULD GIVE US AUTHORITY TO MOVE FORWARD WHICH IS NOT THE SAME AS PURCHASING IT. IT WON'T HOLD UP THE PROJECT.

THAT'S A POSITIVE. ONCE AGAIN, IT IS POSSIBLE THAT IF SOMETHING LATER WERE NOT TO RESOLVE IN TERMS OF THE AGREEMENTS BETWEEN THOSE PARTIES, WE WOULD EED TO APPROPRIATE. SO AT THIS POINT, THERE ARE A FEW I ANTICIPATE WOULD END UP BEING FILINGS.

WE DON'T HAVE SPECIFIC LIST TO -- TO SHORTEN BE THIS LIST TO THE ORDINANCE. SO AS I INDICATED IT IS A STATUTORILY REQUIRED FOR US TO PROCEED.

I WOULD NOTE THAT FAD BOGGS IS PRESENT TONIGHT.

THAD IS ONE OF THE LAWYERS WORKING ON THIS PROJECT AND WOULD BE THE NES FILING THE APPROPRIATION CASES IF NECESSARY AND WOULD BE ANDELING THOSE NEGOTIATIONS.

SO IF THERE ARE ANY QUESTIONS I WOULD BE HAPPY TO ENTERTAIN THOSE OR DEFER TO -- TO THAD IF NECESSARY.

>> MADAM PRESIDENT, I WOULD BE INTERESTED AFTERWARD TO UNDERSTAND HOW YOU NEGOTIATE SOMETHING LIKE THIS BUT NOT BEFOREHAND. BUT AFTERWARD IT WOULD BE GREAT TO HAVE YOU COME BACK. THANKS.

>> DISCUSSION OR COMMENTS? CALL THE ROLL N ORDINANCE.

>> ROBINSON. >> YES.

[6.B. Ordinance No. 21-2019 CRA Property Tax Abatement - 6740 North High Street Authorizing the City Manager to Enter into a Community Reinvestment Area Agreement with Worthington 17, LLC to Grant a Seventy-Five Percent (75%) Tax Exemption for Real Property Improvements to be Made to the Property Located at 6740 North High Street in the City of Worthington for a Period Not to Exceed Ten (10) Years. Executive Summary: This Ordinance authorizes a Community Reinvestment Area property tax abatement to support private improvements and attract office tenants at the former Anthem Blue Cross Blue Shield building at 6740 N. High Street. Recommendation: Approve as Presented Legislative History: Introduced May 20, 2019]

FOUST, RACHAEL, KOWALCZYK, ROBINSON, SMITH.

>> [INDISCERNIBLE]. >> MEMBERS OF COUNCIL, I'M GOING TO TURN IT OVER TO MR. MCCORKAL.

>> THANK YOU. PRESIDENT MICHAEL AND COUNCIL, I'M PLEASEDED TONIGHT TO -- TO INTRODUCE -- TO -- TO RECOMMEND FOR APPROVAL A -- A COMMUNITY REINVESTMENT AREA FOR 6740 NORTH HIGH STREET. THIS IS THE FORMER ANTHEM BLUE CROSS BLUE SHIELD PROPERTY. IT IS APPROXIMATELY 2,000 SQUARE FEET OF VACANT OFFICE PSPACE. I WANT TO GO THROUGH THE BACKGROUND AND FOCUS ON THE PROGRAM AND THEN THE PROJECT I'M PROPOSING BEFORE YOU TONIGHT. I WILL BE HAPPY TO ANSWER QUESTIONS. IN ADDITION WE DO HAVE THE OWNER OF THE -- OF THE PROPERTY AND THE APPLICANT TONIGHT ROBERT MYERS WHO IS HAPPY TO ANSWER QUESTIONS AS WELL.

>> THIS EXEMPTS REAL PROPERTY TAX ON JUST IMPROVEMENTS.

WHAT WE'RE LOOK AGENT HERE, THIS IS YOUR BASE PROPERTY VALUE.

THE PROPERTY TAXES CURRENTLY BEING PAID TO VARIOUS LOCAL JURISDICTIONS WILL CONTINUE TO BE PAID ON THE -- ON THE -- ON THE PROPERTY. SO IF -- IF -- FOR EXAMPLE, IF THEY ACQUIRED THE SITE FOR 6.5 MILLION, IT WILL COMPLNTINUE TO WHERE THEY'RE GOING. IT IS JUST THE INCREASED HERE, THE GREEN IS WHAT IS ABATED. THIS WORKS SIMILAR TO A TIF.

THE KEY DIFFERENCE BETWEEN A TIF AND CRA THESE TAXES WERE ABATED.

NOT PAID. A TIF HAS A PILOT, A PAYMENT IN LIEU OF TAXES. THE TAXES ARE PAID AND USED TO REIMBURSE PUBLIC IMPROVEMENTS OR USED OURSELVES AS PUBLIC IMPROVEMENTS. THOSE DOLLARS GO INTO A SECOND FUND. THEY WERE ABATED TAXES.

[00:10:02]

>> JUST A LITTLE BIT ABOUT THE PROGRAM STATEWIDE IN OHIO.

IT WAS CREATED IN THE 60S FOR URBAN BLIGHT.

IT AUTHORIZES 100 PERCENT FOR 15 YEARS.

THAT'S THE MAX. GENERALLY RESIDENTIAL AND COMMERCIAL AND INDUSTRIAL YOU'LL SEE WORTHINGTON EXCLUDES RESIDENTIAL. THEY COULD CREATE THE CRA AND A HOUSING SURVEY MUST BE COMPLETED.

WE COMPLETED ONE IN 2001 AND 2003.

A LITTLE ABOUT THE PROGRAM. CONTIGUOUS BOUNDARIES.

IT MAY HAVE NEW STRUCTURES. THIS IS A NUANCE OF THE PROGRAM.

ONE STRUCTURE MUST BE RESIDENTIAL AND ONE HISTORIC.

IT IS NOT -- YOU'RE NOT ABITING A -- A -- CREATING A CRA FOR A GREEN FIELD. THERE HAS TO BE STRUCTURES.

THERE'S A HOUSING OFFICER. I'M THE HOUSING OFFICER.

WE HAVE THE REVIEW COUNCIL THAT MEETS AND LOOKS AT THE CRAS AS WELL AS THE TIFS. THEN WE HAVE THE CRA JUST LOOK AT THE CRAS. THEY'RE MAINLY THERE -- MAINLY THERE AS COUNCIL MEMBER DOROTHY KNOWS THE MEETINGS LAST ABOUT TEN MINUTES. THEY'RE THERE TO HEAR IF SOMEBODY DISAGREES WITH THE TURK'S DECISION ON REDUCING THEIR TERM BECAUSE THEY DIDN'T MEET THE COMMITMENTS OF THE PROGRAM. WE HAVE YET TO HAVE A BODY THATHAT CHALLENGED THE RULING.

MORE ABOUT THE PROGRAM. ANYTHING LONGER THAN 50 PERCENT OR TEN YEARS WILL REQUIRE BOARD APPROVAL.

THIS REQUIRED SCHOOL OARD APPROVAL AND THAT WAS RECEIVED EARLIER IN MAY AND THEN THE MINUTES TO THE SCHOOL BOARD AT LEAST 45 DAYS. IF APPROVAL IS REQUIRED THAT COULD BE WAIVED. IN THIS CASE THE SCHOOL BOARD WAIVED THE NOTICE REQUIREMENT. WE COMPLETE AN ANNUAL REPORT AND SEND IT TO THE STATE EVERY YEAR AND IS DUE BY MARCH 1ST FOR TIFS AND CRAS. I COLLECT THAT INFORMATION.

MORE ABOUT THE WORTHINGTON PROGRAMS. IN WORTHINGTON OUR PROGRAM. I'LL SHOW YOU A MAP.

IT IS FOCUSED ON THREE CORRIDORS AND OUR INDUSTRIAL CORRIDOR.

THE WILSON BRIDGE CORRIDOR AND HIGH STREET.

OUR PROGRAM WAS FORMERLY CREATED IN 2005.

DIFFERENT THAN THE STATE, THE PROGRAM ONLY FOCUSES ON COMMERCIAL AND INDUSTRIAL PROPERTIES.

RESIDENTIAL PROPERTIES ARE NOT ELIGIBLE UNDER WORTHINGTON CRA.

THIS IS HARD TO SEE BUT YOU COULD SEE THIS IS BASICALLY THE THREE-QUARTERS I TOUCHED ON. THIS IS APPROXIMATELY 700 ACRES THAT ARE ELIGIBLE. NOT ALL -- THEY DON'T ALL HAVE EXEMPTION. THESE ARE PROPERTIES THAT WE DESIGNATED THAT CAN -- CAN POTENTIALLY RECEIVE A CRA.

WHAT I JUST TOUCHED ON, COMMERCIAL-INDUSTRIAL ACTIVITY.

THREE THINGS MET. MINIMUM INVESTMENT OF ONE MILLION DOLLARS AND THEN -- THEN SIMILAR TO OUR VENTURE GRANT PROGRAM WE REQUIRE A MINIMUM OF 25 NEW JOBS OR AT LEAST ONE MILLION IN PAYROLL. GENERALLY THE ONE MILLION IN PAYROLL S HIT BEFORE THE 25 JOBS IS.

JUST -- THIS IS JUST A FORMALITY.

THE -- THE -- THE APPLICANT MUST SIGN AND ENTER INTO AN AGREEMENT WITH US BEFORE ANY -- ANY PROJECT COSTS ARE INCURRED.

ALL RIGHT. WE'LL GET INTO A LITTLE MORE SPECIFIC NOW. SO 6749 STREET FORMER HOME OF BLUE CROSS BLUE SHIELD. THEY WERE THE ORIGINAL OWNER AND THERE MANY YEARS. WHEN THEY LEFT WORTHING TON THEY HAD EMPLOYEES ONSITE AND THEN AN ADDITIONAL 150 EMPLOYEES WORKED REMOTELY. THEY HAD SIGNIFICANT PAYROLL AT THAT BUILDING. ANTHEM BLUE CROSS BLUE SHIELD WHEN THEY LEFT THEY ONLY OCCUPIED PART OF THE SPACE.

THEY WERE SCATTERED ALL ACROSS THE BUILDING.

WHEN THEY MOVED TO THE POINT AT POLARIS THEY ONLY LEASED 30,000 SQUARE FEET. THEY ECIDED TO DIVEST OF THE PROPERTY AND THE LAWYER'S DEVELOPMENT CORPORATION AND WORTHINGTON 17 LLC ACQUIRED THE PROPERTY.

[00:15:01]

IT WAS ACQUIRED AROUND CHRISTMAS.

IT WAS BUILT IN THE EARLY 70S AND IS VACANT.

YES. >> THE PROPERTY HAS SIX

PARCELS. >> I DON'T KNOW.

>> NEVER BEEN A MOVE TO COMBINE THOSE?

>> ANY THOUGHTS ON WHY THERE'S SIX PARCELS.

>> I WASN'T AROUND. >> I UNDERSTAND THAT.

>> I THINK THEY PROBABLY GATHERED PARCEL BY PARCEL AT A TIME. IT CAME IN TODAY AND WE WORK WITH AN APPLICANT WE'LL GO THROUGH A PROCESS O COMBINE THE PARCELS. USUALLY WITH STATE BUILDING CODES FOR COMMERCIAL YOU CAN'T CROSS PROPERTY LINES.

THAT'S -- WE'LL -- E'LL BE ABLE TO CLEAN IT UP AND CREATE ONE

BIG PARCEL. >> [INDISCERNIBLE].

>> THAT'S MY NEXT SLIDE. GOOD QUESTION.

NO GREAT QUESTION. >> YEAH.

>> THERE'S ACTUALLY -- THERE'S NINE PARCELS TOTAL.

SIX ARE BEING ABATED. THREE ARE NOT.

OF THE THREE THAT ARE NOT, IT IS THE PARCEL AS WELL AS THERE'S TWO PARCELS TO THE SOUTH AND THAT SMALL RECTANGLE IS ACTUALLY TWO PARCELS. THAT IS NOT BEING INCLUDED IN THE -- IN THE PROPERTY TAX ABATEMENT.

THE PROPERTY TO THE SOUTH, WE ANTICIPATE THAT A RETAIL DEVELOPMENT WILL BE PROPOSED ON THOSE SITES.

FOR THAT REASON, THEY'RE NOT INCLUDED IN THE PROPERTY TAX ABATEMENT. JUST THE OFFICE.

>> THAT WOULD BE THE TIME THEN TO COMBINE THOSE FOR EXAMPLE INTO ONE IF SOMETHING IS 3 DEVELOPED THERE.

>> YES. >> MY UNDERSTANDING FOR -- FOR -- AND I -- I ASSUMED THE RETAIL BUILDING WAS THE SECOND.

>> NO TO CREATE THE CRA DISTRICT IN THE FIRST PLACE YOU NEED TWO STRUCTURES, THAT WAS CREATED IN 2000 AND WE CREATED THAT IN 2005 CRA ITSELF. WE NEEDED TWO STRUCTURES IN 2005 TO CREATE THE DISTRICT. THE MAP I SHOWED EACH INDIVIDUAL CRA, THOUGH, IT ACTUALLY DOESN'T REQUIRE ANY STRUCTURE.

IT COULD BE A GREEN FIELD THAT YOU PUT YOUR TAX ABATEMENT ON IN HOPES SOMEBODY WILL CONSTRUCT ANEW THERE.

THIS IS A LITTLE HARD TO READ. HERE'S SPECIFICS ON THE PROJECT.

WORTHINGTON FILED AN APPLICATION FOR THE CRA EACH.

THE AGREEMENT WOULD BE BETWEEN THE CITY AND -- AND WORTHINGTON 17 LLC. THE RATIONALE FOR THE PROPERTY TAX ABATEMENT IS IT CREATES A FIXED EXPENSE ON THE PROPERTY TAXES ON THE OFFICE TENANT THE LIKELY IS THAT THIS WOULD BE A TRIPLE LEASE. WHAT THAT MEANS IS THE PROPERTY OWNER WOULD ASK FOR A CERTAIN PRICE PER SQUARE FOOT AS A BASE PRICE. IT IS ON THE TENANT TO PAY FOR UTILITIES AND TAXES AND INSURANCE ON TOP F THAT.

WHAT THE PROPERTY TAX ABATEMENT DOES IS IT ALLOWS US TO HOLD THE PROPERTY TAXES SOMEWHAT CONSISTENT, RIGHT? ONLY 75 PERCENT ABATEMENT. NOT 100 PERCENT.

IT ALLOWS US TO HOLD MOST OF THE PROPERTY TAX EXPENSE CONSISTENT AND ALLOWS THE BUSINESS TO BASICALLY HEDGE ON THEIR PROPERTY TAXES FOR THE NEXT TEN YEARS.

THEY HAVE AN EXPECTED EXPENSE FOR THEIR PROPERTY TAXES AND MAKES THAT SPACE MORE ATTRACTIVE IF THEIR TAX BILL IS NOT JUMPING AS -- AS -- AS PROPERTY OWNER IS PUTTING IN EFFORTS IN THE SPACE.

IT IS A 10 MILLION DOLLAR BUILDING AND THIS HOLDS THEIR 3

PROPERTY TAXES IN PLACE. >> IS THE TENANT BENEFICIARY OF THE REDUCTION, THEY WOULD PAY LESS?

>> THE TRUE BENEFICIARY IS WHO IS PAYING THE TAX BILL.

THAT WOULD BE WORTHINGTON 17 LLC IN THIS CASE.

IT IS MY UNDERSTANDING THAT THEY PLAN TO STRUCTURE THE LEASE AS A TRIPLE NET LEASE AND WOULD PASS THE BENEFIT ALONG TO THE TENANTS. IT IS STIMATED AT 5.25 MILLION DOLLARS AND THEY ACQUIRED THE SITE FOR 6.5 MILLION.

THEY ANTICIPATE THEY WILL SELL THE PARCEL, THE 6.5 MILLION PURCHASE PRICE INCLUDED THE PARCEL.

THEY ANTICIPATE TO SELL OFF THE SOUTHERN PARCEL AS CASH THAT REDUCES THE BASELINE VALUE. THE BASELINE VALUE FOR MY

[00:20:02]

PURPOSES IS 5.25. WE ANTICIPATE 4.6 MILLION DOLLARS IN RENOVATION COSTS. THOSE WILL BE DRIVEN BY THE TENANT. IF HEY'RE NOT COMPLETED THEY'RE WAITING ON A TENANT TO SAY THIS IS -- YOU'RE LOOKING AT 400 NEW JOBS BY YEAR FIVE. AGAIN, THAT'S ASSUMING MULTI-TENANT. IF -- IF -- IF MR. MYERS COMES UP SHORTLY HE COULD SPEAK BETTER.

BROKERS AND PROPERTY OWNERS ARE MARKETING IT BOTH AS SINGLE OCCUPANCY. ONE USER WOULD TAKE THE ENTIRE BUILDING OR MULTI-TENANT. MULTIPLE USERS TAKING 30,000 SQUARE FEET EACH. BOTH ARE POSSIBLE.

WE DON'T KNOW THE ANSWER NOW. BY SAYING 400 NEW JOBS BY YEAR FIVE WE'RE ALLOWING FLEXIBILITY. I'M HOPEFUL WE BLOW THAT OUT OF THE WATER IN YEAR ONE. I DON'T KNOW THAT.

THE PAYROLL COMMITMENT IS BASED ON THE 400 NEW JOBS.

16 MILLION. YES, SIR.

>> YOU SAY COMMITMENT. >> YES.

>> THAT IS IN THE AGREEMENT? >> IT IS.

>> THAT WOULD BE A BENCHMARK THAT WOULD VOID THE AGREEMENT IF

IT IS NT. >> THE TAX INCENTIVE REVIEW COUNCIL WILL REVIEW THOSE ANNUALLY AND HAS THE ABILITY TO RECOMMEND A REDUCTION IN RATE OR TERM.

THEY COULD SAY IT IS NO LONGER A 75 PERCENT CRA AND WE WANT IT 50 PERCENT OR EIGHT YEARS INSTEAD OF TEN.

THEY HAVE THE ABILITY -- I USUALLY MAKE RECOMMENDATIONS BUT THEY HAVE THE ABILITY TO -- TO -- TO MAKE CHANGES TO THE AGREEMENT, RECOMMEND CHANGES TO THE AGREEMENT WHICH I THEN BRING BACK TO CITY COUNCIL. APPROVED 5-0 UNANIMOUSLY.

THIS ABATEMENT WOULD BEGIN FOLLOWING THE -- FOLLOWING THE TAX YEAR AFTER THE RENOVATIONS ARE COMPLETE.

IF THEY'RE COMPLETED THIS YEAR IT WOULD BE THE YEAR AFTER THAT, THE FULL TAX YEAR. THE TAXES ARE PAID A YEAR IN ARREARS. LAST COUPLE OF SLIDES.

ECONOMIC IMPACT. AT THE TOP YOU SEE THIS SCHOOLS ECONOMIC IMPACT AND WORTHINGTON ECONOMIC IMPACT.

AS YOU KNOW PROPERTY TAXES, MOST OF PROPERTY TAXES GO TO THE SCHOOLS. IN THIS CASE, YOU COULD SEE THE SCHOOLS ARE FOREGOING AVERAGE OF 106,000 A YEAR.

THIS IS ANNUALLY. THEY WILL BRING IN APPROXIMATELY 35,000 DOLLARS OFF THE -- OFF THE NEW BUILDING THAT WILL BE CONSTRUCTED, THE RETAIL BUILDING THAT WILL BE CONSTRUCTED.

I'M SORRY, THE - THE 35 IS BASED ON THE 25 PERCENT THAT IS NOT ABATED AND THEN 7,000 ON THE -- ON THE NEW PROPERTY TO THE SOUTH. THIS WIND UP BEING A NET GAIN ANNUALLY FOR THE SCHOOLS. THIS DOES ASSUME THAT A RETAIL OUTLET IS CONSTRUCTED ON THE SOUTHERN PARCEL IF THAT DOES NOT HAPPEN, THE SCHOOLS AND THE CITY HAVE AGREED TO NEGOTIATE IN -- IN BEST-FAITH EFFORTS ON AN INCOME TAX SHARING AGREEMENT.

SO THAT'S -- THAT'S THE SCHOOLS AND THEN AS YOU SEE THE CITY WORKED -- WORKED -- BENEFITS SIGNIFICANTLY UNDER THE ARRANGEMENT. WE -- WE PAY -- WE PAY 4 PERCENT OF PROPERTY TAXES GO TO THE CITY.

WE'RE NOT ABATING A LOT OF OUR OWN DOLLARS.

YOU SEE SIGNIFICANT TAX REVENUE IN THE SPACE TO THE TUNE OF ABOUT 400,000 DOLLARS A YEAR. THIS IS BRANDED AS YOU SEE, IT SAYS 67-40 AT THE TOP AND 6700 AT THE MARKETING MATERIALS.

IT IS CURRENTLY ADDRESSED AS 6740 NORTH HIGH STREET AND 3 THAT'S WHY I'M PRESENTING IT AS SUCH.

WE ANTICIPATE THAT -- THAT BUILDING WILL EVENTUALLY BE REBRANDED AT 6700 AND MR. MYERS CAN TOUCH ON THAT BETTER THAN I CAN. HERE'S A COUPLE OF RENDERINGS F THE PROPERTY. THERE'S THE FINAL SLIDE.

I BELIEVE I SAW RED AND YELLOW LANDSCAPING TO POP UP IN THE LAST COUPLE OF DAYS. I'M HAPPY TO ANSWER ANY QUESTIONS OR -- OR INVITE MR. MYERS TO ASK QUESTIONS.

>> HOW MANY CRAS DO WE HAVE IN WORTHING

WORTHINGTON? >> WE HAVE FOUR CRAS ONE OF WHICH IS STILL ACTIVE. WE APPROVED TWO CRAS IN 2007.

THEY WERE ALL TEN YEAR. WE DIDN'T APPROVE ANOTHER ONE UNTIL FC BANK NEXT DOOR. THAT'S THE ONLY ACTIVE CRA.

[00:25:03]

>> ONE POTENTIAL DOWNFALL AFTER THIS IS BURNED OFF PEOPLE LOOK FOR ANOTHER PLACE THAT THEY GET SOME OTHER INCENTIVES.

>> THAT'S A POTENTIAL DOWNFALL. FOR EXAMPLE, WE DID HAVE -- WE DID HAVE -- WE DID HAVE AN ABATED PROPERTY.

A COUPLE. ROADRUNNER WAS ABATED PROPERTY.

THAT'S WHERE IT IS NOW ON SUPER GAMES.

THAT WAS ABATED. THAT'S BURNING OFF THIS YEAR.

WE -- AND ROADRUNNER VACATED THE SPACE IN AUGUST AND WENT TO HILLIARD. WE'RE WORKING ACTIVELY TO BACK FILL THAT SPACE NOW AND WE ANTICIPATE ANY -- YOU KNOW ANY DAY A LEASE BEING SIGNED TO BACK FILL THAT SPACE.

THAT'S -- THAT'S -- THAT'S -- THAT'S AN EXAMPLE -- ADDITIONALLY WE HAD THE WORTHINGTON PROFESSIONAL PARK AND -- AND THAT -- WE HAVE SEEN VACANCIES POP UP IN THE CONDO PARK AS WELL. ONE WAS 2007 THAT BURNED OFF

LAST YEAR. >> THEN ON THE FLIP SIDE, MOST REVENUE IS FROM INCOME TAX AND WITH ONCE ANTHEM WENT AWAY WE LOST ABOUT A MILLION DOLLARS A YEAR?

IS THAT CORRECT? >> JUST UNDER THAT BUT YES.

>> SO WE'RE LOOKING AT TRYING TO HAVE OTHER PEOPLE TO GO IN PROVIDING 400,000 DOLLARS BUT THEY WOULD MAKE LESS MONEY, BUT

400 IS BETTER THAN ZERO. >> THAT'S CONSERVATIVE BUT YES.

THE BUILDING IS VACANT. THEY HAVE SHOWN -- THEY HAVE SHOWN MANY PEOPLE THROUGH THE SPACE.

I THINK IT IS CRITICAL THAT E MAKE THE SPACE AS ATTRACTIVE AS POSSIBLE AND OFFER AS -- AS -- AS MUCH AS WE CAN TO ATTRACT BUSINESSES INTO THAT. IN ADDITION TO THE CRA THIS WAS A -- THIS WAS -- OUR FIRST USER OF THE PACE ASSISTANCE PROGRAM WHERE WE PARTNERED WITH PLUG SMART TO PAY FOR THE ENERGY AUDIT TO HAPPEN IN THE BUILDING. THAT ENERGY AUDIT HAS BEEN BE CONDUCTED. THE IMPLEMENTS WILL LIKELY BE INCORPORATED AS THE TENANT DICTATES WHAT IS TO BE DONE.

THEY USE THAT INCENTIVE AS WELL. >> WHY DO YOU FEEL IT IS SO IMPORTANT TO HAVE THE CRA AS INCENTIVE. WHAT IF WE DIDN'T DO IT? EXPLAIN WHY THIS IS A CRITICAL

COMPONENT TO THIS INITIATIVE. >> SURE.

I THINK WE HAVE -- I THINK WE HAVE AN AGING OFFICE PRODUCT IN WORTHINGTON. I THINK -- I DON'T THINK -- WE'RE STRUGGLING O COMPETE WITH OTHERS FOR OFFICE SPACE.

BRIDGEPORT AND DUBLIN. YOU LOOK TO THE NEIGHBORS TO THE EAST, SPECIFICALLY EAST IN POLARIS NEW ALBANY.

THEY'RE PUTTING TAX ABATEMENTS. THEIR ABATEMENT IN THEIR BUILDINGS. THEY APPROVE TAX ABATEMENTS IN THE BUILDINGS. IT MAKES IT CHALLENGING TO COMPETE. NOT ONLY FOR 2,000 SQUARE FOOT USERS. THOSE ARE FEW BETWEEN.

IF WE LAND ONE, THAT'S FANTASTIC YOU SEE ONE OF THOSE A YEAR COMING THROUGH THE COLUMBUS REGION.

COMPETING FOR THE 40,000 SQUARE FOOT USERS THAT ARE MOVING INTO CLASS OFFICE SPACE WHEN THIS IS -- WHEN THIS IS -- YOU KNOW, CLASS E AND B OFFICE SPACE. THERE'S NOT A TON OF NATURAL LIGHT IN THE SPACE. WE HEARD THAT.

IT IS -- IT IS VERY CHALLENGING TO -- TO TAKE A -- A 40, 50-YEAR-OLD BUILDING AND MAKE IT ATTRACTIVE FROM AN INCENTIVE PERSPECTIVE. THIS -- THIS HONESTLY JUST KIND OF LEVELS THE PLAYING FIELD A BIT.

AS SOON AS WE APPROVE THIS, THIS WON'T SEND EVERYBODY RUNNING TO THE THIS IS GETTING US BACK WITH THE NEW PRODUCT COMING ON THE MARKET RIGHT NOW.

>> ONE INCIDENTAL. ON PAGE 11, THERE'S WHAT MATE BE A CLERICAL EROR. I'M NOT SURE IF IT IS EXEMPTION LEVEL 50 PERCENT. WHAT DOES THAT MEAN?

>> IT SHOULD BE -- IT SHOULD BE 75.

THAT WAS UPDATED. TO BE 75 PERCENT.

>> AND MORE SUBSTANTIVELY IN THE ORDINANCE ITSELF THERE'S THE PASSAGE THAT MAY BE WITH CRA AGREEMENT SHOULD PROVIDE FOR 75 PERCENT TAX EXEMPTION FOR REAL -- SECTION.

[00:30:03]

YEAH. SECTION TWO.

SORRY ABOUT THAT. SECTION TWO, FOR A PERIOD NOT TO EXTEND TEN YEARS. AND REVISIONS AND ADDITIONS THERE TO AND BY THE CITY MANAGER AS CONSISTENT WITH THE OBJECTIVES AND REQUIREMENTS OF THE ORDINANCE.

WHAT DOES THAT BEEN, THE PORTION ABOUT ADDITIONS APPROVED BY THE CITY MANAGER AND WHAT AUTHORITY DOES MR. GREESON HAVE AND WHAT FALLS UNDER THAT DESCRIPTION, PLEASE?

>> COUNCIL MEMBER ROBINSON. THIS LANGUAGE WHICH IS SOMEWHAT STANDARD CERTAINLY FOR THESE ORDINANCES BUT OTHER TYPES OF AGREEMENTS WHERE -- WHERE -- WHERE A -- WHERE A -- WHERE A -- WHERE A SAMPLE -- A SAMPLE AGREEMENT BEING ATTACHED TO THE ORDINANCE PRIOR TO THE FINALIZATION OF HAT AGREEMENT AND SO THE LANGUAGE ATTACHED HERE TO.

IT IS A DRAFT AGREEMENT. EXCUSE ME.

AND WHAT THIS LANGUAGE WOULD -- WOULD -- YOU WOULD BE AUTHORIZING THE CITY MANAGER TO -- TO -- TO MAKE THOSE REVISIONS OR ADDITIONS. THEY WOULD HAVE TO BE CONSISTENT WITH THE GENERAL OBJECTIVES AND REQUIREMENTS OF THE ORDINARY FANS AS SET FORTH IN THE ORDINANCE AND THE LANGUAGE SO AS TO MAKE SURE THAT THE PERSON SIGNING HE AGREEMENT ON EHALF OF THEM KNOWS THAT SOMEBODY LATER DOESN'T COME BACK AND SAY WAIT A SECOND. WE DIDN'T LIKE WHAT MANAGER GREESON APPROVED. THAT'S WHY THE LANGUAGE SAID, THE APPROVAL SHALL BE CONCLUSIVELY EVIDENCED BY THIS -- AS WITH ALL -- WOULD ALSO REQUIRE A FORM PRIOR TO MR. GREESON SIGNING IT. THAT IS NOT SPELLED OUT IN THE ORDINANCE BUT IT IS A REQUIREMENT OF WHAT WE DO IN

TERMS OF ALL OF OUR AGREEMENTS. >> SAMPLE FOR MR. ROBINSON.

THE 50, 75 PERCENT THAT YOU POINTED OUT.

WE ADOPTED THE TYPO TONIGHT. MR. GREESON WILL HAVE THE

ABILITY TO CHANGE THAT. >> THANK YOU FOR THAT

AFFIRMATION, MR. MYERS. >> OKAY.

PLEASE CALL THE ROLL. >> FOUST, ROBINSON.

SMITH. KOWALCZYK.

>> MOVING ON TO ORDINANCE 22. THE ORDINANCE FROM 52 SOUTH 18.

[INDISCERNIBLE]. >> I THINK WE'RE INTRODUCING THAT. THE NEXT ITEM IS 7A-2019.

[7.A. Resolution No. 35-2019 Position Description & Title - Police Chief Amending the Position Title and Position Description for Police Chief. Executive Summary: This Resolution amends the Title and Position Description for Police Chief Recommendation: Introduce and Approve as Presented]

>> [INDISCERNIBLE]. >> MEMBERS OF COUNCIL AS YOU MAY KNOW CHIEF STRAIT IS -- IS -- IS RETIRING AFTER A -- AFTER A -- AFTER A SUMMER WITH THE DIVISION OF POLICE.

WE WILL CELEBRATE HIM LATER. THIS -- THIS ITEM -- THIS ITEM IS THERE FOR US WHEN WE'RE IN THE OPENING.

PARTICULARLY A SIGNIFICANT ONE LIKE THIS TO REVIEW THE JOB DESCRIPTION FOR THE POSITION. AND PROCESS FOR RECRUITMENT.

WE'RE UNDER WAY IN DEVELOPING ALL OF THAT AND RECOMMENDED CHANGES TO THE JOB DESCRIPTION. THERE ARE A COUPLE.

THERE'S A -- THERE'S A MODEST CHANGE IN -- IN THE REQUIREMENT FOR BACHELOR'S DEGREE. THEN THE MOST SIGNIFICANT IS A MOVE AMENDMENT OF THE TITLE OF THE POSITION TO -- TO -- TO

[00:35:02]

DEPUTY DIRECTOR OF SAFETY/POLICE CHIEF.

ALL OF THE OTHER DEPARTMENT HEADS ARE IN OUR ORGANIZATION ARE UNCLASSIFIED POSITIONS. SO AT WILL.

A DESIGNATED POLICE CHIEF IN DDITION TO THE OTHER STAFF.

>> YAH. >> RESOLUTION [INDISCERNIBLE].

[7.B. Resolution No. 36-2019 Urge State of Ohio to Restore Local Government Fund (LGF) funding Strongly Urging the Ohio Governor and Members of the Ohio General Assembly to Restore the Local Government Fund to Pre-Recession Levels.Executive Summary: This Resolution requests the State of Ohio General Assembly and Governor to support restoring Local Government Fund (LGF) revenues provided to local governments to pre-recession levels. Recommendation: Approve as Presented]

>> MEMBERS OF THE OHIO GENERAL ASSEMBLY TO RESTORE THE LOCAL GOVERNMENT FUNDS TO PRERECESSION LEVELS.

IT IS -- IT IS -- IT IS THE FACT FOR MOVE FOR -- SECONDED BY MR. MYERS. FOR OUR STUDENTS, MANY -- MANY CITIES COULD APPLY -- CHARGE SALES TAX.

THE LEGISLATURE TOOK THAT AWAY FROM US AND SAID, OKAY, CITIES CAN NO LONGER DO THAT. WE'RE GOING TO PUT MONEY INTO A LOCAL GOVERNMENT FUND AND -- WE'LL GIVE YOU FUNDS TO MAKE UP FOR THE MONEY YOU'RE NOT ABLE TO OTHERWISE GET.

IN THE GOOD DAYS WE HAD LOTS OF LOCAL GOVERNMENT FUND MONEY.

PRERECESSION. AND SINCE THE RECESSION WE

RECEIVED -- [INDISCERNIBLE]. >> NOT AT SPECIFIC DATES.

THERE WAS A TIME THAT WE RECEIVED OVER A MILLION DOLLARS IN LOCAL GOVERNMENT FUNDS. I THINK LAST YEAR IT WAS - IT WAS 158,000. QUESTION.

I THINK I MAKE THE POINT OVER THE COURSE OF TIME THE LOCAL GOVERNMENT FUND HAS BEEN REDUCED SIGNIFICANTLY TO THE AMOUNT I -- I JUST DESCRIBED IN THE -- IN -- IN 2018.

THERE ARE -- THERE ARE LOTS OF REASONS TO ADVOCATE FOR THIS.

FIRST OF ALL, IT IS AN IMPORTANT REVENUE STREAM.

IT IS ONE OF THE FEW OTHER SOURCES OF REVENUE THAT IS DISCRETIONARY. IT IS NOT -- IT IS NOT DESIGNATED FOR A PARTICULAR USE AS LOCAL GOVERNMENTS HAVE.

MAKE A STRONG OHIO. SO THERE HAS BEEN SOME FORM OF REVENUE SHARING RECOGNIZING THAT -- THAT THERE'S A -- THERE'S VALUE IN HELPING THE GOVERNMENTS BE -- BE FISCAL TANDPOINT AND HAVE -- HAVE -- HAVE -- HAVE A STABLE SERVICE.

CERTAINLY THE ECONOMY HAS REBOUNDED.

REVENUES REBOUNDED. IT IS LOGICAL THAT -- THAT -- THAT -- THAT INCREASING THE 3 LOCAL GOVERNMENT [INDISCERNIBLE] OR AT LEAST [INDISCERNIBLE] THEY WERE CUT DURING THE RECESSION BE CONSIDERED. SO THE OHIO MUNICIPAL LEAGUE.

THE OHIO MAYORS ALLIANCE. THE CHIP ASSOCIATION.

MANY -- MANY LOCAL GOVERNMENTS. MANY NTITIES REPRESENTING LOCAL GOVERNMENTS ARE ADVOCATING FOR INCREASED LOCAL GOVERNMENT FUNDING. WE'VE BEEN ASKED BY THE OHIO MUNICIPAL LEAGUE ALONG WITH OTHER CITIES TO ADOPT A RESOLUTION THAT WE COULD SEND TO OUR LEGISLATORS ADVOCATING FOR

INCREASED LOCAL GOVERNMENT FUND. >> AS A RESULT OF CUTS TO THE LOCAL GOVERNMENT FUND, WHEN WE DO HAVE A NEED FOR FUNDING IT HAS REALLY BEEN PUSHED TO OTHER, LIKE A PROPERTY TAX OR OTHER THINGS WHERE WE'RE PUTTING MORE PRESSURE ON OUR -- ON OUR -- ON

OUR -- OUR RESIDENTS. >> YES.

YES MA'AM. I THINK THE REDUCTION OF LOCAL GOVERNMENT FUNDS HAVE HAD DIFFERENT EFFECTS FOR DIFFERENT COMMUNITIES IN -- AND IN OUR CASE WE HAVE LESS DEFERREDED REVENUE STREAMS THAN IN THE PAST.

IN 2008 WE HAD A STATE TAX REVENUES WHICH WERE ELIMINATED.

PERSONAL PROPERTY TAXES THAT WERE PHASED OUT AND WE HAD MORE LOCAL GOVERNMENT FUNDING. THOSE THREE SOURCES OF REVENUE

[00:40:03]

ARE NOW GONE AND OUR INCOME TAX AS PERCENTAGE OF OUR BUDGET IS NOW APPROXIMATELY 74 PERCENT WHICH IS SGNIFICANT, NECESSITATING SIGNIFICANT FUND BALANCES AND BE CAREFUL ABOUT IT BECAUSE INCOME TAXES ARE OBVIOUSLY A VOLATILE REVENUE STREAM THAT -- THAT CAN FLUCTUATE WITH -- WITH -- WITH JOBS AND -- AND WAGE -- WAGE GROWTH OR -- OR -- SO LESS DIVERSE REVENUE STREAMS. IN OUR CASE WE ALSO INCREASE TAXES DURING THE RECESSION CHANGING OUR RATES FROM 2 PERCENT TO 2 1/2. WE -- WE HAD POSITION REDUCTIONS. I DON'T THINK WE COULD ATTRIBUTE ALL OF THOSE THINGS TO THE LOSS OF THE THREE REVENUE STREAMS. CERTAINLY WE LOSS REVENUE BECAUSE OF THE ECONOMIC

SITUATIONS. >> WE HAVE 5 MILLION DOLLARS FOR A BUILDING. [INDISCERNIBLE] HOW MUCH MONEY FOR SEWERS. THIS IS BECAUSE WE DON'T HAVE THE ADDITIONAL FUNDING THAT WE NEED.

>> THAT'S MY UNDERSTANDING IS THAT -- IS THAT -- IS THAT TAKING AWAY THOSE REVENUES AND AND HOLDING THEM AT THE STATE LEVEL AND -- AND SEPARATING THEM IN AREAS SPECIFIC FUNDING STREAMS KIND OF LIMITS THE ABILITY OF COMMUNITIES LIKE THE COMMUNITY AND FIGURE OUT. THEIR FUNDS ARE FLEXIBLE TO BE ABLE TO HAVE TAX DOLLARS WHERE WE NEED THEM TO GO.

I'M JUST -- I WANT TO STRESS I THINK THIS IS INCREDIBLY IMPORTANT. WE SHOULD SUPPORT THIS RESOLUTION. AND TAKE A CLOSE LOOK AT IT.

LOCAL COMMUNITIES ARE IMPORTANT. BEING ABLE TO MAKE DECISIONS LOCALLY TO WHERE THE FUNDS GO IS IMPORTANT.

>> ALL RIGHT. THE RESOLUTION IS A GOOD IDEA.

I THINK THE ASSEMBLY WILL [INDISCERNIBLE] BY VOTERS TO CHANGE THE POLICY. CONSIDER WAYS OF COMMUNICATING THE PURPOSE OF -- OF THIS -- OF THIS -- OF THIS TO THE PUBLIC THAT WHETHER A VILLAGE TALKS OR E-MAIL OR SOME OTHER MEANS BUT OF EDUCATING OUR PUBLIC AS TO -- TO -- AS TO WHAT WE'RE DOING AND WHAT IS HAPPENING AT THE STATE HOUSE.

CAN ANYTHING BE DONE TO INFORM AND EDUCATE OUR PUBLIC OF THE

RESOLUTION? >> YEAH I THINK THERE CAN BE AND WE'LL ENGAGE IN THIS. WE WILL HAVE THOUGHT ON HOW WE

DO THAT. >> THANK YOU.

>> ANYONE ELSE? >> ALL IN FAVOR OF THIS VERY

IMPORTANT RESOLUTION SIGNIFY. >> AYE.

[7.C. Ordinance No. 22-2019 Appropriation - Preliminary Engineering - CSX Rail Crossing Improvements Amending Ordinance No. 52-2018 (As Amended) to Adjust the Annual Budget by Providing for an Appropriation from the Capital Improvements Fund Unappropriated Balance to Pay the Cost of Curb Improvements at Wilson Bridge Road & the Railroad Crossing for the NE Gateway Intersection Improvement Project and all Related Expenses with said Project. (Project No. 602-14) Executive Summary: This Ordinance appropriates $45,000 costs required by CSX to fund engineering and inspections of proposed improvements at the East Wilson Bridge Road railroad crossing.]

[7.D. Ordinance No. 23-2019 Appropriation - Resurfacing of East Wilson Bridge Road Amending Ordinance No. 52-2018 (As Amended) to Adjust the Annual Budget by Providing for an Appropriation from the Capital Improvements Fund Unappropriated Balance to Pay the Costs of the East Wilson Bridge Road Resurfacing Project and all Related Expenses and Determining to Proceed with said Project. (Project No. 692-19) Executive Summary: This Ordinance appropriates funds for the resurfacing project for East Wilson Bridge Road from High Street to the railroad crossing. Recommendation: Introduce for Public Hearing on June 17]

>> [INDISCERNIBLE]. I WOULD INTRODUCE ORDINANCE 2319 AND ORDINANCE NUMBER 10. REPORT TO CITY OFFICIALS.

[8.A.I. Architectural Review Board Appeal - 885 Evening Street Executive Summary: City Council will discuss whether to hear the Appeal of the Architectural Review Board's approval of a modular classroom unit at 885 Evening Street. The appellant has withdrawn the appeal.]

MR. GREESON. >> PRESENT MEMBERS OF COUNCIL, THE APPELLANT AND THEIR APPEAL FOR THE ARCHITECTURAL REVIEW BOARDS APPROVAL OF THE MODULAR CLASSROOM.

YOU TABLED THAT I BELIEVE? I THINK PROCEDURALLY WE WANT TO -- TO REMOVE IT FROM THE TABLE AND -- AND -- AND -- AND ACCEPT

[00:45:03]

THE WITHDRAWAL. >> MR. [INDISCERNIBLE]? ALL IN FAVOR SIGNIFY. ACCEPT THE WITHDRAWAL OF THE -- WITHDRAWAL OF THE APPEALS, SECONDED BY MR. MURPHY.

ANY FURTHER DISCUSSION OF THE WITHDRAWAL OF THE APPEALS? WE DO WANT TO HANK MR. BROWN. [INDISCERNIBLE].

>> THERE'S A LONG THREE WEEKS BUT I'M GLAD WE GOT THERE.

>> OKAY. ALL IN FAVOR, SIGNIFY BY SAYING YAH. OPPO

OPPOSED? >> YES, MA'AM.

ONE THING. AND THEN WHEN THE TIME IS APPROPRIATE WE LIKE TO GO INTO EXECUTIVE SESSION FOR PURPOSES 3 OF BOARD IN COMMISSION APPOINTMENTS AND LAND ACQUISITION. THE ONE THING I LIKE TO REPORT IS -- IS -- IS ABOUT -- IS ABOUT -- ABOUT OUR PROGRAM AND -- AND -- AND -- AND NOT ONLY REPORT BUT NOTE ITS SUCCESS SO FAR.

THERE WERE 4,947 LETTERS MAILED OUT TO ELIGIBLE RESIDENTS IN SMALL BUSINESSES. THE RATE THAT WE HAD NEGOTIATED WERE -- WERE -- WERE -- WERE SUCCESSFULLY [INDISCERNIBLE].

THEIR RENEWAL ENERGY CERTIFICATES.

117 OPTED OUT, SO THERE WILL BE 4,830 PEOPLE AT THE START.