48-06 Incentive District - The Cliffs

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PLEASE SUBSTITUTE FOR ORDINANCE NO. 48-06 PLACED ON 13T READING & REFERRED TO THE COÞlliITTEE OF THE WHOLE 5/15/06, 2ND READING 6/5/06, DEFERRED 6/19/06, SUBSTITUTED 7/3/06. ORDINANCE NO 48-06 By· Antonio. Butler, Demro, Dever, FitzGerald, 11adigan, Seelie. AN ORDINANCE to take effect immediately provided it received the affinnative vote of at least five (5) members elected to Council, otherwise, it shall take effect and be in force after the earliest period allowed by law, establishing an incentive district and declaring improvements to certain parcels of real property in the incentive district to be a public purpose for purposes of sections 5709.40 and 570942 of the Ohio Revised Code; describing the public improvements to be made to benefit or serve the incentive district; requiring the O'Wllers of parcels within the incentive district to make service. payments in lieu of taxes; authorizing the use of service payments for the purpose of public infrastructure improvements pursuant to section 5909.40(c) of the Ohio Revised code; establishing a municipal public improvement tax :increment equivalent fund for the deposit of service payments and making related authorizations pursuant to Ohio Revised Code Sections 5709.40, 5709.42 and 5709.43; authorizing the execution of a Tax Increment Financing and Development Agreement with the developer and various other contracts, certifications and other documents related thereto; and autholizing the acquisition of a leasehold interest or an easement on certain real property for the construction of public i:nfìastructure improvements WHEREAS, Foran Montlack Development, LLC (the "Developer") has submitted a proposal for the redevelopment of various parcels of real property within the City and located along Sloane Avenue at the City's western edge (the "Project Site") for the construction of approximately 46 high-end new residential homes descending into the Rocky River Valley off Sloane Avenue in three buildings (the "Project"); and WHEREAS, to revitalize the Project Site and the area adjacent thereto, this Council has determined to create the Sloane Avenue Jncentive District pursuant to Section 5709.40(C) of the Ohio Revised Code, the boundary of which Incentive District and the parcels in which Jncentive District are set forth ill Exhibit A hereto (the ''Incentive District"), which Jncentive District is an area not more than 300 acres in size enclosed by a continuous boundary; and WHEREAS, as required pursuant to Ohio Revised Code Section 5709.40(A)(5)(a), the Director of Planning and Development of the City has determilled that at least fifty-one percent of the residents of the proposed Incentive District have a median income which is less than eighty percent (80%) of the median income of residents oithe City ofLakewood, as detennined in the same manuer specified under Section 119(b) of the "Housing and Community Development Act of 1974," 88 Stat. 633,42 US C 5318, as amended: WHEREAS, Ohio Revised Code Sections 5709.40, 570942 and 570943 provide that this Council may describe public improvements to be made which benefit or serve the parcels ofrea1 property in the Incentive District, declare Jmprovements (as defined in Ohio Revised Code Section 5709.40) with respect to such parcels to be a public purpose, thereby authorizing the exemption of those Improvements fi-om real property taxation for a period of time, and provide for the making of service payments in lieu of taxes by the owners of such parcels, and establish a municipal public improvement tax increment equivalent fund into which such service payments shall be deposited; and WHEREAS, the Director of Planuing and Development of the City has certified that as a result of the establishment of the Incentive District, not more than twenty-five percent (25%) of the City's taxable value, calculated as of January 1, 2006, will be illcluded within an incentive district created pursuant to Section 5709.40(C) of the Ohio Revised Code; and WHEREAS, this Council desires to aequire an interest in certain real property within the Incentive District and to make or cause to be made the public infrastructure improvements in the City described in Exhibit B hereto (the ''Public Jmprovements''), that once made would benefit or serve parcels located in the Incentive District (those parcels are hereinafter referred to as the ''Property''); and WHEREAS, the City has determined that it is necessary and appropriate and in the best interests of the Cityto provide for service payments in lieu oftaxes with respect to the Property (the "Service Payments'') pursuant to Section 5709.42 of the Ohio Revised Code; and WHEREAS, the City desires to acquire, construct and finance the Public Jmprovements by the issuance of bonds of the City or of the Cleveland-Cuyahoga County Port Authority (the "Port