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MINUTES OF THE FINANCE COMMITTEE February 28, 2022 City Hall Auditorium Present: Councilmembers Shachner & Bullock Also Present: Councilmember Baker, Mayor George, Finance Director Rancatore, Daniel Budish of W. 117 h Development, & Deputy Clerk Lascu taking minutes Start time: 5:28 p.m. AGENDA Approval of the minutes of the February 7, 2022 meeting of the Finance Committee. Motion by Chairman Shachner, seconded by Councilmember Bullock to approve the minutes from the committee's February 7, 2022 meeting. All in favor. Motion passed. The minutes were approved. ORDINANCE 07-2022 -AN ORDINANCE to take effect immediately provided it receives the affirmative vote of at least two thirds of the members of Council declaring improvement to real property within the city of Lakewood, Ohio to be a public purpose; exempting such improvement from real property taxation; requiring the owners of the property to make service payments in lieu of real property taxes; establishing an urban redevelopment tax increment equivalent fund for the deposit of service payments, making related authorizations pursuant to Ohio Revised Code Sections 5709.41, 5709.42, 5709.43 and 5709.83; and authorizing a service payment agreement in connection with the same. (1st read and referred to Finance 2/22/22) Director Leininger provided a recap of the Phantasy Night Club & Fieldhouse projects, noting that the city has been in negotiations with the W. 117 ' Development LLC, the developers, who are seeking to build an ecosystem entailing businesses, healthcare, entertainment, etc. for the LGBTQ community. The first step the city took was entering into a development agreement with the team, with the second involving a temporary transfer of property title. The final step to the city's work involves establishing a tax increment financing (TIF) incentive on the property, which sets in place the mechanisms that allow gains in property taxes to flow back to the developer's debt service. The Lakewood schools however will receive 100% of their portion of designated tax revenue, and all other affected agencies will receive their current values. The TIF fills a $5 million gap in the finances of the project. Councilmember Baker inquired whether 90% of the TIF proceeds would go to the developer and 10% would go to the city. Director Leininger confirmed that breakdown to be true. Discussion ensued on the timeline of the legislation after its partial approval last year. The TIF was approved in Housing, Planning, & Development Committee last year and was sent to