Committee of the Whole

200 South Hamilton Road City of Gahanna Gahanna, Ohio 43230 Meeting Minutes Committee of the Whole Brian Metzbower, President Stephen A. Renner, Vice President, Chair Jamie Leeseberg Karen J. Angelou Brian D. Larick Nancy R. McGregor Michael Schnetzer Kimberly Banning, Clerk of Council Monday, January 14, 2019 Council Committee Room *Immediately Following the Special Meeting CALL TO ORDER - Chair Renner called the meeting to order at 7:48 p.m. Present 7 - Brian Metzbower, Nancy R. McGregor, Karen J. Angelou, Stephen A. Renner, Jamie Leeseberg, Michael Schnetzer, and Brian D. Larick ITEMS FROM THE DIRECTOR OF PLANNING & DEVELOPMENT ORD-0003-2019 TO REZONE 4.19 +/- ACRES OF PROPERTY, TO LIMITED OVERLAY MULTI-FAMILY RESIDENTIAL (L-MFRD); SAID PROPERTY LOCATED AT 0 RIDENOUR ROAD; PARCEL ID NO. 025-013236; CURRENT ZONING L-SO; REQUESTED ZONING L-MFRD; NATIONAL CHURCH RESIDENCES; GEORGE TABIT, APPLICANT. Jones described the project (presentation attached to Ordinance); this property on Ridenour Road was previously rezoned from RID to L-SO in 2016; certain uses within Suburban Office are undesirable and overlay text was to limit certain uses; nursing and personal care facilities are most likely use of property; in 2017 City changed zoning code and nursing facilities were moved out of Suburban Office; now only permitted in MFRD because people live there 24 hours a day and it was thought to not be appropriate in an office setting; characteristics are more similar to multifamily; rezoning and Conditional Use required to allow use; showed preliminary site plan; reviewed rezoning criteria; stated this application went through Area Commissions and non-binding feedback was provided from that meeting; located within a TIF district; City would get an additional $197,000 per year for the Johnstown Rd. TIF; he listed eligible uses for funds; staff recommends approval because proposed use and zoning are less intense than current zoning; showed overlay text. City of Gahanna Page 1 Committee of the Whole Meeting Minutes January 14, 2019 Applicant, David Hodge, said that Jones provided an excellent summary of the project; would like to add that not included in staff report is that before property was zoned into RID, it was zoned suburban office; this property has had a similar designation on it for some time; as mentioned, the current zoning allows for more intense uses than what we are proposing; the TIF is already in existence, this is not an ask from us; thinks the number provided was conservative; our analysis indicates that $6 million would go into the TIF over the life; in terms of location of property, it is a great location for this type of nursing; the golf course is across the street; some existing park facility for people to get outside and enjoy nature; close proximity to Creekside; the site plan is not something to talk about tonight, this was just sent so you could see something conceptual; architect is here tonight; it was intentionally set back to the east; there’s a tree row in the center of the property; wants to preserve those trees and provide green space for the residents; the limitation is purposeful because we don’t want to come in and develop multi-family; for people who are coming from single family homes, need to move some place for comradery and meal assistance, and eventually have personal care; this is a low traffic generator; some information included in application from engineers; far less impactful to Ridenour. Schnetzer said broadly speaking he thinks this is a good fit; garage is on first floor; so will be no traditional run off; concerns about height of the building; concern is doesn’t fit for aesthetically pleasing purposes; can you move out horizontally; make your numbers work could that be possible; Hodge stated worked to keep trees; McGregor asked if parking was underground; most are underground; he submitted a plan to interior of the building (attached to Ordinance); there is parking on southeast corner, but major traffic feature; there is a circular drive; part of the circular drive is a landscape feature; this will be well treated and landscaped; 22’ of grade between top of terrace; penetrate the tree line that projects to the west; series of walkways; rest of the building is hidden from the west. There will be a Public Hearing on January 22. Request to come back to committee. RECOMMENDATION: Back to Committee on January 28. ORD-0001-2019 AN ORDINANCE DETERMINING THE NECESSITY OF AND AUTHORIZING THE ISSUANCE AND SALE OF ECONOMIC DEVELOPMENT REVENUE BONDS, SERIES 2019 (THE COLUMBUS ACADEMY PROJECT) OF THE CITY OF GAHANNA, OHIO, IN TWO SERIES IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $20,000,000; AUTHORIZING THE EXECUTION AND DELIVERY OF A LOAN AGREEMENT, AN ASSIGNMENT OF LOAN AGREEMENT, A City of Gahanna Page 2 Committee of the Whole Meeting Minutes January 14, 2019 BOND PURCHASE AGREEMENT, A TAX EXEMPTION CERTIFICATE AND AGREEMENT AND OTHER DOCUMENTS IN CONNECTION WITH THE ISSUANCE OF THE BONDS; AND DECLARING AN EMERGENCY. Jones said Columbus Academy approached the City regarding a new project they are pursuing on their campus; project would create a new indoor field house to accommodate athletic activities for the students; they are seeking assistance from the City on a proposed financing structure to allow for the issuance of tax-exempt revenue bonds issued by the City for the benefit of Columbus Academy; on July 6, 2015, City Council passed Ordinance ORD-0070-2015 that authorized the City’s participation in the same financing structure to allow Columbus Academy to construct their new cafeteria and other facility improvements; proposed financing structure for these tax-exempt bonds calls for the City to issue its revenue bonds and thereafter provide the proceeds of the bonds to Columbus Academy; these types of revenue bonds do not constitute a direct debt of the City and no City finances are pledged toward the repayment; Columbus Academy will be solely responsible for repayment; the City’s taxing power and full faith and credit are not pledged for repayment of the debt; it is very important to note that Columbus Academy will be solely responsible for the payment of debt service on the bonds; the City is acting solely as a conduit; if these bonds are tax-exempt, that means, generally, that Columbus Academy will pay a lower rate of interest versus doing a taxable transaction like an ordinary bank loan without the City ’s participation. In order to make the bonds tax-exempt, a municipal issuer, like the City, needs to issue the bonds; the City has authority to participate in this financing under Chapter 165 of the Ohio Revised Code; Marc Kamer from Dinsmore & Shohl LLP will work on behalf of Columbus Academy to supervise the proceedings necessary in order to make sure the bonds are lawfully issued; in addition, Bricker & Eckler will work on behalf of the City to review all documentation pertaining to the transaction in order to ensure that the City and the Gahanna CIC are protected from any liability; participation of the Gahanna CIC is required in this type of financing under Chapter 165 of the Ohio Revised Code; for its participation, the Gahanna CIC will receive $25,000 as part of this transaction; the CIC Board of Trustees reviewed and approved the proposal at their December 18, 2018 Board Meeting; Marc Kamer from Dinsmore & Shohl LLP and Columbus Academy representatives will be present at the Council meeting for the Public Hearing to present their project and answer any questions regarding their request; Schnetzer pointed out this is IRS law you have to go through conduit; way for us to be a good community partner to receive revenue. City of Gahanna Page 3 Committee of the Whole Meeting Minutes January 14, 2019 RECOMMENDATION: Public Hearing January 22, 2019; Consent Agenda. ORD-0002-2019 TO AUTHORIZE AN AGREEMENT WITH TREVI ENTERPRISES, LLC FOR TAX ABATEMENT FOR THE PROPERTY LOCATED AT 870 CLAYCRAFT ROAD, PARCEL ID NO. 025-013638 AND 025-013639; PART OF COUMMUNITY REINVESTMENT AREA #3. Jones said the Department of Planning & Development has been working to attract private investment to Central Park of Gahanna; as a result of these efforts, a Developer is interested in spending $ 17.12M to construct a 262,500 square foot industrial building at 870 Claycraft Road; this facility would lead to the creation of 40 jobs in the City of Gahanna; this site is on the old Claycraft Brick Company property which was torn down over a decade ago; developer is seeking to construct this 262,500 square foot industrial building on speculation because there currently is sufficient market demand from businesses for this type of facility; building a facility on speculation is a greater financial risk to the Developer due to not having secured tenants for the property at the time of construction. However, the Developer is willing to take this risk if the City of Gahanna is willing to provide a property tax abatement for the project; in an effort to reduce risk and make the project financially competitive, the Department recommends providing a 10 year 75% property tax abatement for the project ;As part of this incentive offer, the Developer has agreed to pay the City a $ 10,000 annual minimum service payment to offset the City’s risk from building the facility on speculation. In addition to any incentive provided by the City of Gahanna, JobsOhio has provided the Developer with a $1M loan from their Site Redevelopment Program to assist with construction of the facility; there are three direct revenue streams for the City from this project: TIF Revenue, Minimum Service Payments and Withholding Taxes. A summary of each is provided below; this project site is within the Central Park TIF District, which allows for each property to have a 30 year timeframe to collect TIF revenue from new construction. Based upon the estimated building valuation of $16.26M, the City is expected to receive $50,582 annually for the first ten years (incentive period); after the incentive period, the City is expected to receive $202,329 annually for the next 20 years; the total TIF Revenue generated from this project is estimated to be over $4.55M; as referenced above, the City is requiring the Developer to pay a $ 10,000 annual minimum service payment to the City; this payment is to reduce the City’s risk in the project due to not knowing what businesses will locate at the facility; this payment is required to be paid during the incentive period. The total minimum service payment revenue generated from this project is $100,000; the Developer is committing to creating 40 jobs on the property as part of the project; although the City of Gahanna Page 4 Committee of the Whole Meeting Minutes January 14, 2019 exact payroll amount from these jobs is not certain, it is estimated to be $1.25M annually; based upon this estimated payroll amount, the City would receive $18,750 in annual withholding taxes from the project; due to the revenue sharing agreement with the School District, the City is required to pay the schools half of the withholding tax revenue received from this project throughout the incentive period; as a result, the City is estimated to receive $9,375 annually during the incentive period, which totals $93,750 over the ten year period; in total, the City is expected to receive $699,573 in total revenue during the incentive period and $5.12M in total revenue over the next 30 years; Council would like this to come back to next committee. RECOMMENDATION: Back to Committee on January 28, 2019. PENDING LEGISLATION ORD-0116-2018 TO AMEND SECTION 161.081, CREDIT FOR TAX PAID TO ANOTHER MUNICIPALITY, OF CHAPTER 161, INCOME TAX, OF THE CODIFIED ORDINANCES OF THE CITY OF GAHANNA No further discussion. ITEMS FROM THE DIRECTOR OF SERVICE AND ENGINEERING ORD-0005-2019 TO VACATE .040 ACRES OF ALLEY RIGHT-OF-WAY LOCATED AT 123 GRANVILLE STREET; WHICH IS NO LONGER IN USE. Priestas said Mifflin Presbyterian Church is requesting vacation of approximately 0.040 acres of alley right-of-way located at 123 Granville Street; at some point in time the alley was removed, however, it was never officially vacated; the alley separates two parcels owned by the church by a 10 foot section of alley right-of-way, so they are requesting vacation to be able to create one cohesive parcel; the alley right-of-way serves no benefit to the City and is no longer in use. We are requesting an ordinance to vacate the alley right-of-way and to allow the Mayor to execute any documents necessary to transfer the right-of-way to the Church provided that any existing utilities in the right-of-way maintain easement after vacation; Council didn't have questions. RECOMMENDATION: Consent Agenda. City of Gahanna Page 5 Committee of the Whole Meeting Minutes January 14, 2019 ORD-0006-2019 TO AUTHORIZE THE MAYOR TO ENTER INTO A RECYCLING GRANT AGREEMENT WITH THE SOLID WASTE MANAGEMENT PLAN FOR THE SOLID WASTE AUTHORITY OF CENTRAL OHIO; AND TO DECLARE AN EMERGENCY. Priestas said Gahanna is a part of a refuse consortium that is facilitated by the Solid Waste Authority of Central Ohio (SWACO) with ten communities as members; the goal of the consortium is to be a resource conscience steward of the public’s money and assets; the best way for the consortium to be successful is to strive toward increased competition in the refuse industry and extend the life of the Franklin County landfill; the solid waste collection and disposal process is made up of four components; one of the four major components of this process is Household Collection Containers/Carts; household containers play a major role in determining the methods in how our residents are serviced, collection costs, the aesthetics of our community, and landfill capacity; two major goals of the consortium is to prolong the life of the landfill and reduce collection costs; these goals also align with the City of Gahanna Sustainable 2050 goal to reduce the amount of municipal solid waste per capita disposed in the landfill; once of the ways that SWACO has identified as being effective in achieving these goals is to have larger standardized collection containers for recycling. By increasing the size of the containers, it increases recycling thus reducing solid waste being transported to the landfill which in turn extends the life of the landfill. Standardizing the cart creates an even playing field among communities so that collection contractors can standardize their bids and realize efficiencies from using the more modern and standardized collection processes to take advantage of reduced collection costs; in an effort to increase recycling, SWACO has partnered with the Recycling Partnership to offer its consortium members a onetime grant opportunity to purchase standardized 64 gallon Toter recycling carts at a greatly reduced cost and transition away from our bin based collection practices and implement cart based recycling; carts usually cost approximately $45.00 each, however, with this grant opportunity being presented by SWACO and the Recycling Partnership, the City will be able to purchase carts for approximately $15.52 each; $45.02 - Cost of each cart; $22.50 - SWACO Grant per cart; minus the $7l.00 Recycling Partnership Grant; $ 15.52 - Net cost to the City of Gahanna per cart; in addition to offering the grant opportunity to allow the City to purchase the 64 gallon recycling carts at a reduced rate, SWACO is willing to finance the entire purchase up front and allow the City to reimburse SWACO over a three year period; respectfully requesting authorization for the Mayor to execute the Recycling Cart Grant Agreement with SWACO. RECOMMENDATION: Waiver of Second Reading, Adopt as Emergency, Consent Agenda. City of Gahanna Page 6 Committee of the Whole Meeting Minutes January 14, 2019 ORD-0007-2019 TO AUTHORIZE THE MAYOR TO GRANT FRANKLIN COUNTY A TWENTY FOOT WIDE STORM DRAINAGE EASEMENT OFF OF TAYLOR STATION ROAD; PID 025-010569. Priestas said the Franklin County Engineer recently performed maintenance on storm sewer that provides drainage for Taylor Station Road that outlets on City Property; the County owns and maintains the lines, however, no formal easement was ever acquired, so they are requesting a 0.138 acre drainage easement from the City of Gahanna so that they have access to perform future maintenance on the utility. RECOMMENDATION: Consent Agenda. ORD-0008-2019 TO AUTHORIZE THE MAYOR TO MAKE APPLICATION FOR A GRANT FROM AEP FOR AN ELECTRIC VECHICLE CHARGING STATION Priestas said requesting for Permission to Apply to AEP for Electric Vehicle Charging Stations; in an effort to secure funding for expanding electric vehicle charging station opportunities, and to support sustainable practices, we are requesting permission to apply to AEP for their electric vehicle charging station incentive program; the program could provide up to 100% of project cost to a maximum of $100,000 per fast charging station, or 100% of project cost to a maximum of $50,000 for level 2 charging stations; it is anticipated that this incentive, if awarded, would allow the City to install up to 5 charging stations throughout the City, at no out of pocket expense; respectfully requesting a resolution authorizing Gahanna to formally submit a grant application to AEP for this program and incentive and authorize the Finance Director to be able to establish a special fund and allow administration to execute any necessary agreements for the program. After discussion, Council requested that the requested legislation be change to a motion resolution for permission to apply for grant; Priestas to research other options; costs of charge stations. RECOMMENDATION: Consent Agenda. ITEM FROM THE DIRECTOR OF FINANCE ORD-0004-2019 SUPPLEMENTAL APPROPRIATION - Goods and Services Bury said as communicated, the temporary budget passed for the General Fund did not take into consideration items that are due in January for the first quarter, half of the year or annually for goods and services; some accounts require processing before January 31, 2019 City of Gahanna Page 7 Committee of the Whole Meeting Minutes January 14, 2019 and the temporary budget is not enough to allow processing; respectfully requesting a supplemental appropriation to the General Fund temporary budget from the unencumbered/unappropriated balance of the General Fund to the accounts listed below; requesting a waiver of second reading as the real estate taxes are due January 22; Council didn't have any quesitons. RECOMMENDATION: Waiver of Second Reading, Consent Agenda. ITEM FROM THE DIRECTOR OF PARKS & RECREATION ORD-0009-2019 TO AUTHORIZE THE MAYOR TO ENTER INTO AGREEMENT WITH THE GAHANNA CONVENTION AND VISITORS BUREAU (CVB) FOR THE OHIO HERB EDUCATION CENTER (OHEC) Mayor said working on finalizing terms of the agreement with legal; should have contract very soon. by Renner at 9:36 p.m. City of Gahanna Page 8