Update to time lapse video. At the Oct 22, 2013 administration committee meeting we learned that the contract for the construction project contained money for site pictures and security video. The city has chosen to combine these funds with the time lapse funds. This will allow them to do the time lapse, security and site pictures all through the same vendor. With all these combined the city will also get a continual web cam feed so people can go on the internet and see the current state of construction. The overall cost of this will be higher than the $9450 but not more than the combination of the three. The assistant city manager did not state what the total cost will be and none of the council members asked during the meeting.
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From the city's web page you can see it here http://www.hhoh.org/for-residents/music-center.html
This is a still photo that shows that it worked this morning, 5 Dec 2013.
This link may take you there directly, though I'm having network problems and can't confirm this.
http://webcampub.multivista.com/index.cfm?WebcamPublicEmbedUID=1443F662-56F6-4011-B705-13F69D6FEEC8&fuseaction=aPublicWebcam.getHTTPStream&dc=1386247667160
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The agenda's and read ahead for Tuesday (Oct 8, 2013) committee meetings are available on the city's website. Items of interest include discuss of the need for a (nuisance) false alarm ordinance during Monday's (yesterday) Public Service meeting. A ten year property tax exemption for a company in the Community Reinvestment Area (CRA), the results on how the city has decided to address basketball in the streets, an eminent domain appropriation, and a discussion about the construction of the concession stand at Thomas Cloud Park all during the Public Works meeting Tuesday. The Administration Committee meeting that follows does not have read aheads for the Music Center, The Heights or the Carriage Trails agenda items. But we do see that the city expects to convert $8 million of notes into Bonds, there is a proposal for a $9,450 time lapse video of the construction of the Music Center and we can look at some proposed documentation on a program designed to speed up foreclosures.
Agenda Item Description or Legislation Title
- Issuance of Notes/Bonds
Purpose and Background
The City has notes coming due on Nov 9, 2013. The notes will need to renewed and rolled over for an additional period of time as notes or taken long as bonds. $8.050 million in notes were issued to fund the construction of the aquatic center. Construction is now complete and the City can take out this portion of the notes into long-term bonds. The City will use a limited pledge of income tax revenue to receive a more favorable rate, but use TIF revenue to actually pay the debt service. The remaining notes are being used for two purposes - the new music center and the ongoing Infrastructure costs at Carriage Trails. It is recommended that these notes be rolled over for an additional year since construction is ongoing. Additionally, there will be a new money piece of $5.025 million in notes related to the ongoing construction of the music center. This is consistent with the plan to issue notes or loans to generate proceeds of $18 million as needed to fund construction costs for the project.
Administration Committee Agenda
1.
Name of Body:
Administration Committee
Date:
October 8, 2013
Time:
6:00 P.M.
Place:
City Hall – 6131 Taylorsville Road –
City Council Conference Room
Topics of Discussion:
- City Marketing
- Employee Personnel Manual
- Music Center
- The Heights Development
- Carriage Trails
- Issuance of Notes/Bonds
- Land Reutilization Program
Public Works Committee
Date: October 8, 2013
Time: 4:30 P.M.
Place: City Hall – 6131 Taylorsville Road –
City Council Conference Room
8. Topics of Discussion:
- Enman Tool & Die - Community Reinvestment Area and ED/GE Grant
- Obstructions - Right-Of-Ways
- Sidewalk and Interior Streets Program - Notification To Property Owners
- Right-Of-Way Appropriation - Chambersburg Road/Bellefontaine Road
- Brandt Pike/Shull Road Pump Station Repair
- Concession Stand - Thomas Cloud Park
Tuesday agenda's Music Center, Debt Financing, $9,450 Marketing Video
Edited
Comments
Income tax revenue to back Aquatic Center Debt
Yes, council has made it so your taxes will probably go up because of the Music Center. It is important to notice that in order to get the best interest rate for the Aquatic Center Bonds the city has to use Income Tax revenue to guarantee payments. See the Oct 8, 2013 Admin committee agenda. This is probably because the banks have done the calculations and figured out that there's not enough money expected to come in to the TIF. This conclusion comes before most of the Music Center money is borrowed. If the banks are right then the city will have to use income taxes to pay off the Aquatic and Music Centers.
I contend the Music Center will force higher taxes because the Music Center doesn't look like it is going to make enough money to cover operational costs. The conclusion made in the second statement, "Based on the validation study" was written by someone that either didn't read or understand the validation study. If you read it you'll see the only possible way for it to make enough money to cover operations and management is if all the stars align perfectly every minute of the day.
TIF money is just another way of saying modified property tax. The city modifies the property tax in such a way that it diverts the payments from where they normally go into a special fund. See a partial explanation showing how one property taxpayer normally would pay $13,000 to police and fire funds but because of the TIF only pays about $500.
TIF dollars do not have to be used in the TIF district and even if they did it is easy for the city to include other areas into the TIF. TIF dollars must be used in a manner that "strengthens" the properties that pay into the TIF. When the Aquatic Center was being built we were told that it couldn't be built in the Huber Center because it was too far away from the TIF district. This year the Alcore Assisted Living Center on Bellefontaine and Fishburg was declared a TIF area. The taxes divert from there will go to pay for the Music Center. Just for reference Music and Aquatic Centers aren't even remotely similar to the list of items found in the definition of Public Infrastructure Improvements found in ORC 5709.40 (7).
Huber Center added to TIF district in Nov 2012
For TIF properties, the city takes 70% of what the school would normally collect. This is not required by law.
The Ohio revised code for TIF municipalities is 5709.40. Looking at section (D) (1) tells me that the city could give all the TIF money to the schools if they wanted to do this. Other sections talk about the negotiations between the school and the city to determine how much the school will get.
When it came time to negotiate for the Huber Center TIF last November (2012) the City only gave the schools 30% of what the schools would have gotten if the TIF wasn't created.
Today the school's are losing tax revenue on the Music Center because the city now owns 33 acres that Miejer use to pay taxes on.
If businesses decide to build in "The Heights" keep in mind it will take three new ones just to make up for how much the city takes.
Last edit: by Tom_McMasters