CITY OF GAHANNA FIBER EXPANSION PLAN 1/10/11
Presented to Gahanna City Council
Presentation Outline
Plan Purpose
Guiding Principles
Expand Public Infrastructure, Cost Effectiveness
Urgency, Return on Investment
S Sources and dU Uses
TIZ and TIF Funds, Public Infrastructure
M Maps and d Plan Pl Summary S
Strategic Public Infrastructure, Implement City Plans
4 Phased Plan
R Recommendation d i
Fiber Expansion p Plan Purpose p Investment of The Industrial Zone (TIZ) Funds
Council Recommended TIZ Funds for Public Infrastructure that impacts Economic Development
$9.6 million in TIZ Funds since 1996
TIZ Funds governed by Section133.06 PILOTS from 30 land leases with 30 year terms Current TIZ Fund Balance $887,946 $ ,
Balance of TIZ Funds to be leveraged for:
Extending Fiber Optic Public Infrastructure Hi h financial Highest fi i l return on iinvestment Advance City’s Competitive Position within Nation Provide Direct benefit to Gahanna Businesses Increase Economic Development Toolbox
Fiber Expansion p Plan Purpose p Strategic Infrastructure Investment
Broadband Strategic Plan: Expand City Fiber Optic Network
Improve municipal and police service delivery while managing long-term infrastructure costs
Create an Economic Development Tool that encourages competition
Economic Development Plan: Industrial Strategy #3 #3-4 4
Stimulate growth in technology industry clusters
Provide Technology Infrastructure Improvements to provide additional “C “Connectivity” ti it ” tto b businesses i
Citizen Financial Advisory Committee: Sustainable Growth
M i i iinfrastructure Maximize f investments i
Protect and strengthen economic development initiatives
Fiber Expansion p Plan Principles p
Expand City’s Fiber Optic Infrastructure
Improve access that businesses have for municipal and police services
Control broadband costs in the long term through redundancy
Encourage competition in Broadband Market to increase service levels and reduce the cost for Broadband services locally
Cost Effectiveness
Fiber Expansion plan to target OCT District
Expansion Plan & connects 123 commercial properties
Aggressive Job Creation and Retention Strategy
Installation of 4.25 miles of fiber designed for reduced cost
Both above and below ground conduit lines
Fiber Expansion p Plan Principles p
Project j Urgency g y
Infrastructure Expansion of 2007 Broadband Strategic Plan Completed
Expiring tax abatements in OCT District require immediate business retention
M li l b Multiple businesses i di directly l inquired i i d as to their h i immediate i di need d
Return on Investment
Infrastructure Expansion will provide City with competitive edge in region
Improve municipal service delivery and manage long-term infrastructure costs
Targets businesses that have shown direct interest
Targets properties with expiring property tax abatement
Aggressive Target of Job Creation and Job Retention Projects
Grow and Sustain General Fund Dollars through increased income tax revenue
Sources and Uses SOURCES
The Industrial Zone (TIZ) Fund
C Current Balance: l $88 $887,946 946
USES
Funding for Design of Phases 1-3 Funding for Build of Phase 1
Current Balance $2.9 million
Funding for Build of Phases 2-4
TIZ Funds best leveraged for public infrastructure
Tax Increment Fund (TIF)
Public Infrastructure
Council Recommendation
TIF Funds required to be used for public infrastructure
E Economic i Development D l
133.06 Gahanna Code
TIZ Funds for ED purposes
4 Phased Fiber Expansion p Plan PHASE 1
Timeframe: 7 weeks
Total Cost: $233,532 Est. with Design and Build
Path: Science, Claycraft, Gahanna Pkwy, Taylor Station and Taylor
Impact: 38 Commercial C i l Properties P ti
4 Phased Fiber Expansion p Plan PHASE 2
Timeframe: 7 weeks
Total Cost: $226,354 Est. with Design and Build
Path: Taylor Station, Taylor and Cross Pointe
Impact: Fiber Redundancy 29 Commercial Properties
4 Phased Fiber Expansion p Plan PHASE 3
Timeframe: 9 weeks
Total Cost: $364,288 Est. with Design and Build
Path: Claycraft, Morrison, Tech Center and Taylor Station
Impact: Fiber Fib Redundancy R d d 26 Commercial Properties
4 Phased Fiber Expansion p Plan PHASE 4
Timeframe: TBD
Total Cost: TBD
Path: Research, Blatt, Enterprise and Taylor
Impact: Fiber Redudancy 30 Commercial Properties
R Recommendation d i Appropriate A i no more than h $35 $35,000 000 from f TIZ Fund for the design of Phases 1-3 of the Fiber Expansion Plan