Explanation
BACKGROUND: This ordinance authorizes the Director of the Department of Development to modify a loan agreement, promissory note, and mortgage with Riverlodge III, LLC for the Riverlodge III project.
Riverlodge III is an affordable apartment development located on Broad Meadows Boulevard in North Columbus, adjacent to two other phases of the development. Riverlodge III was originally constructed in the 1970’s and was upgraded in 2017. This phase of the project consists of 147 units - 75 one bedroom units, 60 two bedroom units, and 12 three bedroom units.
When the development was upgraded in 2017, the City provided a $250,000.00 HOME loan to the project. Included in the terms of the loan documents was the requirement of the developer to seek consent from the City for the sale or transfer of the premises along with payment to the City from the proceeds of the sale/transfer. Franklin County has purchased a sewer easement through the property for $50,000.00. The developer is seeking consent to pay the City $2,350.00 of the $50,000.00 towards the loan. This reduction in payment will be memorialized in a modification to the original loan agreement, promissory note, and mortgage. Allowing the easement will assist nearby property owners and is in the best interest of the community. Agreeing to the reduced payment amount allows the project to move forward without prolonged negotiations on the amount that may be due to the City.
Original $250,000.00 Ord. 1016-2016 (PO046675) + Ord. 1946-2016
(PO046682) + Ord. 0688-2015 (PO046688)
Mod 1 $ 0.00
Total $250,000.00
Emergency action is requested in order for Franklin County to maintain their project schedule.
Fiscal Impact: No funding is needed for this modification.
Title
This ordinance authorizes the Director of the Department of Development to modify a loan agreement, promissory note, and mortgage with Riverlodge III, LLC for the Riverlodge III project and to declare an emergency...
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