Explanation
BACKGROUND: The purpose of this ordinance is to authorize the Director of the Department of Public Utilities, Division of Power (“DOP”) to enter into a Memorandum of Understanding (MOU) with the Franklin County Convention Facilities Authority (FCCFA) pertaining to the construction of the new Hilton Hotel and pursuant to the requirements set forth by City Code 3312.19 to install street lighting for Convention Center Drive, which will be attached to the aforementioned new structure. The MOU will describe the FCCFA’s requirements for initial construction as well as set terms for continued maintenance and operation by the DOP and set agreed upon terms for said actions and responsibilities.
Additionally, the City pledged to transfer to the FCCFA up to $1.4 million from the City of Columbus Parking Meter Fund to pay debt service on the Existing Hotel in the event the FCCFA and Franklin County were unable to meet their respective obligations. To date, performance of the Existing Hotel has surpassed projections, the revenue generated from the Existing Hotel has exceeded that required to meet debt service, and significant reserve funds have accrued. As such, the $1.4 million remains on account with the City.
Columbus has attracted large national and international conferences and sporting events, and continues to be a destination for business and leisure travel. To provide an adequate number of full service hotel rooms required to attract additional and larger conferences, conventions, and sporting events, the FCCFA has proposed the construction of an expansion (Hotel Expansion) to the Existing Hotel. The Hotel Expansion would add approximately 470 full service guest rooms, and an estimated 49,000 square feet of convention meeting space, restaurants, and support facilities, at an estimated cost $180 million.
Funding for the Hotel Expansion will be the responsibility of the FCCFA which will issue one or more series of Hotel Expansion Bonds. The FCCFA pro...
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