Explanation
BACKGROUND
This legislation authorizes the Director of the Department of Development to enter into an Economic Development Agreement with Gravity Project 3 Holdings, LLC (hereinafter the “Developer”).
The Development Team is proposing to construct a one-hundred and nineteen million dollar ($119,000,000) mixed-use development known as GreenHouse Gravity, that will include retail, residential units, and a structured parking garage with a mix of public and private parking spaces (the “Project”). The Economic Development Agreement (the “EDA”) will outline the plans and certain commitments of the Developer and the City as it relates to the Project.
The Developer will construct approximately three-hundred and thirteen (313) apartment units, with thirty-two (32) units as affordable at or below eighty percent (80%) Area Median Income (“AMI”), five thousand and three hundred (5,300) square feet of retail incubator space, a three hundred and twenty-four (324) space structured parking garage with a minimum of fifty (50) parking spaces open and dedicated to the public for a period of thirty (30) years.
The Department will submit for City Council consideration, all necessary legislation to authorize the Director to enter into one or more subsequent agreements with the Developer (such agreements, whether one or more, the “Subsequent Agreements”) to authorize City contributions totaling an amount not-to-exceed $4,000,000.00 (the “City Contribution”) for the purpose of reimbursing the Developer for certain eligible project costs that include the following: Public Parking Spaces, Public Infrastructure Improvements, Public Art and Place-making Improvements, and Inclusive Housing Units.
Emergency action is requested to allow the Developer to maintain the project schedule and move forward with closing on project financing with its lender, the commitment of which expires at the end of June 2023 and requires the approval of the City’s EDA.
FISCAL IMPACTS
There is no fiscal impact for this legislation.
Title
To authorize the Director of the Department of Development to enter into an Economic Development Agreement with Gravity Project 3 Holdings, LLC to outline the plans and certain commitments of the parties concerning the GreenHouse Gravity development; and to declare an emergency. ($0.00)
Body
WHEREAS, Gravity Project 3 Holdings, LLC (the “Developer”) is proposing to redevelop the real property located on the former AD Farrow Harley Davidson dealership and NWD Franklinton, LLC sites generally located at 501 West Broad Street and 36 S. May Avenue and identified as Franklin County Tax Parcels 010-021196.00, 010-050085-00, 010-057684-00 and 010-000899-00 (the “Project Site”); and
WHEREAS, the Developer is proposing to redevelop the Site into a mixed-use development that will include retail, residential units, and a structured parking garage with a mix of public and private parking spaces (the “Project”); and
WHEREAS, the Project is being undertaken as a Public-Private Partnership (3P) between the City and the Developer as a signature project for the East Franklinton neighborhood that will include financial incentives on the condition of the Developer meeting certain City policy goals; and
WHEREAS, the Development Team’s Project has been undertaken in cooperation and partnership with the City as a signature project for the Franklinton neighborhood; and
WHEREAS, the Developer agrees to designate thirty-two (32) residential units as affordable to those with household income at or below eighty percent (80%) Area Median income (“AMI”) subject to certain conditions precedent; and
WHEREAS, the Developer will construct approximately five thousand three hundred (5,300) square feet of incubator space for small businesses, with a focus on minority-owned, women-owned and/or veteran-owned businesses; and
WHEREAS, the Parties desire to memorialize their understanding and agreements with respect to such cooperation; and
WHEREAS, the City’s obligation and agreement to provide financial assistance as set forth herein is contingent upon the subsequent adoption of appropriate legislation by Columbus City Council authorizing such assistance; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Development in that it is necessary to authorize the Director to proceed as quickly as possible with the execution of the Economic Development Agreement to allow the Developer to close on project financing with its lender, the commitment of which expires at the end of June 2023 and requires the approval of the City’s Economic Development Agreement, thereby allowing the Developer to start construction of the project; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development, or his designee, on behalf of the City is authorized to enter into an Economic Development Agreement presently on file with the Department, along with any changes or amendments thereto not inconsistent with this Ordinance and not substantially adverse to the City and which shall be approved by the Director and the City Attorney, provided that the approval of such changes and amendments thereto, and the character of those changes and amendments not being substantially adverse to the City, shall be evidenced conclusively by the execution and delivery of the amended Economic Development Agreement with Gravity Project 3 Holdings, LLC to outline the plans and certain commitments of the parties relating to the proposed development of the real property located on the former AD Farrow Harley Davidson dealership and NWD Franklinton, LLC sites generally located at 501 West Broad Street and 36 S. May Avenue in the Franklinton neighborhood of Columbus.
SECTION 2. That for reasons stated in the preamble hereto, which is made a part hereof, this Ordinance is declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.