Explanation
1. BACKGROUND
Broyo LLC (the “DEVELOPER”) plans to redevelop the former Gilbert building property located at 195-209 East Broad Street into a residential development with 164 residential units and structured parking (the “PROJECT”).
Columbus City Council passed Ordinance Number 2619-2020 on November 23, 2020, which created a Tax Increment Financing (TIF) area known as the PNC-Gilbert TIF to require owners of the parcels located within the TIF to make payments in lieu of taxes to pay for public infrastructure improvements identified in the ordinance. The Department of Development anticipates submitting legislation to authorize the Director of Development to enter into a Tax Increment Financing and Cooperative Agreement to assist the DEVELOPER with funding public improvements associated with the PROJECT, the execution of which will be conditioned upon the DEVELOPER’s agreement to provide affordable housing within the PROJECT; and
The DEVELOPER has agreed to commit twenty percent of the units in the PROJECT to affordable housing as follows: (a) fourteen (14) of the residential units in the PROJECT must be affordable to households at or below one hundred percent (100%) of the area median income (“AMI”) and (b) an additional nineteen (19) of the residential units in the PROJECT must be affordable to households at or below eighty percent (80%) AMI.
This Ordinance authorizes the Director of Development to enter into a Housing Development Agreement (the “AGREEMENT”) with the DEVELOPER to memorialize the DEVELOPER’S obligation to ensure that the PROJECT satisfies these affordable housing requirements for a fifteen-year term for each phase, commencing upon the issuance of the final certificate of occupancy.
The PROJECT involves an estimated total investment by the DEVELOPER of Fifty-Six Million Eighty Thousand Dollars ($56,080,000.00) and will result in an estimated 33 affordable units out of an estimated 164 units total for the PROJECT.
2. EMERGENCY JUSTIFICATION
Emergency legislation is required to allow for immediate effectiveness of this ordinance, which is necessary in order to enable the timely development of the above described Project.
3. FISCAL IMPACTS
There is no fiscal impact for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Housing Development Agreement with Broyo LLC (the “DEVELOPER”), to memorialize the DEVELOPER’S affordable housing obligations; and to declare an emergency.
Body
WHEREAS, the CITY wishes to foster investment in and the development of affordable housing in mixed-use, mixed-income neighborhoods; and
WHEREAS, the DEVELOPER plans to redevelop the former Gilbert building property located at 195-209 East Broad Street into a residential development with 164 residential units and structured parking (the “PROJECT”); and
WHEREAS, Ordinance Number 2619-2020, passed by Columbus City Council on November 23, 2020, created a Tax Increment Financing (TIF) area known as the PNC-Gilbert TIF to require owners of the parcels located within the TIF to make payments in lieu of taxes to pay for public infrastructure improvements identified in the ordinance; and
WHEREAS, the Department of Development anticipates submitting legislation to authorize the Director of Development to enter into a Tax Increment Financing and Cooperative Agreement to assist the DEVELOPER with funding public improvements associated with the PROJECT, the execution of which will be conditioned upon the DEVELOPER’s agreement to provide affordable housing within the PROJECT; and
WHEREAS, the DEVELOPER has agreed to help increase the stock of affordable workforce housing in the City with a commitment to make twenty percent (20%) of residential units in the PROJECT affordable as follows: (a) fourteen (14) of the residential units in the PROJECT must be affordable to households at or below one hundred percent (100%) of the area median income (“AMI”) and (b) an additional nineteen (19) of the residential units in the PROJECT must be affordable to households at or below eighty percent (80%) AMI, and will enter into this Housing Development Agreement (the “AGREEMENT”) with the City to memorialize that commitment prior to the execution of a Tax Increment Financing and Cooperative Agreement; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to enter into a Housing Development agreement with Broyo LLC in order to facilitate the construction of the PROJECT at the earliest possible time, and for the preservation of the public health, peace, property, safety, and welfare; 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 or her designee (the “Director”), on behalf of the City, is hereby authorized to enter into a Housing Development Agreement, presently on file with the Department of Development, 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 Director’s execution and delivery thereof, for purpose of memorializing Broyo, LLC’s commitments to workforce housing.
SECTION 2. That the Director or other appropriate officers of the City are authorized to execute and approve other instruments necessary or conducive to implementing this Ordinance and the transactions contemplated by the Housing Development Agreement, as well as administrative amendments to the Housing Development Agreement and such other instruments, subject to approval by the City Attorney’s Office, and to take all actions as may be necessary to implement this Ordinance and the transactions contemplated by the Housing Development Agreement and/or such other instruments.
SECTION 3. That for the reasons stated in the preamble hereto, which is hereby 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.