Explanation
Background: On January 29, 2003, the City purchased from the Columbus Urban Growth Corporation ("CUGC") 16.2 acres of the former Federated Department Stores property at the Northland Mall for $2.62 million. At the time of purchase, an Agreement for Purchase & Sale between CUGC and Northland Associates LLC for 10.887 acres of former Federated property, including the former department store building, the "Lazarus Site", was assigned and assumed by the City of Columbus. The purchase by Northland Associates LLC was contingent on obtaining a tenant for the building. Since the purchase by the City, CUGC and Northland Associates LLC have negotiated a lease with Retail Ventures, Inc. for the Lazarus Site for its principal corporate offices. As a result of the negotiations it was necessary to amend the original purchase agreement to permit, among other matters, an extension of the time for the removal of buyer's contingencies. Under the contract, the City will receive $2 million for the Lazarus Site. In order to complete the sale of the property the Director of Development needs to be authorized to enter into additional agreement(s) and to grant easements benefiting the former Lazarus site.
Fiscal Impact: The sale proceeds of Two Million Dollars ($2,000,000), less any closing expenses required to be borne by the Seller, under the purchase contract with Northland Associates LLC, shall be deposited in Fund No. 735.
Emergency Justification: Emergency action is requested in order to meet the purchase contract deadlines for closing on the transaction.
Title
To authorize the Director of Development to execute easements and other documents incidental and necessary to the sale of 10.877 acres of the former Lazarus Department Store site at the former Northland Mall to Northland Associates LLC, and to declare an emergency.
Body
WHEREAS, On January 29, 2003, the City of Columbus purchased 16.2 acres formerly owned by Federated Department Stores, Inc., the "Lazarus Site", from the Columbus Urban Growth Corporation for Two Million Six Hundred Twenty Thousand Dollars ($2,620,000.00); and
WHEREAS, the purchase included the assignment to the City and assumption by the City of an Agreement of Purchase and Sale between Columbus Urban Growth Corporation and Northland Associates LLC for 10.877 acres of the Lazarus Site; and
WHEREAS, the obligation of Northland Associates LLC to purchase the Lazarus Site was and is contingent on Northland Associates LLC obtaining an executed lease by a tenant for the site; and
WHEREAS, Northland Associates LLC has negotiated a lease with Retail Ventures, Inc. for the Lazarus Site, and has indicated that it is ready, subject to obtaining certain easement rights and other agreements from Columbus Urban Growth Corporation and the City, to proceed to closing and purchase of the Lazarus Site; and
WHEREAS, it is necessary to authorize the Director of Development to execute such easements and other agreements, as are set forth more fully in the body of this ordinance, and as are necessary to facilitate the sale to Northland Associates LLC of the Lazarus Site; and
WHEREAS, an emergency exists in the daily operation of Department of Development, in that it is immediately necessary to authorize the Development Director to execute such documents as are necessary to facilitate the sale of the Lazarus Site in order to meet the deadlines for closing under the Agreement for Purchase and Sale of the Lazarus Site to Northland Associates LLC, all 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 proceeds of Two Million Dollars ($2,000,000.00), less any closing costs and expenses to be borne by seller, from the sale of the Lazarus Site under that certain Agreement for Purchase and Sale between Columbus Urban Growth Corporation, "CUGC", and Northland Associates LLC, including those amendments as are on file in the offices of the Department of Development as of the date of passage of this ordinance, hereinafter the "Agreement", said Agreement having been assigned to and assumed by the City of Columbus pursuant to an Assignment of Agreement of Purchase and Sale and Consent to Transfer of Property, dated January 29, 2003, among the City, CUGC, and Northland Associates LLC, be directed to be deposited by the City Auditor in Fund No. 735.
Section 2. That the Director of Development be authorized to execute utility easements, in a form approved by the Real Estate Division of the Department of Law, encumbering the remaining portions of the former Northland Mall property owned by the City, as such are reasonable and necessary to redevelop and serve the Lazarus Site.
Section 3. That the Director of Development be authorized to execute a non-exclusive parking easement (which may be exclusive with respect to up to 100 spots), in a form approved by the Real Estate Division of the Department of Law, for 250 parking spots for the benefit of the Lazarus Site on the remaining portions of the former Northland Mall property owned by the City at a site mutually agreed by the City, CUGC, Northland Associates LLC and Value City, Inc.
Section 4. That the Director of Development be authorized to grant a temporary access easement, in a form approved by the Real Estate Division of the Department of Law, over the area designated as Roadway Easement on the survey plat of the Lazarus Site prepared by EMH&T, dated September 10, 2003, on file in the offices of the Department of Development, for the benefit of the Lazarus Site, said temporary easement to terminate upon the dedication of such area as public streets open to the public.
Section 5. That the Director of Development be authorized to execute an agreement, in a form approved by Real Estate Division of the Department of Law, applicable to the City owned property between the Lazarus Site and Morse Road, limiting the height of any buildings and other improvements.
Section 6. That the Director of Development be authorized to sign one or more agreements to implement the provisions of Sections 2 through 5 of this ordinance and such other ancillary documents as approved by the Real Estate Division of the Department of Law as may be necessary to implement the provisions of this ordinance and the sale of the Lazarus Site under the Agreement.
Section 7. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby 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 its passage if the Mayor neither approves nor vetoes the same.