Explanation
BACKGROUND
This Ordinance evolves from a series of 11 Ordinances previously authorized by Columbus City Council leading up to the contruction and operation of the 2 City owned garages located at 4th and Elm Streets and South Front Street.
Those previous ordinances adopted by Council are as follows:
1. Ordinance No. 1704-1996 passed as amended July 22, 1996 8. Ordinance No. 1655-2008 passed October 20, 2008
2. Ordinance No. 0709-2003 passed May 19, 2003 9. Ordinance No. 1879-2008 passed November 24, 2008
3. Ordinance No. 2198-2003 passed October 6, 2003 10. Ordinance No. 0689-2009 passed May 18, 2009
4. Ordinance No. 0180-2004 passed 11. Ordinance No. 1506-2009 passed November 9, 2009
5. Ordinance No. 1167-2007 passed July 23, 2007
6. Ordinance No. 1277-2007 passed July 30, 2007
7. Ordinance No. 0167-2008 passed February 4, 2008
Construction of the 2 garages is now complete and both garages are in operation. Ordinance No. 1506-2009 approved November 9, 2009 authorized the issuance of $29.5 million of City of Columbus Notes authorizing both the refunding of previously issued notes of $20 million and an additional $9.5 million to assure the completion and construction of the garages. It is now time to renew a portion of these Notes. Due to a successful completion of the garages, it is possible to redeem $4.5 million of these Notes and simply refund the remaining $25 million. The refunding of the $25 million will be a subject of a separate ordinance. This Ordinance also authorizes the expenditure of $590,000.00 for the payment of interest on the existing $29.5 million of Notes.
The $5,090,000.00 is presently available and will come from the Parking Garage Enterprise Fund No. 630. These payments have no relationship and will have no impact on the City's General Operating Fund.
Both of these City owned garages are operated by Capitol South Community Urban Redevelopment Corporation.
FISCAL IMPACT
Funding for both the redemption of the principal amount of $4.5 million and the interest due on existing Notes of $590,000.00 is available within the Parking Garage Enterprise Fund No. 630.
Emergency action is necessary in order to be fully prepared for the refunding of the remaining $25 million outstanding notes.
Title
To appropriate and authorize the expenditure of $4,500,000.00 for principal redemption and $590,000.00 for interest payments on Columbus Notes applicable to the 2 City owned garages on 4th and Elm Streets and South Front Street; and to declare an emergency. ($5,090,000.00)
Body
Whereas, the City Council, through a series of Ordinances (listed above) previously approved by Council, authorized the construction of 2 City owned garages, and
Whereas, the construction of these garages is now complete and the garages are in full operation, and
Whereas, the total of $29.5 million of City of Columbus Notes has been previously authorized by this Council, and
Whereas, the successful completion of the construction of the garages allows for a partial redemption of these outstanding Notes, and
Whereas, interest is coming due on these previously issued Notes, and
Whereas, an emergency exists in the usual daily operation of the City Auditor , in that it is immediately necessary to appropriate and authorize the expenditure of $4,500,000.00 of principal redemption, and $590,000.00 for interest payments on Columbus notes applicable to the 2 City owned garages on 4th and Elm Streets, and South Front Street, thereby preserving 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 City Auditor is authorized to redeem $4.5 million of the previously issued $29.5 million of City of Columbus notes.
Section 2. The City Auditor is authorized to expend $590,000.00 in order to pay interest on the previously issued Notes.
Section 3. Such principal payments will come from the following subfunds of the City's Garages Enterprise Fund No. 630:
Subfund No.
001 - $ 577,510.74
001 - 1,978,553.00
001 - 349,985.02
003 - 193,951.24
006 - 1,400,000.00
$ 4,500,000.00
Section 4. Payments for the interest due on the existing outstanding Notes of $29.5 million is to come from the following subfunds of the City's Garages Enterprise Fund No. 630:
Subfund No.
001 - $ 215,966.36
002 - 167,991.80
008 - 206,041.84
$ 590,000.00
Section 5. Funds are hereby deemed appropriated in order to carry out the purposes of this Ordinance.
Section 6. 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 passage if the Mayor neither approves nor vetoes the same.