Explanation
Background: Ordinance No. 1699-2020 rezoned the property at the northwest corner of the intersection of West Broad Street and Doherty Road located at 5930 West Broad Street (Tax ID Parcel No. 570-184818, the “Private Improvements Site”); it also required certain public infrastructure improvements to Doherty Road and West Broad Street (the “Project”). Metro Development LLC (the “Developer”) invested approximately $18 million at the Private Improvement Site to develop 192 multi-family units and other improvements (the “Private Improvements”). As the Private Improvements Site is subject to the Big Darby Accord Watershed Master Plan (2006) and the revenue program created by Resolution No. 0216X-2008, City Council, by its Ordinance No. 2535-2020, authorized the City and Developer to enter the Big Darby - Crown Pointe Development Agreement dated December 1, 2020 to outline the establishment of tax increment financing, a new community authority, and a developer contribution. The City and the Developer anticipated financing the Project with obligations that would be repaid from the aforementioned public revenues generated by the Private Improvements.
City Council created a tax increment financing area over the Private Improvement Site pursuant to R.C. Section 5709.40(B) (the “West Broad Street TIF”) by its passage of Ordinance No. 2990-2021, as subsequently amended by Ordinance No. 3154-2022 to add additional parcels. Furthermore, City Council created a new community authority (NCA) over the Private Improvement Site (the “Big Darby West Broad Street NCA”) pursuant to R.C. Chapter 349 by its adoption of Resolution Nos. 0060X-2021 and 0242-2021, and has since expanded the district of the Big Darby West Broad Street NCA by additionally adopted resolutions. This legislation approves and authorizes the Director of the Department of Development to enter into a cooperative agreement (the “Cooperative Agreement”) by and among the City, the Big Darby West Broad Street NCA, the Developer, and the Columbus-Franklin County Finance Authority (the “Issuer”) pursuant to which the Issuer will issue bonds to finance a portion of the Project. This legislation will also authorize the appropriation and transfer or expenditure of the service payments in lieu of taxes generated from the Private Improvement within the West Broad Street TIF pursuant to the Cooperative Agreement.
Emergency Justification: An emergency exists in the usual daily operation of the Department of Development insofar as it is immediately necessary to enter into the Cooperative Agreement in order to allow the parties to close on the bond issuance within 30 days thereby allowing the bond proceeds to be instantly deposited with the City for the purpose of allowing the prompt submission of subsequent legislation to authorize the construction contract for the public infrastructure improvements at Doherty Road and West Broad Street, which any delay in proceeding with construction may cause the bid amount of the public project to increase or be null.
Fiscal Impact: No funding is required for this legislation. Pursuant to the Cooperative Agreement authorized by this Ordinance, the City is appropriating and authorizing the expenditure or transfer of the service payments in lieu of taxes subject to the West Broad Street TIF deposited or to be deposited in the West Broad Street Municipal Public Improvement Tax Equivalent Fund, but only those service payments in lieu of taxes generated by the Private Improvements on the Private Improvement Site and not those subject to Ordinance No. 3154-2022.
Title
To appropriate and authorize the expenditure or transfer of the West Broad Street TIF service payments in lieu of taxes generated by the improvements to parcel(s) subject to Ordinance No. 2990-2021 (but not those subject to Ordinance No. 3154-2022) and deposited in the West Broad Street Municipal Public Improvement Tax Increment Equivalent Fund pursuant to the ensuing Cooperative Agreement; to authorize the Director of the Department of Development to execute and deliver the Cooperative Agreement by and among the City of Columbus, the Big Darby West Broad Street NCA, Metro Development LLC, and the Columbus-Franklin County Finance Authority for the financing of certain public infrastructure improvements to West Broad Street and Doherty Road required by both Ordinance No. 1699-2020 and the Big Darby - Crown Pointe Development Agreement dated December 1, 2020 between the City and Metro Development LLC; and to declare an emergency. ($0.00)
Body
WHEREAS, Ordinance No. 1699-2020 (the “Rezoning Ordinance”) rezoned property at the northwest corner of West Broad Street and Doherty Road located at 5930 West Broad Street (Tax ID Parcel No. 570-184818, the “Private Improvement Site”); and
WHEREAS, Metro Development LLC (the “Developer”) invested approximately $18 million at the Private Improvement Site to develop 192 multi-family units and other improvements (the “Private Improvements”); and
WHEREAS, the Rezoning Ordinance further requires the Developer to complete certain public infrastructure improvements to Doherty Road and West Broad Street (the “Project”); and
WHEREAS, consistent with the Big Darby Accord Watershed Master Plan (2006), the Private Improvements Site is subject to the establishment of certain public financing tools pursuant to the revenue program established by Resolution No. 0216X-2008; and
WHEREAS, City Council, by its Ordinance No. 2535-2020, authorized the City and the Developer to enter the Big Darby - Crown Pointe Development Agreement dated December 1, 2020 to outline the establishment of tax increment financing, a new community authority, and a developer contribution to be used to reimburse obligations issued for the Project; and
WHEREAS, by Ordinance No. 2990-2021 (the “TIF Ordinance”), City Council created a tax increment financing area pursuant to R.C. Sections 5709.40(B), 5709.42, and 5709.43 whereby the City exempted the Private Improvements on the Private Improvements Site (the “West Broad Street TIF”) and required service payments in lieu of taxes to be made on the Private Improvements (the “Pledged Service Payments”); and
WHEREAS, pursuant to R.C. Chapter 349 and City Resolutions Nos. 0060X-2021 and 0242X-2021, City Council created a new community authority and its new community district over the Private Improvement Site (the “Big Darby West Broad Street NCA”) to allow community development charges to be assessed against the Private Improvements; and
WHEREAS, the TIF Ordinance was subsequently amended by Ordinance No. 3154-2022 (the “Additional Parcels TIF Ordinance”) to subject additional parcels to the TIF Ordinance, and the new community district of the Big Darby West Broad Street NCA was also expanded by subsequently adopted resolutions; and
WHEREAS, the Columbus-Franklin County Finance Authority (the “Issuer”) is willing to issue bonds to finance the Project provided that the City, Big Darby West Broad Street NCA, and the Developer each approve and enter into a new Cooperative Agreement (the “Cooperative Agreement”) with the Issuer; and
WHEREAS, pursuant to the Cooperative Agreement, the City is appropriating and authorizing the expenditure or transfer of the Pledged Service Payments (but not any service payments in lieu of taxes subject to the Additional Parcels TIF Ordinance) deposited or to be deposited in the West Broad Street Municipal Public Improvement Tax Equivalent Fund (the “TIF Fund”); and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development insofar as it is immediately necessary to enter into the Cooperative Agreement in order to allow the parties to close on the bond issuance within 30 days thereby allowing the bond proceeds to be instantly deposited with the City for the purpose of allowing the prompt submission of subsequent legislation to authorize the construction contract for the Project, which any delay in proceeding with construction may cause the bid amount of the Project to increase or be null, all for the immediate preservation of the public health, peace, property, safety, and welfare of the City; 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 (collectively, the “Director”), for and in the name of the City, is hereby authorized to execute and deliver the Cooperative Agreement presently on file with the Director, 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 as not being substantially adverse to the City, shall be evidenced conclusively by the execution of said Cooperative Agreement by the Director.
SECTION 2. That the Director or other appropriate officers of the City are authorized to take all actions as may be necessary to implement this Ordinance and the transactions contemplated by the Cooperative Agreement including, but not limited to, execution of the “Completion Certificate” described in the Cooperative Agreement.
SECTION 3. That the Pledged Service Payments (but not any service payments in lieu of taxes subject to the Additional Parcels TIF Ordinance) deposited or to be deposited into the TIF Fund (Fund 7481) created by the TIF Ordinance, shall be deemed appropriated for the purposes set forth in the Cooperative Agreement and authorized to be expended therefrom in accordance with the Cooperative Agreement, and the City Auditor is authorized to make payments to the Issuer, or its designee, from the Pledged Service Payments in the TIF Fund (Fund 7481) in accordance with the Cooperative Agreement upon order of the Director, and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 4. That, upon availability of the Pledged Service Payments, the City Auditor is authorized to appropriate and transfer an amount not to exceed $10,000.00 from the TIF Fund (Fund 7481) to the Business Tax Incentive Fund (Fund 2229) per the account codes attached to this ordinance.
SECTION 5. That the City Auditor is authorized to make annual transfers of $5,000 from the Pledged Service Payments in the TIF Fund (Fund 7481) to the Business Tax Incentive Fund (Fund 2229), subject to the authorization of the Director, for the “City TIF Administrative Fee” in accordance with the Cooperative Agreement and Ordinance No. 3169-2022, as amended by Ordinance No. 3449-2023.
SECTION 6. That the City Auditor is authorized to establish such accounting codes, as necessary, to make any accounting changes to revise the funding source for all agreements, contracts, or modifications associated with this Ordinance or the transactions contemplated by the Cooperative Agreement.
SECTION 7. That the City Auditor is authorized to transfer the unencumbered balance in a project account or subfund to the unallocated balance account within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 8. That for the reasons stated in the preamble 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.