Explanation
BACKGROUND: The Columbus Urban Growth Corporation was organized to increase the commercial and industrial development activities and investment in the core city. The Crosstown Building, located at 11th Avenue and Cleveland, is one of Urban Growth's core redevelopment projects. The building, which is owned by Crosstown building, LLC, a limited liability company established by Columbus Urban Growth Corporation, has been redeveloped and is occupied by a restaurant and several offices. The City of Columbus has a lien on the property as a result of a CDBG, Business Development loan to rehabilitate the building. The building is currently for sale and has a genuine offer on the table. The City of Columbus needs to release the lien and the financing statement on this parcel in order to allow the sale of the property to be completed. The proceeds from the sale of the Crosstown Building will be used to pay off the first lien holder on the property. The City of Columbus lien will only be released upon sale of the building.
This legislation authorizes the Director of the Department of Development to release the City's mortgage and financing statement recorded as instrument # 200009190189630 and instrument # 200009250193716, respectively, in the Franklin County Recorder's Office on tax parcel 010-006690, the Crosstown Building property.
Emergency action is requested to allow the release of the mortgage and financing statement at the Crosstown Building in a timely manner.
FISCAL IMPACT: No funding is necessary for this legislation.
Title
To authorize the Director of the Department of Development to release a City of Columbus mortgage and financing statement on the Crosstown Building, located at 11th and Cleveland Avenue; and to declare an emergency.
Body
WHEREAS, the City of Columbus holds a mortgage on real property owned by Crosstown Building LLC, parcel 010-006690, located at 11th Avenue and Cleveland Avenue, as a result of a CDBG, Business Development loan to rehabilitate the building; and
WHEREAS, the Crosstown Building is currently under contract for sale; and
WHEREAS, Crosstown Building, LLC has requested the City of Columbus to release its lien and financing statement on this parcel in order to allow the sale of the property to be completed; and
WHEREAS, the proceeds from the sale of the Crosstown Building will be used to pay off the first lien holder on the property; and
WHEREAS, the City of Columbus lien will only be released upon sale of the building; and
WHEREAS, the Director of Development has determined that it is in the City's best interest to release its security interests in the real property; and
WHEREAS, emergency action is necessary to allow the release of the mortgage on the Crosstown Building in a timely manner; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to release the mortgage on the Crosstown Building property 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 Director of the Department of Development is authorized to execute releases of the City of Columbus mortgage and financing statement, recorded in the Franklin County Recorder's Office as instrument #200009190189630 and instrument #200009250193716, respectively, on tax parcel 010-006690 to Crosstown Building, LLC.
Section 2. 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 passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.