Explanation
BACKGROUND: The purpose of this ordinance is to authorize the Director of the Department of Development to accept an Ohio Department of Development roadwork grant of $500,000, contingent on State Controlling Board approval, for improvements to Stelzer Road to benefit the NetJets expansion at Port Columbus, to appropriate the monies within the General Government Grant Fund and, in turn, authorize the Public Service Director to enter into a guaranteed maximum cost agreement with NetJets to construct the improvements.
The roadwork grant, and this associated request for authorization to accept the grant, is part and parcel of an incentive package to allow NetJets to expand in Columbus. NetJets will invest an estimated $162 million to retain 1,931 full-time jobs at the project site and create an additional 810 new full-time jobs within three years.
Total Phase 1 infrastructure costs for Stelzer Road improvements, which will help benefit the NetJets expansion, will be approximately $30 million.
The Ohio Department of Development has approved the roadwork grant and has scheduled it for final approval at the State Controlling Board on August 4, 2008.
Authorization to apply for said grant funds was approved under Columbus City Council Ordinance No. 0747-08, dated May 5, 2008.
This legislation is submitted as an emergency in order to acquire the state roadwork grant as soon as possible after State Controlling Board approval.
FISCAL IMPACT: The City will receive $500,000 from the Ohio Department of Development to apply to Stelzer Road improvements. This ordinance contains an appropriation within the General Government Grant Fund and authorizes expenditure for this purpose.
Title
To authorize and direct the Director of the Department of Development to accept an Ohio Department of Development roadwork grant of $500,000 for Stelzer Road improvements, contingent on State Controlling Board approval, to benefit the NetJets expansion at Port Columbus; to authorize the appropriation of these monies within the General Government Grant Fund; to authorize the Public Service Director to enter into a guaranteed maximum cost agreement with NetJets pursuant to Section 186 of the Columbus City Charter to construct roadwork improvements on Stelzer Road; to authorize the expenditure of $500,000 or so much as may be necessary from the General Government Grant Fund. ; and to declare an emergency. ($500,000.00)
Body
Whereas, NetJets desires to expand operations at Port Columbus; and
Whereas, NetJets proposes to invest an estimated $162 million to retain 1,931 full-time jobs and create an additional 810 new full-time jobs within three years; and
Whereas, infrastructure improvements in and around Port Columbus to accommodate the NetJets expansion are estimated to cost approximately $30 million; and
Whereas, the Ohio Department of Development invited the Columbus Department of Development to apply for a $500,000 roadwork grant to help facilitate improvements to Stelzer Road to benefit the NetJets project and approved the grant contingent on State Controlling Board approval scheduled for August 4, 2008; and now therefore,
Whereas, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary to accept, appropriate and expend a $500,000 state roadwork grant as soon as possible after August 4, 2008 State Controlling Board approval in order to benefit the NetJets expansion project, all for the preservation of public health, peace, property, safety and welfare;
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development is hereby authorized and directed to accept for a $500,000.00 roadwork grant from the Ohio Department of Development, contingent on State Controlling Board approval, for improvements to Stelzer Road to benefit the NetJets expansion at Port Columbus.
Section 2. That the sum of $500,000.00 be and hereby is appropriated from the unappropriated balance of Fund 220, the General Government Grant Fund, and from all monies estimated to come into said Fund from any and all sources and unappropriated for any purpose during the fiscal year ending December 31, 2008, to the Transportation Division, Department No. 59-09, Object Level One 06, Object Level Three 6631, with OCA and grant codes to be issued by the City Auditor upon award of said grant.
Section 3. That the monies appropriated in Section 2. shall be paid upon order of the Public Service Director and that no order shall be drawn or money paid except as by voucher, the form of which shall be approved by the City Auditor.
Section 4. That the Public Service Director is hereby authorized to enter into a guaranteed maximum cost agreement with NetJets pursuant to Section 186 of the Columbus City Charter to construct roadwork improvements on Stelzer Road under said grant.
Section 5. That the expenditure of $500,000.00 or so much thereof as may be necessary be and is hereby authorized from Fund 220, the General Government Grant Fund, Department No. 59-09, Transportation Division, Object Level One 06, Object Level Three 6631, with OCA and grant codes to be issued by the City Auditor upon award of said grant.
Section 6. That for reasons stated in the preamble hereto, which is hereby made a part hereof, the 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. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.