Explanation
Background: City Council passed Ordinance No. 2172-2005 on December 12, 2005 establishing a tax increment financing (“TIF”) incentive district pursuant to R.C. Section 5709.40(C) generally between King Avenue, Pearl Street, Goodale Avenue, and Dennison Avenue (the “Short North TIF”). Ordinance No. 1580-2012 passed by City Council on July 16, 2012 authorized the execution of that certain Tax Increment Financing and Cooperative Agreement dated August 1, 2012 (the “TIF Agreement”) between the City, the Columbus-Franklin County Finance Authority (the “CFCFA”), E.W. High Street, LLC, and E.W. Hubbard High, LLC. Under the TIF Agreement, a portion of the funds generated from the Short North TIF are allocated toward reimbursing bonds issued by the CFCFA to pay costs of a parking garage on Franklin County Tax Parcel ID No. 010-002013, which has 250 spaces open to public use for a period of 32 years. Notwithstanding the commitment to use the Short North TIF funds under the TIF Agreement, nothing else therein prevents the City from using other available resources to contribute to the fulfillment of the City’s remaining obligations thereunder. This legislation will authorize the appropriation and expenditure of monies generated from the AC Humko II TIF pursuant to Ordinance No. 0670-2004 for the purposes described in the TIF Agreement. This legislation will also authorize the City to terminate that Agreement effective upon the bonds no longer being outstanding thereunder.
Emergency Justification: An emergency exists in the usual daily operations of the Department of Development in that it is immediately necessary to authorize the appropriation and expenditure of the AC Humko II TIF funds contemplated herein, the payment of such will provide a direct savings to the City by reducing the amount of obligations owed and interest accruing.
Fiscal Impact: The City is appropriating and authorizing the expenditure of funds deposited, and to be deposited, into Fund 7425 and Fund 7788 to be used in accordance with the TIF Agreement.
Title
To authorize the Director of the Department of Development to terminate the Tax Increment Financing and Cooperative Agreement dated August 1, 2012 with the Columbus-Franklin County Finance Authority, E.W. High Street, LLC, and E.W. Hubbard High, LLC, by entering into an amendment to said agreement for such purpose when the bonds thereunder are no longer outstanding; to appropriate and authorize the expenditure of funds generated from the AC Humko II TIF for the purposes described in such Tax Increment Financing and Cooperative Agreement; and to declare an emergency. ($0.00)
Body
WHEREAS, City Council passed Ordinance No. 2172-2005 on December 12, 2005 establishing a tax increment financing (“TIF”) incentive district pursuant to R.C. Section 5709.40(C) generally between King Avenue, Pearl Street, Goodale Avenue, and Dennison Avenue (the “Short North TIF”); and
WHEREAS, Ordinance No. 1580-2012 passed by City Council on July 16, 2012 authorized the execution of that certain Tax Increment Financing and Cooperative Agreement dated August 1, 2012 (the “TIF Agreement”) between the City, the Columbus-Franklin County Finance Authority (the “CFCFA”), E.W. High Street, LLC, and E.W. Hubbard High, LLC; and
WHEREAS, under the TIF Agreement a portion of the funds generated from the Short North TIF are allocated to reimbursing bonds issued by the CFCFA to pay costs of a parking garage on Franklin County Tax Parcel ID No. 010-002013, which has 250 spaces open to public use for a period of 32 years (the “Hubbard Garage”); and
WHEREAS, notwithstanding the commitment to use the Short North TIF funds under the TIF Agreement, nothing else therein prevents the City from using other available resources for the fulfillment of the City’s remaining obligations thereunder; and
WHEREAS, City Council passed Ordinance No. 0670-2004 on April 26, 2004 establishing another TIF incentive district pursuant to R.C. Section 5709.40(C) (the “AC Humko II TIF”); and
WHEREAS, Ordinance No. 1555-2017 determined that satisfactory provision had been made for the public improvements needs of parcels within certain tax increment financing districts in order to allow the tax increment financing generated from within those districts to be used in support of offsite urban redevelopment for certain “Neighborhood Public Improvements” as identified in Exhibit B of Ordinance No. 1555-2017, which includes parking structures and related improvements such as the Hubbard Garage; and
WHEREAS, this legislation will authorize the appropriation and expenditure of monies generated from the AC Humko II TIF held in both Fund 7425 and Fund 7788 for the purpose of contributing to fulfilling the obligations of the Hubbard Garage as described in the TIF Agreement; and
WHEREAS, this legislation will authorize the Director of the Department of Development to terminate the TIF Agreement by entering into an amendment to said agreement for such purpose when the bonds thereunder are no longer outstanding; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Development in that it is immediately necessary to authorize the appropriation and expenditure of the AC Humko II TIF funds contemplated herein, which the payment of such will provide a direct savings to the City by reducing the amount of obligations owed and interest accruing, all for the immediate preservation of the public health, peace, property, safety, and welfare; and 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 (altogether, the “Director”), on behalf of the City, is hereby authorized to terminate the TIF Agreement and enter into an amendment to the TIF Agreement with the CFCFA, E.W. High Street, LLC, and E.W. Hubbard High, LLC, as applicable, for such purpose 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 and evidenced conclusively by the execution and delivery of such amendment to terminate the TIF Agreement upon the bonds thereunder no longer being outstanding.
Section 2. That the AC Humko II TIF funds deposited and to be deposited into the Fund 7425 and Fund 7788 shall be deemed appropriated and authorized for expenditure for the purposes set forth in this Ordinance and the TIF Agreement. The City Auditor is authorized to make payments to the CFCFA, or its authorized designee including but not limited to its bond trustee, from Funds 7425 and 7788 in accordance with the TIF 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 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, authorized for expenditure to carry out the purposes of this ordinance, and the City Auditor shall establish such accounting codes as necessary.
Section 4. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
Section 5. That the City Auditor is hereby 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 6. That for 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.