AExplanation
Background: The City, Columbus Downtown Development Corporation (dba Downtown Columbus, Inc.), an Ohio not-for-profit corporation, and Scioto Peninsula Holdings Ltd. (“SPH”), an Ohio limited liability company, entered into that certain Economic Development Agreement dated as of February 7, 2017 authorized by Ordinance No. 3121-2016. Pursuant to Ordinance No. 0193-2017, the City of Columbus has leased to SPH, a subsidiary of Columbus Downtown Development Corporation, the real property which has the general boundaries of West Broad Street to the north, Belle Street to the east, West Town Street to the south, and the Norfolk Southern right of way west of Starling Street to the west (the “Peninsula”) for a term of 99 years, renewable forever. As contemplated by the lease, the City has previously conveyed four lots on the Peninsula to SPH to facilitate the first phase of the Peninsula development resulting in construction of approximately 231,000 square feet of office space, 330 apartment units, and 193 hotel rooms.
The 2022 Downtown Strategic Plan, adopted by Resolution No. 0164X-2022, recommends: creating a 15-minute downtown where people do not need a car to accomplish the basic needs of living (grocery, pharmacy, daycare, shopping, etc.); identifying focus areas for growing urban districts to concentrate public and private investment for short, intermediate, and long-term success; and requiring and approving high density urban residential development downtown to grow the population. The next phase of Peninsula development is proposed to include approximately 385 residential units, a 35,000 square foot grocery store, and 450 stall parking public garage (collectively, “Phase II”). The parties desire to enter into a memorandum of understanding (the “Phase II MOU”) outlining the parties’ respective commitments for Phase II to implement the 2022 Downtown Strategic Plan. As contemplated by the lease between the City and SPH, whereby DCI and SPH proposes to acquire the City’s fee simple title to two additional Peninsula lots, identified as Lots 1 and 3 of the Scioto Peninsula Subdivision, more fully described in the attached Exhibit A to this Ordinance, (collectively, the “Property”). In order to attract an operator for the new Phase II grocery store in a high-density development, the Phase II MOU also proposes the City requesting up to nineteen million dollars in future capital improvement budgets, subject to City Council consideration and approval of future legislation, to finance the design and construction of the Phase II public garage, which will be owned by DCI and SPH.
This Ordinance authorizes the Director of the Department of Development and the Director of Finance and Management to enter into the Phase II MOU. It also authorizes the Director of Finance and Management to execute quit claim deeds to SPH conveying title to the Property; to execute joinders and consents to utility, encroachment, maintenance, and temporary construction easements necessary for the redevelopment; and to execute other pertinent documents. It is in the City's best interest that this Ordinance will waive the requirements of approval from the Land Review Commission and Chapter 329 of City Code relating to the sale of city-owned real property so that the property can be transferred as quickly as possible to allow Phase II to proceed.
Fiscal Impact: No funding is required for this legislation. The Department of Development will request sixteen million dollars in the 2025 Capital Improvement Budget, and thereafter may request up to three million dollars more in future Capital Improvement Budgets.
Emergency Justification: An emergency exists in the usual daily operation of the Department of Development and the Department of Finance and Management, in that it is necessary to immediately execute the Phase II MOU and convey the Property because, without such prompt execution and conveyance, DCI and SPH cannot authorize its contractor to commence construction by their agreed upon timeframe and any such delays risk increasing both the public and private costs of the Phase II project.
Title
To authorize the Director of the Department of Development and the Director of the Department of Finance and Management to execute a memorandum of understanding with Columbus Downtown Development Corporation doing business as Downtown Columbus, Inc. and Scioto Peninsula Holdings, Ltd. to memorialize the parties’ understandings as to the second phase of the development project on the Scioto Peninsula; to authorize the Director of Finance and Management and/or Director of Public Service if involving the right-if-way to execute quit claim deeds generally providing for the transfer of all of the City’s fee simple interest in Lots 1 and 3 of the Scioto Peninsula Subdivision to Columbus Downtown Development Corporation and Scioto Peninsula Holdings, Ltd., reserving necessary easements for utilities, signs, or other improvements and subject to other restrictions of record, to Columbus Downtown Development Corporation and Scioto Peninsula Holdings, Ltd.; to authorize the Director of Finance and Management to enter into and execute other documents pertinent to such transaction, to the extent applicable, such as releasing said transferred property from a prior lease agreement; to waive the requirements of the Land Review Commission and Chapter 329 of the Columbus City Codes relating to the sale of city-owned real property; and to declare an emergency.
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WHEREAS, the City, Columbus Downtown Development Corporation (dba Downtown Columbus, Inc.), an Ohio not-for-profit corporation, and Scioto Peninsula Holdings Ltd. (“SPH”), an Ohio limited liability company, entered into that certain Economic Development Agreement dated as of February 7, 2017 (the “EDA”) authorized by Ordinance No. 3121-2016; and
WHEREAS, the EDA provides for DCI and SPH to redevelop City-owned property between Broad Street, Starling Street, Town Street, and Belle Street leased to SPH pursuant to that certain Lease Agreement dated as of July 14, 2017 authorized by Ordinance No. 0193-2017; and
WHEREAS, the 2022 Downtown Strategic Plan, adopted by Resolution No. 0164X-2022, recommends: creating a 15-minute downtown where people do not need a car to accomplish the basic needs of living (grocery, pharmacy, daycare, shopping, etc.); identifying focus areas for growing urban districts to concentrate public and private investment for short, intermediate, and long-term success; and requiring and approving high density urban residential development downtown to grow the population; and
WHEREAS, in 2025, DCI and SPH anticipate commencing phase two comprising the $120 million urban redevelopment project along Broad Street consisting of approximately 385 residential units, 450 parking spaces, and 35,000 square feet of retail and grocery (collectively, “Phase II”); and
WHEREAS, the parties desire to enter in a memorandum of understanding (the “Phase II MOU”) outlining the parties’ respective commitments for Phase II in order to implement the 2022 Downtown Strategic Plan; and
WHEREAS, the City of Columbus owns fee simple interest in that real property identified as Lots 1 and 3 of the Scioto Peninsula Subdivision, more fully described in the attached Exhibit A to this Ordinance, (collectively the “Property”), and has previously leased this real property to SPH for a term of 99 years, renewable forever; and
WHEREAS, to facilitate redevelopment of Phase II under the provisions of the Phase II MOU, the City desires to release the Property from the operation of the lease with SPH and convey the City’s fee simple interest in the Property to DCI and SPH, subject to the reservation of easements for utilities, signs, or other improvements and subject to other restrictions of record; and
WHEREAS, it is in the city's best interest to waive the requirements of approval from the Land Review Commission and City Code Chapter 329 relating to the sale of city-owned real property; and
WHEREAS, to attract an operator for a grocery store in a high-density development, the Department of Development will submit through the City’s 2025 Capital Improvement Budget a funding request in the sum equal to sixteen million dollars for the public garage, and thereafter in subsequent capital improvement budgets, the Department of Development may request an additional sum of up to three million dollars towards the public garage; and
WHEREAS, DCI and SPH, will own, operate and maintain the public garage to support the continued development of The Peninsula; and
WHEREAS, an emergency exists in the usual daily operation of the Departments of Development and Finance and Management in that it is immediately necessary to authorize the Director of the Department of Development and the Director of Finance and Management to execute the Phase II MOU and to authorize the Director of Finance and Management to execute quit claim deeds necessary to convey the Property per the MOU so that CDI and SPH can authorize their contractors to commence construction by their agreed upon timeframe to avoid delays and risk increasing both the public and private costs of the project, 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 and the Director of Finance and Management, or their designees, (together, the “Directors”), on behalf of the City, are hereby authorized to enter into the Phase II MOU with Columbus Downtown Development Corporation doing business as Downtown Columbus, Inc. (“DCI”) and Scioto Peninsula Holdings, Ltd. (“SPH”), presently on file with the Department of Development, 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 Directors and the City Attorney, provided that the approval of such changes and amendments thereto, and the character of those changes and amendments not being substantially adverse to the City, shall be evidenced conclusively by the execution and delivery of the Phase II MOU with DCI and to SPH to outline the plans and certain commitments of the City, DCI, and SPH relating to the proposed development of the Property for Phase II.
SECTION 2. That the Director of the Department of Finance and Management be and hereby is authorized to execute quit claim deeds and necessary documents, as approved by the City Attorney’s Office, and providing generally for the transfer of the City’s fee simple interest in the real property identified as Lots 1 and 3 of the Scioto Peninsula Subdivision, more fully described in the attached Exhibit A, to SPH, subject to the reservation of easements for utilities, signs, or other improvements and other restrictions of record, and other pertinent documents contemporaneous to the conveyance of the Property.
SECTION 3. That the Director of Finance and Management be and hereby is authorized to execute a mutual release of the Property from any previous lease, and any other previous agreement or document between the City and SPH, or others that may be required or helpful in clearing title to the Property.
SECTION 4. That the Director of Finance and Management and/or Director of Public Service, if involving right of way, be and hereby are authorized to execute those easement agreements, approved by the Director of Finance and Management and/or Director of Public Service, if involving right of way, and the City Attorney’s Office, providing generally for consent to utility, encroachment, maintenance, and temporary construction easements as necessary to facilitate the construction of Phase II.
SECTION 5. That this Council has determined that it is in the best interest of the City of Columbus to waive and does hereby waive the requirements of approval by the Land Review Commission and Columbus City Codes Chapter 329 relating to the sale of city-owned real property to the extent that they may apply to this transaction with regards to this Ordinance only.
SECTION 6. That for the reasons stated in the preamble hereto, which is hereby made a part 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.