Explanation
The City of Columbus employs approximately 540 staff in its core administrative buildings (City Hall, Beacon Building, 109 North Front). The City has worked diligently for several years to explore and identify viable alternatives including the leasing and acquisition of additional property to provide parking for its core operations, public visitation, and invited guests. The availability of convenient and affordable parking is a key tool in recruiting and retaining qualified staff to work in downtown City Offices and to provide public access.
During the next phase of the Downtown Campus construction project, approximately 275 existing parking spaces located around City Hall, 109 North Front and Ludlow Alley will be lost permanently. Based on current market parking rates in the parking garages most proximate to City Hall, the cost to the City to lease a comparable number of parking spaces is estimated at $345,000 per annum. In addition, the City currently leases approximately 90 parking spaces in the 98-102 North Front Street parking garage for vehicles used in Division of Police operations at a cost of approximately $120,000 per annum. The annual cost of leasing the required parking spaces to support both the core operations and the Division of Police operations, at current parking rates, is estimated at $465,000 annually.
Due to a bankruptcy proceeding, the City has the opportunity to purchase the 98-102 North Front Parking Garage, Franklin County Tax Parcel ID 010-016277 from 98 North Front Street, LLC. This parking facility is proximate to the City Hall Campus and contains approximately 390 parking spaces as well as, approximately 4,950 square feet of office space. The purchase price for the property, including all associated costs of acquisition, will be up to $3,000,000.00. The acquisition price is subject to final negotiation and acceptance by the appointed receiver, creditors, and the court overseeing the bankruptcy proceeding.
The acquisition and renovation of this garage facility will allow the City to obtain convenient, safe and secure replacement parking to support its core operations, avoid the General Fund expense for leasing 275 parking spaces that will be permanently lost due to construction of the next phase of the City Hall Campus, and eliminate the expense of leasing 90 parking spaces to support vehicles used in Division of Police operations.
Fiscal Impact: This project is funded in the 2010 Capital Improvement Budget. However, bonds have yet to be sold for the project, necessitating a certification of $3,000,000.00 against the Special Income Tax Fund. Funding for this purchase will be certified against the Special Income Tax Fund and then subsequently reimbursed when the next bond sale is completed.
Emergency Justification: Emergency action is requested to allow for the immediate execution of the purchase agreement by the City so that the acquisition can proceed in agreement with the closing transaction deadlines and other terms of the purchase contract
Title
To authorize the Director of the Department of Finance and Management to execute those documents necessary to purchase that real property known as 98-102 N. Front Street from 98 North Front Street, LLC, an Ohio limited liability corporation, for the relocation and consolidation of various City parking functions; to amend the 2010 CIB; to authorize and direct the City Auditor to transfer $3,000,000.00 from the Special Income Tax Fund to the Construction Management Capital Improvement Fund; to authorize the City Auditor to appropriate $3,000,000.00 within the Construction Management Improvement Fund; and to authorize the expenditure of $3,000,000.00 from the Construction Management Capital Improvement Fund; and to declare an emergency. ($3,000,000.00)
Body
WHEREAS, the City, desires to enter into a purchase contract with 98 North Front Street, LLC, an Ohio limited liability corporation, for the purchase of that real property 98-102 N. Front Street, Columbus, Ohio, Franklin County Tax Parcel ID 010-016277; and
WHEREAS, the purchase will allow the city to obtain convenient, safe and secure replacement parking to support core city operations, thus saving the General Fund approximately $465,000 in leasing expenses; and
WHEREAS, this ordinance amends the 2010 Capital Improvements Budget, Ordinance # 0564-2010 by transferring budget authority to a new project number for the purchase of the garage and includes an additional $500,000 for renovations; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund to fund this project; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund; and
WHEREAS, this fund transfer is a temporary funding method until bonds or notes are sold; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the project described in this ordinance, and
WHEREAS, the aggregate principal amount of obligations which the City will issue to finance this renovation is presently expected not to exceed $3,000,000.00; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus, in that it is immediately necessary to authorize the Director of Finance and Management, on behalf of the City, to execute those documents necessary to purchase that real property known as 98-102 N. Front Street, Franklin County Tax Parcel ID 010-016277, from 98 North Front Street, LLC, and to appropriate and expend $3,000,000.00, or as much thereof as necessary, for costs associated with said acquisition for the immediate preservation of the public health, peace, property and safety; now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Finance and Management be, and hereby is, authorized to execute those documents approved by the Department of Law, Division of Real Estate necessary for the purchase of that real property known as 98-102 North Front Street, Columbus, Ohio, Franklin County Tax Parcel ID 010-016277.
SECTION 2. The sum of $3,000,000.00 be and is hereby appropriated from the unappropriated balance of the Special Income Tax Fund, Fund 430, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2010 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
SECTION 3. That the 2010 Capital Improvements Budget Ordinance #0564-2010 is hereby amended as follows:
Project/Project # CIB CIB Amount Revised
Downtown Campus Implementation Plan Improvements 570030-100162 $7,500,000 $4,000,000
Downtown Impl. Plan-Downtown Park. Garage 450006-100001 $0 $3,500,000
SECTION 4. That the City Auditor is hereby authorized to transfer said funds to the Construction Management Capital Improvement Fund 733, at such time as is deemed necessary by the City Auditor, and to expend said funds, or so much thereof as may be necessary.
SECTION 5. That the amount of $3,000,000.00 or as much thereof as may be necessary, is hereby transferred and appropriated to the Office of Construction Management, 45-07, Construction Management Capital Improvement Fund, Fund 733, Downtown Implementation Plan - Downtown Parking Garage 450006-100001, Object Level One 06, Object Level Three Code 6603, OCA Code 733006.
SECTION 6. That upon obtaining other funds for the $3,000,000.00 or as much thereof as may be necessary, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 2, above, and said funds are hereby deemed appropriated for such purpose.
SECTION 7. That the City Auditor is authorized to establish proper accounting project numbers and to make any accounting changes to revise the funding source for any contract or contract modification associated with the expenditure of funds transferred.
SECTION 8. That the City intends this ordinance constitute an "official intent" for purposes of Section 1.150-2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be up to $3,000,000.00 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of the Treasury Regulations Section 1.150-2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 9. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 10. That the expenditure of $3,000,000.00, or as much thereof as may be necessary in regard to the action authorized in SECTION 1, be and is hereby authorized and approved as follows:
Division: 45-07
Fund: 733
Project: 450006-100001
Object Level: 06
Object Level 3: 6603
OCA Code: 733006
Amount $3,000,000.00
SECTION 11. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contract or contract modifications associated with this ordinance.
SECTION 12. 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 its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.