Explanation
Background:
On May 21, 2018, Council approved a resolution of necessity and an ordinance to proceed with respect to levying special assessments on the property located at 800 N. High Street, as described in the Petition, in order to fund the construction of a parking garage at the southeast corner of the intersection of High Street and Hubbard Avenue in the Short North area of Columbus. This is an ordinance levying the special assessments. The special assessments will be collected over 23 years in an amount equaling the debt service and administrative expenses relating to bonds to be issued by the Columbus-Franklin County Finance Authority and the Toledo-Lucas County Port Authority. The City is not contributing any funding to pay for the construction of the parking garage, and the construction of the parking garage is set to begin in summer 2018.
The owners of properties comprising 100% of the parcels directly benefitting from the parking spaces to be provided by the project have submitted a petition agreeing to assess themselves to pay for a portion of the costs of the project. The total special assessment for the project is estimated to be $8,000,000, plus any interest and other costs, fees, and expenses associated with the assessment and financing for the project, and will be collected over 23 years in 46 consecutive semi-annual installments.
Fiscal Impact:
No City funding is required for the financing of the project.
Title
To levy special assessments for the purpose of acquiring, constructing, installing, equipping, or improving in the city certain off street parking facilities at the southeast corner of the intersection of High Street and Hubbard Avenue; to authorize the execution of a Cooperative Agreement and the Tax Lien Agreement by the Director of the Department of Development related to the financing of the parking facilities; and to declare an emergency.
Body
Body:
WHEREAS, 800 N. High Investments, LLC (together with its affiliate Hubbard High Acquisition, LLC, the “Developer”), has proposed the redevelopment of the property located at the southeast corner of the intersection of High Street and Hubbard Avenue (the “Property”) through a mixed-use project (the “Development”), including a hotel; and
WHEREAS, in order to facilitate the Development, the Developer has proposed the construction of an approximately 72-space underground parking facility with lift systems, which will double parking capacity to 144 vehicles, all as more fully described in the Plans and Specifications on file in the office of the Clerk of Council (the “Parking Facility Project”); and
WHEREAS, the Developer, as the owner of 100% of the lots and lands directly and specially benefitting from the Parking Facility Project, has agreed to pay in the aggregate 100% of the total special assessments to be imposed to pay the costs of the Parking Facility Project, and has executed and filed with this Council a petition (the “Petition”) requesting such improvement; and
WHEREAS, this Council previously adopted Resolution No. 0157X-2018 (the “Resolution of Necessity”) on May 21, 2018, which declared the necessity of acquiring, constructing, installing, equipping, and improving the Parking Facility Project, and Ordinance No. 1469-2018 (the “Ordinance to Proceed”) on May 21, 2018, which determined to proceed with the special assessments; and
WHEREAS, the Resolution of Necessity declared the necessity of levying Special Assessments on the Assessed Property in proportion to the special benefits conferred upon the Assessed Property from the Parking Facility Project in order to pay for costs and expenses of the Parking Facility Project, and the Ordinance to Proceed determined to proceed with the Special Assessments for the purposes of the Parking Facility Project; and
WHEREAS, pursuant to the Petition and in accordance with Section 727.12 of the Ohio Revised Code, one hundred percent (100%) of the owners of the Assessed Property have requested that the Special Assessments be levied and may be collected before the Parking Facility Project is commenced and the actual cost of the Parking Facility Project and its subsequent operation and maintenance is ascertained and have waived their rights under Section 178 of the City Charter with respect to the same; and
WHEREAS, in order to provide for the assignment of the Special Assessment revenues and other actions in connection with the financing of the Parking Facility Project through bonds to be issued by the Columbus-Franklin County Finance Authority (the “Finance Authority”) and the Toledo-Lucas County Port Authority (the “Toledo Port”), it is necessary for the City to enter into certain agreements and execute related documents and certificates, including entering into a Cooperative Agreement (the “Cooperative Agreement”) among the Finance Authority, the Toledo Port, the City, and 800 N. High Investments, LLC (the “Developer”) and a Tax Lien Agreement (the “Tax Lien Agreement”) among the City, the County Treasurer of Franklin County, and The Huntington National Bank, as disbursing agent; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to levy a special assessment on the parcels in order to maintain the Development schedule and meet community commitments, thereby preserving the public health, peace, property, safety and welfare; NOW, THEREFORE,
BE IT Ordained by the Council of the city of COLUMBUS, that:
Section 1. Capitalized terms not otherwise defined in this Ordinance shall have the meaning assigned to each such term in the Petition attached as Appendix A to the Resolution of Necessity.
Section 2. The list of special assessments to be levied and assessed against the Assessed Property in an amount sufficient to pay the costs of the Parking Facility Project, which is $8,000,000, including any interest and other costs, fees, and expenses associated with financing the Parking Facility Project or with special assessments, is adopted and confirmed, and the special assessments are levied and assessed on the Assessed Property.
The Special Assessments are assessed against the Assessed Property commencing in tax year 2020 for collection in 2021 and shall continue through tax year 2042 for collection in 2043. The semi-annual installments of the Special Assessments shall be collected in each calendar year with respect to the Assessed Property in the amount of $420,000, subject to reduction to the extent necessary each year to equal the Annual Required Installment, as set forth in the Petition.
All Special Assessments shall be certified by the Clerk of Council to the County Auditor pursuant to Ohio Revised Code Chapter 727.33 to be placed on the tax list and duplicate and collected with and in the same manner as real property taxes are collected.
Section 3. Pursuant to the Petition and in accordance with Section 727.12 of the Ohio Revised Code, one hundred percent (100%) of the owners of the Assessed Property have requested that the Special Assessments be levied and may be collected before the Parking Facility Project is commenced and the actual cost of the Parking Facility Project and its subsequent operation and maintenance is ascertained and have waived their rights under Section 178 of the City Charter with respect to the same.
Section 4. The Clerk of Council shall keep on file in the office of the Clerk of Council the Special Assessments.
Section 5. The Clerk of Council shall deliver a certified copy of this Ordinance to the County Auditor within 15 days after its passage.
Section 6. To provide for the financing of the Parking Facility Project, this Council hereby authorizes the execution of the Cooperative Agreement and the Tax Lien Agreement by the Development Director of the City, on behalf of the City in substantially the form now on file with the City, with such changes as are not inconsistent with this Ordinance and not materially adverse to the City. The approval of changes to the Cooperative Agreement and the Tax Lien Agreement, and that such changes are not materially adverse to the City, shall be conclusively evidenced by the execution of such agreement by the Development Director.
The Development Director and the Director of Finance and Management, or either of them individually, are hereby authorized to take all actions, including the execution of all documents or amendments, necessary to consummate the financing for the Parking Facility Project and to implement and administer the Special Assessments, and not substantially inconsistent with this Ordinance.
Section 7. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance shall take effect and be in force from and immediately after its passage and approval by the Mayor, or 10 days after passage if the Mayor neither approves nor vetoes the same.