Explanation
1. BACKGROUND
This legislation authorizes the Director of the Department of Development to enter into an Economic Development Agreement with DEL Partners, LLC (hereinafter the “Development Team”), concerning the redevelopment of the former McNabb Funeral Home site located on the north side of East Long Street between Garfield Avenue and Monroe Avenue in the King Lincoln District on the Near East Side (the “Site”).
The development project has been undertaken in cooperation and partnership with the City of Columbus and Columbus Next Generation Corporation, to result in a mixed-use project on the Site that includes the construction of 130 residential units and up to 10,000 square feet of ground floor commercial space (the “Project”). The private investment in the Project will be approximately twenty million dollars ($20,000,000.00).
Design and construction of public infrastructure improvements through and around the Site will occur in conjunction with the development of the Project. Improvements will be constructed on East Long Street (from Garfield to Monroe), Garfield Avenue (from Long Street to Mayme Moore Place), and Monroe Avenue (from Long Street to Mt Vernon Avenue). Streetscapes will include new pavement, new curbs to replace existing (sandstone curbs to be refurbished where needed), six foot wide sidewalks, pedestrian lighting, litter receptacles, and street trees and necessary utility relocation work. Utility work only will be constructed on Talmadge Street (from Long Street to approximately 115’ north of first east/west alley north of Long Street) and the first east/west alley north of Long Street (from Garfield to Talmadge).
The Economic Development Agreement outlines the plans and certain commitments of both parties relating to the development. Under the Economic Development Agreement, the Development Team will provide the upfront financing for the design of the public infrastructure improvements and will be reimbursed by the City contingent upon City Council authorization of a design guaranteed maximum reimbursement agreement and will provide the City with any right-of-way and/or permanent or temporary easements necessary to construct the public infrastructure improvements. The current cost estimates are four hundred thousand dollars ($400,000.00) for design and five million dollars ($5,000,000.00) for construction of streetscapes and utility work. The Development Team also agrees to cooperate with the City should the City identify a need for a Co-Go bike station on the Site and the Development Team will do so at its own expense.
Under the Economic Development Agreement, the Department of Development will, over time, submit for City Council consideration all necessary legislation to authorize the following: 1) a design guaranteed maximum reimbursement agreement to reimburse the Development Team for professional services associated with the design of the public infrastructure improvements and 2) the expenditure of funds to construct the public infrastructure improvements to be made in support of the Project.
2. FISCAL IMPACT
There is no fiscal impact for this legislation.
3. EMERGENCY DESIGNATION
This legislation is submitted as an emergency measure in order to enable the Director of the Department of Development to enter into an Economic Development Agreement with the Development Team to allow the Development Team to complete design on the Project to coincide with the timing of the construction of the public infrastructure improvements.
Title
To authorize the Director of the Department of Development to enter into an Economic Development Agreement with DEL Partners, LLC concerning the redevelopment of the former McNabb Funeral Home site in the King Lincoln District on the Near East side; and to declare an emergency.
Body
WHEREAS, DEL Partners, LLC (hereinafter the "Development Team") desires to redevelop the site of the former McNabb Funeral Home site on East Long Street in the King Lincoln District on the Near East side; and
WHEREAS, the redevelopment will include the construction of a $20 million mixed-use development that will include approximately 135 residential units and up to 10,000 square feet of ground floor retail space (the “Project”); and
WHEREAS, the Project is being undertaken as a Public-Private Partnership (3P) with the City of Columbus, Columbus Next Generation Corporation and DEL Partners, LLC; and
WHEREAS, the City desires to enter into an agreement with the Development Team to outline the framework for many of the major terms of cooperation for the development of the Project; and
WHEREAS, the City and Development Team desire to memorialize their understanding and agreements with respect to such cooperation; and
WHEREAS, the City’s agreement to provide financial assistance, as set forth herein, is contingent upon authorization pursuant to subsequent adoption of appropriate legislation of Columbus City Council; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development whereby it is immediately necessary to enter into said agreement to meet community commitments and to provide the flexibility to be able to start construction on the project in May, 2020, and to coincide with the public and private development timeline, thereby preserving the public health, peace, property, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development is hereby authorized to enter an Economic Development Agreement on behalf of the City with DEL Partners, LLC, to outline the plans and certain commitments of the parties relating to the proposed redevelopment of the former McNabb Funeral Home site on East Long Street in the King Lincoln District on the Near East side.
SECTION 2. 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.