Explanation
BACKGROUND: The City owns or owned Franklin County Tax ID Parcel Nos. 010-054645 (the “NMDA Parcel”) and 010-307276 (as such parcel may have been split, the “Project Site”). North Market Development Authority, Inc. (“NMDA”) leases and operates a public market in a former warehouse (the “North Market”) on the NMDA Parcel. The City selected NM Developer LLC (the “Developer”) from a request for proposals to redevelop the Project Site with a 32-story mixed-use project. Pursuant to Ordinance No. 2135-2023 passed by City Council on July 24, 2023, the City entered into the First Amended and Restated Economic Development Agreement dated August 29, 2023 (the “Restated EDA”) with the NMDA and the Developer. Pursuant to the Restated EDA, the new development on the Project Site will include public parking spaces, an expansion of the North Market, a public atrium, patio, and plaza in support of the North Market, and other public improvements and site work described in the Restated EDA (collectively, the “Public Project”). The Restated EDA also requires the City to design and construct at a cost of up to $5 million certain streetscape improvements on Vine Street, Wall Street, and Spruce Street surrounding the NMDA Parcel and the Project Site (the “Streetscape Improvements”).
Due to long lead times for certain Streetscape Improvements materials and related services identified by the City and Developer during design (the “Preordered Items”), the Public Project schedule requires the preorder of the Preordered Items prior to the bidding of the Streetscape Improvements construction, and the Developer is willing to arrange for the purchase of such Preordered Items provided that the costs thereof are promptly reimbursed by the City. Ordinance No. 2135-2023 also authorized the City to enter into that certain Cooperative Agreement dated August 29, 2023 (the “Cooperative Agreement”) with the Columbus-Franklin County Finance Authority to provide a portion of the financing for the Public Project (the “Public Improvements Grant”). The Cooperative Agreement allows the Public Improvements Grant to fund any portion of the public work as approved by the City. This ordinance authorizes the City to remit a portion of the Streetscape Improvements capital improvements budget to the Columbus-Franklin County Finance Authority to replenish the funds used from the Public Improvements Grant to reimburse the Developer for the Preordered Items in connection with the Streetscape Improvements construction; this legislation does not increase the City’s prior fiduciary commitments under the Restated EDA.
FISCAL IMPACT: Funding in the amount of $405,000.00 is available in the Streets and Highways Bonds Fund (7704). A transfer of appropriation is necessary.
EMERGENCY JUSTIFICATION: Emergency legislation is requested to maintain without delay nor deficit the agreed upon budgets in the Restated EDA in order to allow NM Developer LLC to immediately preorder the materials and related services for the North Market Streetscape project on behalf of the City, which provides a cost savings to the City by being able to procure the materials and related services immediately at a lower price, and prevent a delay in the completion of the associated public projects, which could also increase the costs of those projects.
Title
To authorize the Director of the Department of Development to expend $405,000.00 of the North Market Streetscape Phase 2 project funds in the 2024 Capital Improvements Budget to the Columbus-Franklin County Finance Authority to replenish the North Market CFA Contribution funds in the 2024 Capital Improvements Budget remitted to the Columbus-Franklin County Finance Authority but used by the Columbus-Franklin County Finance Authority to reimburse NM Developer LLC for the preorder of materials and related services for the North Market Streetscape Phase 2 project construction all pursuant to the First Amended and Restated Economic Development Agreement dated August 29, 2023 and the Cooperative Agreement dated August 29, 2023; to authorize a transfer of cash and appropriation within the Streets and Highways Bond Fund; and to declare and emergency. ($405,000.00)
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WHEREAS, the City owns Franklin County Tax ID Parcel No. 010-054645 (the “NMDA Parcel”), which it leases to the North Market Development Authority, Inc. (“NMDA”) to operate a public market in a former warehouse on the NMDA Parcel (the “North Market”); and
WHEREAS, the City selected NM Developer LLC (the “Developer”) from a request for proposals to develop a 32-story mixed use project adjacent to the NMDA Parcel on the former City-owned parcel identified initially as Franklin County Tax ID Parcel No. 010-307276 (as such parcel may have been split, the “Project Site”); and
WHEREAS, pursuant to Ordinance No. 2135-2023 passed by City Council on July 24, 2023, the Director of the Department of Development (the “Director”) entered into the First Amended and Restated Economic Development Agreement dated August 29, 2023 (the “Restated EDA”) with NMDA and the Developer; and
WHEREAS, pursuant to the Restated EDA, the development on the Project Site will include certain public areas including 280 market and public parking spaces, collectively an approximately 19,000 square-foot expansion of the existing North Market including a public atrium, patio, and plaza, and other public improvements and site work described in the Restated EDA (collectively, the “Public Project”); and
WHEREAS, the Restated EDA also requires the City to design and construct at a cost of up to $5 million certain streetscape improvements on Vine Street, Wall Street, and Spruce Street surrounding the NMDA Parcel and the Project Site (the “Streetscape Improvements”); and
WHEREAS, due to long lead times for certain Streetscape Improvements materials and related services identified by the City and Developer during design (the “Preordered Items”), the Public Project schedule requires the preorder of the Preordered Items prior to the bidding of the Streetscape Improvements construction, which the Developer is willing to arrange for such preorder provided that the costs thereof are promptly reimbursed by the City; and
WHEREAS, in order to effectuate certain provisions contained in the Restated EDA, Ordinance No. 2135-2023 also authorized the City to enter into the Cooperative Agreement dated August 29, 2023 (the “Cooperative Agreement”) with the Columbus-Franklin County Finance Authority to provide a portion of the financing for the Public Project (the “Public Improvements Grant”) and to fund any other portion of the public work as approved by the City; and
WHEREAS, this ordinance authorizes the expenditure in the amount of $405,000.00 from the North Market Streetscape Improvements Phase 2 project in the 2024 Capital Improvements Budget to the Columbus-Franklin County Finance Authority to replenish the funds from the North Market CFA Contribution project in the 2024 Capital Improvements Budget remitted to and used by the Columbus-Franklin County Finance Authority to reimburse the Developer for preordering the Preordered Items as is permissible pursuant to the Restated EDA and the Cooperative Agreement; and
WHEREAS, it is necessary to authorize a transfer of cash and appropriation within the Streets and Highways Bond Fund, Fund 7704; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Development to maintain without delay nor deficit the agreed upon budgets in the Restated EDA in order to allow the Developer to immediately preorder the Preordered Items on behalf of the City, which will result in a cost savings to the City by being able to procure the Preordered Items immediately at a lower price, and prevent a delay in the completion of the Public 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 transfer of $405,000.00, or so much thereof as may be needed, is hereby authorized within Fund 7704 (Streets and Highways Bond Fund), from Dept-Div 5912 (Design and Construction), Project P441768-100008 (North Market Streetscape Ph 2), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), P441768-100008 (North Market Streetscape Ph 2), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 2. That the Director be and hereby is authorized to remit funding from the North Market Streetscape Improvements Phase 2 project in the 2024 Capital Improvements Budget to the Columbus-Franklin County Finance Authority to replenish the funds from the North Market CFA Contribution project in the 2024 Capital Improvements Budget remitted to and used by the Columbus-Franklin County Finance Authority to reimburse the Developer for preordering the Streetscape Improvements materials pursuant to the Restated EDA and the Cooperative Agreement. That the monies herein shall be paid 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 pursuant to the Restated EDA and the Cooperative Agreement, the expenditure of $405,000.00, or so much thereof as may be needed, is hereby authorized in Fund 7704 (Streets and Highways Bonds Fund), in Dept-Div 4402 (Economic Development), Project P441768-100008 (Unvoted Carryover), in Object Class 06 (Capital Outlay) per the account codes attached to this ordinance.
SECTION 4. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. 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 6. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account 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 7. 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.