Explanation
BACKGROUND: By Ordinance 0167-2024, passed on January 22, 2024, Columbus City Council authorized the sale of 897 E. Mound Street to Community Housing Network (CHN) to develop a multifamily, permanent supportive housing project. The project received an allocation of tax credits and is scheduled to start construction in 2025. A portion of the site was acquired from the United States Department of Urban Development (HUD) after the foreclosure and demolition of the Regal Court Apartments. The property was conveyed to the City for a nominal amount, but contained a deed restriction regarding the future use of the site. This legislation will allow the Director of the Department of Development, or his designee, to execute an Amendment and Restatement and Partial Release of Restrictive Covenants (Release), pay approximately $50,950 of a $148,005 Equity Participation Fee (Release Fee) required by HUD, and amend the legal description. The Release will also amend the restrictions on the remainder of the site that is not a part of the sale and currently used as a community garden. The Release fee will be paid by the proceeds of sale to CHN.
FISCAL IMPACT: The $50,950.00 payment to HUD will be made at closing through the proceeds of sale.
EMERGENCY JUSTIFICATION: Emergency action is requested to enable the City to immediately agree to the Release and schedule the sale of the property as soon as possible.
Title
To authorize the Director of the Department of Development, or his designee, to execute an Amendment and Restatement and Partial Release of Restrictive Covenants with the United States Department of Urban Development (HUD), to authorize the payment of $50,950 to HUD from the proceeds of sale of 879 E. Mound Street, reauthorize the sale of the property to Community Housing Network, or a subsidiary, with an amended legal description, and to declare an emergency.
Body
WHEREAS, by Ordinance 0167-2024, Council approved the sale of 879 E. Mound Street to Community Housing Network (CHN), or a subsidiary, for $350,000 to allow the construction of a multifamily permanent supportive housing development; and
WHEREAS, the project received an allocation of Low Income Housing Tax Credits by the Ohio Housing Finance Agency and is scheduled to start construction in 2025; and
WHEREAS, a portion of the property contained in Ordinance 0167-2024, is a site acquired by the City from the United States Department of Housing and Urban Development (HUD) and transferred with deed restrictions contained in the Special Warranty Deed recorded in 1998 by instrument 199808040195962; and
WHEREAS, to permit the transfer of the site to CHN, HUD must approve the sale and issue new restrictions on the site;
WHEREAS, HUD requires the execution of an Amendment and Restatement and Partial Release of Restrictive Covenants which will release to portion of the site being sold to CHN from the HUD restrictions; and
WHEREAS, HUD requires a payment of a portion of the funds lost as a part of the foreclosure of the Regal Court/Apollo Terrace Apartments and required through an Equity Participation section in the deed; and
WHEREAS, since the passage of 0167-2024, a final description of the land was prepared and will be included in the final deed conveying the property to CHN; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, Division of Land Redevelopment in that it is immediately necessary to execute the Amendment and Restatement and Partial Release of Restrictive Covenants, which is required to sell the property and permit 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 is hereby authorized to execute those documents on behalf of the City of Columbus, as approved by the Department of Law, Division of Real Estate, and to execute a quitclaim deed and any ancillary documents as may be necessary to transfer title thereto to Community Housing Network, Inc. or its subsidiary Knoll View Place;
Parcel Numbers: 010-045527; 010-057084; 010-057080 (part);
Address: 897 E. Mound Street
Size: Approximately 1.061 acres
Price: $350,000
Use: Multifamily (affordable permanent supportive housing)
DESCRIPTION OF 1.061 ACRES SOUTH OF MOUND STREET EAST OF EIGHTEENTH ANENUE COLUMBUS, OHIO
Situated in the State of Ohio, County of Franklin, City of Columbus, Half Section 24, Township 5 Range 22, , Refugee Lands, being parts of Lots A, B, C, and C-1 and all of Lots A-1 and B-1 as shown and delineated upon the plat “ June Loving’s Subdivision Parts of Outlots 94 and 95”, a subdivision of record in Plat Book 17, Page 306, as conveyed in a deed to the City of Columbus, Ohio of record in Instrument No. 199808040195962, part of that tract of land conveyed in a deed to the City of Columbus of record in Instrument No. 202307050065727, all of Lot 27 as shown and delineated upon the plat ”John & Henry Miller’s Addition to Third Subdivision” a subdivision of record in Plat Book 1, Page 111 and conveyed in a deed to the City of Columbus of record in Instrument No. 200612150248643, all of Lot 28 as shown and delineated upon the plat ”John & Henry Miller’s Addition to Third Subdivision” a subdivision of record in Plat Book 1, Page 111 and conveyed in a deed to the City of Columbus of record in Instrument No.
202303270028810 and all of that tract of land described in a deed to the City of Columbus of record in Instrument No. 200309290311749, all records referenced herein being to those located in the Recorder’s Office, Franklin County, Ohio and being more particularly described as follows:
Beginning at an iron pin set in the southerly right of way line of Mound Street (60.00 feet in width) at the northwesterly corner of said Lot 27 and the northeasterly corner of Lot 26 as shown and delineated upon the plat “John & Henry Miller’s Addition to Third Subdivision” a subdivision of record in Plat Book 1, Page 111;
Thence South 88°07’37” East, along said southerly right of way line, a distance of 227.70 feet to an iron pin set;
Thence though said Lots A, B, C, C-1 and said City of Columbus, Ohio tract (Instrument No. 20230705005727) with a new division line the following courses:
South 01°55’28” West, a distance of 124.56 feet to an iron pin set;
South 43°04’32” East, a distance of 19.80 feet to an iron pin set;
South 88°04’32” East, a distance of 33.99 feet to an iron pin set;
South 01°55’28” West, a distance of 55.43 feet to an iron pin set in the southerly line of said City of Columbus, Ohio tract (Instrument No. 20230705005727) and the northerly line of Partition Plat in the case of Caroline Englehart vs. Elizabeth Lattimore, on file in Franklin County Court of Common Pleas Complete Record Volume No.95, Page 357, as acquired by Harvest Time Ministries International Church, by deed of record in Instrument No. 200809180140801;
Thence North 88°07’37” West, along said southerly and northerly lines, the southerly line of said City of Columbus, Ohio tract (Instrument No. 200309290311749) and the northerly right of way line of Engler Street (width varies), a distance of 164.42 feet to railroad spike found at the southeasterly corner of said City of Columbus, Ohio tract (Instrument No. 200309290311749);
Thence North 01°57’08” East, along the westerly line of said City of Columbus, Ohio tract (Instrument No. 200309290311749) and continuing along said northerly right of way line, a distance of 6.50 feet to a 1” pinch top pin found at the southeasterly corner of said Lot 28;
Thence North 88°04’32” West, continuing along said northerly right of way line and the southerly lines of said Lots 28 and 27, a distance of 111.55 feet to an iron pin set at the southwesterly corner of said Lot 27 and the southeasterly corner of said Lot 26;
Thence North 02°00’33” East, along the common line to said Lots 26 and 27, a distance of
187.44 feet to the place of beginning and containing 1.061 acres of land, of which 0.226 acre lies within Franklin County Auditor’s Parcel No. 010-057080 and 0.013 acre lies within Franklin County Auditor’s Parcel No. 010-010517, and 0.343 acre lies within Franklin County Auditor’s Parcel No. 010-057080, and 0.217 acre lies within Franklin County Auditor’s Parcel No. 010- 057084 and 0.262 acre lies within Franklin County Auditor’s Parcel No. 010-045527.
Bearings herein are based on GPS observations utilizing the Ohio State Plane Coordinate System, South Zone, NAD 83 (2011) establishing a bearing of South 88°07’13” East for the centerline of Mound Street.
Iron pins set consist of a 5/8-inch rebar, 30 inches long with an orange plastic cap stamped "Arcadis U.S. S-7740".
Section 2. That the Director of the Department of Development, or his designee, is hereby authorized to execute an Amendment and Restatement and Partial Release of Restrictive Covenants, as approved by the Department of Law, Division of Real Estate, for the property stated in Section 1 and the remainder of parcel 010-057080, not a part of the sale.
SECTION 3. For the purpose contained in Section 2, a payment of $50,950 is authorized to the United State Department of Urban Development from the proceeds of the sale of 879 E. Mound Street.
SECTION 4. For the property stated in Section 1, that the Director of Development is hereby authorized to execute any agreement, deed restriction, or mortgage to ensure compliance with land bank program rules and the submitted application and to release such restriction or mortgage upon compliance.
Section 5. That Council hereby finds that the selection process utilized in this matter is in accordance with the Land Bank Disposition Process created pursuant to the City’s Land Reutilization Program and hereby approves the same.
Section 6. 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.