Explanation
Background: The City is partnering with the Central Ohio Transit Authority to develop bus rapid transit from Downtown Columbus to Dublin including along Olentangy River Road (the “Northwest BRT Corridor”). The City has implemented ZoneIn Phase 1 and is implementing ZoneIn Phase 2 to allow for higher density residential and mixed-use developments along parts of the Northwest BRT Corridor. CAG Riverside Flats Acquisitions, LLC (the “Developer”), an affiliate of Continental Development Ventures, is constructing an approximately $76.5 million multi-family building with approximately 259 residential units including 83 units at 80% AMI along with a 350-space parking garage (the “Riverside Flats”) on Franklin County Parcel ID No. 010-126692 along the Northwest BRT Corridor. The Developer requested tax increment financing (TIF) to support public infrastructure improvements including but not limited the parking facility and site improvements.
City Council passed Ordinance No. 2038-2025 establishing a new TIF area over Riverside Flats (the “Olentangy 315 North TIF”). City Council also previously passed Ordinance No. 1224-2009 and Ordinance No. 2189-2011 to establish two additional TIF areas now adjacent to or in the vicinity of the Olentangy 315 North TIF (respectively, the “OhioHealth TIF” and the “Olentangy & North Broadway TIF”). The Developer has requested the Columbus-Franklin County Finance Authority (the “Finance Authority”) to issue special obligation revenue bonds in the approximate amount of $13,000,000 (the “Bonds”) to pay for the public infrastructure improvements associated with Riverside Flats, and for the City to contribute $2,000,000 of tax increment financing funds upfront. This Ordinance will authorize a tax increment financing and cooperative agreement (the “TIF Agreement”) between the City, the Finance Authority, and the Developer to reimburse the Finance Authority for the Bonds issued to pay the costs of public infrastructure improvements described herein and to make the upfront contribution. This Ordinance will also appropriate and authorize the expenditure or transfer of the funds generated from the Olentangy 315 North TIF, OhioHealth TIF, and Olentangy & North Broadway TIF in accordance with the TIF Agreement. This ordinance authorizes the City to approve a declaration of public parking garage covenants for the project.
Emergency Justification: Emergency action is requested in order to allow for timely issuance of the bonds by the Columbus-Franklin County Finance Authority as contemplated by the TIF Agreement at the most advantageous interest rates thereby also financially benefiting the City through debt service savings.
Fiscal Impact: Funding is currently available in the OhioHealth TIF Fund and the Olentangy & North Broadway TIF Fund. The City is appropriating and authorizing the expenditure or transfer of funds deposited or to be deposited into the Olentangy 315 North TIF Fund, OhioHealth TIF Fund, and Olentangy & North Broadway TIF Fund.
Title
To appropriate and authorize the expenditure or transfer of funds deposited or to be deposited in the Olentangy 315 North TIF Fund, OhioHealth TIF Fund, and Olentangy & North Broadway Public Improvement TIF Fund pursuant to the following agreement; to authorize the Director of the Department of Development to enter into the Tax Increment Financing and Cooperative Agreement between the City, Columbus-Franklin County Finance Authority, and CAG Riverside Flats Acquisitions, LLC to contribute cash up front and reimburse the bonds issued for the costs of public infrastructure improvements described thereunder benefiting the developer’s Riverside Flats development on Franklin County Parcel ID No. 010-126692; to authorize the Director of the Department of Development to approve a declaration of public parking garage covenants for the project; and to declare an emergency. ($0.00)
Body
WHEREAS, pursuant to R.C. Section 5709.40(B) and Ordinance No. 1224-2009, City Council created a tax increment financing (TIF) area around the OhioHealth Riverside Methodist Hospital (the “OhioHealth TIF”); and
WHEREAS, pursuant to R.C. Section 5709.40(B) and Ordinance No. 2189-2011, City Council created a TIF area along Olentangy River Road between North Broadway and Ackerman Road (the “Olentangy & North Broadway TIF”); and
WHEREAS, the City is partnering with the Central Ohio Transit Authority to develop bus rapid transit from Downtown Columbus to Dublin including along Olentangy River Road (the “Northwest BRT Corridor”); and
WHEREAS, the City has implemented ZoneIn Phase 1 and is implementing ZoneIn Phase 2 to allow for higher density residential and mixed-use developments along parts of the Northwest BRT Corridor; and
WHEREAS, CAG Riverside Flats Acquisitions, LLC (the “Developer”), an affiliate of Continental Development Ventures, is constructing an approximately $76.5 million multi-family building with approximately 259 residential units including 83 units at 80% AMI along with a 350-space parking garage on or adjacent or Franklin County Parcel ID No. 010-126692 along the Northwest BRT Corridor; and
WHEREAS, Riverside Flats parcel is controlled by the Developer or its affiliates (the “Developer Parcel”) formerly within the OhioHealth TIF; and
WHEREAS, the Developer requested tax increment financing to support public infrastructure improvements including but not limited to the parking facility and site improvements (the “Public Infrastructure Improvements”); and
WHEREAS, City Council passed Ordinance No. 2038-2025 removing the Developer Parcel from the OhioHealth TIF and thereafter Ordinance No. 2038-2025 also established a new TIF area over the Developer Parcel (the “Olentangy 315 North TIF”); and
WHEREAS, the Developer has requested the Columbus-Franklin County Finance Authority (the “Finance Authority”) to issue special obligation revenue bonds in the approximate amount of $13,000,000 (the “Bonds”) to pay for the Public Infrastructure Improvements associated with Riverside Flats; and
WHEREAS, the City will contribute upfront an amount from the Olentangy & North Broadway TIF and/or OhioHealth TIF funds that when combined with the amount of bond proceeds raised equals $15,000,000 total (i.e. TIF district contribution is estimated to be $2,000,000); and
WHEREAS, in order for the City to make the contribution and reimburse the Bonds for the Public Infrastructure Improvements using the funds generated from the Olentangy 315 North TIF, OhioHealth TIF, and Olentangy & North Broadway TIF (collectively, the “Service Payments”), the City, the Finance Authority, and the Developer will enter into the Tax Increment Financing and Cooperative Agreement (the “TIF Agreement”) and the City will approve a declaration of public parking garage covenants (the “Parking Declaration”); and
WHEREAS, pursuant to the TIF Agreement, the City is appropriating and authorizing the expenditure or transfer of the Service Payments; and
WHEREAS, the Riverside Flats and Public Infrastructure Improvements will provide support towards the creation of new housing units in close proximity to major employers such as Riverside Methodist Hospital, Wexner Medical Center, and The Ohio State University along the Northwest BRT Corridor; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, in that it is immediately necessary to enter into the TIF Agreement, in order to allow the Authority to timely issue the obligations contemplated by the TIF Agreement at the most advantageous interest rates thereby financially benefiting the City through debt service savings, all for the immediate preservation of 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 (together with his or her designee, the “Director”), for and in the name of the City, is hereby authorized to execute and deliver the TIF Agreement with the Columbus-Franklin County Finance Authority and CAG Riverside Flats Acquisitions, LLC presently on file with the Director, along with any changes or amendments thereto not inconsistent with this Ordinance and not substantially adverse to the City and which shall be approved by the Director and the City Attorney, provided that the approval of such changes and amendments thereto, and the character of those changes and amendments as not being substantially adverse to the City, shall be evidenced conclusively by the execution of said TIF Agreement by the Director.
SECTION 2. That the Director or other appropriate officers of the City are authorized to take all actions as may be necessary to implement this Ordinance and the transactions contemplated by the TIF Agreement for the Public Infrastructure Improvements including but not limited to approving the Parking Declaration as may be further defined in the TIF Agreement.
SECTION 3. That the Service Payments deposited or to be deposited into the Olentangy 315 North TIF Fund, OhioHealth TIF Fund, and Olentangy & North Broadway TIF Fund (collectively, the “TIF Funds”) shall be appropriated for the purposes set forth in the TIF Agreement and authorized to be expended therefrom in accordance with the TIF Agreement, and the City Auditor is authorized to make payments to the Finance Authority, or its designee, from the Service Payments in the TIF Funds in accordance with the TIF Agreement 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 4. That the City Auditor is authorized to make annual transfers of up to $15,000.00 ($5,000 per each TIF under the TIF Agreement) from the Service Payments in the TIF Funds to the Business Tax Incentive Fund (Fund 2229), subject to the authorization of the Director, for the “City TIF Administrative Fee” in accordance with the TIF Agreement and Ordinance No. 1837-2025.
SECTION 5. That funds are hereby appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 6. 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 7. 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 8. That for the reasons stated in the preamble hereto, which are 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 its passage if the Mayor neither approves nor vetoes the same.