Explanation
BACKGROUND: The City of Columbus submitted a State Infrastructure Bank (SIB) Loan application to the Ohio Department of Transportation (ODOT) as authorized by ordinance 1800-2015 to construct the Hamilton Road S-Curve roadway. Ordinance 1800-2015 authorized the Director of the Department of Development to apply for a maximum amount of $10.5 million. The scope of the project increased during the design phase; therefore, this legislation will authorize the Director of Development to submit a revised application for a maximum of $11 million to ODOT and authorize the Director of the Department of Public Service to enter into appropriate SIB Loan agreements with ODOT for the construction of the Hamilton Road S-Curve.
The construction of the S-Curve will occur in conjunction with the mixed-use development located adjacent to the N. Hamilton Road and State Route 161 interchange. The development will include approximately 700,000 square feet of Class A office space, 1,000,000 square feet of retail space, 800 multi-family residential units and 125 senior housing units; the private investment occurring at the site will be in excess of $250 million. The construction of the S-Curve is vital to alleviate current traffic conditions and to facilitate the construction of a mixed-use, walkable development that supports a successful environment for Class A office space.
FISCAL IMPACT: Funds to repay this loan will be first taken from TIF Funds (Fund 7438 Northeast Preserve TIF, Fund 7439 Dublin Granville South TIF and 7440 Dublin Granville North TIF). Should those funds not be sufficient, repayments are also budgeted in future capital improvement budgets starting in 2019. Funds will be taken from TIF Fund 7440 Dublin Granville North to pay a commitment fee to the Ohio Department of Transportation for the State Infrastructure Bank Loan in the amount of $19,000.00.
EMERGENCY JUSTIFICATION: Emergency action is required to revise the amount of the State Infrastructure Bank Loan application and to enter into appropriate loan agreements with the Ohio Department of Transportation in order to secure the financing to commence the construction of the Hamilton Road S-Curve and facilitate the private development and coincide with the established development timeline.
Title
To authorize the Director of the Department of Development to re-apply to the Ohio Department of Transportation (ODOT) for a State Infrastructure Bank (SIB) Loan for a maximum of $11 million; to authorize the Director of the Department of Public Service to enter into appropriate loan agreements with the ODOT for the SIB Loan to construct the Hamilton Road S-Curve; to authorize the expenditure of $19,000.00 from the Dublin Granville North TIF fund; and to declare an emergency. ($19,000.00)
Body
WHEREAS, the City of Columbus submitted an application for a State Infrastructure Bank Loan to the Ohio Department of Transportation as authorized by ordinance 1800-2015 for a maximum amount of $10.5 million to construct the Hamilton Road S-Curve roadway; and
WHEREAS, the City of Columbus desires to revise the State Infrastructure Bank Loan application for a maximum loan amount of $11 million for the construction of an S-Curve roadway connecting existing portions of N. Hamilton Road between Preserve Boulevard and State Route 161; and
WHEREAS, the City of Columbus desires to enter into agreements for a 20-year low interest loan for up to $11 million from the State Infrastructure Bank that is administered by the Ohio Department of Transportation with said funds to be used for said S-Curve roadway; and
WHEREAS, the City of Columbus desires to pay a commitment fee to the Ohio Department of Transportation for the State Infrastructure Bank Loan in the amount of $19,000; and
WHEREAS, the construction of the roadway will be in conjunction with a mixed-use development that includes approximately 700,000 square feet of Class A office space, 1,000,000 million square feet of retail space, 800 multi-family housing units and 125 senior living housing units, which represent over $250 million in private investment; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development and Department of Public Service, in that it is immediately necessary to revise the application and execute said loan agreements to meet the State’s anticipated loan closing date no later than April 1, 2016, 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 revise the application to the Ohio Department of Transportation for a State Infrastructure Bank Loan for a maximum amount of $11 million to construct the Hamilton Road S-Curve.
SECTION 2. That the Public Service Director is hereby authorized and directed to negotiate, execute and deliver, in the name and on behalf of the City of Columbus, Ohio (the "Municipality") the Loan and the Notes with the Ohio Department of Transportation for a 20-year low-interest loan for up to $11 million from the State Infrastructure Bank for construction of the Hamilton Road S-Curve.
SECTION 3. To the extent that monies are required to pay any of the costs or expenses of negotiating the Loan and Note or to pay the fees and other expenses payable pursuant to the Loan and Note, the sum of $19,000.00, or so much therefore as may be needed, is hereby appropriated and authorized to be expended from Fund 7440 Dublin Granville North TIF in Object Class 06 Capital Outlay per the accounting codes in the attachment to this ordinance.
SECTION 4. This Council hereby authorizes and directs the Public Service Director, or other appropriate officers of the City, to prepare and sign the Loan and Note, and any amendments thereto such that the character of those changes is not substantially adverse to the City, and to prepare and sign all instruments and to take all other actions as may be necessary and appropriate to implement this Ordinance.
SECTION 5. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is hereby deemed an emergency measure necessary for the immediate preservation of the public health, safety and welfare, and shall take effect and be in force from and immediately after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.