Explanation
This ordinance authorizes the City of Columbus (“City”) to amend for a fourth time the Development Agreement dated July 3, 2019 (the “Development Agreement”) originally by and among the City, Franklin County (“County”), and Crew SC Stadium Company, LLC (“StadCo”), and to amend and restate for the first time the Housing Development Agreement dated November 10, 2021 (the “2021 HDA”) between the City and Confluence Development, LLC. The Development Agreement outlines certain mutual commitments of the parties related to (i) the financing, development, construction, operation, and occupancy of a new multi-purpose sports, entertainment, cultural and recreational facility (“Stadium”), (ii) the redevelopment of the MAPFRE Stadium site into a practice facility and training complex for Columbus Crew SC (the “Training Facility Project”), (iii) a community sports park campus that will include a community recreation facility and playing fields (“CSP”), and (iv) the development of a project containing mixed-use retail, entertainment, residential, hospitality, office and/or commercial uses (“Mixed-Use Development”) adjacent to the Stadium.
The First Amendment to the Development Agreement added the Confluence Community Authority (“Authority”) and Crew SC Development Company, LLC (“DeveloperCo”) as parties to the Development Agreement, and assigned all of the rights and obligations of StadCo under the Development Agreement to DeveloperCo, an affiliate company. The Second Amendment to the Development Agreement (“Second Amendment”) added CrewSC Training Company, LLC (“TrainingCo”), an agent of DeveloperCo, as a party to the Development Agreement to implement the Training Facility Project, memorialized DeveloperCo’s workforce housing commitment, memorialized the City’s commitments for certain public infrastructure improvements and the public parking garage within the Mixed-Use Development, and the timing and funding of the CSP. The Third Amendment to the Development Agreement will expand the location of the CSP to include other potential sites including the City-owned Kilbourne Run Sports Park.
Pursuant to the Second Amendment, the City and Confluence Development, LLC (an affiliate of DeveloperCo and the owner of the Mixed-Use Development), entered into the 2021 HDA. Confluence Development, LLC agreed that each applicable phase of the Mixed-Use Development would include no less than ten percent of the occupied housing units to be affordable to persons with household incomes up to 80% AMI, and an additional ten percent of the occupied housing units to be affordable to persons with household incomes up to 100% AMI (the “Original Affordable Housing Commitment”). The Fourth Amendment to the Development Agreement (“Fourth Amendment”) will increase the Original Affordable Housing commitment from 20% to 25% of all occupied housing units, and thereby increased Confluence Development, LLC’s Original Affordable Housing Commitment under the First Amended and Restated Housing Development Agreement (the “A&R HDA”), too. Twenty percent of the occupied housing units are to be affordable to persons with household incomes up to 80% AMI, and an additional 5% of the occupied housing units are to be affordable to persons with household incomes up to 100% AMI (the “New Affordable Housing Commitment”). This legislation will also authorize the Director of the Department of Development to execute and approve both the A&R HDA with Confluence Development, LLC, and the Fourth Amendment by and among the City, County, Authority, StadCo, DeveloperCo, and Training Co, as well as to take all actions necessary to implement the New Affordable Housing Commitment and each of those agreements and this Ordinance.
FISCAL IMPACT: No funding is required for this legislation.
EMERGENCY JUSTIFICATION: An emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to enter into the Fourth Amendment and the A&R HDA as the New Affordable Housing Commitment is condition of the City allowing the parties to promptly close on the refinancing of portions of the project, which such refinancing will enable the Mixed-Use Development to begin construction thereby enabling the provision of workforce housing units to which there is an undersupply within the City, all for the immediate preservation of the public health, peace, property, and safety.
Title
To authorize the Director of the Department of Development to execute the Fourth Amendment to the Development Agreement by and among the City, Franklin County, Confluence Community Authority, Crew SC Development Company, LLC Crew SC Stadium Company, LLC, and Crew SC Training Company, LLC for the purposes of memorializing new commitments relating to workforce housing; to authorize the aforesaid Director to also execute the First Amended and Restated Housing Development Agreement between the City and Confluence Development, LLC for the purposes of memorializing new commitments relating to workforce housing; and to declare an emergency. ($0.00)
Body
WHEREAS, the City, Franklin County, and Crew SC Stadium Company, LLC (“StadCo”) (all three collectively, the “Original Parties”) executed a Development Agreement dated July 3, 2019 (the “Development Agreement”), as authorized by Ordinance No. 1730-2019 approved by Council on July 1, 2019, outlining certain mutual commitments of the Original Parties related to the financing, development, construction, operation, and occupancy of a new sports stadium (“Stadium”), the redevelopment of the MAPFRE Stadium site into a community sports park (the “CSP”), and the development of a mixed-use project containing retail, entertainment, residential, hospitality, office and/or commercial uses adjacent to the Stadium (“Mixed-Use Development” with the Stadium and CSP, the “Project”); and
WHEREAS, the Original Parties, the Confluence Community Authority (the “Authority”) and Crew SC Development Company (“DeveloperCo”), executed the First Amendment to the Development Agreement dated December 19, 2019, as authorized by Ordinance No. 1730-2019 approved by Council on July 1, 2019, to add the Authority and DeveloperCo as parties to the Development Agreement, assign the rights and obligations of StadCo to DeveloperCo, and to delegate the rights and responsibilities related to certain commitments to appropriate affiliate entities; and
WHEREAS, the Original Parties, the Authority and DeveloperCo, and the Crew SC Training Company (“TrainingCo” and all six collectively, the “Parties”) executed the Second Amendment to the Development Agreement dated November 10, 2021 (the “Second Amendment”), as authorized by Ordinance No. 1492-2021 approved by Council on July 19, 2021, to add TrainingCo to the Development Agreement, memorialize DeveloperCo’s workforce housing commitment, and to memorialize the City’s commitments related to public infrastructure improvements, including the public parking garage within the Mixed-Use Development, and the timing and funding of the “CSP”; and
WHEREAS, the Third Amendment to the Development Agreement, as authorized by Ordinance No. 2126-2022 approved by Council on July 25, 2022, will memorialize commitments related to the location of the CSP; and
WHEREAS, pursuant to the Second Amendment to the Development Agreement, the City and Confluence Development, LLC (an affiliate of DeveloperCo and the current owner of the Mixed Use Development), entered into a Housing Development Agreement dated November 10, 2021, pursuant to Ordinance No. 1492-2021 (the “2021 HDA”); and
WHEREAS, the Second Amendment and the 2021 HDA state that each applicable phase of the Mixed-Use Development would include no less than 10% of the occupied housing units to be affordable to persons with household incomes up to 80% AMI, and an additional 10% of the occupied housing units to be affordable to persons with household incomes up to 100% AMI for a total of 20% of the occupied housing units to be affordable housing units (the “Original Affordable Housing Commitment”); and
WHEREAS, this legislation will authorize the Director of the Department of Development (the “Director”) to execute and approve the Fourth Amendment to the Development Agreement (the “Fourth Amendment”) with the Parties to increase DeveloperCo’s Original Affordable Housing commitment from 20% to 25%, which shall include 20% of the occupied housing units to be affordable to persons with household incomes up to 80% AMI, and an additional 5% of the occupied housing units to be affordable to persons with household incomes up to 100% AMI (the “New Affordable Housing Commitment”); and
WHEREAS, this legislation will also authorize the Director of the Department of Development to execute and approve the First Amended and Restated Housing Development Agreement (the “A&R HDA”) with Confluence Development, LLC, thereby amending and replacing the 2021 HDA, to implement the New Affordable Housing Commitment;
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to enter into the Fourth Amendment and the A&R HDA as the New Affordable Housing Commitment is condition of the City allowing the Parties to promptly close on the refinancing of portions of the Project, which such refinancing will enable the Mixed-Use Development to begin construction thereby enabling the provision of workforce housing units to which there is an undersupply within the City, all for the immediate preservation of the public health, peace, property, and safety; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director, or his or her designee, on behalf of the City, is hereby authorized to enter into the Fourth Amendment with the Parties, 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 by the Director, and the character of those changes and amendments as not being substantially adverse to the City, shall be evidenced conclusively by the Director’s execution and delivery thereof, for the purposes of memorializing the New Affordable Housing Commitment by allowing the A&R HDA to be an exhibit to the Fourth Amendment.
SECTION 2. The Director, or his or her designee, on behalf of the City, is hereby authorized to enter into the A&R HDA with Confluence Development, 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 by the Director, and the character of those changes and amendments as not being substantially adverse to the City, shall be evidenced conclusively by the Director’s execution and delivery thereof for the purposes of updating the Original Affordable Housing Commitment and providing for the New Affordable Housing Commitment by means of the A&R HDA, which may be attached as an exhibit to the Fourth Amendment.
SECTION 3. That the Director is authorized to execute and approve such other agreements and instruments and to take all actions necessary to implement this Ordinance and the transactions contemplated by the Fourth Amendment and A&R HDA.
SECTION 4. 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.