Explanation
BACKGROUND: The purpose of this ordinance is to give the Director of the Department of Development the authority to enter into a Memorandum of Understanding (MOU) with Nationwide Realty Investors, Ltd. (NRI). The MOU will outline the plans and certain commitments of the parties relating to the relocation of Nationwide Insurance jobs to the downtown and development of Grandview Yard and the surrounding area. The plans and proposals remain subject to authorization pursuant to the adoption of appropriate legislation by Columbus City Council.
Under the MOU, subject to adoption of a future ordinance(s), the City will establish a non-school Tax Increment Finance District (TIF) within the Olentangy River Road corridor area. Proceeds from the TIF will be used to make public infrastructure improvements in the Columbus portion of the Olentangy River Road corridor area unless otherwise agreed to by the City and its partners. Public infrastructure improvements include, but are not limited to, the widening of 3rd Avenue (including the widening of the Third Avenue Railroad Bridge) between Olentangy River Road and Edgehill Road.
In addition, Nationwide Insurance will move 1,400 jobs new to Downtown Columbus on or before December 31, 2011. Legislation will be submitted to City Council that provides a 50%, 10-year Downtown Office incentive for jobs exceeding 1,400 as compared to January 1, 2010.
Furthermore, the City and NRI will fully cooperate on the development of Grandview Yard including, but not limited to, engineering for railroad bridge widening and utility connections. The City will partner with the City of Grandview Heights and NRI to pursue State and Federal grant dollars and other funding for infrastructure supporting Grandview Yard and surrounding area.
The MOU provides that the City, subject to adoption of a future ordinance(s), will establish a 10-year year, 75% property tax abatement on any parking facilities built in downtown Columbus by NRI. NRI and/or the Nationwide Insurance companies may desire to construct additional parking facilities to accommodate future employees and/or tenants of NRI and/or the Nationwide companies.
The City's agreement to provide the referenced financial assistance is contingent upon authorization pursuant to the adoption of appropriate legislation by Columbus City Council.
FISCAL IMPACT: None associated with the MOU.
Title
To authorize the Director of the Department of Development to enter into a Memorandum of Understanding with Nationwide Realty Investors, Ltd. in order to outline the plans and certain commitments of the parties relating to the relocation of Nationwide Insurance jobs to the downtown and development of Grandview Yard and the surrounding area; and to declare an emergency.
Body
WHEREAS, the City and NRI believe this MOU will assist with the redevelopment and revitalization of the Olentangy River Road corridor and Grandview Yard; and
WHEREAS, the City desires to enter into a MOU with NRI to outline the framework for and many of the major terms of a cooperation agreement for the development of the Olentangy River Road corridor and Grandview Yard; and
WHEREAS, Nationwide Insurance will move 1,400 jobs new to Downtown Columbus on or before December 31, 2011; and
WHEREAS, the cooperation agreement remains subject to authorization pursuant to the adoption of appropriate legislation by Columbus City Council; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into a Memorandum of Understanding with Nationwide Realty Investors, Ltd. for the economic development and job growth within the downtown and continued improvement of the Olentangy River Road corridor, 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 enter a Memorandum of Understanding with Nationwide Realty Investors, Ltd. in order to outline the plans and certain commitments of the parties for the relocation of 1,400 jobs to the downtown and relating to the development of the Olentangy River Road corridor and Grandview Yard.
Section 2. That in the reasons stated in the preamble hereto, which is hereby made a part thereof, this Ordinance is 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.