Explanation
BACKGROUND
This Ordinance is to authorize the Director of the Department of Development to enter into a Capital Contribution Agreement (the “Agreement”) with Diehl Development Partnership, LLC (the “Developer”), for the purpose of reimbursing the Developer for certain eligible project soft and hard costs associated with the design, relocation, and construction of public infrastructure improvements within the public right-of-way including but not limited to Elijah Pierce Avenue, Keifer Street, and Hamilton Avenue. Approval is also requested for reimbursement of expenses incurred on or after August 30, 2023 to align with the commencement of the Project, defined below, that occurred prior to funds being available in the 2024 bond sale for the 2023 Capital Improvement Budget. This Ordinance also authorizes the Director of the Department of Development to enter into a Housing Development Agreement with the Developer.
The Developer proposes The Diehl, an approximately $22 million mixed-use residential and retail development that will include 89 workforce housing units and 4,600 square feet of retail space (the “Project”) on the site of the former Diehl Whittaker Funeral Home generally located at 700 E. Long Street, and identified as Franklin County Tax Parcel 010-001222-00. The Project will consist of 51% of the residential units affordable at or below 80% area median income (“AMI”), 47% of the residential units affordable at or below 100% AMI, and 2% of the residential units affordable at or below 120% AMI.
EMERGENCY: Emergency action is requested in order to authorize the Department of Development to execute the agreements as quickly as possible to allow immediate reimbursement of the utility relocation portion of the public infrastructure improvements, which required advance payment by the Developer to the utility company to guarantee the price for sixty days or such costs may have increased thereby increasing the costs to the City.
FISCAL IMPACT: Funding in the amount of $1,200,000.00 is available within Fund 7704, the Streets and Highways Bond Fund. Transfers of funds and appropriations are required to establish sufficient authority for the public project.
CONTRACT COMPLIANCE: Diehl Development Partnership, LLC’s contract compliance number is CC-047112 and expires 10/27/25.
Title
To authorize the Director of the Department of Development to enter into a Capital Contribution Agreement with Diehl Development Partnership LLC in an amount up to $1,200,000.00 to reimburse for certain eligible project soft and hard costs associated with design, relocation, and construction related to the public infrastructure improvements within the public right-of-way adjacent to a workforce housing project; to authorize the transfer of funds and appropriations within the Streets and Highways Bond Fund; to authorize the expenditure of $1,200,000.00 from the Streets and Highways Bond Fund; to authorize the Director of the Department of Development to enter into a Housing Development Agreement with Diehl Development Partnership, LLC to provide for workforce housing units; and to declare an emergency. ($1,200,000.00)
Body
WHEREAS, Diehl Development Partnership LLC (the “Developer”) proposes The Diehl Project, which will include 89 workforce housing units and 4,600 square feet of retail space (the “Project”) at an estimated investment of approximately $22 million; and
WHEREAS, the Developer committed 51% of the residential units will be affordable at or below 80% of area median income (“AMI”), 47% of the residential units will be affordable at or below 100% AMI, and 2% of the residential units will be affordable at or below 120% AMI; and
WHEREAS, in order to develop the Project, public infrastructure improvements work performed by the Developer was also required within the public right-of-way including but not limited to Elijah Pierce Avenue, Keifer Street, and Hamilton Avenue; and
WHEREAS, the Director of the Department of Development will enter into a Capital Contribution Agreement with the Developer in an amount of up to $1,200,000.00 to reimburse for certain eligible public project soft and hard costs associated with the design, relocation, and construction of public infrastructure improvements; and
WHEREAS, the Department of Development is also requesting authorization to reimburse public costs occurring on or after August 30, 2023 to align with the timeline of the Project that commenced prior to funding being available through the 2024 bond sale for the 2023 Capital Improvement Budget; and
WHEREAS, it is necessary for City Council to authorize a transfer of funds and appropriations within Fund 7704, the Streets and Highway Bond Fund, to establish sufficient cash to pay for the public project; and
WHEREAS, the Director of the Department of Development is authorized to execute and approve a Housing Development Agreement and to take all actions necessary to implement this ordinance and the transactions contemplated by the Capital Contribution Agreement and the Housing Development Agreement; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development to authorize execution of the agreements as quickly as possible to allow immediate reimbursement of the utility relocation portion of the public infrastructure improvements, which required advance payment by the Developer to the utility company to guarantee the price for sixty days or such costs may have increased thereby increasing the costs to 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 transfer of $813,673.55, or so much thereof as may be needed, is hereby authorized within Fund 7704 (Street and Highways Bond Fund), from Dept-Div 5912 (Design and Construction), Project P530058-100005 (NCR-Public Infrastructure), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441770-100001 King Lincoln District - Diehl, Object Class 06 (Capital Outlay), per the account codes in the attachment to this ordinance.
SECTION 2. That the transfer of $386,326.45, or so much thereof as may be needed, is hereby authorized within Fund 7704 (Street and Highways Bond Fund), from Dept-Div 5912 (Design and Construction), Project P440005-100000 (Urban Infrastructure Recovery Fund (59-12)), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441770-100001 King Lincoln District - Diehl, Object Class 06 (Capital Outlay), per the account codes in the attachment to this ordinance.
SECTION 3. That the Director of the Department of Development be and is hereby authorized to enter into a Capital Contribution Agreement with Diehl Development Partnership, LLC in an amount up to $1,200,000.00 to reimburse for certain eligible project costs associated with public infrastructure improvements related to the Project including those incurred on or after August 30, 2023.
SECTION 4. That for the purpose as stated in Section 4, the expenditure of $1,200,000.00, or so much thereof as may be necessary, is hereby authorized in Fund 7704 (Street and Highways Bond Fund), Dept-Div 4402 (Economic Development), Project P441770-100001 King Lincoln District - Diehl, Object Class 06 (Capital Outlay), per the accounting codes in the attachment to this ordinance.
SECTION 5. That the Director of the Department of Development is authorized to execute and approve a Housing Development Agreement with Diehl Development Partnership, 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.
SECTION 6. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and expenditures and transfer authorized to carry out the purposes of this ordinance, and the City Auditor shall establish such accounting codes as necessary.
SECTION 7. 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 8. 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 9. That for reasons stated in the preamble hereto, which is made a part hereof, 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.