Explanation
Background: Since the City purchased the former Northland Mall property in 2003 the City has been working with Columbus Urban Growth Corporation ("CUGC") to redevelop the property. In February 2004, as part of that redevelopment by CUGC, the City sold approximately 10 acres of the former Lazarus property to Retail Ventures, Inc. for its new corporate headquarters. Contemporaneously with that sale, the City and CUGC entered into a formal lease agreement for the remaining 75 acres. The lease permitted CUGC to sublease portions of Northland property for redevelopment or to exercise options to take title of portions where CUGC was able to find buyers. The lease provisions for rent and option to purchase by CUGC, were designed over the term of the lease to reimburse the City its basis (cost) in the Northland property. Any excess proceeds over that basis were to be used by CUGC for future site redevelopment costs and expenses. CUGC has several redevelopment proposals for the sale of portions of Northland. These include two out lots on Morse and the old movie theater. Notwithstanding the existing lease provisions, which set forth payment to the City on the sale of property, in order to meet the current and projected short terms redevelopment costs at Northland, it is requested that the entire proceeds from the sales of these parcels in the estimated amount of $1,050,000 be retained by CUGC and used to cover such redevelopment costs and expenses as set forth in this ordinance. The release of these sales from the lease provision shall not otherwise effect CUGC overall obligation to reimburse the City for its acquisition costs.
Fiscal Impact: No funding is required for this legislation.
Title
To authorize the Director of Development to convey to the Columbus Urban Growth Corporation by quit claim deed certain specified portions of City-owned property formerly known as Northland Mall under the terms and conditions of this ordinance; and to declare an emergency.
Body
WHEREAS, the City of Columbus and Columbus Urban Growth Corporation, ("CUGC"), are engaged in redeveloping the property formerly known as the Northland Mall; and
WHEREAS, CUGC is in the process of contracting for the sales of three sites, two out lot parcels on Morse Road and the old movie theater site, as shown on the attached map of Northland; and
WHEREAS, notwithstanding the provision of the lease between the City and CUGC requiring CUGC to repay on resale the allocated basis of the City's purchase cost for Northland, it is necessary to permit CUGC to retain all of the proceeds from the sale of these three sites for use in furthering redevelopment of the former Northland Mall site; and
WHEREAS, the use of the proceeds from these sales shall be limited to costs associated with the redevelopment of the Northland site as more fully set forth in the body of this ordinance; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary authorize the Director of Development to convey the three proposed parcels to CUGC without payment as required by the lease in order to allow for the expeditious redevelopment of the Northland site thereby preserving the public health, peace, safety and welfare; NOW THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Development be authorized to convey to CUGC by quit claim deed three parcels out of the City owned property formerly known as Northland Mall as such parcels are shown on the attached map of the former Northland Mall site.
Section 2. That notwithstanding the provisions of the existing lease between CUGC and the City requiring CUGC to pay a per acre price for such conveyances, CUGC shall be permitted to retain the proceeds of said sales, without any payment to the City, if the proceeds are placed in a segregated account to be used for the following redevelopment costs and expenses:
a) direct expenditures on public improvements within the Northland site necessary for future development;
b) property management expenses (taxes, insurance, utilities and maintenance) for calendar years 2004 and 2005;
c) reasonable and allowable expenditures related to services directly related to redevelopment activities at Northland , including but not limited to legal services, environmental investigations, staff and administrative costs. Reasonable and allowable expenses shall be determine by the guidelines established by the City Auditor for expenditure of City funds; and
d) reimbursements to CUGC for any of the above previously incurred by CUGC, including repayments of principal and interest on amounts borrowed by CUGC for any of the above.
Section 3. CUGC shall provide a quarterly report to the Director of Development itemizing expenditures under Section 2, together with such invoices or other documentation as necessary to support such expenditures as qualifying under Section 2 above.
Section 4. That the authority of the Director, as set forth in Section 1, to convey properties in accordance with this ordinance, shall terminate within 90 days of the effective date of this ordinance for any parcel which CUGC is not under contract to sell before that period.
Section 5. That for the reasons stated in the preamble hereto, this ordinance is hereby declared to be an emergency and shall take effect and be in force after its passage and approval by the Mayor or ten days if the Mayor neither approves nor vetoes the same.