Explanation
1. BACKGROUND
The Ohio State University (the “UNIVERSITY”) has proposed the creation of an innovation program area located on the west campus of the University, which is currently expected to include 1,500-2,000 residential units, 100,000-200,000 square feet of retail space, a 180-220-bed hotel, up to 500,000 square feet of medical facilities, and 4-6 million square feet of laboratory and commercial office space (the “Innovation District”).
Columbus City Council passed Ordinance Number 2069-2021 on July 26, 2021, which authorized the Department of Development to enter into a Memorandum of Understanding with the UNIVERSITY to outline the plans and anticipated commitments of the City and the UNIVERSITY related to the Innovation District. The Department of Development anticipates submitting legislation to authorize the Director of Development to enter into a Tax Increment Financing and Cooperative Agreement to assist the UNIVERSITY with funding public improvements associated with the Innovation District. The Department of Development also anticipates submitting legislation to authorize the Director of Development to enter into a Jobs Growth Incentive agreement with the UNIVERSITY. The execution of both agreements will be conditioned upon the UNIVERSITY’s agreement to provide affordable housing within the Innovation District.
The UNIVERSITY has committed that twenty percent of the units in each project or building of development within the Innovation District containing residential uses shall be affordable housing as follows: (a) ten percent of the total residential units must be affordable to households at or below eighty percent (80%) of the area median income (“AMI”) and (b) an additional ten percent of the total residential units must be affordable to households at or below one hundred percent (100%) AMI; provided, however, that any residential project or building for occupancy by students of the UNIVERSITY and included within the UNIVERSITY residence halls or housing system shall not be subject to these requirements. These affordable housing requirements shall apply for a fifteen-year term for each project or building, as the case may be, constructed prior to December 31, 2056, commencing upon the issuance of the final certificate of occupancy for the project or building, as the case may be,. The affordable housing requirements will not extend beyond December 31, 2071.
This Ordinance authorizes the Director of Development to enter into a Housing Development Agreement (the “AGREEMENT”) with the UNIVERSITY to memorialize these affordable housing obligations.
The construction of the first residential phase is estimated to begin in approximately 2024.
2. EMERGENCY JUSTIFICATION
Emergency legislation is required to allow for immediate effectiveness of this ordinance, which is necessary in order to enable the timely development of the above described Project.
3. FISCAL IMPACTS
There is no fiscal impact for this legislation.
Title
To authorize the Director of the Department of Development to enter into a Housing Development Agreement with The Ohio State University (the “UNIVERSITY”) to memorialize the UNIVERSITY’S affordable housing obligations; and to declare an emergency.
Body
WHEREAS, the CITY wishes to foster investment in and the development of affordable housing in mixed-use, mixed-income neighborhoods; and
WHEREAS, the UNIVERSITY has proposed the creation of an innovation program area located on the west campus of the University on the area depicted on “Exhibit A” attached hereto, (the “Innovation District”); and
WHEREAS, the UNIVERSITY anticipates the development of 1,500 to 2,000 residential units in the Innovation District; and
WHEREAS, Ordinance Number 2069-2021, passed by Columbus City Council on July 26, 2021, authorized the Department of Development to enter into a Memorandum of Understanding with the UNIVERSITY to outline the plans and anticipated commitments of the City and the UNIVERSITY related to the Innovation District; and
WHEREAS, the Department of Development anticipates submitting legislation to authorize the Director of Development to enter into a Tax Increment Financing and Cooperative Agreement to assist the UNIVERSITY with funding public improvements associated with the Innovation District, and the Department of Development anticipates submitting legislation to authorize the Director of Development to enter into a Jobs Growth Incentive Agreement, the execution of both of which will be conditioned upon the UNIVERSITY’s agreement to provide affordable housing within the Innovation District; and
WHEREAS, the UNIVERSITY has agreed to make twenty percent (20%) of residential units in each project or building of development within the Innovation District containing residential uses affordable as follows: (a) ten percent of the total residential units must be affordable to households at or below one hundred percent (100%) of the area median income (“AMI”) and (b) an additional ten percent of the total residential units must be affordable to households at or below eighty percent (80%) AMI; provided, however, that any residential project or building for occupancy by students of the UNIVERSITY and included within the UNIVERSITY residence halls or housing system shall not be subject to these requirements; and
WHEREAS, it is necessary to authorize the Director of the Department of Development to enter into a Housing Development Agreement (the “AGREEMENT”) with the UNIVERSITY to memorialize these affordable housing commitments; and
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 a Housing Development agreement with The Ohio State University in order to facilitate the construction of the Innovation District at the earliest possible time, and for the preservation of 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 (the “Director”), for and in the name of the City, is hereby authorized to execute and deliver the Housing Development Agreement with The Ohio State University (the “UNIVERSITY”) presently on file with the Department of Development, 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, provided that the approval of such changes and amendments thereto, and the character of those changes and amendments as not bring substantially adverse to the City, shall be evidenced conclusively by the Director’s execution and delivery thereof.
SECTION 2. That the Director or other appropriate officers of the City are authorized to execute and approve other instruments necessary or conducive to implementing this Ordinance and the transactions contemplated by the Housing Development Agreement (the “Agreement”) and such other instruments subject to approval by the City Attorney’s Office, and to take all actions as may be necessary to implement this Ordinance and the transactions contemplated by the Housing Development Agreement and/or such other instruments.
SECTION 3. That for the reasons stated in the preamble hereto, which is hereby 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.