Explanation
Background: City Council passed Ordinance No. 2172-2005 on December 12, 2005 establishing a tax increment financing (“TIF”) incentive district pursuant to R.C. Section 5709.40(C) generally between King Avenue, Pearl Street, Goodale Avenue, and Dennison Avenue (the “Short North TIF”). Ordinance No. 1905-2012 passed by City Council on September 10, 2012 authorized the execution of that certain TIF Project and Reimbursement Agreement dated March 18, 2013 (the “TIF Agreement”) between the City and Pizzuti Short North LLC (the “Developer”). Under the TIF Agreement, a portion of the funds generated from the Short North TIF are allocated toward reimbursing the Developer for costs associated with the parking garage on Franklin County Tax Parcel ID No. 010-052208, which has 313-spaces open to public use for a period of 25 years. As contemplated by the TIF Agreement, the Developer recently requested the City’s cooperation with a proposed bond issuance through the Columbus-Franklin County Finance Authority for the purpose of refinancing the remaining obligations. However, in lieu of incurring additional costs and interest on new bonds, and also in accordance with the TIF Agreement, the City has determined to use other available resources to fulfill the City’s remaining obligations thereunder. This legislation will authorize the appropriation and expenditure of monies generated from the AC Humko II TIF pursuant to Ordinance No. 0670-2004 for the purposes of fulfilling the City’s remaining obligations under the TIF Agreement. This legislation will also authorize the City to enter into an amendment to the TIF Agreement to terminate that Agreement effective upon the City fulfilling its remaining obligations thereunder.
Emergency Justification: An emergency exists in the usual daily operations of the Department of Development in that it is immediately necessary to authorize the appropriation and expenditure of the AC Humko II TIF funds contemplated herein, the payment of such will provide a direct savings to the City by reducing the amount of obligations owed and interest accruing.
Fiscal Impact: The City is appropriating and authorizing the expenditure of funds deposited, and to be deposited, into Fund 7425and Fund 7788 to be used in accordance with the TIF Agreement.
Title
To authorize the Director of the Department of Development to enter into the First Amendment to TIF Project and Reimbursement Agreement with Pizzuti Short North LLC to terminate that same agreement upon the City fulfilling its financial obligations thereunder; to appropriate and authorize the expenditure of funds generated from the AC Humko II TIF for the purpose of fulfilling said financial obligations thereunder; and to declare an emergency. ($0.00)
Body
WHEREAS, City Council passed Ordinance No. 2172-2005 on December 12, 2005 establishing a tax increment financing (“TIF”) incentive district pursuant to R.C. Section 5709.40(C) generally between King Avenue, Pearl Street, Goodale Avenue, and Dennison Avenue (the “Short North TIF”); and
WHEREAS, Ordinance No. 1905-2012 passed by City Council on September 10, 2012 authorized the execution of that certain TIF Project and Reimbursement Agreement dated March 18, 2013 (the “TIF Agreement”) between the City and Pizzuti Short North LLC (the “Developer”); and
WHEREAS, under the TIF Agreement a portion of the funds generated from the Short North TIF are allocated to reimbursing the Developer for costs associated with the parking garage on Franklin County Tax Parcel ID No. 010-052208, which has 313-spaces open to public use for a period of 25 years (the “Joseph Garage”); and
WHEREAS, as contemplated by the TIF Agreement, the Developer requested the City’s cooperation with a proposed bond issuance through the Columbus-Franklin County Finance Authority for the purpose of refinancing the remaining obligations on the Joseph Garage; and
WHEREAS, in lieu of incurring the additional costs and interest on new bonds but also in accordance with the TIF Agreement, the City has determined to use other available resources for the fulfillment of the City’s remaining obligations thereunder; and
WHEREAS, City Council passed Ordinance No. 0670-2004 on April 26, 2004 establishing another TIF incentive district pursuant to R.C. Section 5709.40(C) (the “AC Humko II TIF”); and
WHEREAS, Ordinance No. 1555-2017 determined that satisfactory provision had been made for the public improvements needs of parcels within certain tax increment financing districts in order to allow tax increment financing generated from within those districts to be used in support of offsite urban redevelopment for certain “Neighborhood Public Improvements” as identified in Exhibit B of Ordinance No. 1555-2017, which includes parking structures and related improvements such as the Joseph Garage; and
WHEREAS, this legislation will authorize the appropriation and expenditure of monies generated from the AC Humko II TIF held in both Fund 7425 and Fund 7788 for the purpose of contributing to fulfilling the obligations of the Joseph Garage as described in the TIF Agreement; and
WHEREAS, since the TIF Agreement does not clearly expire or terminate by its own terms once the City has made all of its payments in full, the City and the Developer need to amend the TIF Agreement by written instrument in order to effectively terminate the TIF Agreement at such appropriate time; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Development in that it is immediately necessary to authorize the appropriation and expenditure of the AC Humko II TIF funds contemplated herein, which the payment of such will provide a direct savings to the City by reducing the amount of obligations owed and interest accruing, all for the immediate preservation of the public health, peace, property, safety, and welfare without delay; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development or his or her designee (altogether, the “Director”), on behalf of the City, is hereby authorized to enter into the First Amendment to TIF Project and Reimbursement Agreement (the “First Amendment”) with the Developer 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 and the City Attorney and evidenced conclusively by the execution and delivery of the First Amendment to terminate the TIF Agreement upon the City’s fulfillment of its obligations thereunder.
Section 2. That the AC Humko II TIF funds deposited and to be deposited into Fund 7425 and Fund 7788 shall be deemed appropriated and authorized for expenditure for the purposes set forth in this Ordinance and the TIF Agreement. The City Auditor is authorized to make payments to the Developer, or its authorized designee including but not limited to its affiliates, from Funds 7425 and 7788 in accordance with the TIF Agreement upon order of the Director and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
Section 3. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, authorized for expenditure to carry out the purposes of this ordinance, and the City Auditor shall establish such accounting codes as necessary.
Section 4. 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 5. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account or subfund 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 6. That for 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.