Explanation
BACKGROUND
The Gravity Project 3 Holdings, LLC (the “Developer”) is redeveloping the former AD Farrow Harley Davidson dealership and NWD Franklinton, LLC sites currently located at 501 West Broad Street and identified as Franklin County Tax Parcel 010-057684-00 that will include 313 apartment units, 5,300 square feet of retail space and a 324-space parking garage (the “Project”). The Project will provide 50 public parking spaces (the “Public Parking Spaces”), public infrastructure improvements, and public art and place-making improvements adjacent to the Project, and thirty-two (32) affordable residential units as follows: six (6) studio units, seventeen (17) one-bedroom units, and nine (9) two-bedroom units affordable to residents at or below 80% of area median income (the “Inclusive Housing Units”). Pursuant to Ordinance No. 1761-2023, passed on June 26, 2023, the City entered into an Economic Development Agreement dated July 18, 2023 with the Developer which memorializes the capital contribution of $4,000,000 (the “City Contribution”) to reimburse the Developer for approved capital expenditures associated with the Public Parking Spaces, public infrastructure improvements, public art and place-making improvements, and Inclusive Housing Units. Ordinance No. 3083-2023, passed on November 20, 2023, authorized the Director of the Department of Development to enter into a Capital Improvement Agreement with the Developer and authorized the expenditure for the first $2,000,000 of the City Contribution to reimburse the Developer for project costs associated with the Inclusive Housing Units. This Ordinance will authorize the expenditure of the final $2,000,000 of the City Contribution to reimburse the Developer for the costs associated with the Public Parking Spaces, public infrastructure improvements, and public art and place-making improvements including those incurred before the purchase order but after September 1, 2023. This Ordinance will also authorize the Director of the Department of Development to enter into a contribution agreement and Restrictive Covenants for the Public Parking Spaces, the public infrastructure improvements, and public art and place-making improvements.
FISCAL IMPACT: An amendment to the 2025 Capital Improvement Budget is required to match cash and align spending within the proper project. Cash will need to be transferred and appropriated within various funds. Funds in the amount of $2,000,000.00 are available within the Development Taxable Bonds Fund, AC Humko II TIF Fund, Harrison West Recreation Park Fund, Waggoner Road TIF Fund, Waggoner Road TIF Capital Fund, and Rocky Fork TIF Capital Fund.
CONTRACT COMPLIANCE: Vendor compliance is pending.
Title
To amend the 2025 Capital Improvement Budget; to appropriate funds within the AC Humko II TIF Fund, Harrison West Recreation Park Fund, Waggoner Road TIF Fund, and Waggoner Road TIF Capital Fund; to transfer funds between the Waggoner Road TIF Fund and Waggoner Road TIF Capital Fund; to transfer funds respectively within the Development Taxable Bonds Fund, AC Humko II TIF Fund, Harrison West Recreation Park Fund, Waggoner Road TIF Capital Fund, and Rocky Fork TIF Capital Fund; to authorize the Director of the Department of Development to enter into a contribution agreement and restrictive covenants for the public parking spaces, public infrastructure improvements, and public art and place-making improvements associated with the GreenHouse Gravity project; to authorize the expenditure of $2,000,000.00 from the Development Taxable Bonds Fund, AC Humko II TIF Fund, Harrison West Recreation Park Fund, Waggoner Road TIF Capital Fund, and Rocky Fork TIF Capital Fund to The Gravity Project 3 Holdings, LLC for the costs of public parking spaces, public infrastructure improvements, and public art and place-making improvements including those incurred prior to the purchase order pursuant to the aforesaid contribution agreement with The Gravity Project 3 Holdings, LLC. ($2,000,000.00)
Body
WHEREAS, The Gravity Project 3 Holdings, LLC (the “Developer”) is developing the GreenHouse Gravity project that will include 313 apartment units, 5,300 square feet of retail space, and a 324-space parking garage (altogether, the “Project”); and
WHEREAS, pursuant to Ordinance No. 1761-2023, the City entered into the Economic Development Agreement dated July 18, 2023 (the “EDA”) with the Developer outlining the mutual commitments of the parties related to the Project in East Franklinton; and
WHEREAS, the EDA includes Developer commitments for the Project to include 50 public parking spaces (the “Public Parking Spaces”), public infrastructure improvements, public art and place-making improvements, and thirty-two (32) inclusive housing units as follows: six (6) studio units, seventeen (17) one-bedroom units and nine (9) two-bedroom units affordable to residents at or below 80% area median income (the “Inclusive Housing Units”); and
WHEREAS, the EDA memorialized a capital contribution of $4,000,000 (the “City Contribution”) to reimburse the Developer for costs associated with the Public Parking Spaces, public infrastructure improvements, public art and place-making Improvements, and Inclusive Housing Units; and
WHEREAS, Ordinance No. 3083-2023 authorized the Director of the Department of Development to enter into the Capital Improvement Agreement and the expenditure of the first $2,000,000 of the City Contribution to reimburse the Developer for certain eligible project costs associated with the Inclusive Housing Units; and
WHEREAS, the second $2,000,000 of the City Contribution from the will go towards the Public Parking Spaces, public infrastructure improvements, and public art and place-making improvements; and
WHEREAS, it is necessary to amend the 2025 Capital Improvement Budget to match cash and establish authority within the correct project; and
WHEREAS, it is necessary to authorize a transfer of funds within the Development Taxable Bonds Fund (7739) to establish sufficient cash to pay for the project; and
WHEREAS, Ordinance No. 1555-2017 determined that satisfactory provision had been made for the public improvements benefiting the respective parcels of the AC Humko II TIF (aka Harrison West), Waggoner Road TIF, and Rocky Fork TIF in order to allow those service payments to be used in support of offsite “Neighborhood Public Improvements” identified generally on Exhibit B attached to Ordinance No. 1555-2017; and
WHEREAS, it is necessary to appropriate funds within the AC Humko II TIF Fund (7425), Harrison West Recreation Park Fund (7788), Waggoner Road TIF Fund (4410), and Waggoner Road TIF Capital Fund (7410) to establish sufficient cash to pay for the project; and
WHEREAS, it is necessary for Council to authorize a transfer of cash within the Waggoner Road TIF Fund (4410) to the Waggoner Road TIF Capital Fund (7410) to establish sufficient cash to pay for the project; and
WHEREAS, it is necessary for Council to authorize a transfer of cash and appropriation respectively within the AC Humko II TIF Fund (7425), Harrison West Recreation Park Fund (7788), Waggoner Road TIF Capital Fund (7410), and Rocky Fork TIF Capital Fund (7421) to establish sufficient cash to pay for the project; and
WHEREAS, the Director of the Department of Development seeks to enter into a contribution agreement (the “Agreement”) and restrictive covenants (the “Declaration”) for the Public Parking Spaces, public infrastructure improvements, and public art and place-making improvements contemplated by the Agreement; and
WHEREAS, expenses incurred by the Developer prior to execution of the purchase order, starting September 1, 2023, will be reimbursable; and
WHEREAS, it has become necessary in the usual daily operation of the Department of Development that it is necessary to authorize an expenditure of up to $2,000,000.00 from the Development Taxable Bonds Fund, AC Humko II TIF Fund, Harrison West Recreation Park Fund, Waggoner Road TIF Capital Fund, and Rocky Fork TIF Capital Fund for this Agreement; NOW, THEREFORE
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2025 Capital Improvements Budget authorized by Ordinance No. 1790-2025 be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / Current / Change / C.I.B. as Amended
7739 / P782001-100000 / Housing Preservation (Unvoted Carryover) / $0.00 / $694.72 / $694.72 (to match cash)
7739 / P782023-100000 / Critical Home Repair (Unvoted Carryover) / $50.00 / $499.76 / $549.76 (to match cash)
7739 / P782004-100001 / Vacant/Abandoned Demolition & Remediation (Unvoted Carryover) / $176,594.00 / $375,067 / $551,661 (to match cash)
7739/ P782004-100003/ Code Enforcement Demolition Services (Unvoted Carryover)/$126,892/ ($25,068)/$101,824 (to match cash)
7739 / P782001-100000 / Housing Preservation (Unvoted Carryover) / $694.72 / ($694.72) / $0.00
7739 / P782023-100000 / Critical Home Repair (Unvoted Carryover) / $549.76 / ($549.76) / $0.00
7739 / P782003-100000 / Emergency Shelter Repair (Unvoted Carryover) / $4,560.49 / ($4,560.49) / $0.00
7739 / P782011-100000 / Lead Hazard Reduction Demonstration 2019 Grant Match (Unvoted Carryover) / $19,044.52 / ($19,044.52) / $0.00
7739 / P782033-100000 / Homeowner Services Inspection (Unvoted Carryover) / $839.77 / ($839.77) / $0.00
7739 / P782004-100001 / Vacant/Abandoned Demolition & Remediation (Unvoted Carryover) / $551,661 / ($201,661.00) / $350,000
7739 / P200021-100000 / Elevate Northland (Unvoted Carryover) / $320,261.25 / ($172,649.26) / $147,611.99
7739 / P441784-100000 / Franklinton Arts (Unvoted Carryover) / $0.00 / $400,000.00 / $400,000.00
SECTION 2. That the transfer of $694.72, or so much thereof as may be needed, is hereby authorized within Fund 7739 (Development Taxable Bonds Fund), from Dept-Div 4410 (Housing), P782001-100000 (Housing Preservation), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $549.76, or so much thereof as may be needed, is hereby authorized within Fund 7739 (Development Taxable Bonds Fund), from Dept-Div 4410 (Housing), P782023-100000 (Critical Home Repair), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 4. That the transfer of $4,560.49, or so much thereof as may be needed, is hereby authorized within Fund 7739 (Development Taxable Bonds Fund), from Dept-Div 4401 (Administration) and 4410 (Housing), P782003-100000 (Emergency Shelter Repair), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 5. That the transfer of $19,044.52, or so much thereof as may be needed, is hereby authorized within Fund 7739 (Development Taxable Bonds Fund), from Dept-Div 4410 (Housing), P782011-100000 (Lead Hazard Reduction Demonstration 2019 Grant Match), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 6. That the transfer of $839.77, or so much thereof as may be needed, is hereby authorized within Fund 7739 (Development Taxable Bonds Fund), from Dept-Div 4410 (Housing), P782033-100000 (Homeowner Services Inspection), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 7. That the transfer of $201,661.48, or so much thereof as may be needed, is hereby authorized within Fund 7739 (Development Taxable Bonds Fund), from Dept-Div 4401 (Administration); 4410 (Housing); and 4411 (Land Redevelopment), P782004-100001 (Vacant/Abandoned Demolition & Remediation), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 8. That the transfer of $172,649.26, or so much thereof as may be needed, is hereby authorized within Fund 7739 (Development Taxable Bonds Fund), from Dept-Div 4402 (Economic Development), P200021-100000 (Elevate Northland), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 9. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2026, the sum of $515,594.19 is appropriated in Fund 4410 (Waggoner Road TIF Fund), Dept-Div 4402 (Economic Development), in Object Class 10 (Transfer Out Operating) per the account codes in the attachment to this ordinance.
SECTION 10. That the transfer of $515,594.19, or so much thereof as may be needed, is hereby authorized from Fund 4410 (Waggoner Road TIF Fund), Dept-Div 4402 (Economic Development) to Fund 7410 (Waggoner Road TIF Capital Fund), Dept-Div 4402 (Economic Development) per the account codes in the attachment to this ordinance.
SECTION 11. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2026, the sum of $515,594.19 is appropriated in Fund 7410 (Waggoner Road TIF Capital Fund), Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 12. That the transfer of $37,045.34, or so much thereof as may be needed, is hereby authorized within Fund 7410 (Waggoner Road TIF Capital Fund), from Dept-Div 4402 (Economic Development), Project P590105-100071 (Pedestrian Safety Improvements - Waggoner Road Shared Use Path), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 13. That the transfer of $164,206.54, or so much thereof as may be needed, is hereby authorized within Fund 7410 (Waggoner Road TIF Capital Fund), from Dept-Div 3004 (Fire), Project P340131-100000 (Fire Station #35), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 14. That the transfer of $33,778.65, or so much thereof as may be needed, is hereby authorized within Fund 7410 (Waggoner Road TIF Capital Fund), from Dept-Div 4402 (Economic Development), Project P510914-512000 (Dysart Run Protection Grant Match), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 15. That the transfer of $52,096.07, or so much thereof as may be needed, is hereby authorized within Fund 7421 (Rocky Fork TIF Capital Fund), from Dept-Div 4401 (Administration), Project P441764-100000 (Old Hamilton Road Improvements), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 16. That the transfer of $336,215.13, or so much thereof as may be needed, is hereby authorized within Fund 7425 (AC Humko II TIF Fund), from Dept-Div 4402 (Economic Development), Project P425001-100000 (Interest Earnings), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 17. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2026, the sum of $336,215.13 is appropriated in Fund 7425 (AC Humko II TIF Fund), Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 18. That the transfer of $79,191.41, or so much thereof as may be needed, is hereby authorized within Fund 7788 (Harrison West Recreation Park Fund), from Dept-Div 4402 (Economic Development), Project P788002-100000 (Interest Earnings), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 19. That the transfer of $381,872.67, or so much thereof as may be needed, is hereby authorized within Fund 7788 (Harrison West Recreation Park Fund), from Dept-Div 4402 (Economic Development), Project P778003-100000 (AC Humko II TIF refund), Object Class 06 (Capital Outlay) to Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 20. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2026, the sum of $461,064.08 is appropriated in Fund 7788 (Harrison West Recreation Park Fund), Dept-Div 4402 (Economic Development), Project P441784-100000 (Franklinton Arts), Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 21. That in consideration of the above, the Director of the Department of Development, or his or her authorized designee (altogether, the “Director”), on behalf of the City, is authorized to acknowledge and agree to the terms and conditions of the Agreement and the Declaration 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, provided that the approval of such changes and amendments thereto, and the character of those changes and amendments not being substantially adverse to the City, shall be evidenced conclusively by the execution and delivery thereof, that such changes are not inconsistent or adverse to the City; that expenses incurred prior to the execution of the purchase order, beginning September 1, 2023, for certain eligible project costs as described therein are hereby determined to be a valid public purpose and therefore authorized to be reimbursed.
SECTION 22. That the Director, or other appropriate officers of the City, are authorized to take all actions as may be necessary to implement this Ordinance and the transactions contemplated by the Capital Improvement Agreement including, but not limited to, execution of long-term infrastructure maintenance agreements or public easements described in that Capital Improvement Agreement or necessary to fulfill the City’s obligations for reimbursement of the public infrastructure improvements and public art and place-making improvements.
SECTION 23. That for the purpose stated herein, the expenditure of $400,0000.00, or so much thereof as may be needed, is hereby authorized in Fund 7739 (Development Taxable Bonds Fund), Project P441784-100000 (Franklinton Arts), Dept. 44-02 (Economic Development), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 24. That for the purpose stated herein, the expenditure of $750,624.72, or so much thereof as may be necessary, is hereby authorized in Fund 7410 (Waggoner Road TIF Capital Fund), Project P441784-100000 (Franklinton Arts), Dept. 44-02 (Economic Development), in Object Class 06 (Capital Outlay) per the accounting codes.
SECTION 25. That for the purpose stated herein, the expenditure of $52,096.07, or so much thereof as may be necessary, is hereby authorized in Fund 7421 (Rocky Fork TIF Capital Fund), Project P441784-100000 (Franklinton Arts), Dept. 44-02 (Economic Development), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 26. That for the purpose stated herein, the expenditure of $336,215.13, or so much thereof as may be necessary, is hereby authorized in Fund 7425 (AC Humko II TIF Fund), Project P441784-100000 (Franklinton Arts), Dept. 44-02 (Economic Development), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 27. That for the purpose stated herein, the expenditure of $461,064.08, or so much thereof as may be necessary, is hereby authorized in Fund 7788 (Harrison West Recreation Park Fund), Project P441784-100000 (Franklinton Arts), Dept. 44-02 (Economic Development), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 28. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 29. 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 30. 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 31. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.