Explanation
BACKGROUND - This legislation authorizes the Director of the Department of Development to enter into an agreement with Campus Partners for Community Urban Redevelopment (Campus Partners) to facilitate acquisition, demolition and environmental remediation of the former Columbus Coated Fabrics site.
Last March, Campus Partners entered into a contract to purchase the Columbus Coated Fabrics site from its bankrupt owner, Decorative Surfaces International, Inc. (DSI). The Columbus Coated Fabrics site has been used for industrial purposes for more than 100 years, utilizing a myriad of hazardous substances.
In July, the Director of the Department of Development was authorized by Ordinance No. 1208-2006 to expend an amount not to exceed $250,000 to help complete Phase II environmental assessments of the site to determine the extent and cost of clean up work.
The Phase II testing and analysis are complete and it is now estimated to cost approximately $5 million to demolish the buildings and to prepare the site to meet restricted residential standards under the Ohio Voluntary Action Plan, Which will allow redevelopment of the site, with residential and other uses contemplated by the Weinland Park Plan. The submittal of a Clean Ohio Revitalization Fund grant application is planned for early 2007 to cover the cost of much of the site remediation and some of the demolition.
The site poses a significant health and safety hazard where numerous fires and extensive vandalism have occurred presenting a constant threat to the Weinland Park Community and is a blighting influence on that Community.
The proposed agreement with Campus Partners requires the City to accept an assignment of Campus Partners purchase contract with Decorative Services International, Inc., the owner of the Columbus Coated Fabric site, and to purchase the property for $385,000. Additional funding is required to pay for incidental expenses associated with the purchase not to exceed $5,000, for a total expenditure authority under this ordinance of $390,000.00.
Under the proposed agreement Campus Partners will agree to purchase the property from the City after the city has performed certain activities relating to the site, including submission and prioritization of the CORF application provided the City has completed asbestos abatement and demolition of all above grade structures and execution of a satisfactory Development Agreement for redevelopment of the site. Asbestos abatement and demolition of the above ground structures are now estimated to cost approximately $1,600,000. Campus Partners' purchase price will be 50% of the City's cost to purchase the property, complete the asbestos abatement and demolition of the above ground structures, secure the site and pay the real estate taxes.
FISCAL IMPACT: The expenditure of $390,000 from the Special Income Tax Fund.
Title
To authorize the Director of Development to enter into an agreement, in substantially the form on file with the City Clerk, with Campus Partners for Community Urban Redevelopment for the purchase of the former Columbus Coated Fabric site and the resale of the site to Campus Partners for Community Urban Redevelopment; to authorize the expenditure of $390,000 from the Special Income Tax Fund; and to declare an emergency. ($390,000)
Body
WHEREAS, this legislation authorizes the Department of Development to enter into an Agreement Concerning Decorative Surfaces International, Inc site (the "Agreement") with Campus Partners for Community Urban Redevelopment, ("Campus Partners"), to accept an assignment from Campus Partners of the contract to purchase the former Columbus Coated Fabrics site, (the "Site"), to purchase the Site pursuant to that contract and subject to the terms and conditions of the Agreement to resell the Site to Campus Partners; and
WHEREAS, the factory operation on the Site closed in 2001 and has remained closed, and the owner of the Site is bankrupt; and
WHEREAS, while the site has been closed, there have been numerous fires, break-ins, and the theft of many recyclable metals and materials at the Site, resulting in numerous unsafe conditions for both the public and for city service providers who must fight the fires on the site and the temporary closure of adjacent city streets; and
WHEREAS, the Site, as it exists in its current state, poses a significant threat to public health and safety necessitating immediate action to remove asbestos and demolish the above ground structures; and
WHEREAS, the Site as it exists in its current state also has a significant blighting influence on the predominately residential neighborhood of Weinland Park, in which the Site is located; and
WHEREAS, Campus Partners has worked with the city to obtain the right to purchase the site, to cause the Site to be secured to the extent possible and to assess the extent of environmental contamination of the City, the cost of remediation of that contamination and demolition of buildings and other structures on the Site and the alternatives for redevelopment of the site; and
WHEREAS, pursuant to Ordinance No. 1208-2006, the City authorized funding for part of the costs of Campus Partners' Phase II environmental assessments of the Site, assessment of costs of environmental remediation and demolition of the Site and preparation of a Clean Ohio Revitalization Fund grant application for the Site; 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 of the Department of Development to enter into the agreement with Campus Partners for Community Urban Redevelopment, all for the immediate 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 is hereby authorized to enter into the Agreement with Campus Partners for Community Urban Redevelopment, in substantially the form on file with the City Clerk.
Section 2. To authorize the expenditure of $390,000, or so much thereof as may be necessary, from Fund 430, Department 44, OCA 430442, Object Level One 06, Object Level Three 6601, to purchase the Site and said funds are hereby deemed appropriated to carry out that purpose.
Section 3. For the 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 (10) days after passage if the Mayor neither approves nor vetoes this Ordinance.