Explanation
BACKGROUND: The Ohio Department of Development recently issued the Building Demolition and Site Revitalization Program which will provide the county with funds to demolish blighted residential and commercial structures. The Central Ohio Community Improvement Corporation (COCIC) is the designated grantee for Franklin County and will receive an initial allocation of $500,000.00. Additional funds are available with a 25% match. This legislation authorizes the Director of the Department of Development to enter into contracts and spend up to $800,000.00 for various expenditures related to the demolition of blighted structures for both the grant and other demolitions under the land bank program. Work includes demolition, environmental testing, environmental abatement, post demolition lot restoration, costs related to acquisition and tax foreclosure, grants to third parties for demolitions, and similar activities. The contracts will be established through COCIC or in accordance with the competitive bidding provisions of the Columbus City Codes. Authority to waive competitive bidding under City Code Chapter 329 is requested for situations where the immediate demolition of structures is necessary to comply with a Building Order issued by the Department of Building and Zoning Services.
Emergency action is requested in order demolish the structures as soon as possible as they may pose public nuisance or risk to public health and safety.
FISCAL IMPACT: This ordinance authorizes an expenditure of $800,000.00 in the Development Taxable Bonds Fund. It is necessary to certify the requisite funds in the amount of $800,000.00 against the Special Income Tax Fund. An amendment to the 2021 Capital Improvement Budget is required to establish sufficient budget authority within the proper project.
Title
To amend the 2021 Capital Improvement Budget; to authorize the City Auditor to appropriate and transfer funds from the Special Income Tax to the Development Taxable Bond Fund; to authorize the Director of the Department of Development to enter into contracts with the Central Ohio Community Improvement Corporation (COCIC) and/or various companies and non-profit entities to provide services related to the demolition of structures, including environmental/asbestos testing and abatement, demolition, post-demolition lot restoration, legal fees related to tax foreclosures, acquisition of blighted properties, and similar services; to waive the competitive bidding provisions of City Code Chapter 329 for emergency demolitions; to authorize the expenditure of $800,000.00 from the Development Taxable Bonds Fund; and to declare an emergency. ($800,000.00)
Body
WHEREAS, by Ordinance 1325-98, Council adopted and elected to use the Revised Code Chapter 5722, Land Reutilization Program, to facilitate effective reutilization of nonproductive land acquired through a sale pursuant to a foreclosure proceeding initiated by the Franklin County Treasurer, or through a sale of forfeited lands by the Franklin County Auditor, or through a conveyance in lieu of foreclosure to foster either return of such land to tax revenue generating status or its devotion to public use, or any other land acquired as part of the land reutilization program; and
WHEREAS, the Land Reutilization Program is continuing efforts to target vacant and abandoned properties through tax foreclosure and other types of acquisitions, and emergencies; and
WHEREAS, the City is working with COCIC to demolish structures under the State of Ohio’s Building Demolition and Site Revitalization Program, but not all demolitions are eligible under the program; and
WHEREAS, it has become necessary to enter into contracts and provide funds for deconstruction, demolition, asbestos abatement, and post-demolition lot restoration services for structures that are not eligible for funding and provide matching funds for the under the State Program; and
WHEREAS, all expenditures from this project, will be accomplished pursuant to the competitive bidding provisions of City Code Chapter 329, establishing Purchase Orders with COCIC to hire demolition and abatement firms, or by providing grants to third parties for the purposes of proving matching funds for the State Program; and
WHEREAS, emergencies exist where structures receive Building Orders from the City’s Chief Building Official and immediate demolitions are necessary for protect public health and safety; and
WHEREAS, contracts for demolitions where structures receive a Building Order will be based on estimates from licensed demolition contractors who are available to commence work immediately and may require a waiver of competitive bidding requirements under City Code Chapter 329; and
WHEREAS, funds are currently available in the Development Taxable Bonds Fund; and
WHEREAS, it is necessary to amend the 2021 Capital Improvement Budget to establish authority within the correct project; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund to fund this project; and
WHEREAS, the City will reimburse the Special Income Tax Fund; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $800,000.00; and
WHEREAS, the City anticipates incurring Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the “Treasury Regulations”)) promulgated pursuant to the Internal Revenue Code of 1986, as amended with respect to the project described in this ordinance (the “Project”); and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, Land Redevelopment Office, in that it is immediately necessary to authorize the Director to enter into contracts for the demolitions of these vacant or abandoned buildings so that the projects can proceed without delay, thereby preserving 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 2021 Capital Improvements Budget authorized by ordinance 2707-2021 be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / Current / Change /C.I.B. as Amended
7739 / P782004-100001 / Vacant and Abandoned Housing Demolition and Remediation / $0.00 / $800,000 / $800,000 (Cert against SIT)
SECTION 2. 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, 2022, the sum of $800,000.00 is appropriated in Fund 4430 (Special Income Tax), Dept-Div 2201 (City Auditor) in Object Class 10 (Transfer Out Operating) and in Fund 7739 (Development Taxable Bond Fund), Dept-Div 4411 ( Land Redevelopment), Project P782004-100001 (Vacant and Abandoned Housing Demolition and Remediation ), in Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $800,000.00, or so much thereof as may be needed, is hereby authorized from Fund 4430 (Special Income Tax Fund), Dept-Div 2201 (City Auditor) to Fund 7739 (Development Taxable Bond Fund), Dept-Div 4411 (Land Redevelopment) per the account codes in the attachment to this ordinance.
SECTION 4. That the Director of Development is hereby authorized to enter into contracts for services related to the demolition of structures, including deconstruction, demolition, testing and abatement of asbestos and other environmental hazards, post-demolition lot restoration and greening, and other services; to enter into agreements with the Central Ohio Community Improvement Corporation for these demolition and related services, for the Building Demolition and Site Revitalization Program, and for reimbursement of costs related to tax foreclosures and acquisitions.
SECTION 5. That the expenditure of $800,000.00 to the Confluence Community Authority, or so much thereof as may be needed, is hereby authorized in Fund 7739 (Development Taxable Bond Fund), Dept-Div 4411 (Land Redevelopment), in object class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 6. That upon obtaining other funds for this project for the Department of Development, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 3.
SECTION 7. That the City intends that this ordinance constitute an “official intent” for purposes of Section 1.150-2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $800,000.00 (the “Obligations”).
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is “placed in service” within the meaning of Treasury Regulations Section 1.150-2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 8. 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 9. 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 10. 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 11. That contracts, with the exception of structures needing immediate demolition, will be awarded pursuant to the competitive bidding provisions of City Code Chapter 329 or using State Term Contracts pursuant to Ordinance 582-87. City Council recognizes that this ordinance does not identify the contractor(s) to whom the contract(s) will be awarded and understands that its passage will give the Director of the Department of Development the final decision in determination of the lowest, best, responsive and responsible bidder for such contract(s). This Council is satisfied it is in the best interests of the City to delegate this contracting decision.
SECTION 12. That Council finds it in the City’s best interests to waive the competitive bidding requirements of City Code Chapter 329 for structures receiving Building Orders from the Department of Building and Zoning Services
SECTION 13. That for the 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 passage and approval by the mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.