Explanation
Background: The Lincoln Theatre, an historic landmark in the City's King-Lincoln District, is undergoing extensive renovation and is scheduled to open in June 2009. The original project budget was $11,000,000. The breakdown of funds is as follows: $4,000,000 from the City of Columbus, $4,000,000 from Franklin County and $3,000,000 to be raised by LTA/CAPA through public and private contributions. To date LTA/CAPA has raised $2,500,000 in capital funds. In addition they have set a goal of $2,750,000 to be raised for operations and endowment. Due to project cost overruns and CAPA's shift in focus to raise operating and endowment funds, the revised project budget is $13,500,000. The City, through the 2008 CIB, received $2,475,000 for the Lincoln Theater and has agreed to contribute additional funds in the amount of $2,500,000 to accommodate the evolving scope that is not unexpected with an urban redevelopment project of this magnitude. This includes an increase of theatre seating by renovating the balcony area and making necessary adjustments to the roof to fit the new rear addition and expanded use of the 3rd floor space for performing arts education. $2,300,000 is being requested in this legislation. The additional funding sources are as follows: $2,000,000 has been budgeted in the SIT fund, $300,000 from existing cash in fund 735 from previous projects and $200,000 from the 2009 CIB. For this reason it is desirable to modify the existing theatre renovation contract to include an additional $2,300,000 for a total contract amount of $10,895,000.
This ordinance also authorizes the transfer, appropriation, and expenditure of $2,000,000 from the Special Income Tax Fund and $300,000 from existing cash in Fund 735 to provide funds to amend the contract with the Lincoln Theatre Association. The Special Income Tax transfer and appropriation is a temporary measure until the City sells notes or bonds for this project.
Emergency Justification: Emergency action is requested in order to complete these improvements prior to the theatre opening on June 1, 2009.
Fiscal Impact: The Development Department received $2,475,000.00 in the 2008 Capital Improvement Budget for the Lincoln Theatre. Bonds have yet to be sold; therefore, a transfer of cash from the Special Income Tax Fund is necessary. The total cost of this contract modification is $2,300,000.00.
Title
To amend the 2008 Capital Improvements Budget; to authorize and direct the City Auditor to transfer $2,000,000.00 from the Special Income Tax Fund to the Northland and Other Acquisitions Fund; to authorize the transfer of cash between projects within the same fund; to authorize the Director of Development to amend the Reimbursement Agreement for Lincoln Theatre Interior Renovations with the Lincoln Theatre Association by increasing the contract amount by $2,300,000; to authorize the expenditure of $2,300,000 from the Northland and Other Acquisitions Fund; and to declare an emergency. ($2,300,000.00)
Body
WHEREAS, the Lincoln Theatre Association is under contract with the City as the developer of the theatre renovations which are currently underway; and
WHEREAS, the City has agreed to contribute additional funds to increase theatre seating by renovating the balcony area and making necessary adjustments to the roof to fit the new rear addition and expanded use of the 3rd floor space for performing arts education; and
WHEREAS, interior theatre renovations must be completed by the scheduled opening date of June, 2009; and
WHEREAS, it is desirable by both the Lincoln Theatre Association and the City of Columbus to modify the existing contract in dollars in order to complete the improvements in a timely manner; and
WHEREAS, a transfer of funds from the Special Income Tax Fund is necessary to fund this project; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund the amount transferred; and
WHEREAS, the aggregate principal amount which the City will issue to finance this phase of the project is presently expected not to exceed $2,000,000.00; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1,150-2(c) of the Treasury Regulation (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 in that it is immediately necessary to enter into a contract modification with the Lincoln Theater Association to allow interior theatre renovations to be completed before the June 2009 opening, thereby preserving the public health, peace, property, safety, and welfare, and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the 2008 Capital Improvements Budget established within ordinance 0690-2008 be and hereby is amended as follows:
Fund / Project Number / Project / Current CIB Amt / Amendment Amt / Amended CIB Amount
735 / 735999 / Unallocated Balance / $0 / $150,201 / $150,201
735 / 441736 / Lincoln Theatre Bond Money / $2,475,000 / $300,000 / $2,775,000
Section 2. That the sum of $2,000,000.00 be and is hereby appropriated from the unappropriated balance of the Special Income Tax Fund, Fund 430, 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 ending December 31, 2009 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
Section 3. That the City Auditor is hereby authorized to transfer said funds to the Northland and Other Acquisitions Fund, Fund 735, at such time as is deemed necessary by the City Auditor, and to expend said funds, or so much thereof as may be necessary.
Section 4. That the sum of $450,200.60 be and is hereby appropriated in Fund 735, Project 735999, Object Level 06, OCA 735999.
Section 5. That the transfer of monies between projects within the Northland and Other Acquisitions Fund 735 be authorized as follows:
TRANSFER FROM:
Fund / Dept-Div / Project # / Project / Object Level One / OCA Code / Amount
735 / 44-01 / 735999 / Unallocated Balance Fd. 735 / 06 / 735999 / $300,000
TRANSFER TO:
Fund / Dept-Div / Project # / Project / Object Level One / OCA Code / Amount
735 / 44-01 / 441736 / Lincoln Theatre Bond Money / 06 / 441736 / $300,000
Section 6. That the amount of $2,300,000.00 is hereby transferred and appropriated to the Development Department, Division 44-01, Northland and Other Acquisitions Fund, Fund 735, Project No. 441736 - Lincoln Theatre Bond Money, Object Level Three 6620, OCA Code 441736.
Section 7. That upon obtaining other funds for the Lincoln Theatre Project, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 3, above, and said funds are hereby deemed appropriated for such purpose.
Section 8. That the City Auditor is authorized to establish proper accounting project numbers, and to make any accounting changes to revise the funding source for any contract or contract modification associated with the expenditure of funds transferred in Section 3, above.
Section 9. 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 $2,000,000.00 (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 10. That the Director of Development be authorized and directed to amend Contract EL007070 with the Lincoln Theatre Association by increasing the dollars by $2,300,000 to complete the construction of interior renovations to the theatre by the opening date of June, 2009.
Section 11. That for the purpose stated in Section 10, the expenditure of up to $2,300,000.00, or so much thereof that may be necessary, be and is hereby authorized and approved from the Development Department, Division No. 44-01, Fund No. 735 Northland and Other Acquisitions, Project No. 441736 Lincoln Theatre Bond Money, OCA Code 441736, Object Level Three 6620.
Section 12. That it is further agreed that in all other aspects, this contract remains unchanged.
Section 13. 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.