Explanation
Background: Gowdy Field, located within the boundaries of Goodale Street, Olentangy River Road, West Third Avenue and the CSX Railroad tracks, has been identified for redevelopment. In the past, this site was home to neighborhood baseball diamonds and later, a solid waste landfill. Currently, the property is owned by the City of Columbus and CUGC holds an option to purchase. CUGC has entered into a purchase contract for the site with Gowdy Partners, LLC. Gowdy Partners, Inc. is planning to develop office buildings on the site with the initial tenant being Time Warner Cable Communications. A Clean Ohio Relief Fund (CORF) grant for $3 million for brownfield clean up at Gowdy Field has passed the initial recommendation stage with the final recommendation to be announced in December. Terms of the CORF grant application included a $780,000 contribution by the City of Columbus to be used for methane gas extraction and the placement of a clay soil cap over the building footprint for stabilization. These dollars need to be expended before the CORF grant is awarded.
Fiscal Impact: The $780,000 will come from the Special Income Tax Fund. This legislation authorizes the appropriation, transfer and the expenditure of funds. This transfer from the Special Income Tax Fund is only a temporary funding measure until bonds are sold in 2006 at which time the Special Income Tax Fund will be reimbursed for this transaction.
Title
To authorize the Director of Development to enter into a Guaranteed Maximum Price Reimbursement Agreement under Section 186 of the Columbus City Charter with Columbus Urban Growth Corporation for pre-remediation activities of brownfield clean up at Gowdy Field; to authorize the City Auditor to transfer $780,000 from the Special Income Tax Fund to the Northland and Other Acquisitions Fund; to waive the competitive bidding provisions of Chapter 329 of the Columbus City Codes; to amend the 2005 Capital Improvements Budget; and to authorize the expenditure of $780,000. ($780,000)
Body
WHEREAS, the City of Columbus currently owns the property commonly known as Gowdy Field and has granted Columbus Urban Growth Corporation an option to purchase 18.3 acres of the property for development of offices; and
WHEREAS, a $3 million CORF grant will be awarded to Gowdy Field in mid-March once the City completes preliminary clean up tasks estimated to cost $780,000 which are necessary in order to stabilize and develop the property; and
WHEREAS, it is necessary to appropriate and transfer $780,000 from the Special Income Tax Fund to a fund to be determined by the City Auditor and to expend the same; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund, and this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregate principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $780,000; and
WHEREAS, it is necessary to amend the 2005 Capital Improvements Budget in order to enter into an Agreement to complete the pre-remediation activities at Gowdy Field: now, therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Development be authorized to enter into a Guaranteed Maximum Price Reimbursement Agreement under Section 186 of the Columbus City Charter with Columbus Urban Growth Corporation for $780,000 to conduct preliminary clean up activities in order to satisfy the terms of a $3 million Clean Ohio Relief Fund grant for Gowdy Field.
Section 2. That the contract for the remediation work shall contain provisions, which in the opinion of the Director of Development, provide adequate environmental insurance protection to the City and reasonable assurances, guarantees or other surety arrangements providing for the completion of the remediation work necessary to obtain a No Further Action Letter from the Director of the Ohio Environmental Protection Agency
Section 3. That for the purpose stated in Section 1, the sum of $780,000 is hereby appropriated from the unappropriated balance of the Special Income Tax Fund No. 430, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purchase during the fiscal year ending December 31, 2005, to the City Auditor, Dept./Div. No. 22-01, Object Level One 10, OCA 902023, Object Level Three, 5502.
Section 4. That the City Auditor is hereby authorized to transfer said funds to a fund to be determined by him, Project No. 440113, at such time as is deemed necessary by the City Auditor, and to expend $780,000 or so much thereof as may be necessary.
Section 5. That the expenditure of $780,000 from the Development Department, Division No. 44-01, Fund to be determined by the City Auditor, Project No. 440113 Gowdy Field, OCA Code 735113, Object Level Three 6680 is hereby authorized.
Section 6. That upon obtaining other funds for this project, the City Auditor is hereby authorized to repay the Special Income Tax Fund the amount transferred under Section 4 above, and said funds are hereby deemed appropriated for such purpose.
Section 7. That the City Auditor is authorized to make any accounting changes to revise the funding source for any contract or contract modification associated with the expenditure of the funds transferred in Section 4 above.
Section 8. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150-2(e) of the Treasury Regulations promulgated pursuant to the Internal Revenue Code of 1986, as amended.
Section 9. That the 2005 Capital Improvements Budget be amended as follows:
Development/Development
PROJECT |
CURRENT CIB AMOUNT |
AMENDMENT AMOUNTREVISED CIB AMOUNT |
|
King Lincoln District |
$1,000,000 |
$780,000 |
$220,000 |
Gowdy Field |
$0 |
$780,000 |
$780,000 |
Section 10. That the competitive bidding provisions of Chapter 329 of the City Code be and hereby are waived.
Section 11. That the provisions of Chapter 329 of the Columbus City Code are hereby modified to permit Columbus Urban Growth Corporation to provide a letter of credit in substitution of a performance bond.
Section 12. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.