Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to execute an amendment to the Economic Development Agreement dated April 19, 2024 (the “EDA”) between the City and WestBend QOZB, LLC (the “Developer”). The EDA outlines certain mutual commitments of the City and the Developer as it relates to the redevelopment of the former Buckeye Auto Parts site on McKinley Avenue known as WestBend. Pursuant to the EDA, the Developer agreed to construct 20,000 square feet of office space (“Office Space”), including 10,000 square feet of business incubator space (“Incubator Space”), approximately 750 apartment units (“Apartments”), up to 8,000 square feet of retail uses (“Retail”), and a public park with a lagoon, dog park, public kayak launch and trails/bike paths (collectively, the “Project”). The EDA outlined certain commitments and deadlines related to the Office Space and Incubator Space. Due to on-going conditions in the commercial office market and lender concerns about the feasibility of financing new office space, the Developer has requested that the City amend the EDA to remove all of Developer’s obligations related to the Office Space and the Incubator Space. In lieu of completing the Office and Incubator, the Developer has now agreed to fixed deadlines to commence and complete the Apartments. This amendment to the EDA will allow the Developer to close on financing for the Project and meet all other commitments outlined in the EDA.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to execute an amendment to the Economic Development Agreement dated April 19, 2024 between the City and WestBend QOZB, LLC to remove the developer’s obligations related to the construction and delivery of office space in association with the WestBend project provided that the developer assumes the new obligation to deliver the apartments by a certain deadline to more quickly address the City’s housing supply shortage. ($0.00)
Body
WHEREAS, the City and WESTBEND QOZB, LLC (the “Developer”) executed the Economic Development Agreement dated April 19, 2024 (the “EDA”) outlining the plans and mutual commitments of the parties as it relates to the redevelopment of the former Buckeye Auto Parts site on McKinley Avenue known as WestBend; and
WHEREAS, pursuant to the EDA, the Developer agreed to construct 20,000 square feet of office space (“Office Space”), including 10,000 square feet of business incubator space (“Incubator Space”), approximately 750 apartment units (“Apartments”), up to 8,000 square feet of retail uses (“Retail”), and a public park with a lagoon, dog park, public kayak launch and trails/bike paths (collectively, the “Project”); and
WHEREAS, the EDA established specific commitments and deadlines related to the Office Space and Incubator Space; and
WHEREAS, due to on-going conditions in the commercial office market and lender concerns about the feasibility of financing new office space, the Developer has requested that the City amend the EDA to remove all of Developer’s obligations related to the Office Space and Incubator Space; and
WHEREAS, in lieu of completing the Office Space and Incubator Space, the Developer has now agreed to fixed deadlines to commence and complete the Apartments; and
WHEREAS, this amendment to the EDA will allow the Developer to close on financing for the Project and meet all other commitments outlined in the EDA; and
WHEREAS, it has become necessary in the daily operation of the Department of Development to authorize the Director of the Department of Development to execute and approve an amendment to the EDA that will remove all requirements and deadlines related to the Office Space and Incubator Space but also provide for the more certain delivery of the Apartments to address the City’s housing supply shortage; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development or his or her designee (altogether, the “Director”), on behalf of the City, is hereby authorized to enter into an amendment to the EDA with WESTBEND QOZB, LLC 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, for the purpose of removing all of Developer’s obligations related to Office Space and Incubator Space as it relates to the proposed development of the former Buckeye Auto Parts site known as WestBend while also providing for a more certain delivery of the Apartments to increase the City’s housing supply.
SECTION 2. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.