Explanation
Background: The Neighborhood Commercial Revitalization Program has planned to construct streetscape improvements on North High Street from Smith Place to 11th Avenue as the completion of improvements to the Short North NCR district. The project was put on hold in 1999 until plans for the South Campus Gateway were finalized as they would address improvements from 9th to 11th Avenue.
Phase I of the Gateway construction, which primarily included underground roadway and underground utility improvements, has been completed. Phase II, which consists largely of streetscape improvements to the right-of-way, will begin construction early in 2005. The NCR program had set aside $1 million of capital funds for improvements on High Street from 9th to 11th Avenues. These funds are to be transferred to the Gateway Area Revitalization Initiative (GARI) to defray the design and construction costs of streetscape enhancements associated with the Gateway Area Public Improvements between 9th and 11th Avenues.
The original $5 million estimate for the Gateway Public Improvements was established in 1999, based upon preliminary engineering, as part of the city's Economic Development Agreement with GARI, a non-profit affiliate of Campus Partners. Once final engineering was complete, the scope of work had been significantly expanded by the City to include the addition of a completely new water distribution system and the total reconstruction of the roadways. The Public Utilities Department provided for partial reimbursement of these system-wide sanitary and storm costs. Higher than anticipated costs were also incurred to bury the many overhead utilities located in this area, and GARI was also required to incur the significant project inspection fees, not contemplated in the original estimates. The net effect of these items has increased the cost of the Gateway Public Improvements from $5 million (as estimated in 1999) to $7 million. Because the additional project cost has eliminated the funds available for the Phase II improvements, the City finds it necessary to provide for an addition reimbursement to GARI of two million dollars, to fund the cost of all of these public improvements.
The Development and Reimbursement Agreement, entered into on June 25, 2002 between the City of Columbus and the Gateway Area Revitalization Initiative will be amended from $5,000,000 to $7,000,000 to allow for this additional payment.
The original 1999 estimate for the total development cost of the South Campus Gateway was $121 million. Upon completion, the current project budget reflects a total development cost of $151 million. The Ohio State University's participation is just over $100 million. The City of Columbus will experience a significant return on its investment of $7 million.
Fiscal Impact: Funds will be transferred between projects in the Voted 1995, 1999 Streets and Highways Fund for this purpose.
Title
To authorize the City Auditor to transfer $2,000,000 between projects within the Voted 1995, 1999 Streets and Highways Fund; to authorize the Directors of the Public Service Department and Department of Development to contribute Two Million Dollars ($2,000,000.00) to the Gateway Area Revitalization Initiative for the design and construction of the Gateway Area Public Improvements Work; and to authorize the expenditure of $2,000,000.00 from the Voted 1995, 1999 Streets and Highways Fund. ($2,000,000)
Body
WHEREAS, the Department of Development had planned to construct streetscape improvements on North High Street from 9th Avenue to 11th Avenue as part of the completion of the Short North Neighborhood Commercial Revitalization (NCR) streetscape but design of the project was put on hold in 1999 until plans for development of the OSU Gateway were finalized; and
WHEREAS, Phase I of the OSU Gateway Area Public Improvements Work, which included work on underground utilities and other roadway improvements, is complete and Phase II, which consists primarily of streetscape enhancements to the public right-of-way, is to be performed in 2005; and
WHEREAS, the NCR Program had allocated $1,000,000 for the design and construction of streetscape improvements on High Street between 9th and 11th Avenues in the year 2005 of the 2004-2009 Capital Improvements Plan and due to cost underruns and revised project completion dates, $1,000,000 in cash is currently available in the NCR project fund; and
WHEREAS, unforeseen, additional expenditures during Phase I are now causing a shortage of funds in Phase II public improvements; and
WHEREAS, the City fully supports the GARI's purpose of creating or preserving employment opportunities, improving the economic welfare of the people of Columbus and providing for the redevelopment and revitalization of the Gateway Area as a major, mixed-use project as recommended in the University Neighborhood Revitalization Plan: Concept Document (adopted by City Council on June 30, 1997 by Ordinance No. 1634-97)
WHEREAS, both the City and GARI agreed to amend the Development and Reimbursement Agreement, entered into on June 25, 2002, to include GARI receiving an additional $2,000,000 in reimbursements for completing the Gateway Area Public Improvements Work; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the City Auditor is hereby authorized to transfer $2,000,000, within the Voted 1995, 1999 Streets and Highways Fund No. 704 as follows:
FROM:
Project 530058, 59-03 NCR, OCA Code 644385 $355,000.00
Project 440005, 59 Urban Infra.-Eng&Constr/Traffic, OCA Code 643015 $1,000,000.00
Project 590415, 59-09 Economic & Community Dev., OCA Code 644385 $145,000.00
Project 590131, 59-09 Miscellaneous Developments, OCA Code 644385 $500,000.00
Total: $2,000,000.00
TO:
Project 530051, 59-03 OSU Community Improvements OCA Code 644385 $2,000,000.00
Section 2. That the Directors of the Departments of the Public Service Department and the Development Department are hereby authorized and directed to reimburse the Gateway Area Revitalization Initiative (GARI) up to $2,000,000 for the design and construction of streetscape improvements on High Street from 9th to 11th Avenues.
Section 3. That the expenditure of $2,000,000, or so much thereof as may be needed, is hereby authorized from the Public Service Department, Voted 1995, 1999 Streets and Highways Fund No. 704 as follows:
Project 530051, OSU Community Improvements, OCA Code 644385, Object Level Three 6631 $2,000,000.00
Section 4. That funds necessary to carry out the purpose of this Ordinance are hereby deemed appropriated.
Section 5. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.