Explanation
Background: This ordinance authorizes the Director of the Department of Development to enter into a Guaranteed Maximum Reimbursement and Construction Contribution Agreement, along with future amendments for contribution agreements if needed, with NWD Investments LLC (NWD) for purposes of NWD contributing construction funds for the Department of Public Services’ West Nationwide Boulevard reconstruction project in the Arena West area of Downtown Columbus (the “Project”).
The City entered into a Tax Increment Financing Agreement (the “TIF Agreement”) with NWD pursuant to Ordinance 2356-98 and Ordinance 2357-98 passed by its City Council on September 14, 1998; Ordinance 2092-01 and Ordinance 2093-01 passed on December 17, 2001 (the “Original TIF Ordinances”); as amended by Ordinance 1534-2011 and Ordinance 1535-2011 passed by its City Council on September 26, 2011; and as amended by Ordinance 1648-2016 passed on June 27, 2016 (the “Jaeger Site/Buggyworks TIF Ordinance”) for the purpose of funding public improvements in the Arena District area.
On September 17, 2009, the City and NWD entered into a TIF Agreement amendment under the authority of Ordinance 1554-2008 passed by its City Council on October 20, 2008, to pay costs of additional public infrastructure improvements in the Nationwide Arena District TIF, Pen Site TIF, Pen West East TIF and Pen West West TIF agreement areas (the “2009 Agreement”). On August 22, 2016, under the authority of Ordinance No. 1648-2016 passed by City Council on June 27, 2016, the City and NWD entered into a Second Amendment to the Reimbursement Agreement, which amended the 2009 Agreement to include public improvements described in the Jaeger Site TIF/Buggyworks TIF Ordinance.
As part of the City and NWD’s commitment to the ongoing development of the Arena District, the parties continue to collaborate through the Public-Private Partnership Process (3P), on the design and construction of TIF-eligible public infrastructure improvement projects that support private development activities.
The City and NWD entered into an Economic Development Agreement (the “EDA”) pursuant to Ordinance 2898-2014, through which NWD committed to provide funding for sixty percent (60%) of the construction costs of the West Nationwide reconstruction project. Phase 1 of the West Nationwide reconstruction included power duct improvements and was completed in 2016 with a contribution from NWD in the amount of $1,262,669.36. Phase 2 of the project includes roadway improvements and is expected to start construction in Spring 2017. NWD’s sixty percent (60%) share of Phase 2 costs is equal to $3,204,987.40.
Fiscal Impact: NWD Investments, LLC, has agreed to provide funding to the Department of Development through a lump sum payment of $3,204,987.40 to construct Phase 2 of the West Nationwide Boulevard roadway project.
Emergency Justification: The Department of Development is requesting this ordinance to be considered an emergency measure in order to allow for immediate execution of this Guaranteed Maximum Reimbursement and Construction Contribution Agreement, which is necessary to facilitate the construction of these improvements to maintain the project schedule and meet community commitments.
Title
To authorize the Director of the Department of Development to enter into a Guaranteed Maximum Reimbursement and Construction Contribution Agreement, and future amendments for contribution agreements if needed, with NWD Investments LLC, and to accept funding for a public infrastructure improvement project pursuant to the Columbus City Charter, for the construction of public infrastructure improvements in connection with the Department of Public Services’ West Nationwide Boulevard reconstruction project estimated to be $3,204,987.40; and to declare an emergency.
Body
WHEREAS, the City and NRI entered into a TIF Agreement under the authority of Ordinance 1648-2016 passed by Council on June 27, 2016, to pay costs of additional public infrastructure improvements in the Nationwide Arena District TIF areas; and
WHEREAS, Phase 1 (Power Duct and Manhole System project) of the West Nationwide Boulevard Improvements and Roadway Improvements project is complete; and
WHEREAS, Phase 2 (Nationwide Boulevard and Hocking Street Improvements) of the project is anticipated to start construction in Spring 2017; and
WHEREAS, the total cost of Phase 2 is estimated to be $5,341,645.67, which represents the sum total of the construction and inspection costs; and
WHEREAS, NWD’s share of sixty percent (60%) of Phase 2 costs is estimated to be $3,204,987,.40, which shall be eligible for reimbursement from the Arena TIFs and the City’s share of forty percent (40%) of Phase 2 costs is estimated to be $2,136,658.27; and
WHEREAS, NWD has agreed to contribute $3,204,987.40 toward Phase 2 costs; and
WHEREAS, this ordinance authorizes: the Director of the Department of Development to enter into a Guaranteed Maximum Reimbursement and Construction Contribution Agreement, and future amendments for contribution agreements if needed, with NWD Investments LLC and to accept funding for the construction of the project; and
WHEREAS, an emergency a need exists in the usual daily operation of the Department of Development, in that it is immediately necessary to enter into the Guaranteed Maximum Reimbursement Agreement and Construction Contribution Agreement to maintain the project schedule and to coincide with the established development timeline, 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 Director of the Department of Development be and hereby is authorized to enter into a Guaranteed Maximum Reimbursement and Construction Contribution Agreement, and future amendments for contribution agreements if needed, with NWD Investments LLC, 375 North Front Street, Suite 200, Columbus, Ohio 43215, and to accept funding for a public infrastructure improvement project pursuant to Section 186 of the Columbus City Charter for the construction of public infrastructure improvements in connection with the West Nationwide Boulevard project.
SECTION 2. 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 3. That the City Auditor is authorized to make any accounting changes or revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 4. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account with 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 5. 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. This ordinance shall take effect and be in force from and after the earliest period allowed by law.