Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to enter into an Economic Development Agreement with Hamilton Crossing, LLC, Casto AP Residential, LLC, The New Albany Company, LLC, and Center State Enterprises, LLC (hereinafter collectively referred to as the “Development Team”), concerning the development of approximately 330 acres of real property located adjacent to the N. Hamilton Road and State Route 161 interchange (“Site”).
The development project has been undertaken in cooperation and partnership with the City of Columbus, to result in a mixed-use project on the Site that includes the construction of approximately 700,000 square feet of Class A office space, 1,000,000 square feet of retail space, 800 multi-family housing units and 125 senior housing units; the private investment in the project will exceed $250 million. Additionally, construction of approximately $25 million in public infrastructure improvements, including the construction of the Hamilton Road S-Curve that will connect existing portions of N. Hamilton Road between Preserve Boulevard and State Route 161, will occur in conjunction with the development of the project. The public roadway improvements will be completed in phases and will be funded using existing and future Northeast Pay As We Grow (PAWG) funds, TIF funds available through the Dublin Granville North, Dublin Granville South and Northeast Preserve TIFs, contributions from the Development Team and other sources of financing identified for the projects over time.
The Economic Development Agreement will outline the plans and certain commitments of both parties relating to the development.
Under the Economic Development Agreement, the Development Team will provide financing for the construction of approximately $10 million for public roadway improvements on the Site. These improvements will be constructed in a phased manner and a portion of these costs will be reimbursed through Northeast PAWG funds and TIF revenue as outlined in the Agreement. The Development Team will be subject to a one-time PAWG payment of $2,300 for each residential unit constructed on the Site, as well as the Central College Community Development Charge for all residential property within the Site. To support the construction of the public infrastructure and to create a pedestrian-oriented development, the Development Team will dedicate the necessary public right-of-way to construct the roadway improvements, provide easements for the construction of bike and pedestrian trails and dedicate approximately 50 acres of real property for parkland.
Under the Economic Development Agreement, the Department of Development will, over time, submit for City Council consideration all necessary legislation to create a new Tax Increment Financing district to support public and private improvements in the area to be developed as Class A office space, legislation to apply for a State Infrastructure Bank Loan through the Ohio Department of Transportation to pay for the construction of the Hamilton Road S-Curve portion of the project, and legislation for real property tax abatement for the commercial office portion of the development.
Under the Economic Development Agreement, the Department of Development acknowledges the Development Team has filed a Zoning Application to the City for the development; the Development Team agrees to adhere to the City’s standard zoning process to rezone applicable parcels.
This legislation is submitted as an emergency measure in order to enable the Director of the Department of Development to enter into an Economic Development Agreement with the Development Team to allow appropriate time for the Development Team to close real estate transactions before the end of September, 2015, and to coincide with the timing of the design and construction of both public and private improvements occurring on the Site.
FISCAL IMPACT: There is no fiscal impact for this legislation. No funding is required.
Title
To authorize the Director of the Department of Development to enter into an Economic Development Agreement with Hamilton Crossing, LLC, Casto AP Residential, LLC, The New Albany Company, LLC, and Center State Enterprises, LLC, concerning the development of the site located adjacent to the N. Hamilton Road and the State Route 161 interchange; and to declare an emergency.
Body
WHEREAS, the Development Team desires to develop approximately 330 acres of real property adjacent to the N. Hamilton Road and State Route 161 interchange; and
WHEREAS, the Development Team’s project has been undertaken as a Public-Private Partnership (3P) with the City of Columbus; and
WHEREAS, the development of the Site will include the construction of approximately $25 million in public infrastructure; approximately 700,000 square feet of Class A office space, 1,000,000 square feet of retail space, 800 multi-family housing units and 125 senior housing units, which represents over $250 million in private investment; and
WHEREAS, the City desires to enter into an agreement with the Development Team to outline the framework for many of the major terms of cooperation for the development of the project; and
WHEREAS, the City and Development Team desire to memorialize their understanding and agreements with respect to such cooperation; and
WHEREAS, the City’s agreement to provide financial assistance, as set forth herein, is contingent upon authorization pursuant to subsequent adoption of appropriate legislation of Columbus City Council; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus whereby it is immediately necessary to authorize the Director of the Department of Development to enter into said agreement to provide the flexibility to be able to close the real estate transactions prior to September, 2015, and to coincide with the public and private 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 is hereby authorized to enter an Economic Development Agreement on behalf of the City with Hamilton Crossing, LLC, Casto AP Residential, LLC, The New Albany Company, LLC, and Center State Enterprises, LLC, to outline the plans and certain commitments of the parties relating to the proposed development on the site adjacent to the N. Hamilton Road and State Route 161 interchange.
SECTION 2. 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.