Explanation
Background: The Department of Public Safety, Division of Support Services, desires to relocate and consolidate its offices from two city-owned locations that no longer meet its needs. A building has been identified, known as 2512 Jackson Pike, located on City property currently under a ground lease with the Solid Waste Authority of Central Ohio (SWACO), that will meet the Division's current and future space needs. The building is new and was constructed on the City's land for RASTRA in 2008-2009 as part of SWACO's efforts to develop a "Green Business Park". RASTRA encountered financial difficulties and could not occupy the space which resulted in SWACO obtaining ownership. The building contains approximately 30,000 square feet of office and warehouse space and is accessible via SR 104 and I-71. SWACO is making the necessary tenant improvements to meet the City's requirements and the City will purchase the building upon completion of the construction of the tenant improvements. Prevailing wage will be paid for all constructed improvements made for the City's use.
This legislation authorizes the Director of Finance and Management, on behalf of the Department of Public Safety, to execute those documents necessary to purchase the building from SWACO and the constructed improvements in an amount not to exceed $2,500,000.00 for all costs associated with the acquisition, including design, renovation, and construction services. This ordinance is presented as an emergency measure. In addition, this ordinance authorizes the Director of Finance and Management to enter into the into the Thirteenth Modification of the Lease and Transfer Agreement between the Solid Waste Authority of Central Ohio and the City of Columbus.
This ordinance also authorizes the appropriation and transfer of $2,500,000.00 from the Special Income Tax Fund to the Public Safety Voted Bond Fund.
Fiscal Impact: The cost of this purchase is $2,500,000. This amount is included in the 2010 Capital Improvement Budget, within the Safety Voted Bond Fund.
Emergency Justification: Emergency action is requested to allow this acquisition to proceed in agreement with the closing transaction deadlines and other terms of the purchase contracts, and to allow for construction to proceed allowing the property to be occupied by October 1, 2010.
Title
To authorize the Director of Finance and Management, on behalf of the Department of Public Safety, to execute those documents necessary to purchase that building, known as 2512 Jackson Pike, from the Solid Waste Authority of Central Ohio for the relocation of the Department of Public Safety Division of Support Services, to authorize and direct the City Auditor to appropriate and transfer $2,500,000.00 from the Special Income Tax Fund to the Public Safety Voted Bond Fund; to authorize the City Auditor to appropriate $2,500,000.00 within the Safety Voted Bond Fund; to authorize the expenditure of up to 2,500,000.00 from the Safety Bond Fund, to authorize the Director of Finance and Management to enter into the Thirteenth Modification of the Lease and Transfer Agreement between the Solid Waste Authority of Central Ohio and the City of Columbus; and to declare an emergency ($2,500,000.00).
Body
WHEREAS, the City of Columbus, desires to enter into a purchase contract, between the City and to purchase that building commonly known as 2512 Jackson Pike; and
WHEREAS, the Department of Public Safety, Division of Support Services occupies office space in city-owned buildings, that no longer meet its needs and space requirements; and
WHEREAS, the new building consists of approximately 30,000 square feet of office and warehouse space and ample paved parking; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund to this project; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund; and
WHEREAS, 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 the purchase of this building is presently expected not to exceed $2,500,000.00; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the project described in this ordinance (the "Project"); and
WHEREAS, it is necessary to modify various provisions of the Lease and Transfer Agreement between the City and the Solid Waste Authority of Central Ohio to reflect the removal of this building from the ground lease and provide City access to the building in order to complete the transfer of the ownership of the building; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus, in that it is immediately necessary to authorize the Director of Finance and Management, on behalf of the Department of Public Safety, to execute those documents necessary to purchase that building commonly known as 2512 Jackson Pike from the Solid Waste Authority of Central Ohio, and to expend up to $2,500,000.00 for costs associated with said acquisition for the immediate preservation of the public health, peace, property and safety; now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS
SECTION 1. That the Director of Finance and Management, on behalf of the Department of Public Safety be, and hereby is, authorized to execute those documents, as approved by the Department of Law, Real Estate Division, necessary for the purchase of that building commonly known as 2512 Jackson Pike, Columbus, Ohio.
SECTION 2. That the sum of $2,500,000.00 be and is hereby appropriated from the unappropriated balance of the Special Income Tax Fund, Fund 430, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2010 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
SECTION 3. That the City Auditor is hereby authorized to transfer said funds to the Safety Voted Bond Fund 701, at such time as is deemed necessary by the City Auditor, and to expend said funds, or so much thereof as may be necessary.
SECTION 4. That the amount of $2,500,000.00 is hereby transferred and appropriated to the Department of Public Safety, Division of Support Services 30-02, Fund 701, New Support Services Complex 320017-100001, Object Level Three Code 6603, OCA Code 711702.
SECTION 5. That the expenditure of $2,500,000.00, or so much thereof as may be necessary, be and the same is hereby authorized as follows;
Dept./Div.: 30-02
Fund: 701
Project: 320017-100001
OCA Code: 711702
Object Level Three: 6603
SECTION 6. That upon obtaining other funds for the acquisition of 2512 Jackson Pike, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 3, above, and said funds are hereby deemed appropriated for such purpose.
SECTION 7. That the City Auditor is authorized to establish proper accounting project numbers, and to make any accounting changes to revise the funding source for any contract or contract modification associated with the expenditure of funds transferred in Section 3, 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, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount cnot to exceed $2,500,000.00 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of the Treasury Regulations Section 1.150-2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 9. That all funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 10. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contract or contract modifications associated with this ordinance.
SECTION 11. That the Director of Finance and Management is hereby authorized to enter into and execute the Thirteenth Modification to the Lease Agreement between the City and the Solid Waste Authority of Central Ohio.
SECTION 12. That for the 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.