..Explanation
The City of Columbus, in conjunction with the Ohio Department of Transportation (ODOT); NP Limited Partnership, an Ohio Limited Partnership; and Polaris Ventures IV, Limited, will undertake a roadway improvement project to reconstruct the existing interchange of Interstate 71 and Polaris Parkway and construct a new interchange at Interstate 71 and Fashion Mall Parkway. These improvements are necessitated by the tremendous increase in vehicular traffic generated by the adjacent amphitheater and retail and commercial development.
ODOT is the lead agency for this project and will bid the project construction and award, as well as administer the construction contracts. The City's cost of these interchange improvements is $27,600,000.00. ODOT is responsible for right-of-way and environmental clearances, utility relocation and permit procurement. NP Limited Partnership will provide, without compensation, free and clear title to approximately 23 acres of real estate needed for the improvement.
The City will fund this construction through a tax increment financing (TIF) package eventually financed from service payments in lieu of taxes generated within the specifically-designated TIF area. Initial financing will be from the City's sale of special revenue obligations (revenue bonds) that will not be a general obligation debt of the City, the State of Ohio or any political subdivision or agency thereof. Upon demand of the City, NP Limited will purchase up to $12,500,000.00 of these bonds. The City Charter (Section 159) requires appropriation of only that amount of money necessary to satisfy the current yearly obligation.
The construction schedule for this project is very aggressive and necessitates that the City deposit $8,500,000.00 with the State by May 4, 2004, and an additional $4,850,000.00 by October 1, 2004. Since the tax increment financing package will not be finalized nor revenue bonds sold in time to meet the initial payment date, this ordinance certifies these expenditures against the Special Income Tax Fund. This is a temporary arrangement until the sale of the TIF-backed revenue bonds, after which the Special Income Tax Fund will be reimbursed.
Emergency action is requested to meet the time schedule stipulated within the agreement with ODOT, NP Limited and Polaris Ventures.
Title
To appropriate $27,600,000.00 within the Special Income Tax Fund and authorize the transfer thereof to the City Auditor-designated and approved Polaris Interchange Capital Fund; to appropriate $27,600,000.00 within the Polaris Interchange Capital Fund to provide for reconstruction of the Interstate 71 and Polaris Parkway Interchange and construction of a new interchange at Interstate 71 and Fashion Mall Parkway; to authorize the use of a portion of the proceeds of bonds of the City to be issued for such purposes to reimburse such funds for monies advanced therefor and to declare an emergency. ($27,600,000.00)
Body
WHEREAS, the City of Columbus, in conjunction with the Ohio Department of Transportation (ODOT); NP Limited Partnership, an Ohio Limited Partnership; and Polaris Ventures IV, Limited, will undertake a roadway improvement project to reconstruct the interchange of Interstate 71 and Polaris Parkway and construct a new interchange at Interstate 71 and Fashion Mall Parkway; and
WHEREAS, ODOT is the lead agency for this project and will bid the project construction and award, as well as administer the construction contracts; and
WHEREAS, the City's cost of these intersection improvements is $27,600,000.00; and
WHEREAS, the City will fund this construction through a tax increment financing (TIF) package eventually financed from service payments in lieu of taxes generated within the specifically-designated TIF area; and
WHEREAS, the construction schedule for this project is very aggressive and necessitates that the City deposit $8,500,000.00 with the State of Ohio by May 4, 2004, and $4,850,000.00 by October 1, 2004; and
WHEREAS, since the tax increment financing package will not be finalized nor bonds sold in time to meet this deadline, this ordinance certifies these expenditures against the Special Income Tax Fund; and
WHEREAS, the City desires to reimburse the Special Income Tax Fund for any such costs advanced with $13,350,000.00 of the proceeds of bonds or notes hereafter to be issued (the "Obligations") and therefore this transfer should be considered as a temporary funding method; and
WHEREAS, it is immediately necessary to both appropriate funds from the Special Income Tax Fund and transfer said funds into the Polaris Interchange Capital Fund; and
WHEREAS, an emergency exists in the usual daily operation of the Transportation Division, Public Service Department, in that it is immediately necessary that funding arrangements be made to meet the State's May 4 deadline for the deposit of funds for this project, 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 sum of $27,600,000.00 be and hereby is 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, 2004, to the City Auditor, Department No. 22-01, Object Level One Code 10, Object Level Three Code 5502 and OCA Code 902023.
SECTION 2. That the City Auditor is hereby authorized to transfer said funds to the Polaris Interchange Capital Fund 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 3. That the amount of $27,600,000.00 be and hereby is appropriated to the Polaris Interchange Capital Fund, Fund 770, for the Transportation Division, Department No. 59-09, Object Level One Code 06, Object Level Three Code 6631, OCA Code 590770 and Project 590770.
SECTION 4. That the City Auditor is authorized to establish proper project accounting numbers as appropriate.
SECTION 5. That upon obtaining other funds for the Polaris Parkway Improvement project, the City Auditor is hereby authorized to repay the Special Income Tax Fund the amount transferred under Section 2 above, and said funds are hereby deemed appropriated for such purpose.
SECTION 6. That the City Auditor is authorized to make any accounting changes to revise the funding source for any contract or contract modification associated with expenditure of the funds transferred in Section 2, above.
SECTION 7. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150-2(e) of the Treasury Regulations promulgated pursuant to the Internal Revenue Code of 1986, as amended, and declares its intention to use a portion of the proceeds of the Obligations to reimburse the City for expenses advanced from its Special Income Tax Fund.
SECTION 8. 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.