Explanation
Background: Ordinance No. 2535-2020 authorized the City to enter into the (Economic) Development Agreement dated December 1, 2020 (the “Crown Pointe EDA”) with Metro Development, LLC. Under the Crown Pointe EDA, it was determined there was a need to finance the design and construction of public infrastructure improvements, and those costs would be reimbursed through per unit payments, tax increment financing, and new community authority (the “NCA”) community development charges (the “Charges”) in accordance with the public revenue program for the Big Darby Creek Watershed adopted by Resolution No. 0216X-2008 (the “Big Darby Revenue Program”). Resolution Nos. 0060X-2021 and 0242X-2021 then established the Big Darby West Broad Street NCA contemplated by the Crown Pointe EDA (the “Authority”) and its new community district (the “District”). Ordinance No. 2659-2021 approved and authorized the City to then enter into the Development Agreement dated November 22, 2021 (the “Blasuer EDA”) with Blauser Capital Ltd, which required their property to be added to the District and Charges imposed. Pursuant to Resolution Nos. 0182X-2022 and 0226X-2022, City Council then authorized the expansion of the District to include the property under the Blauser EDA. Ordinance No. 1501-2023 further approved and authorized the City to enter into the Development Agreement dated July 28, 2023 (the “Redwood EDA”) with Redwood USA, LLC, which required their property to be added to the District and Charges imposed, too. Pursuant to Resolution Nos. 0188X-2023 and 0217X-2023, City Council then authorized the expansion of the District to include the property under the Redwood EDA.
As anticipated in the Crown Pointe EDA, Blauser EDA, and Redwood EDA, after reimbursing each developer from their respective Charges for costs of any eligible public infrastructure improvements thereunder, the remaining Charges would be remitted by the Authority to the City pursuant to a separate agreement between the City and the Authority. The same will apply to any additional property added to the district and imposed with charges as would be contemplated under another development agreement. This ordinance will authorize the Director of the Department of Development to enter into the Intergovernmental Cooperative Agreement with the Authority for such purposes for the City to fund public infrastructure improvements, community facilities, land acquisition, and land development in accordance with R.C. Chapter 349 and the Big Darby Revenue Program. This ordinance will also establish a new city fund for the acceptance of those Charges from the Authority to be deposited with the City. This ordinance will also authorize the appropriation and expenditure of any of those Charges to the Authority, or its designee, that were erroneously remitted to the City by the County Auditor after collection of the Charges paid to the County Treasurer.
Fiscal Impact: The City is accepting a portion of the Charges from the Authority for deposit into the new Big Darby West Broad Street (BDWBS) NCA Fund. The Authority’s Charges not due to the City that were remitted to the City by the County Auditor are being appropriated and authorized for expenditure back to the Authority or its designee.
Title
To authorize the Director of the Department of Development to enter into the Intergovernmental Cooperative Agreement with the Big Darby West Broad Street NCA for the levying, collection, and transfer of community development charges within its new community district from the Authority to City for use pursuant to R.C. Chapter 349 and the Big Darby Revenue Program; to establish the Big Darby West Broad Street NCA Fund; to authorize the City Auditor to accept the community development charges from the Big Darby West Broad Street NCA and to deposit such charges into the Big Darby West Broad Street NCA Fund; and to appropriate and authorize the expenditure of the community development charges the City received from the County Auditor and are not entitled to the City under the Intergovernmental Cooperative Agreement to the Big Darby West Street NCA or its designee. ($0.00)
Body
WHEREAS, City Council adopted Resolution No. 0216X-2008 to approve a public revenue program for the Big Darby Creek Watershed (the “Big Darby Revenue Program”) to finance the design and construction of public infrastructure improvements, community facilities, land acquisition, and land development through developer per unit payments, tax increment financing, and new community authority (the “NCA”) community development charges (the “Charges”); and
WHEREAS, Metro Development, LLC proposed a multi-family development at W. Broad Street and Doherty Road within the Big Darby Creek Watershed precipitating the need to enter into the Development Agreement dated December 1, 2020 (the “Crown Pointe EDA”) authorized by Ordinance No. 2535-2020 to outline the respective commitments to implement the Big Darby Revenue Program; and
WHEREAS, Resolutions Nos. 0060X-2021 and 0242X-2021 were adopted by City Council and authorized the establishment of the Big Darby West Broad Street NCA contemplated in the Crown Pointe EDA (the “Authority”) and its new community district (the “District”); and
WHEREAS, it was further contemplated in the Crown Pointe EDA that after financing the required eligible public infrastructure improvements thereunder that the remaining Charges imposed by the Authority on the property described in the Crown Pointe EDA would be remitted to the City for use in accordance with R.C. Chapter 349 and the Big Darby Revenue Program; and
WHEREAS, Ordinance Nos. 2659-2021 and 1501-2023 authorized the City to enter into subsequent development agreements with other developers (the “Blauser and Redwood EDAs”) to require their properties described thereunder and within the Big Darby Creek Watershed to be added to the District;
WHEREAS, Charges will also be imposed on those aforesaid properties in accordance with the Big Darby Revenue Program to finance any eligible public infrastructure improvements under the Blauser and Redwood EDAs, and once fully funded, those additional Charges will be remitted to the City as well; and
WHEREAS, by Resolution Nos. 0182X-2022 and 0226X-2022 and Resolution Nos. 0188X-2023 and 0217X-2023, City Council then authorized the expansion of the District to include the property under each of the Blauser and Redwood EDAs so the Authority can impose the Charges; and
WHEREAS, if more additional property is added to the District and Charges imposed pursuant to the requirements of subsequent development agreements with one or more other developers to finance eligible public infrastructure improvements thereunder, any surplus Charges should also thereafter be remitted to the City by the Authority; and
WHEREAS, this ordinance authorizes the Director of the Department of Development (together with his or her designee, the “Director”) to enter into the Intergovernmental Cooperative Agreement (the “Agreement”) with the Authority to provide for the levying, collection, and transfer of community development charges within the District from the Authority to City for use pursuant to R.C. Chapter 349 and the Big Darby Revenue Program; and
WHEREAS, this ordinance further authorizes the City to accept the Charges from the Authority and to establish a City fund for the deposit of those Charges, and
WHEREAS, the City received some of the Authority’s Charges directly from the County Auditor that are not entitled to the City under the Agreement but should be governed by the Cooperative Agreement dated November 14, 2024 (the “Cooperative Agreement”) by and among the City, the Authority, the Columbus-Franklin County Finance Authority, and Metro Development, LLC; and
WHEREAS, it is necessary in the usual daily operation of the Department of Development to enter into the Agreement to implement the Big Darby Revenue Program but to also appropriate and authorize the expenditure of such unfittingly held Charges to the Authority or its designee; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director, for and in the name of the City, is hereby authorized to execute and deliver the Agreement with the Authority presently on file with the Department of Development along with any changes or amendments thereto not inconsistent with this Ordinance and not substantially adverse to the City and which shall be approved by the Director and the City Attorney, provided that the approval of such changes and amendments thereto, and the character of those changes and amendments as not being substantially adverse to the City, shall be evidenced conclusively by the execution and delivery hereof.
Section 2. That, in accordance with the Agreement, this Council hereby establishes a city fund related to the Authority (the “Big Darby West Broad Street NCA Fund” or “BDWBS NCA Fund”) into which there shall be deposited the Charges collected by the City from the Authority after the Authority retains an administrative allowance pursuant to the Agreement and any Charges pledged under one or more separate subsequent agreements for costs and obligations thereunder such as the Cooperative Agreement (the “Available Charge Revenue”); the City Auditor is hereby authorized to deposit the Available Charge Revenue into the BDWBS NCA Fund; the City Auditor may establish the BDWBS NCA Fund as a new City fund including with any necessary subfunds or project accounts as the City Auditor reasonably determines; the BDWBS NCA Fund may remain in existence so long as the Available Charge Revenue is remitted to the City from the Authority.
Section 3. That the Charges deposited into BDWBS NCA Fund and the West Broad Street TIF Fund (7481) shall be appropriated for the purposes set forth in this Ordinance, the Agreement, and the Cooperative Agreement and authorized to be expended therefrom in accordance with the Agreement and the Cooperative Agreement, and the City Auditor is authorized to make payments to the Authority, or its designee, in accordance with the Agreement and the Cooperative Agreement upon order of the Director and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
Section 4. That funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
Section 5. That the City Auditor is authorized to establish such accounting codes as necessary, to make any accounting changes to revise the funding source for all agreements, contracts, or modifications associated with this Ordinance and the transactions contemplated by the Agreement.
Section 6. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account or subfund to the unallocated balance account within 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 7. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.