Explanation
Background: This ordinance authorizes the Director of the Department of Development to enter into an agreement with Capitol South Community Urban Redevelopment Corporation (Capitol South) for the acquisition of the subordinate leasehold interest of TL-Columbus Associates, LLC (TL-Columbus) in the Centrum property adjacent to the City Center Mall, consisting of approximately 0.9418 acres of land, for the sum of $2,870,000.00 for the purpose of consolidating ownership in the property and to extinguish all interests subordinate to the prime lease to Capitol South thereby rendering the property more amenable to redevelopment. In 1989 the City leased the Centrum property to Capitol South for a term of 99 years. Capitol South in turn sub-leased the Centrum property to TL-Columbus. TL-Columbus fully prepaid to Capitol South the amount of rent due for the entire term of its sub-lease which remains in good standing. However, the parties have agreed to terminate the sub-leasehold relationship and for TL-Columbus to surrender possession of the entire Centrum property, as well as the City Center Mall site. Acquisition of the sub-leasehold interest in the Centrum site will facilitate redevelopment of the entire City Center Mall property.
Fiscal impact: The sum of $2,870,000.00 to acquire the sub-leasehold interest of TL-Columbus in the Centrum property is available from current unappropriated funds in the Capitol South Fund No. 481, and no monies from the General Fund or other source will be required for this purpose.
Title
To authorize the Director of the Department of Development to enter into agreement with the Capitol South Community Urban Redevelopment Corporation for the purpose of acquiring and causing the extinguishment of all subordinate leasehold estates in property known as the Centrum property from TL-Columbus Associates, LLC, to appropriate from the Capitol South Fund No. 481 and to authorize the expenditure therefrom for such purpose the sum of $2,870.000.00, and to declare an emergency.
Body
WHEREAS, the City of Columbus is the owner in fee of certain property (the City Center Redevelopment Property) in the City generally bounded on the north by Fifth Third Financial Center, the Ohio Theater, the Capitol Square Office Building and the Hyatt on Capitol Square, on the east by the U.S. Bank Building and South Third Street, on the south by East Rich Street, and on the west by South High Street, and
WHEREAS, in 1989 the City did lease a portion of the City Center Redevelopment Property, consisting of approximately 0.9418 acres of land and commonly known as the Centrum property to Capitol South Community Urban Redevelopment Corporation (Capitol South) which in turn sub-leased the property to TL-Columbus Associates, LLC (TL-Columbus), and TL-Columbus fully pre-paid is sub-leasehold interest in the Centrum property, and
WHEREAS, the City deems it to be advisable and in its best economic interests, to assist Capitol South in causing the outstanding interests and estates subordinate to the prime lease of Capitol South with respect to the Centrum property to be extinguished, and TL-Columbus has agreed for valuable consideration to terminate the sub-leasehold relationship and for TL-Columbus to surrender possession of the Centrum property, and
WHEREAS, the funds necessary for such purpose are available in the City's Capitol South Fund No. 481, which are monies generated from Capitol South activities and transactions, and not from the City's General Fund or other sources, and
WHEREAS, an emergency exists in the usual daily operations of the city, for all the reasons stated hereinabove and to consummate the acquisition of the necessary property interests as expeditiously as possible, this ordinance is hereby deemed to be an emergency measure necessary for the immediate preservation of the public health, safety, welfare and property 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 he is hereby, authorized to enter into an agreement with Capitol South Community Urban Redevelopment Corporation for the purpose of acquiring and causing the extinguishment of all subordinate leasehold interests and estates in property known as the Centrum property from TL-Columbus Associates, LLC.
Section 2. That the Director of the Department of Development is hereby authorized to expend for such purpose the sum of $2,870,000.00 from the Capitol South Fund No. 481.
Section 3. That the funds necessary for such purpose are hereby deemed to be appropriated, and the City Auditor shall establish such accounting codes as are necessary therefore.
Section 4. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, and as otherwise stated herein, this ordinance is hereby deemed to be an emergency measure and shall take effect and be in force immediately from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.