Explanation
Background: Pursuant to Ordinance No. 1721-02, the City declared the Waggoner Road Area Tax Increment Financing District (the "Waggoner TIF District"). This ordinance authorizes a Project Acquisition Agreement with National Church Residences and will allow for the acquisition of public infrastructure improvements by the City within the Waggoner TIF District.
This Ordinance will be followed by a companion ordinance which will authorize the issuance of bonds in an amount not to exceed $2,000,000. The bonds will not be general obligations of the City, but will be special obligations payable solely from TIF revenues generated from property within the Waggoner TIF District.
Fiscal Impact: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into a Project Acquisition Agreement with National Church Residences for the acquisition and construction of certain public infrastructure improvements in the Waggoner TIF District; and to waive the competitive bidding requirements for the procurement of engineering services and construction.
Section 55(b) of the Charter of the City of Columbus
Body
WHEREAS, pursuant to Revised Code Sections 5709.40, 5709.42 and 5709.43 (the "Act"), the City by Ordinance No. 1721-02 (the "TIF Ordinance") declared improvements to certain parcels of real property located in the Waggoner TIF District (the "Properties") to be a public purpose, thereby exempting those improvements from real property taxation for a period of time, specified public infrastructure improvements to be made by the City or on its behalf, provided for the making of annual service payments in lieu of taxes by the owners of such parcels, and established the Waggoner Road Project Municipal Public Improvement Tax Increment Equivalent Fund #410 (the "TIF Fund") into which such service payments shall be deposited; and
WHEREAS, the City desires to contract with National Church Residences (together with its successors and assigns, "NCR") for the construction and purchase of certain public infrastructure improvements in the Waggoner TIF District (collectively, the "Public Improvements"); and
WHEREAS, the Public Improvements constitute public roadway and utility improvements that are "Public Infrastructure Improvements" as defined in Section 5709.40, Ohio Revised Code that benefit or serve, or that once made will benefit or serve, the Properties and constitute part of the expansion of public improvements that were designated in the TIF Ordinance; now therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That pursuant to Columbus City Charter Section 186, the Director of Development is hereby authorized to enter into an agreement (the "Project Acquisition Agreement") to reimburse NCR for the cost of design and construction of the Public Improvements as set forth in the plans currently on file with the City Engineer, with such additional terms and conditions as may be deemed advisable by the City Auditor and the City Attorney, for a guaranteed maximum not to exceed the sum of $2,000,000. The City's obligation to reimburse shall not constitute a debt of the City within the meaning of any statutory or constitutional provision, but shall be limited to payment out of moneys in the TIF Fund and proceeds of bonds and notes. Any such bonds or notes, including principal, interest and issuance costs, will to the extent not provided for from proceeds of such bonds or notes, be serviced solely from the revenues to the extent available generated by payments made in lieu of taxes pursuant to the municipal tax increment financing mechanism established by the TIF Ordinance and deposited in the TIF Fund.
Section 2. That all moneys necessary to carry out the purposes of this ordinance are hereby deemed appropriated from moneys on deposit in the TIF Fund and in the Capital Project Fund #768, but only to the extent such moneys are available from time to time.
Section 3. That this Council hereby finds and determines that the Public Improvements are designated as public infrastructure improvements in accordance with the Act that benefit or serve, or that once made will benefit or serve, the Properties.
Section 4. That the competitive bidding requirements of Chapter 329 of the Columbus City Codes be and are hereby waived for the procurement of engineering services and construction pursuant to the Project Acquisition Agreement.
Section 5. That the City currently estimates that the maximum principal amount of the bonds or notes referred to in Section 1 hereof shall be $2,000,000. The Project Acquisition Agreement shall require NCR to provide a letter of credit to support the payment of principal of and interest on such bonds.
Section 6. That in accordance with Section 55(b) of the Charter of the City of Columbus, Ohio, this ordinance shall take effect and be in force from and immediately after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.