Explanation
The Public Service Department, Transportation Division, is pursuing the construction of the new Main Street bridge over the Scioto River. This bridge will replace the existing structure that is currently closed to traffic. The project also constructs a portion of the new West Bank Park, from the new Main Street Bridge south to the Railroad bridge on the west side of the river.
This ordinance authorizes the Public Service Director to enter into appropriate loan agreements with the Ohio Department of Transportation for a ten-year low-interest loan for up to $15,450,868.00 ($13,585,966.90 for the Transportation Division and $1,864,901.10 for the Recreation and Parks Department) from the State Infrastructure Bank that is administered by the Ohio Department of Transportation (ODOT).
The initial draw down of funds from this loan is estimated to occur on August 1, 2008. The loan will mature ten years later, on August 1, 2018. The interest rate for the first twelve months of the loan is zero percent (0%). The interest rate for the remainder of the loan term is three percent (3%). ODOT will prepay the interest due on the loan for months 13 through 30; this amount is expected to total $449,754.02 ($395,471.67 for the Transportation Division and $54,282.35 for the Recreation and Parks Department). The City will commence making principal and interest payments (including the prepaid interest) in month 31; these payments will total $2,186,764.00 annually for eight (8) years, or $17,494,110.00. The City may prepay loan principal at its option; any prepayment of the loan prior to the thirty-sixth month will be subject to a three percent premium.
If the loan schedule is followed and the loan is not amortized prematurely, the interest paid will total $2,492,996.00.
Additional loan terms include the City funding cost overruns (if any) necessary to complete the project, providing annual audited financial statements to ODOT and securing all environmental approvals prior to the first loan draw down.
Fiscal Impact: Funds to repay this loan will be budgeted in future capital improvement budgets.
Emergency action is requested to meet the State's estimated loan closing date of June 14, 2006.
Title
To authorize the Public Service Director to enter into appropriate loan agreements with the Ohio Department of Transportation for a ten-year low-interest loan of up to $15,450,868.00 from the State Infrastructure Bank for construction of the new Main Street bridge over the Scioto River for the Transportation Division; and to declare an emergency. ($15,450,868.00)
Body
WHEREAS, the Public Service Department, Transportation Division, is pursuing the construction of the new Main Street bridge over the Scioto River; and
WHEREAS, the Public Service Director desires to enter into agreements for a ten year low interest loan for up to $15,450,868.00 ($13,585,966.90 for the Transportation Division and $1,864,901.10 for the Recreation and Parks Department) from the State Infrastructure Bank that is administered by the Ohio Department of Transportation (ODOT) with said funds to be used for said bridge's construction; and
WHEREAS, if the loan is approved by the State of Ohio the Public Service Director desires to enter into appropriate loan agreement(s) with the Ohio Department of Transportation for this purpose; and
WHEREAS, an emergency exists in the usual daily operation of the Public Service Department, Transportation Division, in that it is immediately necessary to apply for and if approved execute said loan agreement(s) to meet the State's anticipated loan closing date of June 14, 2006, 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 Public Service Director be and hereby is authorized to enter into appropriate loan agreements with the Ohio Department of Transportation for a ten- year low-interest loan for up to $15,450,868.00 ($13,585,966.90 for the Transportation Division and $1,864,901.10 for the Recreation and Parks Department) from the State Infrastructure Bank for construction of the new Main Street bridge over the Scioto River for the Transportation Division.
SECTION 2. Prior to the first draw down of these monies needed for payment by the State to the bridge contractor(s) the Public Service Director will seek approval, by ordinance, of Columbus City Council.
SECTION 3. 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.