Explanation
Background: Alliance Data Systems proposes to relocate from Gahanna to Columbus. To effect such relocation, a new 200,000 square foot facility will need to be constructed to house their 529 existing professional and technical employees and the 54 new positions that will be created. The City of Columbus has offered a tax abatement and Job Creation Tax Credits. The City of Columbus has committed to funding this new roadway and related utilities for purposes of creating economic development opportunities and increasing the real and personal property tax and income tax revenues of the City.
Fiscal Impact: The $1,750,000 will come from the Special Income Tax Fund. This legislation authorizes the appropriation, transfer and the expenditure of funds. This transfer from the Special Income Tax Fund is only a temporary funding measure until bonds are sold in 2006 at which time the Special Income Tax Fund will be reimbursed for this transaction.
Emergency Justification: Emergency action is necessary in order to adhere to Alliance Data System's schedule for its relocation decision, building construction and occupancy, and for the preservation of the public health, peace, property and safety.
Title
To amend the 2006 Capital Improvement Budget; to authorize the City Auditor to transfer $1,750,000 from the Special Income Tax Fund to the Northland and Other Acquisitions Fund 735; to authorize the Director of Development to enter into a Guaranteed Maximum Price Reimbursement Agreement with MORSO Holding Co. for up to $1,750,000 to design and construct a portion of a new roadway called Easton Square Place, and related utilities; to waive the provisions of Chapter 329 of Columbus City Code; to authorize the expenditure of $1,750,000 from Fund 735; and to declare an emergency. ($1,750,000)
Body
WHEREAS, Alliance Data Systems proposes to relocate their 529 existing employees from Gahanna to the City of Columbus into a new 200,000 square foot facility to be constructed; and
WHEREAS, the City has offered a tax abatement and Job Creation Tax Credits to Alliance Data Systems; and
WHEREAS, the City has committed to funding a portion of a new roadway, Easton Square Place, and related utilities to provide access and utilities to the Alliance Data Systems site, to create economic development opportunities and to increase real, personal and income tax revenues; and
WHEREAS, it is necessary to appropriate and transfer $1,750,000 from the Special Income Tax Fund to a fund to be determined by the City Auditor and to expend the same; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund, and this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregate principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $1,750,000; and
WHEREAS, it is necessary to amend the 2006 Capital Improvement Budget; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into a Guaranteed Maximum Price Reimbursement Agreement with MORSO Holding Co. and to transfer and appropriate said funds, all for the immediate preservation of the public health, peace, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the 2006 Capital Improvement Budget is hereby amended as follows:
CURRENT CIB:
Dept/Div: 44-01/Fund: 735/Project Name - Land Assemblage: Short/Sycamore Connector $2,468,729.00
Dept/Div: 44-01/Fund: 735/Project Number 441744/Project Name - Easton Square Place Roadway $0
REVISED CIB:
Dept/Div: 44-01/Fund: 735/Project Name - Land Assemblage: Short/Sycamore Connector $718,729.00
Dept/Div: 44-01/Fund: 735/Project Number 441744/Project Name - Easton Square Place Roadway $1,750,000.00
Section 2. That the Director of Development is hereby authorized to enter into a Guaranteed Maximum Price Reimbursement Agreement with MORSO Holding Co. for up to $1,750,000 for purposes of designing and constructing a portion of a Easton Square Place and related utilities to service Alliance Data Systems' new facility proposed for construction.
Section 3. That for the purpose stated in Section 1, the sum of $1,750,000 is hereby appropriated from the unappropriated balance of the Special Income Tax Fund No. 430, and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purchase during the fiscal year ending December 31, 2006, to the City Auditor, Dept./Div. No. 22-01, Object Level One 10, OCA 902023, Object Level Three 5502.
Section 4. That the City Auditor is hereby authorized to transfer said funds to Fund 735, Easton Square Place Roadway project, at such time as is deemed necessary by the City Auditor, and to expend $1,750,000 or so much thereof as may be necessary.
Section 5. That the expenditure of $1,750,000 will use authority allocated to Land Assemblage in Fund 735, from the Development Department, Division No. 44-01, Fund 735 Northland and Other Acquisitions, Project No.441744, OCA Code 441744 and Object Level Three 6680 be hereby appropriated and authorized.
Section 6. That upon obtaining other funds for this project, the City Auditor is hereby authorized to repay the Special Income Tax Fund the amount transferred under Section 3 above, and said funds are hereby deemed appropriated for such purpose.
Section 7. That the City Auditor is authorized to make any accounting changes to revise the funding source for any contract or contract modification associated with the expenditure of the funds transferred in Section 3 above.
Section 8. 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.
Section 9. That the provisions of Chapter 329 of the City Code be and hereby are waived.
Section 10. 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 passage and approval by the Mayor or ten days after its passage if the Mayor neither approves nor vetoes the same.