Explanation
BACKGROUND: Lifestyle Communities, Ltd. (the "Developer") is or will be the owner of the 34.4+/- acres of property located at 6106 Central College Road and is the owner of 16.4+/- acres of property at 6490 Harlem Road (collectively the "Developer Property") within the Northeast Pay As We Grow (PAWG) area. The Columbus Development Commission has recommended approval of the rezoning of the Developer Property to allow for residential and other development.
This ordinance authorizes the Director of Development to enter into the Memorandum of Understanding ("MOU") with Lifestyle Communities that is on file at the Office of the City Clerk. It deals with Pay As We Grow (PAWG) issues, construction of a capital improvement in compliance with the City 3P Program, and reimbursement exclusively from PAWG sources of Eligible Construction Costs.
In following the City's PAWG policy for the Northeast Area, the Developer shall make a total contribution in the form of cash payments to Columbus in the amount of $2,300.00 multiplied by the number of residential units constructed on the Developer Property. On or before the 15th day of the month immediately following the end of a calendar quarter in which units have been built, the Developer will submit to Columbus a report for the preceding calendar quarter indicating the number and location of residential units built during that quarter, and enclosing payment for that number of units multiplied by $2,300.00 per unit. For a period of time an offset procedure will be followed in lieu of the procedure just described for Developer to meet its PAWG Per Unit Contributions obligation.
Within sixty days of the execution of this agreement, Developer will encumber the Developer Property with a Declaration of Covenants and Restrictions for the Central College Community Development District (the "CCCDD Covenants"). The CCCDD Covenants shall run with the land and shall require each current and future owner of all or any portion of the Developer Property to pay an annual Community Development Charge, as such term is defined in Section 349.01 of the Ohio Revised Code, to the Central College Community Development Authority in an amount equal to 0.004 multiplied by the "Assessed Value" of such property for a period of twenty (20) years commencing one (1) year after the date of completion of the construction of the residential structures (as evidenced by a Certificate of Occupancy). Within ninety days of the execution of the MOU, the Developer will take all necessary steps to include the Developer Property in the Central College Community Development Authority, including, without limitation, filing with the Columbus City Council a petition for the inclusion of Developer Property within said Authority on the basis described above.
The parties to this Agreement recognize that the size and density of the proposed development on the Developer Property present an opportunity for public and private participation in the completion of an infrastructure project (the "Improvement") that will benefit the northeast area of Columbus, including the Developer Property. The Improvement will be a traffic calming and amenity project in the median of New Albany Road West, which will be built by the Developer in accordance with the City's Public-Private Partnership (3P) procedures. The City will reimburse the Developer for Eligible Construction Costs incurred during construction of the Improvement, but not for design costs. Reimbursement will occur exclusively through PAWG revenue sources as defined in the MOU.
The Department of Development is requesting this ordinance to be considered an emergency measure in order to allow for immediate execution of this contract, which is necessary to facilitate the completion of the Improvement in accord with 3P requirements and to ensure compliance with PAWG requirements.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of Development to enter into the Memorandum of Understanding with Lifestyle Communities, Ltd. for fulfillment of Northeast Area Pay as We Grow ("PAWG") requirements for Developer Property, proper completion of the Improvement, and reimbursement of Eligible Construction Costs; and to declare an emergency.
Body
WHEREAS, Lifestyle Communities, Ltd. (the "Developer") is or will be the owner of the 34.4+/- acres of property located at 6106 Central College Road and is the owner of 16.4+/- acres of property at 6490 Harlem Road (collectively the "Developer Property") within the Northeast Pay As We Grow (PAWG) area; and
WHEREAS, The Developer and Columbus wish to adhere to the City's program to Pay as We Grow and Grow with a Plan ("PAWG") and the City's Public-Private Partnership ("3P") program; and
WHEREAS, Under the auspices of the PAWG and 3P programs, the parties see an opportunity to cooperate on the design and construction of an Improvement in the median of New Albany Road West slightly north of Central College Road, with reimbursement of Eligible Construction Costs; and
WHEREAS, The Columbus Department of Development and Lifestyle Communities have reached agreement on terms as reflected in the Memorandum of Understanding (MOU) on file at the Office of the City Clerk; and
WHEREAS, an emergency exists in the usual daily operation of the City in that it is immediately necessary for the Director of Development to enter into the Memorandum of Understanding between City of Columbus and Lifestyle Communities, Ltd. in order to allow for immediate execution of this contract which is necessary to facilitate the completion of the Improvement and compliance with 3P and PAWG requirements, all for the preservation of the public health, peace, property, safety and welfare; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of Development is hereby authorized to enter into the Memorandum of Understanding (the "MOU") between City of Columbus, Ohio ("Columbus") and Lifestyle Communities, Ltd. (the "Developer") for fulfillment of Northeast Area Pay as We Grow ("PAWG") requirements for Developer Property, proper completion of the Improvement, and reimbursement of Eligible Construction Costs.
Section 2. That the Developer will pay to Columbus a $2300 PAWG Per Unit Contribution as prescribed in Development Department Guidelines and Article 1 of the MOU.
Section 3. That the Developer will place all residences within Developer Property in the Central College Community Development Authority such that each unit will pay a four mill Community Development Charge for twenty years, as delineated in Article 2 of the MOU.
Section 4. That the Developer will build the traffic calming and amenity Improvement in the median of New Albany Road West, north of Central College Road, as approved by the Department of Public Service and will be required to follow the City's Public-Private Partnership (3P) process for the design and construction of a Capital Improvement Project (CIP), as set forth in Article 3 and Article 5 of the MOU, and in Exhibits B, C and D thereof.
Section 5. That Columbus will reimburse the Developer for Eligible Construction Costs of the Improvement, but not for design costs thereof, as set forth in Article 4 of the MOU. The City's reimbursement obligations do not constitute an indebtedness of Columbus within the provisions and limitations of the laws and the Constitution of the State of Ohio. Rather, the City's reimbursement obligations are limited to the following Pay as We Grow Revenue Sources:
(A)All PAWG Per Unit Contributions attributable to residential units on the Developer Property will go to reimburse the Developer for Eligible Construction Costs of the Improvement.
(B)All Community Development Charge funds attributable to Developer Property, once received by Columbus from the Central College Community Development Authority, will go to reimburse the Developer for Eligible Construction Costs of the Improvement.
(C) After the existing obligation to the Kroger Company in connection with the New Albany Road and Fodor Road Roundabout improvement project has been fulfilled by Columbus pursuant to the terms of the New Albany Road Roundabout Design Reimbursement Agreement (attached hereto as Exhibit E), revenue generated by the New Albany West-Central College Tax Increment Financing District will go to reimburse the Developer for Eligible Construction Costs of the Improvement. Accordingly, reimbursement to the Developer for Eligible Construction Costs of the Improvement will be the second claim on all revenue generated by the New Albany West-Central College Tax Increment Financing District.
(D) Revenue generated by the Harlem-Central College Tax Increment Financing District will go to the Developer for Eligible Construction Costs of the Improvement. Reimbursement to the Developer for Eligible Construction Costs of the Improvement will be the first claim on all revenue generated by the Harlem-Central College Tax increment Financing District.
The reimbursement obligations of Columbus from Pay as We Grow Revenue Sources will cease once it has paid the Eligible Construction Costs in full. Thenceforth Columbus has discretion on the use of these PAWG Revenue Sources. Payment dates are described in Article 4 of the MOU. Interest will begin to accrue at appropriate trigger points identified in Article 4, and the Interest Rate will be the standard rate used by Columbus, as specified in Article 4.
Section 6. As stated in Article 6 of the MOU, Columbus's approval of the design plans for the Improvement will be conditioned upon the Developer and Columbus entering into an Infrastructure Maintenance Agreement outlining the Developer's duties and obligations regarding maintenance of the Improvement.
Section 7. 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.