Explanation
BACKGROUND: This ordinance authorizes the Director of the Department of Development (the “Director”) to accept and execute a reimbursable grant in an amount up to $1,000,000.00 from the State of Ohio acting by and through the Ohio Facilities Construction Commission (the “Commission”), to utilize the remaining grant funds for the North Market Grand Atrium (the “Cultural Project”) being designed and constructed as part of the North Market expansion along with the new adjacent Merchant Building. This ordinance authorizes the Director to enter into a new Cultural Project Cooperative Use Agreement with the Commission, North Market Development Authority, Inc. (“NMDA”) and the Columbus-Franklin County Finance Authority (“CFCFA”). As contemplated in Ordinance No. 1247-2020, this ordinance will also authorize the Director to enter into a grant agreement with NMDA to reimburse them for costs of the Cultural Project incurred before the purchase order but after March 1, 2026, and this ordinance will transfer the appropriation and expenditure in an amount up to $1,000,000.00 to NMDA for such purposes.
The Cultural Project will host cultural events through the presentation of visual, musical, and other arts. To support these efforts, the Department of Development was invited to apply for up to $1,000,000.00 in grant assistance from the Commission for the Cultural Project and was awarded said grant. The grant funding, along with additional public and private funding, will be used to construct the Cultural Project. The grant requires at least a 50% match, and the match will be provided by the NMDA and the City.
Ordinance No. 1247-2020 authorized the Director to accept and execute the original grant and enter into the original agreement with only the Commission. Such agreement required the Cultural Project to be completed by December 31, 2024, but due to delays caused by the COVID-19 pandemic, construction has been delayed. The Commission has agreed to allow the City to utilize the remaining monies from the grant and have the Cultural Project completed at an expected later date of December 31, 2027. A new agreement is also necessary, not only to change the completion date, but to add the NMDA and the CFCFA as parties because the CFCFA is the owner of the Cultural Project and the NMDA will lease the Cultural Project from the CFCFA in order to construct, operate, and maintain it. This new arrangement was contemplated in the First Amended and Restated Economic Development Agreement dated August 29, 2023 by and among the City, NMDA, and the Merchant Building developer after award and execution of the original grant and agreement.
CONTRACT COMPLIANCE
The contract compliance number for North Market Development Authority, Inc. is 034112 and contract compliance expires 10/22/27.
FISCAL IMPACT: This legislation authorizes the transfer of appropriation and the expenditure in an amount up to $1,000,000.00 within the General Government Grants Fund (Fund 2220).
Title
To authorize the Director of the Department of Development to accept and execute a reimbursable grant in an amount up to $1,000,000.00 from the State of Ohio, acting by and through the Ohio Facilities Construction Commission, to utilize the remaining funds from the original grant for the North Market Grand Atrium; to authorize Director of the Department of Development to enter into the new Cultural Project Cooperative Use Agreement with the Ohio Facilities Construction Commission, the North Market Development Authority, Inc., and the Columbus-Franklin County Finance Authority; to authorize the Director of the Department of Development to enter into a grant agreement with the North Market Development Authority, Inc. to reimburse them for costs of the North Market Grand Atrium incurred prior to the purchase order; to authorize the transfer of appropriation and the expenditure in an amount up to $1,000,000.00 to North Market Development Authority, Inc. ($1,000,000.00)
Body
WHEREAS, in 2016, the City began a Request for Proposals (RFP) process for the surface parking lot adjacent to the existing North Market building with the goal of creating a sustainable, long-term financial structure to support the North Market; and
WHEREAS, an evaluation committee selected a proposal by a developer which originally included a
twenty-six (26) story mixed-use development, including an expansion of the North Market, the North Market Grand Atrium (the “Cultural Project”), an outdoor patio and entrance, additional retail, residential units, class A commercial office, hotel, and structured parking; and
WHEREAS, since the Cultural Project will host cultural events through the presentation of visual, musical, and other arts, the Department of Development was invited to apply for $1,000,000.00 in grant assistance from the State of Ohio Facilities Construction Commission (the “Commission”) for the Cultural Project; and
WHEREAS, Ordinance No. 1247-2020 authorized the Director of the Department of Development (together with his or her designee, the “Director”) to accept and execute the originally awarded grant and enter into the original agreement with the Commission requiring completion of the Cultural Project by December 31, 2024; and
WHEREAS, the developer revised and updated the proposal to a 32-story mixed-use building (the “Merchant Building”) consisting of an approximately 212-room hotel, approximately 174 residential units, approximately 60,000 square feet of class A office space, and approximately 347-space garage, an expansion of the existing North Market including the Cultural Project, outdoor patio, and public plaza; and
WHEREAS, pursuant to the authorization of Ordinance No. 2135-2023 and the First Amended and Restated Economic Development Agreement dated August 29, 2023 by and among the City, North Market Development Authority, Inc. (“NMDA”), and the Merchant Building developer, the Columbus-Franklin County Finance Authority (“CFCFA”) is the owner of the Cultural Project and NMDA will lease the Cultural Project from the CFCFA in order to construct, operate, and maintain it; and
WHEREAS, the Cultural Project will be funded by the grant funding, along with additional public and private funding, as the Commission’s grant requires at least a 50% match that will be provided by the City and NMDA; and
WHEREAS, this ordinance authorizes the Director to accept and execute a reimbursable grant in an amount up to $1,000,000.00 from the Commission to utilize the remaining grant funds for the Cultural Project; and
WHEREAS, this ordinance authorizes the Director to enter into a new Cultural Project Cooperative Use Agreement (the “New Cooperative Use Agreement”) with the Commission to add NMDA and CFCFA as parties and to change the completion date of the Cultural Project to an expected later completion date of December 31, 2027; and
WHEREAS, it is necessary to authorize the transfer of appropriation between object classes in an amount up to $1,000,000.00, and
WHEREAS, it is necessary in the usual daily operation of the Department of Development to have this ordinance also authorize the Director to enter into a separate grant agreement (the “Grant Agreement”) with NMDA to reimburse them for costs of the Cultural Project incurred before the purchase order but after March 1, 2026, and to authorize the expenditure in an amount up to $1,000,000.00 to NMDA for such purposes as was contemplated in Ordinance No. 1247-2020; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director is hereby authorized to accept and execute a reimbursable grant agreement in an amount up to $1,000,000.00 from the State of Ohio, acting by and through the Commission, to utilize the remaining grant funds for the Cultural Project, which was originally intended (prior to the known impacts of the COVID-19 pandemic) to be completed by December 31, 2024 but is now expected to be completed by a later date of December 31, 2027.
SECTION 2. That the Director, on behalf of the City, is authorized to enter into the New Cooperative Use Agreement with the Commission, NMDA, and CFCFA presently on file with the Department of Development, along with any changes or amendments thereto not inconsistent with this Ordinance and not substantially adverse to the City and which shall be approved by the Director and the City Attorney, provided that the approval of such changes and amendments thereto, and the character of those changes and amendments not being substantially adverse to the City, shall be evidenced conclusively by the execution and delivery thereof, that such changes are not inconsistent or adverse to the City.
SECTION 3. That the Director, on behalf of the City, is authorized to enter into the Grant Agreement with NMDA presently on file with the Department of Development, along with any changes or amendments thereto not inconsistent with this Ordinance and not substantially adverse to the City and which shall be approved by the Director and the City Attorney, provided that the approval of such changes and amendments thereto, and the character of those changes and amendments not being substantially adverse to the City, shall be evidenced conclusively by the execution and delivery thereof, that such changes are not inconsistent or adverse to the City; that expenses incurred prior to the execution of the purchase order but after March 1, 2026 for certain eligible project costs as described therein are hereby determined to be a valid public purpose and therefore authorized to be reimbursed
SECTION 4. That for the purpose stated in Section 3, the transfer of appropriation between object classes in an amount up to $1,000,000.00 is authorized and the expenditure in an amount up to $1,000,000.00, or so much thereof as may be needed, is hereby authorized within Fund 2220 (General Government Grants Fund), Dept-Div 44-02 (Economic Development), Project G442001 (North Market Grand Atrium) per the accounting codes attached to this ordinance.
SECTION 5. That at the end of the grant period any repayment of unencumbered balances required by the Commission is hereby authorized and any unused City match monies may be transferred back to the City fund from which they originated in accordance with all applicable grant requirements.
SECTION 6. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated and the City Auditor shall establish such accounting codes as necessary.
SECTION 7. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 8. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.