Explanation
Background: The City owns a 0.48-acre parcel of vacant land located at 742-744 East Long Street. Gideon Development Partners, LLC, ("Gideon"), has submitted a contract to purchase the property for $32,000 and a development proposal to construct a 50,000 square foot mixed use building on the site consistent with the King-Lincoln District Plan adopted by Council in July 2002. Redevelopment of this site is part of Phase 1 of the Plan which includes renovation of the Lincoln Theater across the street from the site and residential development at Long and Monroe and the former Whitney Young apartment site. The Department of Public Safety has negotiated a proposed lease agreement with Gideon for 28,212 square feet of the proposed office building to relocate the Internal Affairs Bureau and Accident Investigation Unit of the Division of Police. The proposed lease is a 15-year lease subject to annual appropriations by City Council. Base rent is $11.75 per square foot net of utilities, taxes and insurance. Annual rent, including common area maintenance charge for the first year is $383,683.00. The City will be responsible for utilities to serve its leased space. Under the proposal Gideon will contribute $137,500 to tenant improvements with the City paying for the remaining cost of tenant improvements up to $672,610. Construction is anticipated to be completed in 2005. New furniture, fixtures and equipment needed to relocated IAB and AIS in 2005 is estimated to be $391,604.00. This ordinance authorizes the sale of property to Gideon and authorizes the Director of Public Safety to execute the proposed lease agreement.
Fiscal Impact: The first years rent of $383,683.00 is from the special income tax fund The cost of Tenant Improvements up to a total of $672,610.00 is from the voted safety bond funds. The proceeds from the sale of the property of $32,000 will be deposited in the Permanent Improvement Fund.
Emergency Justification: Emergency action is requested in order to allow for the timely construction of the new office for the relocation of the Internal Affairs Bureau and Accident Investigation Unit.
Title
To authorize the Director of Development to convey a 0.48 acre parcel of real property located at 742 East Long Street to Gideon Development Partners, LLC for $32,000.00; to authorize the Director of Public Safety to execute an office lease with Gideon Development Partners, LLC for office space in a new office building to be constructed by Gideon Development Partners LLC at 742 East Long Street, to waive the competitive bidding procedures of Chapter 329 of the Columbus City Codes, to authorize the appropriation and expenditure of $1,056,293 from the special income tax fund and Public Safety's capital improvement fund, and to declare an emergency. (AMENDED BY ORD. 0920-2005 PASSED 06/06/2005)
Body
WHEREAS, The City of Columbus owns a 0.48 acre parcel of vacant land at 742 East Long Street which the City, consistent with the King-Lincoln District Plan approved by Council in July 2002, desires to be redeveloped with the construction of a 50,000 square foot mixed used commercial/office/retail building; and
WHEREAS, Gideon Development Partners, LLC, ("Gideon") is willing to purchase the 0.48 acres for $32,000 and to construct the new mixed use building which would provide the City with the ability to lease 28,212 square feet for new offices for the Internal Affairs Bureau and the Accident Investigation Unit of the Division of Police; and
WHEREAS, a proposed lease between the City and Gideon has been negotiated wherein the City would agree to lease 28,212 square feet for 15 years, subject to annual appropriations for payments due under the lease; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Public Safety and Development in that in order to timely relocate the Internal Affairs Bureau and Accident Investigation Unit of the Division of Police it is necessary to immediately authorize the sale of the property at 742 East Long Street to Gideon and to authorize the execution of the proposed lease agreement with Gideon thereby preserving the public health, peace, safety and welfare; now therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That in exchange for the payment of $32,000, the Director of Development is authorized to execute a quitclaim deed for the sale of that 0.48-acre parcel of real property with a street address of 742-744 East Long Street, being tax parcel number 010-38856 the deed shall contain a reversionary clause containing the following conditions subsequent:
- Failure to obtain the necessary financial commitments for the construction of the three story mixed use office/retail structure within one year of transfer of the property; and
- Failure to complete construction within one and one-half years of transfer.
b) b)
Section 2. That the proceeds of the sale of the 0.48 acre parcel shall be deposited in the unallocated balance of the Permanent Improvement Fund, Fund No. 748.
Section 3. That the Director of Public Safety is hereby authorized to execute a fifteen (15) year lease, for office space in the building to be constructed by Gideon on the property conveyed under Section 1 of this ordinance. Said lease to be subject to annual appropriation of payments due under the lease and shall be terminable without penalty or liability to the landlord for failure to appropriate such funds in any subsequent year.
Section 4. That said lease shall be provide for the landlord to contribute $5.00 per square foot of leased space to tenant improvements and that the City shall pay to Landlord up to an additional $672,610.00 for needed tenant improvements.
Section 5. That to pay the first annual rent payment and common maintenance fee under the aforesaid lease, the appropriation and expenditure of $383,683.00 is hereby authorized from the special income tax fund 430 Division 30-03, OCA code 430599, Object level one:03, Object level three:3301.
Section 6. That to pay Gideon for the City's share of the tenant improvements as set forth in Section 4 herein, the expenditure of $672,610.00, or so much thereof as may be needed, is hereby authorized from Division 3003, Fund 701, Project 330041, OCA Code 330041, Object level three: 6620.
Section 7. That this Council has determined that it is in the best interest of the City of Columbus to allow the property to be sold without competitive bidding and that the tenant improvements to be contracted for under the lease without competitive bidding and therefore hereby waives the competitive bidding provisions of the Chapter 329 of the Columbus City Codes (1959) with regard to this transfer and the construction of the tenant improvements.
Section 8. That for the reasons set forth in the preamble hereto, which are hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force and after its passage and approval by the Mayor, or ten days if the Mayor neither approves nor vetoes the same.