Explanation
Background: The 2022 Downtown Columbus Strategic Plan, adopted by Resolution No. 0164X-2022, recommends: making downtown a “neighborhood for all” by: (1) identifying focus areas for growing downtown, (2) requiring and approving high density urban residential development, and (3) converting outdated office space into contributing housing to achieve 40,000 residents by 2040. 280 High Street, LLC (the “Developer”) and the Developer’s affiliate, 44 Chestnut, LLC, respectively own the 18-story office building at 280 N. High Street and the adjacent parking garage at 44 E. Chestnut Street (altogether, the “Project”). The Developer intends to convert the office building into a mixed-use building with a reduced square footage of renovated office and newly added apartments in place of some of the existing office. The Developer has requested the City to support and facilitate the redevelopment of the Project through tax increment financing. In order for Project’s parcels to be included in a tax increment financing area authorized under Section 5709.41, 5709.42 and 5709.43 of the Ohio Revised Code (collectively, the “TIF Statutes”), the City must be engaged in urban redevelopment and have previously held title to those parcels prior to City Council’s adoption of an ordinance pursuant to the TIF Statutes. This Ordinance authorizes the Director of the Department of Development, on behalf of the City, to accept title to certain parcels related to the Project, and it authorizes that Director to execute instruments to transfer those Project parcels back to the current owners. It is in the City's best interest that this Ordinance will waive the requirements of City Code Chapter 328 relating to the sale of city-owned real property, so that the parcels can be transferred as quickly as possible to allow for the creation of the tax increment financing area benefiting the Project. The Department of Development will submit subsequent legislation for City Council consideration to establish the tax increment financing area for the Project and enter into a tax increment financing reimbursement agreement for the Project with the Developer, and its aforesaid affiliate if applicable.
Emergency Justification: An emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to accept title to the Project parcels and execute instruments to thereafter immediately transfer the Project parcels back to the current property owners in order to satisfy the preconditions for the establishment of a tax increment financing area for the Project pursuant to the TIF Statutes in order to allow the redevelopment of the property and creation of new housing opportunities without delay.
Fiscal Impact: There is no expenditure of City funds associated with this Ordinance.
Title
To authorize the Director of the Department of Development, on behalf of the City, to accept title to certain parcels located at 280 N. High Street and 44 E. Chestnut Street in order for those parcels to be included in a future tax increment financing area approved under Sections 5709.41, 5709.42 and 5709.43 of the Ohio Revised Code; to authorize the Director to execute instruments to transfer those parcels back to their current owners for the same purpose; to waive the requirements of City Codes Chapter 328 related to the sale of City-owned property; and to declare an emergency. ($0.00)
Body
WHEREAS, the 2022 Downtown Columbus Strategic Plan, adopted by Resolution No. 0164X-2022, recommends: making downtown a “neighborhood for all” by: (1) identifying focus areas for growing downtown, (2) requiring and approving high density urban residential development, and (3) converting outdated office space into contributing housing to achieve 40,000 residents by 2040; and
WHEREAS, 280 High Street, LLC (the “Developer”) and the Developer’s affiliate, 44 Chestnut, LLC, respectively own the 18-story office building at 280 N. High Street and the adjacent parking garage at 44 E. Chestnut Street (altogether, the “Project”); and
WHEREAS, the Developer intends to convert the office building into a mixed-use building with a reduced square footage of renovated office and newly added apartments in place of some of the existing office; and
WHEREAS, the Developer has requested the City to support and facilitate the redevelopment of the Project by including the Project parcels (as depicted in Exhibit A attached hereto, the “Project Parcels”) in a tax increment financing area to be authorized by this Council under Sections 5709.41, 5709.42, and 5709.43 of the Ohio Revised Code (the “TIF Statutes”); and
WHEREAS, to comply with the requirements of Section 5709.41 of the Ohio Revised Code, the City must be engaged in urban redevelopment, have held fee title to any parcels prior to the adoption of an ordinance pursuant to the TIF Statutes, and have transferred those parcels to any person before or after the adoption of such ordinance enacted under the TIF Statutes; and
WHEREAS, it is therefore necessary for the Director of the Department of Development, on behalf of the City, to execute certain instruments, in a form acceptable to the City Attorney’s Office, to accomplish the acceptance and subsequent transfer back to the current owners of the Project Parcels prior to the City’s establishment of the tax increment financing area for the Project; and
WHEREAS, it is in the City's best interest to waive the requirements of City Codes Chapter 328 relating to the sale of city-owned real property; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Development in that it is necessary to accept title to the Project Parcels and execute instruments to thereafter immediately transfer the Project Parcels back to the current property owners in order to satisfy the preconditions for the establishment of a tax increment financing area for the Project pursuant to the TIF Statutes in order to allow the redevelopment of the property and the creation of new housing opportunities in accordance with the 2022 Downtown Columbus Strategic Plan without delay, all for the preservation of 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 Director of the Department of Development, or his or her designee (altogether, the “Director”), is hereby authorized to accept, on behalf of the City, quit claim deeds granting to the City fee title of the Project Parcels, as depicted in Exhibit A attached hereto, and to timely transfer said Project Parcels back to the current owners pursuant to Section 2.
SECTION 2. That the Director is hereby authorized to execute such quit claim deeds and all additional documents in forms acceptable to the City Attorney’s Office, and is authorized to take any other required action as may be necessary and approved by the City Attorney’s Office, to timely transfer title of the Project Parcels as depicted in Exhibit A attached hereto, back to the current owners. Any such transfer shall be made for no monetary consideration.
SECTION 3. That it is in the City’s best interest to waive any requirements City Codes Chapter 328 relating to the sale of city-owned real property.
SECTION 4. 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 the passage if the Mayor neither approves nor vetoes the same.