Explanation
BACKGROUND: This legislation will authorize the Director of the Department of Development to enter into an option agreement or sales contract, and execute all agreements and deeds for the conveyance of an approximately one acre property located at 897 E. Mound Street, currently held in the Land Bank. The property will be conveyed to Community Housing Network (CHN) or a subsidiary established for the project. CHN proposes a 56-unit multifamily permanent supportive housing project for formerly homeless individuals. The project will require the allocation of Low Income Housing Tax Credits (LIHTC), passage of this legislation will allow CHN to submit for the 2024 9% LIHTC application deadline in February. Site is also subject to pending Council Variance (CV23-117) and Rezoning (Z23-070) actions. CHN will purchase the property for a reduced price, $350,000, in exchange for a redevelopment restriction to develop affordable housing.
FISCAL IMPACT: No funding is required for this legislation. The City may first recover reimbursement of any and all expenses incurred on account of the acquisition, administration, management, maintenance and disposition of such land and such other expenses of the program as the City may apportion to such land from the sale proceeds.
EMERGENCY JUSTIFICATION: Emergency action is requested to enable the City to immediately enter into the necessary agreements allowing the buyer to meet the application deadlines established by the Ohio Housing Finance Agency, which is required to complete the development of the tax credit project.
Title
To authorize the Director of the Department of Development to enter into an option agreement or agreements as needed to sell and transfer by quitclaim 897 E. Mound Street, to Community Housing Network, Inc. or a subsidiary, and to declare an emergency.
Body
WHEREAS, The Department of Development desires to sell and transfer 897 E. Mound St and allow the Developer to make application for 2024 Low Income Housing Tax Credits; and
WHEREAS, by Ordinance 1325-98, Council adopted and elected to use the Revised Code Chapter 5722, Land Reutilization Program, to facilitate effective reutilization of nonproductive land acquired through a sale pursuant to a foreclosure proceeding initiated by the Franklin County Treasurer, or through a sale of forfeited lands by the Franklin County Auditor, or through a conveyance in lieu of foreclosure to foster either return of such land to tax revenue generating status or its devotion to public use, or any other land acquired as part of the land reutilization program; and
WHEREAS, a proposal for the sale of the property which was acquired pursuant to Ohio Revised Code Section 5722.06 and 5722.03 meets the Land Reutilization Program’s Disposition Policies and Guiding Principles and has been approved by the Land Redevelopment Office Administrator; and
WHEREAS, the fair market value of the property is $934,000, however in conformity with Ohio Revised Code Section 5722.07, the property will be sold for $350,000, an amount which reflects the imposition of redevelopment and reutilization restrictions to develop a multi-family affordable housing development. Failure to meet redevelopment and reutilization restrictions will require the repayment of this price difference; and
WHEREAS, in order to complete the transfer of such property to the purchaser, authority is needed for the Director of the Department of Development to execute any and all necessary agreements and deeds of conveyance for the real property; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, Division of Land Redevelopment in that it is immediately necessary to enable the City to enter into the necessary agreements allowing the buyer to meet the upcoming application deadlines established by the Ohio Housing Finance Agency, which is required to complete the development of the project, all for the immediate 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 is hereby authorized to execute those documents on behalf of the City of Columbus, as approved by the Department of Law, Division of Real Estate, necessary to enter into a contract for the sale of the following property, and to execute a quitclaim deed and any ancillary documents as may be necessary to transfer title thereto to Community Housing Network, Inc. or a subsidiary established for this project;
Parcel Numbers: 010-024139; 010-045527; 010-057080(part); 010-010517(part);
Address: 897 E. Mound Street
Size: Approximately one acre
Price: $350,000
Use: Multifamily (affordable permanent supportive housing)
DESCRIPTION OF 1.061 ACRES
SOUTH OF E. MOUND STREET
EAST OF EIGHTEENTH AVENUE
COLUMBUS, OHIO
Situated in the State of Ohio, County of Franklin, City of Columbus, being all of Lot 27 as shown and delineated upon the plat “John and Henry Miller’s Addition to Third Subdivision”, a subdivision of record in Plat Book 1, Page 111 and described in a deed to the City of Columbus, Ohio of record in Instrument No. 200612150248643, all of Lot 28 as shown and delineated upon the plat “John and Henry Miller’s Addition to Third Subdivision”, a subdivision of record in Plat Book 1, Page 111 and described in a deed to the City of Columbus of record in Instrument No. 202303270028810, all of that tract of land described in a deed to the City of Columbus of record in Instrument No. 200309290311749, part of that tract of land described in a deed to the City of Columbus of record in Instrument No. 202307050065727 and parts of Lots A, B, C, C-1, and all of Lots B-1 and C-1 as shown and delineated upon the plat “ June Loving’s Subdivision Parts of Outlots 94 and 95”, a subdivision of record in Plat Book 17, Page 306 and described in a deed to the City of Columbus, Ohio of record in Instrument No. 199808040195962, all records referenced herein being to those located in the Recorder’s Office, Franklin County, Ohio and being more particularly described as follows:
Beginning at a point in the southerly right of way line of E. Mound Street (60.00 feet in width) at the common corner to said Lot 27 and Lot 26 as shown and delineated upon said plat “John and Henry Miller’s Addition to Third Subdivision”;
Thence South 87°57’37” East, along said southerly right of way line, a distance of 227.64 feet to a point;
Thence through said Lots A, B, C, C-1 and said City of Columbus tract (Instrument No. 202307050065727) the following courses:
1. South 02°28’12” West. a distance of 125.94 feet to a point;
2. South 42°31’48” East, a distance of 15.56 feet to a point;
3. South 87°31’48” East, a distance of 36.99 feet to a point;
4. South 02°28’12” West, a distance of 56.70 feet to a point in the southerly line of that said City of Columbus tract (Instrument No. 202307050065727);
Thence North 87°57’37” West, along said southerly line and the northerly right of way line of E. Engler Street a distance of 164.61 feet to an angle point;
Thence North 02°13’55” East, continuing along said northerly right of way line, a distance of 6.50 feet to an angle point;
Thence North 87°57’37” West, continuing along said northerly right of way line, a distance of 111.00 feet to a point at the common corner to said Lots 26 and 27;
Thence North 02°28’11” East, along the common line to said Lots 26 and 27, a distance of 187.50 feet to the place of beginning and containing 1.061 acres of land.
Bearings herein are assumed. Subject to final survey.
Section 2. For the property stated in Section 1, that the Director of Development is hereby authorized to execute any agreement, deed restriction, or mortgage to ensure compliance with land bank program rules and the submitted application and to release such restriction or mortgage upon compliance.
Section 3. That Council hereby finds that the selection process utilized in this matter is in accordance with the Land Bank Disposition Process created pursuant to the City’s Land Reutilization Program and hereby approves the same.
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 passage if the Mayor neither approves nor vetoes the same.