Explanation
BACKGROUND
This legislation authorizes the Director of the Department of Development to enter into a grant agreement with Topiary Park Crossing, Ltd. Topiary Park Crossing is being developed by Columbus Downtown Development Corporation (CDDC) to provide affordable housing units in downtown Columbus at 497 East Town Street. Topiary Park Crossing is a new construction, 98 unit property, with a mix of studios, one bedroom, and two bedroom units that will serve residents at 60%, 80% and 100% of the area median income at the time that it is placed into service. The building will be five stories in total with the first floor consisting of parking.
Located in Downtown Columbus’ Discovery District, this site is steps away from some of the best culture Columbus has to offer including the Columbus Metropolitan Library, Columbus College of Art and Design, Columbus Museum of Art, and of course, Topiary Park. Topiary Park Crossing is also within walking distance of shops and retail, as well as key employment centers and educational institutions including Columbus State Community College, Franklin University, Grant Hospital, State Auto Insurance, Encova Insurance, and the Ohio Statehouse. Amenities include an interior courtyard, in-unit laundries, a fitness center, community room, terrace, and library.
CDDC is a private, non-profit development corporation with a mission to lead city-changing projects in the heart of Ohio’s capital city. CDDC served as the Master Developer for the Columbus Commons project, an award-winning, mixed-use development, and redeveloped the 700,000 square-foot Lazarus Office Building. Currently, CDDC is leading the effort on The Peninsula and has selected development partners to execute the vision for an active, mixed-use, 18-hour district. In addition, CDDC developed key place making spaces such as the Scioto Mile and Dorrian Green, as well as cultural institutions like the first-ever satellite location of the American Museum of National History at COSI and the National Veterans Memorial and Museum.
Emergency action is requested to allow the project to begin construction as soon as possible.
FISCAL IMPACT: This ordinance authorizes a grant agreement up to $7,000,000.00 with Topiary Park Crossing, LTd. It is also necessary to certify the requisite funds in the amount of $7,000,000.00 against the Special Income Tax Fund and authorize an amendment to the 2021 Capital Improvement Budget to establish sufficient budget authority within the proper project.
CONTRACT COMPLIANCE: The vendor number is 040573 and expires January 6, 2024
Title
To amend the 2021 Capital Improvement Budget; to authorize the City Auditor to appropriate and transfer funds from the Special Income Tax to the Affordable Housing Bond Fund; to authorize the expenditure of $7,000,000.00, from the Affordable Housing Bond Fund; to authorize the Director of Development to enter into a grant agreement with Topiary Park Crossing, Ltd. for the development of Topiary Park Crossing housing project; to allow for reimbursement of costs incurred before the purchase order was approved by the City; to advance the remaining funds on the contract after payment of the costs incurred prior to the approval of the purchase order; and to declare an emergency. ($7,000,000.00)
Body
WHEREAS, the Director of Development seeks to enter into a grant agreement with Topiary Park Crossing, Ltd.; and
WHEREAS, it is necessary to amend the 2021 Capital Improvement Budget to establish authority within the correct project; and
WHEREAS, a transfer of $7,000,000.00 from the Special Income Tax Fund to the Affordable Housing Bond fund is necessary to fund this project; and
WHEREAS, the City will sell notes or bonds to fund this project and will then reimburse the Special Income Tax fund accordingly; and
WHEREAS, this transfer should be considered a temporary funding method; and
WHEREAS, the aggregate principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $7,000,000.00; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the ”Treasury Regulations”) promulgated pursuant to the Internal Revenue Code of 1986 (as amended) with respect to the project described in this ordinance (“the Project”); and
WHEREAS, the Department of Development wishes to support the Topiary Park Crossing housing project by contributing $7,000,000.00 from the 2021 Capital Budget; and
WHEREAS, this legislation would authorize the Director of Development to execute a grant agreement in the amount of $7,000,000.00 funded from the 2021 Capital Budget; and
WHEREAS, Topiary Park Crossing, Ltd. will be permitted to be reimbursed for project costs incurred prior to the purchase order is approved; and
WHEREAS, Topiary Park Crossing. LTD. will be advanced the remaining funds on the contract after payment of the costs incurred prior to the approval of the purchase order; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to enter into a grant agreement with Topiary Park Crossing, Ltd. in order to allow the project to begin construction as soon as possible, thereby preserving 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 2021 Capital Improvements Budget authorized by ordinance 2707-2021 be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / Current / Change /C.I.B. as Amended
7779 / P782012-100001 / Topiary Park Crossing / $0.00 / $7,000,000 / $7,000,000 (Cert against SIT)
7779 / P782012-100000 / Affordable Housing Funds / $16,000,000 / ($7,000,000)/ $9,000,000
SECTION 2. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2022, the sum of $7,000,000.00 is appropriated in Fund 4430 (Special Income Tax), Dept-Div 2201 (City Auditor) in Object Class 10 (Transfer Out Operating) and in Fund 7779 (Affordable Housing Bond Fund), Dept-Div 4410 ( Housing Division), Project P782012-100001 (Topiary Park Crossing ), in Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $7,000,000.00 or so much thereof as may be needed, is hereby authorized from Fund 4430 (Special Income Tax), Dept 2201 (City Auditor) to Fund 7779 (Affordable Housing Bond Fund), Dept 44-10 (Housing) per the account codes in the attachment to this ordinance.
SECTION 4. That the Director of Development is authorized to enter into a grant agreement with Topiary Park Crossing, Ltd. for $7,000,000.00, to allow for reimbursement of project related expenses incurred prior to the purchase order date.
SECTION 5. That the expenditure of $7,000,000.00 or so much thereof as may be needed, is hereby authorized in fund 7779 (Affordable Housing Bond Fund), Project 782012-100001, Dept. 44-10 (Housing) in object class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 6. That upon obtaining other funds for this project for the Department of Development, the City Auditor is hereby authorized and directed to repay the Special Income Tax fund the amount transferred under Section 3.
SECTION 7. That the City intends that the ordinance constitute an “official intent” for purposes of Section 1.150-2(d) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $7,000,000.00 (the “Obligations”).
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is “placed in service” within the meaning of Treasury Regulations Section 1.150-2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 8. Funds are hereby deemed appropriated and expenditures and transfer authorized to carry out the purposes of this ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 9. 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 10. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 11. 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 approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.