Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to enter into a Commercial Office Modernization Incentive (COMI) Pilot Program Contribution Agreement (“Contribution Agreement”) with Safelite Group, Inc. (the “Developer”). The Developer is modernizing two buildings located at 2500 Farmers Drive, also identified as Franklin County Tax Parcel 590-192107 and 7400 Safelite Way, also identified as Franklin County Tax Parcels 590-189916 and 590-189915 (collectively the “Project Site”).
The Developer shall construct an inter-building connecting structure that will connect the fourth and fifth floors between the two structures (the “Sky Bridge”) to aid the modernization of the two buildings in order to make the facilities ready for its associates to return to the office. The Developer intends to re-lease from Farmers Drive Portfolio LP (“Landlord”) approximately 128,000 square feet of office space constructed in 1983 as its national headquarters. In addition, the City shall make a contribution in an amount not-to-exceed a total contribution of $500,000.00 using Development Taxable Bonds Fund for reimbursement of soft costs related to approximately $19,000,000.00 of improvements made by Developer to facilities at the above-mentioned headquarters, including the Sky Bridge. Soft costs include engineering, architectural, legal, and other consulting and professional services; designs, plans, specifications, feasibility or rate studies, appraisals, surveys, estimates of cost, and other similar costs approved by the City in its sole discretion (“Soft Costs”).
The purpose of the Contribution Agreement is to induce Safelite to retain its national headquarters in the City of Columbus for a period of at least five (5) years, to facilitate a return-to-office environment for Safelite employees and contractors thereby, increasing income tax revenue for the City of Columbus. Accordingly, this Contribution Agreement is vital for the economic development of the City and for a proper public purpose.
CONTRACT COMPLIANCE INFORMATION
Safelite Group, Inc., vendor number 026939, will become contract compliant before entering into the Commercial Office Modernization Incentive Contribution Agreement.
FISCAL IMPACT:
Funds in the amount of $500,000.00 are available for this project in the Development Taxable Bonds Fund 7739 within the Department of Development. An amendment to the 2024 Capital Improvements Budget and a transfer of cash and appropriation are necessary to provide sufficient spending authority for the expenditure.
Title
To amend the 2024 Capital Improvement Budget; to authorize the City Auditor to transfer cash and appropriation between projects within the Development Taxable Bonds Fund; to authorize the Director of the Department of Development to enter into a Commercial Office Modernization Incentive Pilot Program Contribution Agreement with Safelite Group, Inc.; to authorize payment of Soft Costs expenses incurred prior to the issuance of the purchase order; and to authorize the expenditure of $500,000.00 within the Development Taxable Bonds Fund. ($500,000.00)
Body
WHEREAS, the Developer is modernizing two buildings located at 2500 Farmers Drive, also identified as Franklin County Tax Parcel 590-192107 and 7400 Safelite Way, also identified as Franklin County Tax Parcels 590-189916 and 590-189915 (collectively the “Project Site”) in order to make the facilities ready for its associates to return to the office, including, among other things, the construction of an inter-building connecting structure between the existing structures; and
WHEREAS, the City agrees to provide the Developer with a Commercial Office Modernization Incentive Pilot Program Contribution Agreement in an amount not-to-exceed a total contribution of $500,000.00 for reimbursement of Soft Costs related to approximately $19,000,000.00 of improvements made by Developer to facilities at the above-mentioned headquarters, including the Sky Bridge; and
WHEREAS, this legislation authorizes the expenditure of $500,000.00 from the Development Taxable Bonds Fund; and
WHEREAS, it is necessary to authorize an amendment to the 2024 Capital Improvement Budget and a transfer of cash and appropriation within the Development Taxable Bonds Fund for the purpose of providing sufficient spending authority for the aforementioned project expenditure; and
WHEREAS, the City desires to enter into an agreement with the Developer in order to incentivize economic growth, induce the Developer to retain its national headquarters in Columbus for at least five (5) years thereby, increasing income tax revenue, and create employment opportunities for Columbus residents; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development be and is hereby authorized to enter into a Commercial Office Modernization Incentive Pilot Program Contribution Agreement with Safelite Group, Inc. in an amount not to exceed $500,000.00 and in support of the improvements as described in the recitals which are incorporated herein, such an expenditure is found to be for a proper public purpose, with authorization of reimbursement of Soft Cost expenses incurred prior to the creation of the purchase order, starting April 1, 2025.
SECTION 2. That the 2024 Capital Improvements Budget authorized by Ordinance 1907-2024 be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / Current / Change /Amended
7739 / P200030-100000 / Primary One - Health Center Space / (Unvoted Carryover) $500,000.00 / ($500,000.00) / $0
7739 / P200036-100000 / Safelite Headquarters (Unvoted Carryover) / $0 / $500,000.00 / $500,000.00
SECTION 3. That the transfer of $500,000.00, or so much thereof as may be needed, is hereby authorized between projects within Fund 7739 Development Taxable Bonds per the account codes in the attachment to this ordinance.
SECTION 4. That the expenditure of $500,000.00 is hereby authorized in Fund 7739 Development Taxable Bonds Fund in Object Class 06 Capital Outlay per the accounting codes in the attachment to this ordinance.
SECTION 5. 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 6. 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 7. 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 8. That this Ordinance shall take effect and be in force from and after the earliest period allowed by law.