Explanation
BACKGROUND: The purpose of this ordinance is to give the Director of the Department of Development the authority to enter into a Memorandum of Understanding (MOU) with NWD INVESTMENTS, LLC ("NWD"). The MOU will outline the plans and certain commitments of the parties relating to the redevelopment and revitalization of the Pen West area and the shoreline along the Olentangy River. The plans and proposals remain subject to authorization pursuant to the adoption of appropriate legislation by Columbus City Council.
As part of its commitment to the City, NWD will follow through on its intention to acquire the former Jaeger Commercial Park site, located at 560 West Nationwide Boulevard (the "Jaeger Property"). Subject to the adoption of future ordinances, the City will sell to approximately 4.5+ acres of City owned land (the "City Property"), at a purchase price equal to fair market value (to be determined by an appraisal process acceptable to both Parties). The City Property is generally described as north of Nationwide Boulevard and approximately 100 feet east of the AEP transmission line. NWD shall pay for a survey to determine the exact location of the AEP transmission line and reserve area necessary per AEP requirements along with the legal descriptions and exhibits necessary to file new parcel descriptions or splits with the Franklin County Engineer's Office. City utility easements will also be identified, surveyed, and reserved. NWD will be responsible for demolition of the buildings located on the City Property. NWD intends to redevelop the Jaeger Property and the adjacent City Property as a residential use but reserves the right to convert all or a portion of the Property to a commercial use.
NWD will be responsible for performing a Phase I and, if necessary, a Phase II of the City Property. The City and NWD recognize that the City property may need environmental remediation, the extent of which will be unknown until the Phase II is completed. If upon completion of the Phase II, NWD decides to go forward with the purchase it will enter into a binding purchase agreement by no later than February 1, 2012 and will close on the purchase of the City property no later than July 1, 2014. The City and NWD will agree to work cooperatively to seek a grant from Clean Ohio or any other appropriate entity to pay for the costs of the remediation. If the City and NWD are unsuccessful in obtaining a grant for the remediation, then contingent upon City Council approval, the City and NWD may amend the 1998 Arena District Development and Reimbursement Agreement to allow the use of the Environmental Remediation fund. The City and NWD acknowledge that the first priority for this fund is the land known as the former Pen Site. Remediation of the City Property will be the next priority. Remediation to the City Property from the Environmental Remediation Fund shall be limited to $250,000 if the first priority described above is not completed at the time NWD needs to remediate the City Property. To the extent that remediation costs exceed the amount of the Environmental Remediation fund, the City agrees to reimburse NWD for out-of-pocket expenses for the remediation incurred within two years after closing, up to the cost of the purchase price of the City Property. If there are funds remaining in the Environmental Remediation fund after satisfaction of the Pen Site property and the City Property, then NWD will have the right to use any such remaining funds to pay for any unsuitable soils conditions existing on the Jaeger Property.
Under the MOU, subject to adoption of a future ordinance(s), the City will enter into reimbursement agreements with NWD to complete certain public improvements in the Pen West area. Public infrastructure improvements include, but are not limited to, Hocking Street improvements; MELP duct bank in W. Nationwide; MELP duct in Hocking St; replace watermains located in the area generally bounded by the Scioto River, Nationwide Boulevard, the railroad, and Spring Street; and the City will reline the Franklin Main Sewer. The City will designate the Pen West area as an underground utility district for future utilities, subject to future City Council approval.
In addition, NWD will be reimbursed by TIF proceeds consistent with the 2009 TIF Reimbursement Agreement for improvements to West Nationwide Blvd including a traffic signal at Hanover/ Spring/Long; the development of a park on the portion of City-owned property located north of Nationwide Boulevard (which may include the City Property if NWD elects not to purchase such property); and additional public improvements (roads and utilities) which may be necessary to develop the property.
The City has agreed, upon the approved sale and closing, to vacate its buildings and operations located at 640-64 West Nationwide Boulevard on or before July 1, 2014, to permit NWD to complete demolition. With regard to its operations located on the park and boat launch parcel, the City agrees to make reasonable accommodations regarding access. The City acknowledges other improvements to City-owned property located in the Pen West area are needed. Such improvements include the demolition of the old pump station at the end of Nationwide Boulevard; and the need to improve or remove its buildings on the south side of Nationwide Boulevard. However, the City needs to evaluate the cost of the various options before it can commit to a specific solution. The City will complete the evaluation and the appropriate improvements or demolition on or before July 1, 2015.
The proposed residential redevelopment of the Pen West area is eligible under the Downtown Housing CRA for a 10-year, 100% property tax abatement.
The City's agreement to provide the referenced financial assistance is contingent upon authorization pursuant to the adoption of appropriate legislation by Columbus City Council.
FISCAL IMPACT: None associated with the MOU.
Title
To authorize the Director of the Department of Development to enter into a Memorandum of Understanding with NWD INVESTMENTS, LLC ("NWD") in order to outline the plans and certain commitments of the parties relating to the redevelopment and revitalization of the Pen West area and the shoreline along the Olentangy River; and to declare an emergency.
Body
WHEREAS, the 1998 Riverfront Vision Plan that was adopted by City Council envisions a mixed use district in the Pen West area, including a continuous park area corridor that will follow the shoreline of the Olentangy River; and
WHEREAS, NWD desires to acquire certain real property located in the Pen West area known as the former Jaeger Commercial Park site; and
WHEREAS, the City and NWD believe this MOU will assist with the redevelopment and revitalization of the Pen West area and the shoreline along the Olentangy River; and
WHEREAS, the City and NWD in 2009 entered into an agreement regarding the Arena District TIF, the Pen TIF, the Pen West East TIF and the Pen West West TIF (collectively, the "4 TIFs") and the allocation of the TIF moneys, which agreement the parties are contemplating amending (hereinafter, the "2009 TIF Reimbursement Agreement"); and
WHEREAS, the City desires to enter into a MOU with NWD to, among other things, outline the framework for and many of the major terms of a cooperation agreement for the development of the Pen West area and the shoreline adjacent thereto; and
WHEREAS, the Parties desire to memorialize their understanding and agreements with respect to such cooperation; and
WHEREAS, the cooperation agreement remains subject to authorization pursuant to the adoption of appropriate legislation by Columbus City Council; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is necessary to authorize this agreement in order to facilitate and ensure the continued improvement and economic development of the Pen West area at the earliest possible date and for the immediate preservation of the public peace, health, safety, property 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 enter a Memorandum of Understanding with NWD INVESTMENTS, LLC ("NWD") in order to outline the plans and certain commitments of the parties relating to the redevelopment and revitalization of the Pen West area and the shoreline along the Olentangy River.
Section 2. 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.