Explanation
1. BACKGROUND
This ordinance authorizes the Director of Public Service to enter into a design reimbursement agreement with TechSouth Development Co., LLC for the amount of $173,351.21.
The Project includes design of a new public road from the intersection of Frebis Avenue and Gilbert Street to the intersection of the Tech South Public Road and Jenkins Avenue (approximately 900 feet). The Tech South Public Road will align with Gilbert Street at Frebis Avenue and with an existing driveway for the Tech South development at Jenkins. The project also includes a new public road (Tech South Public Road) from Jenkins Avenue to Markison Avenue (approximately 630 feet) that will follow the East property line of the Tech South property and 750 feet of new storm sewer along Jenkins Avenue to 18th Avenue. Some demolition of existing parking lots, concrete walls, concrete slabs and other pavement will be required. Minor coordination will be required to relocate some American Electric Power facilities within the limits of the project. Proposed improvements will include new pavement, sidewalk, curb, storm sewer, and street lighting.
The former Techneglas plant closed in 2004 and served as one of Columbus' major industrial employers for many years. The site has remained largely vacant since with approximately 48 acres and over 1 million square feet of re-
developable space.
Ordinance 1154-2007 passed by Columbus City Council on July 16, 2007, authorized the Director of of the Department of Development to enter into a partnership agreement with TG707, Inc. to apply for a $5,000,000.00 Ohio JRS grant for improvements at the former Techneglas site on Columbus' Southside at 707 Jenkins Avenue, for the redevelopment project known as TechCenter South.
Ordinance 0691-2008 passed by Columbus City Council on April 21, 2008, to reflect the City of Columbus as the grant applicant in partnership with the TechCenter South Development Co., LLC; replacing TG707 Inc. as the appropriate legal entity with whom the City would enter into a development agreement.
The Development Agreement for the former Techneglas Facility was executed on May 18, 2008 between City and TechCenter South Development Co., LLC.
An "Amendment of the Development Agreement concerning the former Techneglas facility" was executed on March 24, 2009 by the City and TechCenter South Development Co., LLC . This amendment stated the responsibilities of the City and TechCenter South Development Co, LLC in fulfilling the JRS Grant.
A "Second Amendment of Development Agreement concerning the former Techneglas facility" was executed on June 18, 2009 between the City and TechSouth Development Co. LLC. This amendment changed the name of the developer from TechCenter South Development Co., LLC, a Delaware limited liability company to TechSouth Development Co., LLC, a Delaware limited liability company.
Ordinance 1944-2008, passed by Columbus City Council on December 15, 2008 authorized an agreement between the Director of the Columbus Department of Development and the Ohio Department of Development to accept a $5,000,000.00 Job Ready Sites (JRS) grant for improvements at the TechCenter South site (formerly known as the Techneglas site) and to authorize any necessary agreements with the site owner, TechCenter South Development Co., LLC (an affiliate of Greystone & Co., Inc.) as the City's principle agent to facilitate site improvements under the said grant for redevelopment of the TechCenter South site.
With the JRS grant, the City, in partnership with the TechCenter South Development Company will renovate the existing space and undertake site improvements to accommodate an anticipated employment potential of over 1,500 jobs.
On March 3, 2010, The Ohio Department of Development agreed to amend the term for completing the TechSouth entrance road, by one year, to December 15, 2012
2. CONTRACT COMPLIANCE INFORMATION
The contract compliance number for TechCenter South Development Co., LLC is 26-2247950.
3. FISCAL IMPACT: The maximum amount of the reimbursement provided within the guaranteed maximum cost agreement authorized to be expended by this ordinance is $173,351.21.
The Department of Public Service will contribute $173,351.21 for this design reimbursement agreement. This expense is budgeted within the 2011 Capital Improvement Budget. This expense can be accommodated by appropriating and transferring funds needed in the amount of $173,351.21 from the Special Income Tax Fund. Bonds have yet to be sold for the whole project, necessitating a certification of $173,351.21 against the Special Income Tax Fund. Upon sale of bonds, this will be reimbursed. These Funds will then be transferred to the Streets and Highways G.O. Bonds Fund, appropriated and authorized to be expended.
4. EMERGENCY DESIGNATION
The Department of Public Service is requesting this ordinance to be considered an emergency measure in order to allow for immediate execution of this agreement which is necessary to facilitate the design of public right-of-way improvements in the area known as the TechCenter South site (formerly known as the Techneglas site).
Title
To authorize the Director of Public Service to enter into a design reimbursement agreement with TechCenter South Development Co., LLC, for the design of public infrastructure improvements in connection with the Roadway Improvements - Tech Center South project in the amount of $173,351.21; to authorize and direct the City Auditor to transfer $173,351.21 from the Special Income Tax Fund to the Streets and Highways G.O. Bonds Fund; to authorize the City Auditor to appropriate $173,351.21 within the Streets and Highways G.O. Bonds Fund; to authorize the Director of Public Service to expend $173,351.21 from the Streets and Highways G.O. Bonds Fund; and to declare an emergency. ($173,351.21) (REPEALED BY ORDINANCE 1944-2011 PASSED 12/05/2011)
Body
WHEREAS, the former Techneglas plant closed in 2004 and served as one of Columbus' major industrial employers for many years. The site has remained largely vacant since with approximately 48 acres and over 1 million square feet of re-developable space; and
WHEREAS, ordinance 1154-2007 passed by Columbus City Council on July 16, 2007, authorized the Director of of the Department of Development to enter into a partnership agreement with TG707, Inc. to apply for a $5,000,000.00 Ohio JRS grant for improvements at the former Techneglas site on Columbus' Southside at 707 Jenkins Avenue, for the redevelopment project known as TechCenter South; and
WHEREAS, Ordinance 0691-2008 passed by Columbus City Council on April 21, 2008, reflected the City of Columbus as the grant applicant in partnership with the TechCenter South Development Co, LLC; replacing TG707 Inc. as the appropriate legal entity with whom the City would enter into a development agreement; and
WHEREAS, The Development Agreement for the former Techneglas Facility was executed on May 18, 2008 between the City and TechCenter South Development Co., LLC; and.
WHEREAS, an "Amendment of the Development Agreement concerning the former Techneglas facility" was executed March 24, 2009 by the City and TechCenter South Development Co., LLC. This amendment stated the responsibilities of the City and TechCenter South Development Co, LLC in fulfilling the JRS Grant; and
WHEREAS, a "Second Amendment of Development Agreement concerning the former Techneglas facility" was executed on June 18, 2009 between the City and TechSouth Development Co. LLC. This amendment changed the name of the developer from TechCenter South Development Co., LLC, a Delaware limited liability company to TechSouth Development Co., LLC, a Delaware limited liability company; and.
WHEREAS, ordinance 1944-2008, passed by City Council on December 15, 2008, authorized an agreement between the Director of the Columbus Department of Development and the Ohio Department of Development to accept a $5,000,000.00 Job Ready Sites (JRS) grant for improvements at the TechCenter South site (formerly known as the Techneglas site) and to authorize any necessary agreements with the site owner, TechCenter South Development Co., LLC (an affiliate of Greystone & Co., Inc.) as the City's principle agent to facilitate site improvements under the said grant for redevelopment of the TechCenter South site; and
WHEREAS, with the JRS grant, the City, in partnership with the TechCenter South Development Company will renovate the existing space and undertake site improvements to accommodate an anticipated employment potential of over 1,500 jobs; and
WHEREAS, On March 3, 2010, The Ohio Department of Development agreed to amend the term for completing the TechSouth entrance road, by one year, to December 15, 2012; and
WHEREAS, this ordinance authorizes the Director of Public Service to enter into a design reimbursement agreement with with TechCenter South Development Co., LLC, in the amount of $173,351.21 for the design of public infrastructure improvements in connection with the Roadway Improvements - Tech Center South project ; and
WHEREAS, it is necessary to transfer funds from the Special Income Tax Fund to this project; and
WHEREAS, the City will sell notes or bonds to fund this project and will reimburse the Special Income Tax Fund; and
WHEREAS, this transfer should be considered as 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 $173,351.21; 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").
WHEREAS, an emergency exists in the usual daily operation of the Public Service Department, Division of Design and Construction, in that it is immediately necessary to authorize said guaranteed maximum cost reimbursement agreement and the expenditure of such funds to maintain the project schedule and meet community commitments; thereby immediately 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 Director of Public Service be and hereby is authorized to enter into a design reimbursement agreement with TechSouth Development Co., LLC, 152 W. 57th Street, New York, New York 10019, for design of public infrastructure improvements to be constructed in connection with the Roadway Improvements - TechCenter South project at a cost not to exceed $173,351.21 and to provide funding for construction inspection in the amount of $139,895.11.
SECTION 2. The sum of $173,351.21 be and is hereby appropriated from the unappropriated balance of the Special Income Tax Fund, Fund 430, 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 ending December 31, 2011 to the City Auditor, Department 22-01, Object Level One 10, OCA Code 902023, Object Level Three 5502.
SECTION 3. That the City Auditor is hereby authorized to transfer said funds to the Streets and Highways G.O. Bonds Fund, No. 704, at such time as it is deemed necessary by the City Auditor and to expend said funds or so much thereof as may be necessary.
SECTION 4. That $173,351.21 is hereby appropriated within Fund 704, the Streets and Highways G.O. Bonds Fund, Dept-Div. 59-12, Division of Design and Construction as follows:
Fund / Project / Project Name / O.L. 01-03 Codes / OCA / Amount
704 / 530161-100073 / Roadway Improvements - Tech Center South / 06-6600 / 530073 / $173,351.21
SECTION 5. That the monies appropriated in the foregoing Section 4 shall be paid upon order of the Director of Public Service and that no order shall be drawn or money paid except by voucher, the form of which shall be approved by the City Auditor.
SECTION 6. That upon obtaining other funds for this capital improvement, the City Auditor is hereby authorized and directed to repay the Special Income Tax Fund the amount transferred under Section 3 above.
SECTION 7. That the City Auditor is authorized to establish proper accounting project numbers and to make any accounting changes to revise the funding source for any contract or contract modification associated with the expenditure of funds transferred in Section 3, above.
SECTION 8. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150-2(e) 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 $173,351.21 (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 9. All funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated.
SECTION 10. That the sum of $173,351.21 is authorized to be expended for this agreement as follows:
Fund / Dept-Div / Project / Project Name / O.L. 01-03 Codes / OCA Code / Amount
704 / 530161-100073 / Roadway Improvements - Tech Center South / 06-6682 / 530073 / $173,351.21
SECTION 11. 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 12. 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.