Explanation
BACKGROUND: The purpose of the ordinance is to give the Director of the Columbus Department of Development the authority to enter into a partnership agreement with TG707, Inc. to apply for a $5 million Ohio Job Ready Sites (JRS) Program grant to benefit the redevelopment of the former Techneglas site.
The Ohio JRS Program was developed as a result of the $2 billion public works and economic development bond package approved by Ohio voters on November 8, 2005. It allows for grant applications of up to $5 million per project for large impact projects leading to designation as an Ohio Certified Site; guaranteeing minimum standards for new business investment projects. Grant funds can be used for, but are not limited to, infrastructure improvements, building demolition and construction, and brownfield remediation.
The former Techneglas site at 707 Jenkins Avenue, served as one of Columbus' major manufacturing employers for over 60 years until closing its doors in August 2004. With over 1 million square feet of industrial and office space, the 48-acre southside site remained mostly vacant since closing its doors.
Local developer Marvin Katz has recently teamed with local businessman Don Garlikov and Greystone & Co., Inc. of New York to form a partnership; TG707, Inc., to renovate and transform the site into a mixed use complex of commercial office, retail and light industrial space with an employment potential of over 1,500 jobs. There are currently 40 jobs at several small businesses on-site with current negotiations to attract a call center to employ over 500.
If the grant application is successful, the funds will be used for various demo work, building conversion, new construction and upgrades. A Clean Ohio Fund Grant Application for $3 million for environmental site clean up is currently in progress with a decision anticipated in August 2007.
The partnership agreement of understanding sets forth the essential roles of both the developer and the Columbus Department of Development in undertaking site redevelopment. The agreement does not subject the City to liability for any site contamination, which may exist at or near the redevelopment site.
This legislation is submitted as an emergency to facilitate the grant application as quickly as possible.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize and direct the Director of the Department of Development to enter into a partnership agreement with TG707, Inc. and to apply for a $5 million Ohio Job Ready Sites Program grant for improvements at the former Techneglas site; and to declare an emergency. (AMENDED BY ORD. 0691-2008 PASSED 4/21/2008)
Body
Whereas, Ohio voters approved a $2 billion public works and economic development bond package on November 8, 2005; and
Whereas, the Ohio Job Ready Sites Program was created as a result of the aforementioned bond package, allowing for grant applications from Ohio communities for, but not limited to, infrastructure improvements, building demolition and construction, and brownfield remediation; and
Whereas, the maximum amount that can be applied for under the Job Ready Sites Program is $5 million; and
Whereas, the City of Columbus, in partnership with the TG707, Inc, desires to restore the former Southside Techneglas Plant to productive use; and
Whereas, the project has the potential of restoring up $1,500 new jobs at the former Techneglas site; and
Whereas, the project qualifies for a Job Ready Site Application for up to $5 million; and
Whereas, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize said partnership and grant application all for the preservation of 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 authorized and directed to enter into a partnership agreement with TG707, Inc. and to apply for a $5 million Ohio Job Ready Sites Program grant for improvements at the former Techneglas site in Columbus.
Section 2. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is 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.