Explanation
This ordinance authorizes the City of Columbus (“City”) to enter into a Development Agreement (“Agreement”) with Franklin County (“County”) and Crew SC Stadium Company, LLC (“Developer”), collectively the “Parties”, with regard to the financing, development, construction, operation, and occupancy of a new multi-purpose sports, entertainment, cultural and recreational facility (“Stadium”), the redevelopment of the MAPFRE Stadium site into a practice facility and training complex for Columbus Crew SC (“Crew”) and a community sports campus that will include a community recreation facility and playing fields (“Community Sports Park”), and the development of a project containing mixed-use retail, entertainment, residential, hospitality, office and/or commercial uses (“Mixed-Use Development”) adjacent to the Stadium, collectively the “Project.”
The Developer is an affiliate of Crew SC Team Company, LLC (“Team”), which has acquired the right to operate the Crew, a Major League Soccer (“MLS”) franchise, contingent upon the commitments and conditions set forth in the Agreement.
On December 10, 2018, the City, the County and JHAC Ventures, LLC (“JHAC”), an affiliate of the Developer, entered into a Memorandum of Understanding (“MOU”) regarding the proposed financing, development, construction, operation and occupancy of the Project. The execution and delivery of the Agreement authorized by this ordinance shall cause the MOU to expire and obligate the Parties to perform the commitments therein.
Per the terms of the Agreement, the Developer will contribute at least $140 million toward the cost of the Project and commits to using good faith efforts to comply with the goals for minority and women-owned contractors, suppliers and vendors set forth in the Agreement’s Economic Inclusion Plan. The Developer will also make good faith efforts to comply with applicable City Workforce Housing requirements as it relates to the Mixed-Use Development. The City will contribute $50 million towards costs associated with the design and construction of the Community Sports Park; public infrastructure improvements necessary to support the Project and the Mixed-Use Development; and other costs of the Project, other than Stadium costs. The MOU also contemplates additional Project funding sources, including a contribution from the County, Tax Increment Financing (“TIF”), and the establishment of a new community authority within the provisions of the Ohio Revised Code, which will facilitate design, development, financing, construction and operation of the project.
The Project is estimated to accommodate a total of 1,300 full-time jobs, which includes approximately 605 construction jobs. Construction of the Project will be subject to the prevailing wage requirements of the Ohio Revised Code.
Title
To authorize the Development Director, on behalf of the City, to enter into a Development Agreement with Franklin County and Crew SC Stadium Company, LLC, regarding the financing, development, construction, operation and occupancy of a new multi-purpose sports, entertainment, cultural and recreation facility, and the redevelopment of the MAPFRE Stadium site into a Community Sports Park, and the financial commitments for all parties involved.
Body
WHEREAS, the Crew SC Team Company, LLC (“Team”) has acquired the right to operate the Columbus Crew SC ("Crew"), an MLS franchise, subject to the execution and delivery of this Development Agreement ("Agreement") and the performance of obligations to be met by the Parties thereunder; and
WHEREAS, the City of Columbus ("City"), Franklin County ("County") and JHAC Ventures, LLC (“JHAC”) entered into an MOU regarding the proposed financing, development, construction, operation and occupancy of a new stadium for the Crew, the redevelopment of the MAPFRE Stadium site into a community sports park, and an ancillary mixed-use development adjacent to the new stadium; and
WHEREAS, the execution and delivery of the Agreement shall cause the MOU to expire and obligate the Parties therein to perform the commitments required for the Team to acquire the Crew; and
WHEREAS, the Crew SC Stadium Company, LLC (“Developer”) will contribute at least $140 million toward the Project costs and commits to using good faith efforts to comply with the goals for minority and women-owned contractors, suppliers and vendors set forth in an Economic Inclusion Plan; and
WHEREAS, the Developer will make good faith efforts to comply, either by itself or through a third-party development partner, with applicable City Workforce Housing requirements as it relates to the Mixed-Use Development; and
WHEREAS, the City will contribute $50 million for the design and construction of the Community Sports Park, public improvements necessary to support the new Stadium and Mixed-Use Development, and other costs of the Project, other than Stadium costs; and
WHEREAS, the MOU contemplates additional Project funding sources that will be implemented through subsequent legislative action and agreements; and
WHEREAS, the redevelopment of the MAPFRE Stadium site into a Community Sports Park will provide access for more than 200,000 residents living within three miles of the facility to outdoor athletic fields, indoor turf fields, basketball courts and programming space and provide a new, state-of-the-art practice facility and training complex for the Crew; and
WHEREAS, the City, the County and the Developer have determined that it is in the best interest of the residents of the City of Columbus and Franklin County, as well as the Crew, to enter into said Agreement outlining the obligations of all Parties to finance, develop, and construct the Stadium and redevelop the MAPFRE Stadium site into a Community Sports Park, for the benefit of the greater Columbus metropolitan area and the State of Ohio; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Development Director, on behalf of the City, is hereby authorized to enter into a Development Agreement with Franklin County and Crew SC Stadium Company, LLC, regarding the financing, development, construction, operation, and occupancy of a new multi-purpose sports, entertainment, cultural and recreation facility, and the redevelopment of the MAPFRE Stadium site into a Community Sports Park.
SECTION 2. That the Director of the Department of Development and the Director of the Recreation and Parks Department are authorized to execute and approve such other agreements and instruments and to take all actions necessary to implement this ordinance and the transactions contemplated by the Agreement, except for those documents and authorizations needed to create the Stadium 41 TIF and the new community authority, and to enter into the Contribution Agreement, which require separate legislation.
SECTION 3. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.