..Explanation
The City of Columbus, in conjunction with the Ohio Department of Transportation (ODOT); NP Limited Partnership, an Ohio Limited Partnership; and Polaris Ventures IV, Limited, will undertake a roadway improvement project to reconstruct the interchange of Interstate 71 and Polaris Parkway and construct a new interchange at Interstate 71 and Fashion Mall Parkway. These improvements are necessitated by the tremendous increase in vehicular traffic generated by the adjacent amphitheater and retail and commercial development.
ODOT is the lead agency for this project and will bid the project construction and award, as well as administer the construction contracts. The City's cost of these interchange improvements is $27,600,000.00. ODOT is responsible for right-of-way and environmental clearances, utility relocation and permit procurement. NP Limited Partnership will provide, without compensation, free and clear title to approximately 23 acres of real estate needed for the improvement.
The City will fund this construction through a tax increment financing (TIF) package eventually financed from service payments in lieu of taxes generated within the specifically-designated TIF area. Initial financing will be from the City's sale of special revenue obligations (revenue bonds) that will not be a general obligation debt of the City, the State of Ohio or any political subdivision or agency thereof. Upon demand of the City, NP Limited will purchase up to $12,500,000.00 worth of these bonds. The City Charter (Section 159) requires appropriation of only that amount of money necessary to satisfy the current yearly obligation.
The construction schedule for this project is very aggressive and necessitates that the City deposit $8,500,000.00 with the State by May 4, 2004, and an additional $4,850,000.00 by October 1, 2004. Since the tax increment financing package will not be finalized nor revenue bonds sold in time to meet the initial payment date, a companion ordinance being processed simultaneously certifies these expenditures against the Special Income Tax Fund. This is a temporary arrangement until the sale of the TIF-backed revenue bonds, after which the Special Income Tax Fund will be reimbursed.
This ordinance authorizes the Public Service Director to enter into this agreement on behalf of the City and expend up to $27,600,000.00 for this purpose.
Emergency action is requested to meet the time schedule stipulated within the agreement with ODOT, NP Limited and Polaris Ventures.
Title
To authorize the Public Service Director to execute an agreement with the Ohio Department of Transportation; NP Limited Partnership, an Ohio Limited Partnership; and Polaris Ventures IV, Limited, to provide for reconstruction of the Interstate 71 and Polaris Parkway Interchange and construction of a new interchange at Interstate 71 and Fashion Mall Parkway; to authorize the Public Service Director to execute certain quit claim deeds in connection therewith and to waive the provisions of Chapters 328 and 329 of the Columbus City Code pertaining to such transfers; to authorize the expenditure of $27,600,000.00 or so much thereof as may be necessary to the Ohio Department of Transportation for this purpose from the Polaris Interchange Capital Fund and to declare an emergency. ($27,600,000.00)
Body
WHEREAS, the City of Columbus, in conjunction with the Ohio Department of Transportation (ODOT); NP Limited Partnership, an Ohio Limited Partnership; and Polaris Ventures IV, Limited, will undertake a roadway improvement project to reconstruct the interchange of Interstate 71 and Polaris Parkway and construct a new interchange at Interstate 71 and Fashion Mall Parkway; and
WHEREAS, ODOT is the lead agency for this project and will bid the project construction and award, as well as administer the construction contracts; and
WHEREAS, the City's cost of these interchange improvements is $27,600,000.00; and
WHEREAS, the City will fund this construction through a tax increment financing (TIF) package eventually financed from service payments in lieu of taxes generated within the specifically-designated TIF area; and
WHEREAS, the construction schedule for this project is very aggressive and necessitates that the City deposit $8,500,000.00 with the State of Ohio by May 4, 2004, and $4,850,000.00 by October 1, 2004; and
WHEREAS, since the tax increment financing package will not be finalized nor revenue bonds sold in time to meet this deadline, a companion ordinance certifies these expenditures against the Special Income Tax Fund; and
WHEREAS, the City will sell bonds or notes for the aforementioned project and will reimburse the Special Income Tax Fund for any amounts advanced from such fund for costs of the project and, therefor, this transfer should be considered as a temporary funding method; and
WHEREAS, an emergency exists in the usual daily operation of the Transportation Division, Public Service Department, in that it is immediately necessary that the Public Service Director be authorized to enter into an agreement in order to meet the State's May 4 deadline for the deposit of funds for this project, thereby 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 Public Service Director be and hereby is authorized to enter into an agreement with the Ohio Department of Transportation; NP Limited Partnership, an Ohio Limited Partnership; and Polaris Ventures IV, Limited, for the Polaris Parkway Improvement project in the amount of $27,600,000.00 for the Transportation Division.
SECTION 2. That the Public Service Director be and hereby is authorized to execute such quit claim deeds, in such form as is approved by the Real Estate Division of the City Attorney's Office, as are necessary to transfer such right-of-way which had been previously dedicated by NP Limited Partnership and which by reason of this project are no longer needed as right-of-way by the City, and the provisions of Chapters 328 and 329 of the Columbus City Code pertaining to transfers be and hereby are waived.
SECTION 3. That for the purpose of paying the cost of the agreement the sum of $27,600,000.00 or so much thereof as may be necessary be and hereby is authorized to be expended from the Polaris Interchange Capital Fund, Fund 770, Department No. 59-09, Transportation Division, Object Level One Code 06, Object Level Three Code 6631, OCA Code 590770 and Project 590770.
SECTION 4. 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.