Explanation
BACKGROUND: This legislation appropriates funds and authorizes the Director of the Department of Development to enter into a contract with the Omni Management Group's Agler Green Limited Partnership for construction/rehabilitation expenses associated with a financing gap experienced by the Omni Management Group in completing the Heritage Project.
The Heritage Project, the renovation of the former Agler Green Section 8 Apartment complex, consists of 384 apartments in northeast Columbus that was completed in August 2004. The final cost certifications demonstrated that there was a shortfall in financial sources for the project due to the unforeseen construction costs. The city was approached to assist with providing resources for the financing gap. The city is supportive of projects such as the Heritage that provide affordable rental dwelling units for extremely low-income families. The Heritage Project is unique in scale and complexity that certainly warrants the city's participation.
Emergency action is requested so that the funds may be provided as quickly as possible to the Omni Management Group's Agler Green Limited Partnership.
FISCAL IMPACT: Funds in the amount of $150,000 for this expenditure are from the Capitol South Debt Service Fund. Funds will be used for construction/rehabilitation expenses associated with a financing gap experienced by Omni Management Group in completing the Heritage Project.
Title
To authorize the appropriation of $150,000 from the unappropriated balance of the Capitol South Debt Service Fund to the Department of Development; to authorize the Director of the Department of Development to enter into a contract with Omni Management Group's Agler Green Limited Partnership to provide gap financing for the Heritage Project; to authorize the expenditure of $150,000 from the Capitol South Debt Service Fund; and to declare an emergency. ($150,000.00)
Body
WHEREAS, the sources of funds available to the Omni Management Group to complete the Heritage Project are insufficient to meet the total costs resulting in a financing gap; and
WHEREAS, the City of Columbus desires to further the public purpose to provide rental housing opportunities for extremely low-income households; and
WHEREAS, the City desires to provide financial assistance to assure quality rental housing for extremely low-income families and to assist in providing dollars for the Omni Management Group's financing gap; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, in that it is necessary to appropriate and expend said funds for the Heritage Project for the immediate preservation of the public health, peace, property and safety; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That from the unappropriated monies in the Capitol South Debt Service Fund, Fund No. 481, 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, 2004, the sum of $150,000 is appropriated to the Department of Development, Division 44-10, Object Level One 03, Object Level Three 3336, OCA Code 442481.
Section 2. That the Director of the Department of Development be and is hereby authorized to enter into contract with the Omni Management Group's Agler Green Limited Partnership to provide gap financing for the Heritage Project.
Section 3. That for the purpose as stated in Section 2, the expenditure of $150,000.00 or so much thereof as may be necessary, be and is hereby authorized to be expended from the Capitol South Debt Service Fund, Department of Development, Department No. 44-10, Fund 481, Object Level One 03, Object Level Three 3336, OCA Code 442481.
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 approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.