Explanation
1. BACKGROUND
This legislation authorizes the Director of the Department of Development to enter into an Infrastructure Improvements Agreement with CoverMyMeds LLC and CHI Franklinton, LP (hereinafter the “Project Team”).
The Project Team is proposing to construct a new corporate headquarters for CoverMyMeds which will consist of 218,000-square-foot Class A office building, ancillary campus amenities, and surface parking and, may construct in the future another 200,000 square feet Class A office building one or more associated parking structures containing up to approximately 1,150 parking spaces at a later date (the “Project”). The Economic Development Agreement (the “EDA”) will outline the plans and certain commitments of the Project Team and the City as it relates to the Project.
The Project will support the retention and relocation of approximately five hundred ninety-two (592) existing full-time permanent employees from their current offices. Additionally, CoverMyMeds will create 1,032 new full-time permanent employees. The Project Team will pay the costs to design and construct roadway improvements for North Souder Avenue from the railroad tracks to Dublin Road, McKinley Avenue from North Souder Avenue to Rodgers Avenue, Hartford Avenue north of McKinley Avenue, John Street west of North Souder Avenue, and the intersection of North Souder Avenue and Dublin Road. The Project Team will enter into a Contribution Agreement with the City for costs to design and construct the relocation of electric facilities that will be displaced as a result of the Project for construction costs that exceed the City’s contribution of $2,000,000.00. The Development will strongly consider using City of Columbus Division of Power as its primary electricity service provider for a period of ten (10) years, and will cooperate with the City should the City identify the need for a Co-Go Bike Station or other mobility-focused transit installation.
The Department of Development will lead the design and construction of the utility relocation. The Department of Development Department intends to request funding for one million dollars $1,000,000.00 through the 2019 Capital Improvement Budget, and another $1,000,000.00 through the 2020 Capital Improvement Budget to assist with costs associated with the roadway improvements and utility relocation. The Department agrees to coordinate with the Ohio Development Services Agency and JobsOhio and to submit for City Council consideration all necessary legislation to authorize the application and acceptance of the State’s Roadwork Development (629) Grant contribution of up $1,000,000.00, and the State’s Jobs and Commerce Economic Development Program (SAC 4JC7) Grant contribution of up to $175,000.00 for costs associated with the roadway improvements. The City agrees to administer these grant agreements on behalf of the Project Team.
2. EMERGENCY JUSTIFICATION: Emergency legislation is required to allow for immediate execution of the Infrastructure Improvements Agreement, which is necessary to facilitate the timely completion of the above-described development.
3. FISCAL IMPACT
There is no fiscal impact for this legislation.
Title
To authorize the Director of the Department of Development to enter into an Infrastructure Improvements Agreement with CoverMyMeds LLC and CHI Franklinton, LP and to declare an emergency.
Body
WHEREAS, CoverMyMeds LLC and CHI Franklinton, LP (hereinafter the “Project Team”) are proposing construct a 218,000-square-foot Class A office building, ancillary campus amenities, and surface parking and, may construct in the future another 200,000 square feet Class A office building one or more associated parking structures containing up to approximately 1,150 parking spaces at a later date to serve as a new corporate headquarters for CoverMyMeds (the “Project”); and
WHEREAS, the Project will support the retention and relocation of approximately 592 existing full-time permanent employees, and CoverMyMeds will create 1,032 new full-time permanent employees; and
WHEREAS, the Project is being undertaken as a Public-Private Partnership (3P) with the City; and
WHEREAS, the Project Team’s Project has been undertaken in cooperation and partnership with the City as a signature project for the Franklinton neighborhood; and
WHEREAS, the Parties desire to memorialize their understanding and agreements with respect to such cooperation; and
WHEREAS, the City’s obligation to provide financial assistance as set forth herein is contingent upon the subsequent adoption of appropriate legislation by Columbus City Council authorizing such assistance; and
WHEREAS, the City's agreement to provide financial assistance as set forth herein is contingent upon authorization pursuant to subsequent passage of appropriate legislation by Columbus City Council;
WHEREAS, an emergency exists in the usual daily operations of the Department of Development in that it is necessary to proceed as quickly as possible to enter into said agreement for the preservation of the public health, peace, property and safety, that preservation being related to the timely manner in which the project needs to be developed to create new job opportunities; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development be and is hereby authorized to enter into an Infrastructure Improvements Agreement on behalf of the City with CoverMyMeds LLC and CHI Franklinton, LP to outline the plans and certain commitments of the parties relating to the proposed construction of a new corporate headquarters for CoverMyMeds in the Franklinton neighborhood of Columbus.
SECTION 2. That for 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 full 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.