Explanation
BACKGROUND: This legislation authorizes the Director of Development to amend the existing Community Reinvestment Area (CRA) Agreement with Brewers Yard Apartments, Ltd. The amendment will make two changes. It will extend by 1 year the deadline for the end of the tax exemption period for the 303-unit apartment building. Also, it will consent to transfer of the exemptions on the 14 townhouse apartment units to buyers when the townhouses are converted and sold as condominiums. The term/rate of the abatement will remain at 50%/7-years as originally granted.
The Brewers Yard Apartments CRA Agreement was approved by Columbus City Council Ordinance 3063-99, adopted December 13, 1999, and amended by Ordinance 2342-00, adopted October 30, 2000. The project goals were to construct 312 residential units, invest approximately $30 million and create 6 jobs. The project is in good standing with regard to these goals. To date, 317 units have been constructed, $30 million invested and 14 jobs created.
The 14 townhouse apartments at 76-88 W. Kossuth St. were completed first and the 7 years of exemption on these units will run from 2002 through 2008. The plan is to convert these 14 units into condominiums. This amendment will acknowledge the City's consent for the tax exemptions to transfer to the new owners as the conversions occur.
There were construction delays that prevented the 303-unit apartment building at 100 Frankfort Square from being completed in 2003 as anticipated. The delays were due to the City's need to line the old brick storm and sanitary sewers that extend along the site's western edge. Construction is being completed in 2004. This amendment will allow the apartment building to use the 50%/7-year abatement through 2011 instead of 2010 as currently allowed by the Agreement. The project will thus be able to use the full 7 years of exemptions (2005-2011) on the apartment building.
Emergency action is requested because new financing is currently under negotiation for the project and is contingent on the modifications to the CRA Agreement that will be implemented with this Amendment.
FISCAL IMPACT: No funding is required for this legislation.
Title
To authorize the Director of the Department of Development to amend the Community Reinvestment Area Agreement between the City and Brewers Yard Apartments, Ltd. by consenting to the transfer of the tax exemptions on the 14 townhouse apartment units to new owners when these units are converted and sold as condominiums and by allowing 2011 to be the final year of tax exemption for the 303-unit apartment building; and to declare an emergency.
Body
WHEREAS, the Brewers Yard Apartments Community Reinvestment Area (CRA) Agreement was approved by Columbus City Council Ordinance 3063-99, adopted December 13, 1999, and amended by Ordinance 2342-00, adopted October 30, 2000; and
WHEREAS, to date, the project is in good standing and has met the investment and job creation goals called for in the CRA Agreement, as amended in 2000; and
WHEREAS, construction was completed by January 1, 2002 on the project's 14 townhouse apartment units, the 50%/7-year tax abatement on these units commenced in 2002, and the property owner plans to convert these units to condominiums and desires the abatement to transfer to the buyers of the units as the conversions occur; and
WHEREAS, the City consents to transfer of the tax abatement on the 14 townhouse apartment units to the buyers when these units are converted and sold as condominiums; and
WHEREAS, construction delays prevented the project's 303-unit apartment building from commencing its 7-year abatement period in 2004 as anticipated; and
WHEREAS, the CRA Agreement currently provides that 2010 will be the final year for use of the tax exemptions but with the construction delays the final year would need to be 2011 in order for the 303-unit apartment building to get the full 7 years of abatement; and
WHEREAS, the City desires the 303-unit apartment building to be able to use the full 7 years of tax abatement and thus desires 2011 to be final year for this building to use the tax exemptions; and
WHEREAS, the City believes it is in the best interest of job preservation and economic development to amend the existing CRA Agreement by consenting to the tax exemptions for the 14 townhouse apartments being transferred to the buyers when these units are converted and sold as condominiums and by allowing 2011 to be the final year for use of the tax exemptions by the 303-unit apartment building; and
WHEREAS, emergency action is requested because new financing is currently under negotiation for the project and is contingent on the modifications to the CRA Agreement that will be implemented with this Amendment, 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 Director of the Department of Development is hereby authorized to amend the CRA Agreement between the City and Brewers Yard Apartments, Ltd., to acknowledge City consent for transfer of the tax abatement to the buyers of the 14 townhouse apartments when these units are converted and sold as condominiums and to allow 2011 to be the final year for use of the tax abatement on the 303-unit apartment building. The term/rate of the abatement will remain unchanged at 50%/7-years, as originally granted.
Section 2. That for the reasons stated in the preamble hereto, this ordinance is hereby declared to be an emergency and shall take effect and be in force from and after its passage and approval by the Mayor or ten days if the Mayor neither approves nor vetoes the same.