Explanation
Background: To provide consent to The Franklin County Convention Facilities Authority (CFA) to issue Tax and Lease Revenue Anticipation Refunding Bonds presently estimated not to exceed $55,000,000. The CFA wants to refund bonds that were issued in 1997 in order to achieve interest cost savings. According to Section 9.04 of the Lease and Section 9.03 of the Sub-Lease between the City of Columbus and the CFA, it is necessary for the City of Columbus to "consent" to this transaction.
Fiscal Impact: There will be no fiscal impact to the City of Columbus, but will result in lower interest costs to the CFA.
Title
To consent to the issuance of refunding bonds by The Franklin County Convention Facilities Authority; and declaring an emergency.
Body
WHEREAS, pursuant to Ordinance 1188-90 passed by this Council on May 7, 1990, the City of Columbus, Ohio (the "City") has entered into a Lease Agreement dated as of June 1, 1990 (as the same has been amended and supplemented from time to time, the "Lease") from The Franklin County Convention Facilities Authority (the "FCCFA"), as lessor, to the County of Franklin, Ohio (the "County") and the City, as lessees and tenants in common, with respect to the convention facility known as "The Greater Columbus Convention Center" (the "Facility"); and
WHEREAS, pursuant to Ordinance 1189-90 passed by this Council on May 7, 1990, the City has entered into a Sub-Lease Agreement dated as of June 1, 1990 (as the same has been amended and supplemented from time to time,, the "Sub-Lease") from the City and the County, as lessors, to the FCCFA, as lessee, with respect to the Facility, providing for rental payments from the FCCFA which are to be used as a source for the City's "Lessees Rent" payments under the Lease; and
WHEREAS, the Facility was financed and refinanced in part with the proceeds of tax and lease revenue anticipation bonds of the FCCFA, including Tax and Lease Revenue Anticipation 2007 Bonds, Series 1997 (the "Series 1997 Bonds"), which are secured by a Trust Agreement dated as of June 1, 1990 (as amended and supplemented, the "Indenture"), which Indenture includes a pledge of any "Lessees Rent" paid by the County and the City pursuant to the Lease; and
WHEREAS, the FCCFA, the County and the City entered into a First Supplemental Lease Agreement and a First Supplemental Sub-Lease Agreement as supplements to the Lease and the Sub-Lease, respectively, in order to add the improvements financed with the 1997 Bonds and additional property to the operation of such documents and to extend the terms of the Lease and the Sub-Lease through December 31, 2027;
WHEREAS, the FCCFA proposes to issue presently estimated not to exceed $55,000,000 of Tax and Lease Revenue Anticipation Bonds in one or more series (the "2007 Bonds") as "Additional Bonds" pursuant to the Indenture to (i) finance a portion of the cost of renovations to and expansion of the Facility (the "2007 Project") and (ii) refund a portion of the Series 1997 Bonds in order to achieve interest cost savings, all of which will benefit the FCCFA, the County, the City and their respective citizens and taxpayers; and
WHEREAS, Section 9.04 of the Lease and Section 9.03 of the Sub-Lease require the City and the County to consent to the issuance of such "Additional Bonds" so long as the Lease and Sub-Lease are in effect, and this Council desires to authorize such consent and supporting documents with respect to the 2007 Bonds; and
WHEREAS, an emergency exists in the offices of the Auditor and City Attorney in that the timely issuance of the 2007 Bonds will allow the 2007 Project to proceed as quickly as possible and allow the FCCFA to take advantage of favorable market conditions in issuing the 2007 Bonds, all of which will result in savings which will inure to the benefit of the City, its taxpayers and its citizens and therefore, the passage of this ordinance is necessary for the public peace, property, health and safety; and
WHEREAS, the FCCFA, the County and the City desire to enter into a Second Supplemental Lease Agreement (the "Second Supplemental Lease") and a Second Supplemental Sub-Lease Agreement (the "Second Supplemental Sub-Lease") as additional supplements to the Lease and the Sub-Lease, respectively, in order to remove certain property from the operation of such documents; Now, Therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS, OHIO:
SECTION 1. That the City hereby gives its consent, as required by Section 9.04 of the Lease and Section 9.03 of the Sub-Lease, to the issuance of the 2007 Bonds by the FCCFA. The Mayor and Finance Director, and either of them acting singly, are hereby authorized to execute and deliver such documents evidencing such consent and supporting the 2007 Project and the issuance of the 2007 Bonds as shall be approved by the City Attorney and the officer executing the same, such execution to conclusively evidence such approvals.
SECTION 2. That the Mayor and the Finance Director, and either of them acting singly, are hereby authorized to execute and deliver the Second Supplemental Lease and the Second Supplemental Sub-Lease in such forms as shall be approved by the City Attorney and the officer executing the same; such officer's execution and delivery to conclusively evidence such authorization and approval.
SECTION 3. That it is found and determined that all formal actions of this Council concerning and relating to the passage of this ordinance were passed in an open meeting of this Council, and that all deliberations of this Council and of any of its committees that resulted in such formal action, were in meetings open to the public, in compliance with the law, including Section 121.22 of the Ohio Revised Code.
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.