Explanation
BACKGROUND
This ordinance authorizes the Director of the Department Development to modify (Modification No. 2) a grant agreement with Erie Ohio Capital CDFI Fund, LLC for the Starling Yard housing project to adjust the budget’s allocation, moving $500,000.00 previously allocated for construction loan interest to architect design fees. The overall amount for the agreement will not change.
Original Agreement $3,500,000.00 Ord. 3283-2022 PO387354
Modification No. 1 $ 0.00 Ord. 2013-2023
Modification No. 2 $ 0.00
Total $3,500,000.00
The Grant Agreement, and the previous legislation, pertains to the Starling Yard project that will be constructed on the former school site located at 120 South Central Avenue. The property contains the historic 1908 Starling School (originally built as West High School), and is bounded on its perimeter by existing housing (north, east, and south), as well as the new Starling Middle School, West Central School and existing senior apartments to the west. The site is walkable to the West Broad Street corridor, which contains a number of restaurants and retail stores. The Franklinton Branch of the Columbus Metropolitan Library and City of Columbus Fire Station and EMS Station 10 are just a short distance away. When completed, the project will deliver new high-quality infill development with important safe and accessible affordable units needed by families; it will redevelop a vacant historic structure as additional affordable housing units while at the same time returning the building to its more appropriate 1908 configuration; and provide housing in an undeserved area of the City of Columbus.
Starling Yard will contain 18 one-bedroom units, 26 two-bedroom units, and 8 three-bedroom units. The property will be mixed-income, featuring affordable housing ranging from 30% AMI, up to 80% AMI, accommodating various household sizes. 20 units will be set-aside for residents earning at or below 30% AMI, 24 units will be set-aside for residents earning at or below 50% AMI, 11 units will be set-aside for residents earning at or below 60% AMI, and 42 units will be set-aside for residents earning at or below 80% AMI (the "Project"). The Project will be appropriate for a variety of populations: singles, young professionals, seniors, single-parent households, small families needing three-bedroom units, and those needing workforce housing in close proximity to downtown and surrounding job centers. The project intends to have no fewer than 10% of the units be fully accessible, ideal for people with housing entry barriers including elderly, persons with mobility disabilities, and those less mobile. Additional units will be set-aside for hearing/vision impaired residents.
Ordinance 3283-2022 passed on December 5, 2022, allowing for the establishment of $3,500,000.00 from the City’s 2022 Capital Budget through a bond agreement funded temporarily with the Special Income Tax Fund until bonds are issued.
Ordinance 2013-2023 passed on September 11, 2023 to authorize reimbursements of costs prior to the purchase order. It was discovered at closing, due to the type of tax-exempt bond funds being placed into the project, our funds should only be used to reimburse soft costs for the project, or the project will be subject to State Prevailing Wage Construction Prices.
It has been determined by the developer that the soft costs established at closing for reimbursement need to be modified. The construction loan interest was conservatively budgeted in the original budget given the long construction timeline related to the hybrid nature of the development which involved two new construction buildings and the adaptive reuse of the vacant Starling School. Ultimately, the developer spent less on construction loan interests on this project. The developer received the final certificate of occupancy in late March 2025 and is now reanalyzing the total development costs.
FISCAL IMPACT: No additional funding is required.
CONTRACT COMPLIANCE: The vendor number is 033062 and expires 06/10/2026.
Title
To authorize the Director of the Department Development to modify a grant agreement with Erie Ohio Capital CDFI Fund, LLC to adjust the budget’s allocation across line items. ($0.00)
Body
WHEREAS, ordinance 3283-2022 passed on December 5, 2022, allowing for the establishment of $3,500,000.00 from the City’s 2022 Capital Budget through a bond agreement funded temporarily with the Special Income Tax Fund until bonds are issued; and
WHEREAS, ordinance 2013-2023 passed on September 11, 2023 to authorize reimbursements of costs prior to the purchase order; and
WHEREAS, it has been determined by the developer that the soft costs established at closing for reimbursement need to be modified; and
WHEREAS, in the usual daily operation of the Department of Development it is necessary to authorize the Director of the Department of Development to modify the grant agreement with Erie Ohio Capital CDFI Fund for the 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 the Director of the Department of Development be and is hereby authorized to modify a grant agreement with Erie Ohio Capital CDFI Fund, LLC to adjust the budget’s allocation across line items.
SECTION 2. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.