Explanation
The Franklin County Convention Facilities Authority (FCCFA) has requested the city's consent pursuant to Section 9.04 of the Lease and 9.03 of the Sub-Lease between the City and FCCFA to proceed with their issuance of Tax and Lease Revenue Anticipation Bonds in an amount not to exceed $45,000,000. These bonds will refund previously issued debt by the FCCFA, which will result in lower debt service payments. There is no direct financial impact to the City of Columbus.
Title
To consent to the issuance of Tax and Lease Revenue Anticipation Bonds by the Franklin County Convention Facilities Authority; and to declare 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 Refunding Bonds, Series 2002 (the "Series 2002 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 proposes to issue presently estimated not to exceed $45,000,000 of Tax and Lease Revenue Anticipation Bonds in one or more series (the "2012 Bonds") as "Additional Bonds" pursuant to the Indenture to refund all or a portion of the Series 2002 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 2012 Bonds; and
WHEREAS, an emergency exists in the offices of the Auditor and City Attorney in that the timely issuance of the 2012 Bonds will allow the FCCFA to take advantage of favorable market conditions in issuing the 2012 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; 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 2012 Bonds by the FCCFA. The Mayor and Director of Finance and Management, and either of them acting singly, are hereby authorized to execute and deliver such documents evidencing such consent and supporting the 2012 Project and the issuance of the 2012 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 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 3. 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.