Explanation
Background: In 2004, the City, as lessee, and The RiverSouth Authority, as lessor, entered into a Master Lease and First Supplement Lease of real property underlying the Lazarus Building on South High Street. The lease rental payments supported the issuance by RiverSouth of $37,870,000 in bonds to pay for the cost of acquisition of the former Lazarus properties and some initial improvements to the Lazarus Building. In 2005, a Second Supplemental Lease was entered into to support the issuance by RiverSouth of an additional $42,850,000 in bonds to pay for additional improvements in the RiverSouth area and for additional improvements to the Lazarus Building to accommodate new tenants including the Ohio Department of Jobs and Family Services. Current interest rates for bonds are at a level which would make it advantageous to refund the 2004 bonds and possibly the 2005 bonds. Refunding by RiverSouth at lower interest rates will be financially advantageous to the City by lowering its annual rental payments for the remaining life of the refunding bonds.
Title
To authorize the Director of Development to enter into a Third Supplemental Lease Agreement with The RiverSouth Authority in connection with the refunding of bonds issued by The RiverSouth Authority to redevelop and revitalize the RiverSouth District and the surrounding area, and to declare an emergency.
Body
WHEREAS, to further the redevelopment and revitalization of the RiverSouth Area the Columbus Downtown Development Corporation ("CDDC") petitioned this Council for the creation of The RiverSouth Authority (the "Authority") as a new community authority pursuant to Chapter 349 of the Ohio Revised Code (the "Revised Code"), and by adoption of its Resolution No. 1007-2004 on June 21, 2004, this Council approved the creation of that Authority and appointed five members of its Board of Trustees; and
WHEREAS, pursuant to Ordinance No. 1009-2004, passed by this Council on June 21, 2004, the City then entered into a Master Lease Agreement and a First Supplemental Lease Agreement with the Authority in support of the Authority's issuance of its $37,870,000 RiverSouth Area Redevelopment Bonds, 2004 Series A, to pay costs of CDDC's acquisition of certain former Lazarus properties and redevelopment initiatives in and for the RiverSouth Area; and
WHEREAS, pursuant to Ordinance No. 1312-2005, passed by Council on July 25, 2005, the City entered into a Second Supplemental Lease Agreement with the Authority in support of the Authorities issuance of its $42,850,000 RiverSouth Area Redevelopment Bonds, 2005 Series A, to pay for additional improvements in and for the RiverSouth Area, including additional improvements to the former Lazarus building which were necessary to prepare the property for reuse by new tenants including ODJFS; and
WHEREAS, in order to take advantage of current lower interest rates the Authority desires to have the ability to refund a portion of the RiverSouth Area Redevelopment Bonds, 2004 Series A and 2005 Series A, which refundings will benefit the City by reducing its rental payment under the Master Lease; and
WHEREAS, in order for the Authority to refund a portion of the 2004 Series A and the 2005 Series A Bonds it is necessary to authorize the Director of Development to entered into a Third Supplemental Lease Agreement with the Authority;
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, in that it is immediately necessary to enter into the Third Supplemental Lease Agreement, in order to allow the Authority to take advantage of current market conditions thereby financially benefiting the City and for the immediate 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 Third Supplemental Lease Agreement by and between the City and the Authority, in the form presently on file with the Clerk of Council, providing for, among other things, the refunding of a portion of the RiverSouth Area Redevelopment Bonds, 2004 Series A and 2005 Series A, is hereby approved and authorized, with changes therein not inconsistent with this Ordinance and approved by the Director of Development. The character of the changes as not being inconsistent with this Ordinance or substantially adverse to the City and the approval of such changes by the Director of Development of changes shall be rendered conclusively established by the execution thereof.
Section 2. That the Director of Development is hereby authorized and directed to execute the Third Supplemental Lease Agreement. The City Auditor and other appropriate officials of the City are hereby authorized to execute other instruments and to take any other actions as may be appropriate to implement the Third Supplemental Lease Agreement and this ordinance.
Section 3. That for the reasons stated in the preamble hereto, which are) 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 or ten days after its passage if the Mayor nether approves nor vetoes the same