Explanation
BACKGROUND:
The purpose of this ordinance is to authorize the Director of the Department of Development to execute documents to allow the City to accept title to a portion of the property known as the Grange site located in the Brewery District of Columbus and to transfer the property back to Grange for the purpose of creating a Tax Increment Finance (TIF) district under Ohio Revised Code (ORC) section 5709.41.
Grange Mutual Casualty Company ("Grange") needs to expand its corporate and administrative facilities to handle planned growth of 800 people over the next 20 years. Grange is considering sites in Central Ohio, including a site at its corporate headquarters, 650 S. Front Street (the "Columbus Site"), and a site in Appleton, Wisconsin. The Columbus Site requires the Construction of a 1,000 space structured parking garage at a cost of between $19,400,000 and $22,700,000. Structured parking is not required at any other site. Consequently, the cost of building at the Columbus Site will be approximately $20,000,000 higher than the other alternatives. In order to make the Columbus Site attractive, the City of Columbus ("Columbus") and the State of Ohio ("Ohio") need to provide appropriate economic development incentives.
The project (the "Project") will consist of: 1) a new approximately 200,000 square foot office building costing between $39,100,000 and $45,100,000; 2) a 1,000 car parking garage costing between $19,400,000 and $22,700,000; 3) the remodeling of the current office building costing between $3,000,000 and $4,000,000 and 4) the construction of $3.5 million of public infrastructure improvements.
The Project will permit Grange to employee 800 new Columbus employees at the Columbus Site over the next 20 years and assure the retention of 775 full-time and 36 part-time employees. The new jobs, including benefits, will average $100,000 per annum. The project will result in retention of $60,414,000 of payroll for the employees located at the Columbus Site and produce another $3,481,000 for the 60 employees to be transferred from Gahanna to Columbus. The Project will also create $25,554,388 of additional payroll for full-time employees and $387,385 for part-time employees over 10 years and over $50 million after 20 years. These numbers will grow substantially over time due to increasing compensation and benefits.
The City of Columbus and Grange desire to create a TIF District under Ohio Revised Code Sections 5709.41 to pay for certain public infrastructure improvements and to otherwise support the Grange Project while protecting the Columbus City School District from any loss of tax revenues.
Ohio Revised Code Section 5709.41 requires that the City own the property at some time prior to passing an ordinance to establish the TIF. Therefore, this legislation is necessary to authorize the city to accept title to the land comprising the Grange site, and then to transfer the property back to Grange. The TIF ordinance is being simultaneously submitted for consideration by the City Council at a later date.
FISCAL IMPACT:
There is no expenditure of City funds associated with the transfer of the property.
Title
To authorize the Director of the Department of Development to allow the city to accept title to certain property and to transfer title to the property back to the original owner; and to declare an emergency.
Body
WHEREAS, the City of Columbus (the "City") is committed to encouraging the redevelopment of existing property within the City limits; and
WHEREAS, Grange Mutual Casualty Company (the "Company") desires to remodel its existing corporate headquarters at a cost of between $3,000,000 and $4,000,000, construct an additional office building of approximately 200,000 square feet at a cost of between $39,100,000 and $45,100,000, to build a 1,000 space parking garage at a cost of between $19,400,000 and $22,700,000 and make infrastructure improvements of approximately $3,500,000 (collectively, the "Project") on the property described in Exhibit A attached hereto (the "Project Site"); and
WHEREAS, the City desires to support and facilitate the urban redevelopment of the Project by passing an Ordinance under Ohio Revised Code Section 5709.41 (the "TIF Ordinance") declaring the development of the Project to be a public purpose; and
WHEREAS, the City must hold fee title to the real property comprising the Project Site prior to enacting the TIF Ordinance; and
WHEREAS, it is necessary for the City to execute certain documents to accomplish the acceptance and subsequent transfer back to the current owners of title to the real property comprising the Project Site, all prior to the City's enactment of the TIF Ordinance; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Development in that it is necessary to proceed as quickly as possible with the transfer of the Project Site due to the Company's lack of space and need to expand immediately to preserve existing job opportunities and to create new job opportunities, all 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 development of the Project is a public purpose.
Section 2. That the Director of the Department of Development (the "Director") is hereby authorized and directed to accept on behalf of the City title to the real property comprising the Project Site and to immediately transfer the Project Site back to the Company.
Section 3. That the Director is authorized and directed to execute, in accordance with this Ordinance, the quit claim deed and all documents necessary, and to take any other required action, to take title to the Project Site from the Company and to immediately transfer title back to the Company.
Section 4. That for 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 or ten days after passage if the Mayor neither approves nor vetoes the same.