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 certain property known as the former AC Humko site and to transfer the property back to the original owners, Royal Tallow Holdings Ltd., for the purpose of creating a Tax Increment Finance (TIF) district under Ohio Revised Code (ORC) section 5709.41.
Royal Tallow Holdings Ltd. intends to redevelop the former AC Humko site, at 525 West 1st Avenue, into approximately 222 apartments, 62 condominiums and 41 single-family homes. Royal Tallow has been working extensively with residents of the Harrison West neighborhood of Columbus over the past 12 months to ensure community input and receive neighborhood support. Also, the Department of Development was recently successful in obtaining a $3 million Clean Ohio Brownfield Redevelopment Grant to undertake site clean up and prepare for redevelopment construction.
The City of Columbus and Royal Tallow Holdings Ltd. desire to create a TIF District under ORC Section 5709.41 to pay for certain public infrastructure improvements and to otherwise support the former AC Humko site redevelopment while protecting the Columbus Public School District from any loss of tax revenues.
Revised Code § 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 former AC Humko site project, and then to transfer the property back to the owners. The TIF ordinance is being simultaneously submitted for consideration by the City Council.
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 generally known as the former AC Humko site and to transfer the property back to the original owners; and to declare an emergency. ($0)
Body
WHEREAS, the City of Columbus (the "City") is committed to improving existing neighborhoods and providing new neighborhood housing; and
WHEREAS, Royal Tallow Holdings Ltd. ("Royal Tallow") proposes to provide neighborhood residential uses through the urban redevelopment of the former AC Humko Site (the "Project"); and
WHEREAS, the City desires to support and facilitate the urban redevelopment of the Project by passing an Ordinance under Ohio Revised Code §5709.41 (the "TIF Ordinance") declaring the development of the Project to be a public purpose; and
WHEREAS, the City of Columbus 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, it is necessary to complete these actions as quickly as possible so that the Project may proceed; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is necessary to proceed as quickly as possible with the transfer of the property described herein to facilitate without delay the urban redevelopment of the property through the Project for the preservation of the public health, peace, property, safety and welfare; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development (the "Director") is hereby authorized and directed to accept on behalf of the City of Columbus title to the real property comprising the Project site and to cause such ownership interest to be transferred according to State of Ohio law; provided, however, that no interest in that real property shall be accepted without execution of an agreement providing indemnification on terms acceptable to the City for any liability that may arise from the City holding title to that property, with the City's approval of such indemnification evidenced conclusively by the Director's execution of an indemnification agreement for such purpose.
Section 2. That the Director is hereby authorized and directed to execute, in accordance with this Ordinance, all documents necessary, and to take any other required measures to cause the transfer of the City's ownership interest in the real property constituting the Project site acquired pursuant to this Ordinance to the current owners of such real property, which transfer thereof shall occur immediately following the City's acceptance of the fee simple interest in such real property.
Section 3. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this Ordinance is declared to be an emergency measure and shall take effect (the "Effective Date") and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves or vetoes this Ordinance.