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 parcels of real property owned by Grange Mutual Casualty Company ("Grange") and to transfer the property back to Grange for the purpose of creating tax increment financing ("TIF") pursuant to R.C. Section 5709.41.
Grange plans to construct a 1,050-space parking garage and approximately 15,000 square feet of office space on certain parcels of real property in the City at a cost of between $21,500,000 and $23,500,000. This parking garage and office space would be constructed on property (the "Expansion Site") on the opposite side of Sycamore Street from Grange's main office, which is located at 650 South Front Street (the "Front Street Site").
The City desires to pass a TIF ordinance pursuant to R.C. Section 5709.41, to help pay for certain costs of construction of the combined garage/office structure, while protecting the Columbus City School District from loss of tax revenues by requiring payments in lieu of taxes to be made to the School District. R.C. Section 5709.41 requires that the City hold fee title to the property at some time prior to passing an ordinance to establish a TIF under that section. Therefore, this legislation is necessary to authorize the City to accept title to the real property comprising the 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.
The Front Street Site is already subject to a non-school (payments in lieu of taxes are required to be made to the school district) R.C. Section 5709.41 TIF, authorized by Ordinance No. 1724-2005.
Fiscal Impact: There is no expenditure of City funds associated with the transfer of property.
Title
To authorize and direct the Director of the Department of Development to accept title in the city 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 construct an approximately 1,050-space parking garage and approximately 15,000 square feet of office space (the "Designated Improvements") on the property described in Exhibit A attached hereto (the "Site"); and
WHEREAS, the City desires to support and facilitate the construction of the Designated Improvements by passing an Ordinance under Ohio Revised Code Section 5709.41 (the "TIF Ordinance") declaring the development of the Designated Improvements to be a public purpose; and
WHEREAS, the City must hold fee title to the real property comprising the 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 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 Site for the preservation of the public health, peace, property and safety, that preservation being related to the Company's lack of space and need to expand immediately to preserve existing job opportunities and to create new job opportunities; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the development of the Designated Improvements is a public purpose in furtherance of the City's efforts to accomplish urban redevelopment within the City.
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 in the City to the real property comprising the Site, and to immediately transfer the 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(s) and all additional documents necessary, and to take any other required action, to take title to the Site in the City's name from the Company and to immediately transfer title back to the Company. Each such transfer shall be made for no monetary consideration.
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.