Explanation
BACKGROUND: This legislation releases the recorded interest of the City of Columbus in the property at 1949 Woodland Avenue that secures an outstanding balance of $712,969.00 on a loan made by the City's Department of Development to borrower NDC Corporation on July 25, 1985. The city loaned $712,969.00 in Rental Rehabilitation funds to NDC Corporation to rehabilitate a 161-unit apartment complex. The loan was interest free with no principal amounts due unless the ownership of the property was transferred. In 1987 when the property was deeded to Woodland Ridge Associates, the loan was subordinated and then modified to provide for payments to commence on January 1, 2024. The apartment complex continued to deteriorate and was subsequently demolished in 1998. The U.S. Department of Housing and Urban Development (HUD) that held notes on the property, quit-claim deeded the land to the city on March 11, 1997. The city has held the land since that time for potential residential development on the site. A single-family residential development is now being undertaken by MiraCit Development Corporation in partnership with the city. MiraCit will develop the project entitled Green View Estates, creating 30 single family houses using "green" building concepts to offer homebuyers a sustainable development opportunity with energy efficient homes with low maintenance costs.
Emergency action is requested in order to expedite the sale/transfer of the property.
FISCAL IMPACT: There is no impact on the current operating funds. There will be a $712,969.00 loss in accounts receivable for Rental Rehabilitation Loan Repayments.
Title
To authorize the Director of the Department of Development to release the recorded interest of the City of Columbus in the property located 1949 Woodland Avenue; and to declare an emergency.
Body
WHEREAS, the Department of Development has an outstanding loan balance totaling $712,969.00 to borrower NDC Corporation...
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