Explanation
Background: The City of Columbus, Ohio (the “City”) has been engaged in cooperative efforts with the County of Franklin, Ohio (the “County”), the State of Ohio (the “State”) and the Franklin County Convention Facilities Authority (“CFA”) to facilitate the CFA’s prior acquisition and continued operation and maintenance of Nationwide Arena (the “Arena”), located in the City’s Arena District. City Council passed Ordinance No. 1569-2011 on October 3, 2011, to execute a Lease Agreement and a Sublease Agreement dated February 1, 2012 between the City, County, and CFA. Under the Lease Agreement and Sublease Agreement, the City and County each make annual rent payments equal to a defined percentage of Casino Tax Revenues. The annual rent payments support operations, capital improvements, and debt service obligations at the Arena.
The 2022 Downtown Columbus Strategic Plan, adopted by City Council under Resolution No. 0164X-2022, recommends reinforcing Downtown as the “cultural heart of the City” by developing and promoting clear differentiators for Downtown including its role as a cultural, sports, and entertainment destination. As the Arena begins its 25th year of operations, it is apparent to the City, County, and CFA that the Arena’s capital needs exceed the current allocation of Casino Tax Revenues. Recognizing the Arena’s impact on the economic viability of the Arena District, Downtown, and all of Central Ohio, the City, County, and CFA desire to further their cooperative relationship to share in the cost of maintaining and improving the Arena. This ordinance will authorize an Operating and Maintenance Agreement by and among the City, County, and CFA (the “O&M Agreement”). Pursuant to that new O&M Agreement and additional legislation submitted for City Council consideration, the City intends to and will contribute a percentage of its Casino Tax Revenues based upon a comparable commitment by the County, which will contribute a percentage of the County’s ...
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