Explanation
BACKGROUND: The purpose of this ordinance is to give the Director of the Department of Development the authority to enter into a Memorandum of Understanding (MOU) with the Franklin County Commissioners and the Franklin County Convention Facilities Authority (FCCFA). The MOU will describe the current plans and proposals of the City of Columbus, Franklin County and the FCCFA for funding a new hotel to be owned and financed by the FCCFA. The plans and proposals remain subject to authorization pursuant to the adoption of appropriate legislation by Columbus City Council, the Franklin County Commissioners and the Board of Directors of the FCCFA.
The City and County have worked closely with FCCFA to explore the potential of a new full service "headquarters" Hotel adjacent or near the current Greater Columbus Convention Center. As proposed by the FCCFA, the Hotel will be a 500-room, full-service hotel and is estimated to cost approximately $150 million to acquire, construct and equip.
Under the MOU, subject to adoption of a future ordinance(s), the City will pledge and transfer to the FCCFA an amount equal to all Hotel-Motel Excise Taxes (as defined in City Code Section 371) generated by the Hotel to the FCCFA to pay debt service on revenue obligations issued by the FCCFA to finance the Hotel for a period of up to 30 years or the life of the bonds for the project, whichever is greater.
In addition, subject to adoption of a future ordinance(s), the City will pledge to transfer to the FCCFA up to $1.4 million annually from increased parking revenue, from the entire city, derived from the 2008 increase in parking meter rates.
The City's agreement to provide the referenced financial assistance is contingent upon authorization pursuant to the adoption of appropriate legislation by Columbus City Council and additional financial support being provided by the FCCFA and County.
FISCAL IMPACT: There are no immediate costs to the City associated wit...
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