Explanation
Background: Since the City purchased the former Northland Mall property in 2003 the City has been working with Columbus Urban Growth Corporation ("CUGC") to redevelop the property. In February 2004, as part of that redevelopment by CUGC, the City sold approximately 10 acres of the former Lazarus property to Retail Ventures, Inc. for its new corporate headquarters. Contemporaneously with that sale, the City and CUGC entered into a formal lease agreement for the remaining 75 acres. The lease permitted CUGC to sublease portions of Northland property for redevelopment or to exercise options to take title of portions where CUGC was able to find buyers. The lease provisions for rent and option to purchase by CUGC, were designed over the term of the lease to reimburse the City its basis (cost) in the Northland property. Any excess proceeds over that basis were to be used by CUGC for future site redevelopment costs and expenses. CUGC has several redevelopment proposals for the sale of portions of Northland. These include two out lots on Morse and the old movie theater. Notwithstanding the existing lease provisions, which set forth payment to the City on the sale of property, in order to meet the current and projected short terms redevelopment costs at Northland, it is requested that the entire proceeds from the sales of these parcels in the estimated amount of $1,050,000 be retained by CUGC and used to cover such redevelopment costs and expenses as set forth in this ordinance. The release of these sales from the lease provision shall not otherwise effect CUGC overall obligation to reimburse the City for its acquisition costs.
Fiscal Impact: No funding is required for this legislation.
Title
To authorize the Director of Development to convey to the Columbus Urban Growth Corporation by quit claim deed certain specified portions of City-owned property formerly known as Northland Mall under the terms and conditions of this ordinance; and to...
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