Explanation
Background: This ordinance authorizes the Director of the Department of Development to enter into an agreement with Capitol South Community Urban Redevelopment Corporation (Capitol South) for the acquisition of the subordinate leasehold interest of TL-Columbus Associates, LLC (TL-Columbus) in the Centrum property adjacent to the City Center Mall, consisting of approximately 0.9418 acres of land, for the sum of $2,870,000.00 for the purpose of consolidating ownership in the property and to extinguish all interests subordinate to the prime lease to Capitol South thereby rendering the property more amenable to redevelopment. In 1989 the City leased the Centrum property to Capitol South for a term of 99 years. Capitol South in turn sub-leased the Centrum property to TL-Columbus. TL-Columbus fully prepaid to Capitol South the amount of rent due for the entire term of its sub-lease which remains in good standing. However, the parties have agreed to terminate the sub-leasehold relationship and for TL-Columbus to surrender possession of the entire Centrum property, as well as the City Center Mall site. Acquisition of the sub-leasehold interest in the Centrum site will facilitate redevelopment of the entire City Center Mall property.
Fiscal impact: The sum of $2,870,000.00 to acquire the sub-leasehold interest of TL-Columbus in the Centrum property is available from current unappropriated funds in the Capitol South Fund No. 481, and no monies from the General Fund or other source will be required for this purpose.
Title
To authorize the Director of the Department of Development to enter into agreement with the Capitol South Community Urban Redevelopment Corporation for the purpose of acquiring and causing the extinguishment of all subordinate leasehold estates in property known as the Centrum property from TL-Columbus Associates, LLC, to appropriate from the Capitol South Fund No. 481 and to authorize the expenditure therefrom for su...
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