Explanation
This ordinance authorizes the issuance of Notes in conjunction with the "Development Agreement" between the City and Nationwide Arena, LLC. This ordinance compliments Ordinance No. 2202-98 which authorized such Agreement when revenue from the tax increment financing districts (TIF's) related to the sale of the Old Penn Site do not reach a level of 65% of the debt service on the related bonds. Nationwide Arena, LLC is required to make payments to the City equating to 65% of the bond's debt service requirement less the amount of TIF revenues. As indicated in the ordinance the aggregate principal amount of all such notes shall not exceed $9 million. The City has received payments in 2002, 2003, and 2004. These notes will be payable solely from future TIF revenues when such revenue exceed 65% of the required debt service on the bonds. Payments are likely to be made to the City for several more years.
This ordinance does not require the waiver of a second reading and can be considered a 30 day ordinance. The City Auditor recommends and requests passage of this ordinance.
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To authorize the issuance of Notes pursuant to the "Development Agreement" previously entered into between the City of Columbus and Nationwide Arena, LLC authorized by ordinance 2202-98. ( $9,000,000)
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WHEREAS, pursuant to Ordinance No. 2202-98, passed by this Council on July 27, 1998, the City of Columbus, Ohio (the "City") entered into that certain Capital Improvements Project Development and Reimbursement Agreement for Nationwide Arena District dated as of September 15, 1998 (the "Development Agreement") between the City and Nationwide Arena, LLC (the "Company") (as assignee of NWD Investments, LLC under the Development Agreement), providing for, among other things, the construction of certain public improvements (the "Public Improvements") within an area of the City bounded by Spring Street, Neil Avenue, I-670, and High Street (the "Arena District");
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