Explanation
BACKGROUND:
Capitol South Community Urban Redevelopment Corporation ("Capitol South") has proposed a project (the "Columbus Commons Project") which would result in the demolition of the Columbus City Center Mall in Downtown Columbus and the construction of a park, to be known as "Columbus Commons," on the site of the Mall. In order to carry out the Columbus Commons Project, Capitol South has requested that the City grant several approvals pursuant to the following agreements between the City and Capitol South: (a) the July 30, 2001 Operative Agreement (the "Operative Agreement"), and (b) a series of leases (the "Parking Garage Leases") through which Capitol South owns the parking garage located on the block bounded by Main Street, High Street, Rich Street and Third Street in Downtown Columbus (the "Parking Garage"), originally constructed in order to serve the Columbus City Center Mall.
The approvals requested by Capitol South would allow Capitol South to take several steps that are necessary in order to allow Capitol South to carry out the Columbus Commons Project.
First, the approvals would allow Capitol South to enter into a financing arrangement with The Huntington National Bank. This financing arrangement would (a) provide partial funding for the Columbus Commons Project, and (b) enable Capitol South to cause the release of a mortgage that currently encumbers both the Parking Garages and the rest of the site of the Columbus Commons Project. The existing mortgage would be replaced by a mortgage in favor of The Huntington National Bank (the "Huntington Mortgage"), covering Capitol South's interests in the Parking Garage Leases.
Second, the approvals would allow Capitol South to use a portion of the "Downtown Housing Incentive Funds" (as defined in the Operative Agreement), not to exceed $2.7 million, for the Columbus Commons Project and other projects within the former City Center redevelopment area.
Last, the approvals wou...
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