Explanation
BACKGROUND: The purpose of this ordinance is to authorize a "Construction Agreement for Designated Improvements" (the "Agreement") between the City of Columbus and Grange Mutual Casualty Company (the "Company"). This ordinance and the Agreement relate to (i) the project to be undertaken by the Company to build a parking garage and certain public infrastructure improvements in the City of Columbus (the "Designated Improvements"), (ii) Ordinance No. 1724-2005, as amended by Ordinance No. 1139-2007, and Ordinance No. 1141-2007, related to Ohio Revised Code ("R.C.") Section 5709.41 and the related agreements to establish R.C. Section 5709.41 tax increment financing in connection with the Designated Improvements, and (iii) Ordinance No. 1721-2005, Ordinance No. 1142-2007 and a related agreement to establish R.C. Section 5709.40(C) tax increment financing to provide funds for construction of Designated Improvements.
Ordinance No. 1724-2005, as amended, Ordinance No. 1721-2005, and Ordinance No. 1141-2007 provides that the City will construct or cause to be constructed the public infrastructure components of the Designated Improvements. To achieve cost and time efficiencies and to ensure proper coordination of construction, it is in the best interests of the City that the Company perform the construction of those public infrastructure improvements. Because of those benefits to the City, this ordinance authorizes a guaranteed maximum price contract with the Company under Section 186 of the Columbus city charter.
The proposed Agreement does not expose the City to financial risk, because payments by the City for the Designated Improvements costs are to be made only from payments in lieu of taxes received by the City in respect of the above-identified tax increment financing ordinances. The Company will provide the initial funding for construction of the Designated Improvements and payment of these costs by the City to reimburse the Company will be m...
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