Title
To oppose passage of proposed petition initiated ordinance 3042-2013, which purports to prohibit appropriations for the purpose of financing Nationwide Arena and would undermine the continued vibrancy and development of the Arena District and the Short North.
Body
WHEREAS, Columbus City Council passed ordinance 1596-2011 on October 3, 2011, "to authorize the Mayor and/or Director of Finance and Management to enter into a Lease Agreement and Sublease Agreement on behalf of the City among Franklin County, the Franklin County Convention Facilities Authority, and the City, and any other necessary agreements, for the purpose of facilitating part of the financing necessary for the Franklin County Convention Facilities Authority to purchase, operate and maintain Nationwide Arena, and to approve loan arrangements with the State of Ohio and the issuance of arena lease revenue bonds by the Franklin County Convention Facilities Authority for such purpose"; and
WHEREAS, Council passed the ordinance to support the continued vitality and development of the Arena District and the Short North, successful commercial and residential neighborhoods that support thousands of jobs; contribute millions of dollars in economic activity to the local economy; attract tourists, visitors, and national events and conventions to our community; and generate income tax revenue that funds programs, services, and investments in neighborhoods throughout the entire city; and
WHEREAS, over $1 billion in public and private investment has transformed a formerly depressed downtown area into the Arena District, a thriving urban neighborhood that is now home to more than 1,000 residents, two million square feet of office space, more than 170 businesses and approximately 10,000 jobs; and
WHEREAS, the Arena District and Short North are vital components of downtown Columbus, an employment center that is home to approximately a quarter of all jobs in Columbus and generates more than $100 million annually in income tax revenue that supports programs and services in neighborhoods all over the city; and
WHEREAS, on October 11, 2012, a petition committee consisting of five electors of the City of Columbus filed a petition with the Auditor of the City of Columbus to allow for the circulation of petitions and gathering of signatures to forward to Columbus City Council a proposed ordinance that purports to "prohibit appropriations for the purpose of financing Nationwide Arena effective January 1, 2016, absent an electoral vote in favor of such appropriations"; and
WHEREAS, on December 5, 2013, the petition committee submitted to the City Clerk petitions containing 6,903 valid signatures - a validity rate of less than forty percent - to place the petition initiated ordinance before Columbus electors; and
WHEREAS, while determining the sufficiency of the number of valid signatures contained on the petitions, the City Clerk forwarded the petition language to the City Attorney for review; and
WHEREAS, the City Attorney identified several defects in the petitions, including the presence of an unauthorized, unrequired, and potentially misleading summary statement; failure to conform with Ohio Revised Code Section 731.33's requirement that specific notice language be printed in red at the top of each part petition; and numerous defects pertaining to the circulator information attached to the part petitions; and
WHEREAS, while the City Attorney believes that there are numerous significant legal defects in the proposed ordinance as drafted by the petitioners, it is his opinion that the amendment to ordinance 1596-2011 as proposed would be a nullity; that is, it would have no legal effect, as the terms of the lease cannot now be modified unilaterally by a city ordinance, regardless of whether such an ordinance is passed by Council or approved by the voters; and
WHEREAS, despite these defects with the petition as circulated and submitted, the City Clerk has limited discretion to determine whether the petition is, in fact, fatally flawed, and on the advice of the City Attorney, will leave the determination of deficiency to the Franklin County Board of Elections, thus forwarding the proposed petition initiated ordinance to Columbus City Council for consideration based on the merits of its content, despite significant concerns; and
WHEREAS, the City Clerk, having shown great deference to the petitioners, has forwarded the proposed petition initiated ordinance to Council for consideration, and Council has in turn asked for the City Auditor and the Mayor's administration to review the ordinance and offer counsel based on the content and potential impact of the proposed ordinance; and
WHEREAS, the City Auditor and various representatives of the Mayor's administration, including the Director of Finance and Management and Director of Development, have reviewed the proposed ordinance and have expressed concerns over its negative economic impact, including the elimination of jobs and associated income tax revenue, and a decline in visitor spending and bed tax receipts that fund vital neighborhood services throughout the city; and
WHEREAS, in light of these many concerns, Columbus City Council finds the proposed petition initiated ordinance to be an ill-conceived, ill-advised, and ultimately ineffectual piece of legislation that would, in the unlikely event that it withstood legal challenge, threaten the vibrancy and vitality of two of our city's strongest and most successful neighborhoods, at disastrous cost not only to Arena District and Short North residents, businesses, and visitors, but to the city as a whole; now, therefore
BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF COLUMBUS:
That the Mayor and City Council do hereby oppose passage of proposed petition initiated ordinance 3042-2013, which purports to prohibit appropriations for the purpose of financing Nationwide Arena and would undermine the continued vibrancy and development of the Arena District and the Short North.