Explanation
Background: In 2004, the City, as lessee, and The RiverSouth Authority (the “Authority”), as lessor, entered into a Master Lease of real property underlying the Lazarus Building on South High Street. The lease rental payments under this Master Lease and a First Suppmental Lease supported the issuance by the Authority of its $37,870,000 RiverSouth Area Redevelopment Bonds, 2004 Series A (the “2004 Bonds”), to pay for the cost of acquisition of the former Lazarus properties and some initial improvements to the Lazarus Building. In 2005, a Second Supplemental Lease was entered into to support the issuance by Authority of its $42,850,000 RiverSouth Area Redevelopment Bonds, 2005 Series A (the “2005 Bonds”), to pay for additional improvements in the RiverSouth area and for additional improvements to the Lazarus Building to accommodate new tenants including the Ohio Department of Jobs and Family Services. In 2012, interest rates for bonds were at a level which made it advantageous to refund a portion of the then outstanding 2004 Bonds. Current interest rates are now at a level that may make it financially advantageous for the Authority to refund the remaining outstanding 2004 Bonds and a portion of the outstanding 2005 Bonds with an issue of RiverSouth Area Redevelopment Refunding Bonds, 2014 Series A. This proposed refunding, which requires the City to enter into a Fourth Supplemental Lease, will financially benefit the City by lowering its annual rental payments for the remaining life of the refunding Bonds.
Title
To authorize the Director of Development to enter into a Fourth Supplemental Lease Agreement with The RiverSouth Authority in connection with the refunding of bonds previously issued by The RiverSouth Authority to redevelop and revitalize the RiverSouth Area and the surrounding area, and to declare an emergency.
Body
WHEREAS, to further the redevelopment and revitalization of the RiverSouth Area the Columbus Downtown Development Corpora...
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