Explanation
BACKGROUND: This ordinance seeks authorization to: 1) amend Ordinances 1222-2004 and 1116-2008 to state that the City of Columbus will construct the Morse Road Widening from Trellis Lane/Underwood Farms Boulevard to a point approximately 1,400’ feet west of Johnstown Road; and 2) terminate the Reimbursement Agreement between the City and The New Albany Company, LLC dated December 22, 2008.
Ordinance 1187-2007 authorized the City, through the Director of the Department of Public Service, to enter into a Reimbursement Agreement with The New Albany Company, LLC (NACO) and Lifestyle Communities, Ltd. (Lifestyle). The Reimbursement Agreement was signed on December 22, 2008. Under the terms of the reimbursement agreement, the City of Columbus agreed to pay NACO an amount not-to-exceed $2,428,785.00 for the Morse Road Widening project.
In 2010, NACO notified the City of its inability to fulfill the Morse Road Widening obligations outlined in the Reimbursement Agreement. Subsequently, the City and NACO executed an Instrument of Payment and Termination Agreement on December 23, 2011 that contains conditions that once met, will terminate the Reimbursement Agreement and release the Preserve TIF from any further funding claims by NACO.
The Instrument of Payment and Termination Agreement shall terminate upon the satisfaction of the following conditions:
1) Payment to NACO of $722,815.66 for costs associated with the Thompson Road Widening, 2006 US 62 Roundabout Contribution, preliminary engineering fees, legal fees related to the Preserve TIF Ordinance and Agreement, and legal fees for the Instrument of Payment and Termination Agreement.
2) Payment to the Franklin County Engineer of $700,000.00 for 2011 and 2012 US 62 Roundabout Contribution.
3) Release of NACO’s obligation to provide the Morse Road Letter of Credit and return the undrawn Letter of Credit to NACO.
4) Appropriation of funds in the amount of $3.5 million for the purpose of constructing the Mors...
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