Explanation
Background: This ordinance authorizes the Finance and Management Director to enter into a Real Estate agreement to sell city-owned property located at the northeast corner of Long and Fourth Street in downtown Columbus. The City owns fee title to approximately one (1) acre of property located at the northeast corner Long and Fourth Streets, Columbus Ohio, comprised of five parcels identified as Franklin County Auditor’s Tax Parcels 010-018897, 010-009278, 010-062052, 010-056033, and 010-035698. This property houses two buildings and a surface parking lot, commonly known as 174-182 E. Long Street. The Department of Finance and Management, Real Estate Management Office, has marketed this surplus property through RFPs and by a commercial real estate sale listing of the property on Xceligent, a commercial real estate listing service. The property went into contract in 2016 but the purchaser eventually withdrew. The City put the property back on the market, received a purchase offer, and has negotiated terms favorable to the City.
This ordinance authorizes the Director of Finance and Management to enter into a Real Estate Purchase and Sale Contract with Del Monte Holdings, LLC and to execute those documents necessary to grant fee simple title to the City’s real property situated at the northeast corner of Long and Fourth Streets, containing approximately one (1) acre of land and two buildings on five parcels identified as Franklin County Auditor’s Tax Parcels 010-018897, 010-009278, 010-062052, 010-056033, 010-035698 for consideration of Two Million Five Hundred Thousand Dollars ($2,500,000.00). The developer plans to renovate both buildings and construct a five-level parking garage on the existing surface parking lot. The six-story building renovation will include construction of 36-40 apartments.
Emergency action is requested in order to allow the transaction to proceed at the earliest possible date.
Fiscal Impact: The City will receive income in the amount of $2,500,000.00 from the proceeds of the sale of the real property.
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To authorize the Director of Finance and Management to execute those documents necessary to enter into a Real Estate Purchase and Sale Contract with Del Monte Holdings, LLC for the sale of city-owned property located at the northeast corner of Long and Fourth Streets and to execute those documents necessary to grant fee simple title; and to declare an emergency.
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WHEREAS, the City is the owner of that real property located at the northeast corner of Long and Fourth Streets comprised of five parcels identified as Franklin County Auditor’s Tax Parcels 010-018897, 010-009278, 010-062052, 010-056033, 010-035698; and
WHEREAS, the real property has been offered to the public for sale through Request For Purchase Proposals and advertised by a property sale listing on Xceligent, a commercial real estate listing service; and
WHEREAS, the City received a purchase offer and after negotiation of terms of sale to meet the City’s interest, the City now desires to enter into a real estate contract with Del Monte Holdings, LLC for the sale of one (1) acre of that City-owned property located at the northeast corner of Long and Fourth Streets, in consideration of the purchase price of Two Million Five Hundred Thousand Dollars ($2,500,000.00); and
WHEREAS, an emergency exists in the usual daily operation of the Finance and Management Department in that it is immediately necessary to authorize the Director to enter into a real estate purchase and sale contract with Del Monte Holdings, LLC for the sale of that city-owned real property located at the northeast corner Long and Fourth Streets and to execute a quitclaim deed and any ancillary documents necessary to grant fee simple title to that same real property, thereby preserving the public health, peace, property, safety and welfare; now, therefore,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Finance and Management be and hereby is authorized to execute those documents necessary, on behalf of the City of Columbus, as approved by the Department of Law, Division of Real Estate, to enter into a real estate contract with Del Monte Holdings, LLC for the sale of that city-owned property identified as Franklin County Auditor’s Tax Parcels 010-018897, 010-009278, 010-062052, 010-056033, 010-035698, and to execute a quitclaim deed and any ancillary documents necessary to grant fee simple title to that same real property.
SECTION 2. That the proceeds received by the City from the sale of the property shall be deposited in Fund 7748, General Permanent Improvement Fund.
SECTION 3. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.