Explanation
BACKGROUND: The purpose of this ordinance is to authorize the Mayor or the Director of Finance and Management to enter into a Memorandum of Understanding (MOU) with the Franklin County Board of Commissioners and the Franklin County Convention Facilities Authority (FCCFA) pertaining to the construction of a convention center hotel expansion. The MOU will describe the FCCFA’s intent to construct the hotel expansion, to be owned and financed by the FCCFA, with the support of Franklin County and the City of Columbus.
The terms of the MOU notwithstanding, the City’s financial commitment to the hotel expansion remains subject to authorization by Columbus City Council, the Franklin County Board of Commissioners, and the FCCFA Board of Directors through the adoption of appropriate legislation and the execution of a Cooperative Agreement among the parties.
The FCCFA presently owns a convention facility known as the “The Greater Columbus Convention Center” (Existing Convention Facility) and a 532 room full service hotel (Existing Hotel), providing meeting space, restaurants, and support facilities for Columbus visitors. Under an agreement with the Franklin County Board of Commissioners and the FCCFA to support the financing of the Existing Hotel, the City of Columbus pledged to transfer to the FCCFA an amount equal to the Hotel-Motel Excise Tax, as defined in Columbus City Code Section 371, generated by the Existing Hotel to pay debt service on bonds issued by the FCCFA.
Additionally, the City pledged to transfer to the FCCFA up to $1.4 million from the City of Columbus Parking Meter Fund to pay debt service on the Existing Hotel in the event the FCCFA and Franklin County were unable to meet their respective obligations. To date, performance of the Existing Hotel has surpassed projections, the revenue generated from the Existing Hotel has exceeded that required to meet debt service, and significant reserve funds have accrued. As such, the $1.4 million rema...
Click here for full text