Explanation
Background: This legislation authorizes the Director of the Department of Development (the “Director”) to enter into an Economic Development Agreement (the “EDA”) with 477 Columbus LLC (the “Developer”). The Developer is proposing an approximately $100 million mixed use commercial office, residential, and retail development on the former Hoster Brewery site located at 477 South Front Street and currently identified as Franklin County Auditor tax parcel identification numbers: 010-022715-00, 010-022713-00, 010-063725-00, 010-026058-00, and 010-022716-00 (the “Project Site”).
The development is being undertaken as a Public-Private Partnership (P3) between the City and the Developer as a signature project for the Brewery District. The EDA will outline the mutual commitments of the City and Developer and memorialize their understandings and agreements with respect to such cooperation as it relates to the provision of certain City financial incentives being offered to the Developer conditioned upon the Developer meeting certain City policy goals.
The Developer will construct +/-105,000 square feet of Class A commercial office space, 42 apartment units, 32,000 square feet of restaurant/bar space, 26,538 square feet of event space and a 350-space structured parking garage (the “Project”). In lieu of allocating twenty percent (20%) of the apartment units to inclusive housing, the Developer will make a payment in lieu totaling $80,000 or $10,000 each for eight units. The Developer has expressed its intention to make good faith efforts to employ Minority Owned Business Enterprises and Women Owned Business Enterprises for the performance of a minimum of 30% of the work that is funded in whole or in part by public funds. The Developer will dedicate a minimum of 200 spaces in the structured parking garage to public use. To improve and provide access to the structured parking garage, the Developer will manage the design of improvements to South 2nd Street, which shall include an extension of the street to Liberty Street.
The Department of Development will submit an application to the Franklin County Auditor for a Community Reinvestment Area abatement for each Project structure that meets the terms set forth in the Brewers’ District Community Reinvestment Area (the “CRA”). The Department will submit for City Council consideration, legislation authorizing:
• The Director to enter into a Contribution Agreement authorizing a garage contribution of $10,000.00 for each of the public parking spaces in the structured parking garage, in a total amount not-to-exceed $2,000,000.00.
• The City’s contribution towards costs to design and construct improvements to South 2nd Street and West Fulton Street.
• An amendment to the Brewery I and Brewery II Tax Increment Financing areas to remove the Project Site parcels and subsequent legislation to authorize a new 30-year, non-school tax increment financing (“New TIF”) to support financing of the public spaces in the Garage and certain other public improvements.
Fiscal Impact: There is no fiscal impact for this legislation.
Emergency Justification: Emergency legislation is necessary to authorize the Director of the Department of Development to enter into the EDA with the Developer to allow the Developer to maintain its project schedule and begin design and construction as soon as possible on the private and public improvements.
Title
To authorize the Director of the Department of Development to enter into an Economic Development Agreement with 477 Columbus LLC to outline the plans and certain commitments of the parties concerning the proposed development of the former Hoster Brewery site generally located at 477 South Front Street in the Brewery District; and to declare an emergency.
Body
WHEREAS, 477 Columbus LLC (the “Developer”) is proposing an approximately $100 million mixed-use development on the former Hoster Brewery site located at 477 South Front Street and currently identified as Franklin County Auditor tax parcel identification numbers: 010-022715-00, 010-022713-00, 010-063725-00, 010-026058-00, and 010-022716-00 (the “Project Site”); and
WHEREAS, the Developer will construct +/-105,000 square feet of Class A commercial office space, 42 apartment units, 32,000 square feet of restaurant/bar space, 26,538 square feet of event space and a 350-space structured parking garage on the Project Site (the “Project”); and
WHEREAS, the Project is being undertaken as a Public-Private Partnership (P3) between the City and the Developer as a signature project for the Brewery District that will include commitments toward inclusive housing, public parking, and public infrastructure improvements as well as the Developer's intention to utilize Minority Owned Business Enterprises and Women Owned Enterprises; and
WHEREAS, the Parties desire to memorialize their understanding and agreements with respect to cooperation in developing the Project Site; and
WHEREAS, the City’s obligation and agreement to provide financial assistance as set forth herein is contingent upon the subsequent adoption of appropriate legislation by Columbus City Council authorizing such assistance; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Development in that it is necessary to authorize the Director to proceed as quickly as possible with the execution of said Economic Development Agreement described herein to allow the Developer to maintain its project schedule all for the preservation of the public health, peace, safety and welfare without delay; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Director of the Department of Development, or his designee, on behalf of the City is hereby authorized to enter into an Economic Development Agreement presently on file with the Department, along with any changes or amendments thereto not inconsistent with this Ordinance and not substantially adverse to the City and which shall be approved by the Director and the City Attorney, provided that the approval of such changes and amendments thereto, and the character of those changes and amendments not being substantially adverse to the City, shall be evidenced conclusively by the execution and delivery of the amended Economic Development Agreement with 477 Columbus LLC to outline the plans and certain commitments of the parties relating to the proposed development of the real property currently known as Franklin County Auditor tax parcel ID numbers: 010-022715-00, 010-022713-00, 010-063725-00, 010-026058-00, and 010-022716-00 located in the Brewery District area of Columbus.
Section 2. That for 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.