Explanation
1. BACKGROUND
This legislation authorizes the Director of the Department of Development to reimburse NWD Investments, LLC (“NWD”) $5,000,000.00 in connection with public infrastructure improvements located along Vine Street and Goodale Boulevard on the east and west side of Neil Avenue.
The City and NWD are engaged in a public-private partnership (P3) to coordinate the design and construction of public infrastructure improvements necessary to support new mixed-use development projects in the Arena District (the “Arena District Improvements”). On October 31, 2019, the City and NWD entered into both an Economic Development Agreement (the “EDA”) and a subsequent Amended and Restated TIF Reimbursement Agreement (the “TIF Agreement”), both pursuant to Ordinance No. 2043-2019 passed by Council on July 22, 2019. In the EDA and TIF Agreement, the City committed to invest $20 million from the City’s capital improvement budget (the “Public Infrastructure Commitment”) toward the costs of the Arena District Improvements. Both the EDA and TIF Agreement contemplated that the Department of Development would endeavor to meet the Public Infrastructure Commitment by submitting for City Council consideration annual requests of $5 million in the City’s capital improvement budget over a period of four consecutive years.
This legislation authorizes the expenditure of the first $5 million of the Public Infrastructure Commitment in the 2021 capital improvement budget approved by City Council with the passage of Ordinance 2707-2021 on November 1, 2021. The first $5 million will be used to reimburse NWD for the Arena District Improvements associated with the Hamilton Parker Phase 1 site redevelopment, a portion of which was completed in 2021 and included a new 130,000 square foot office building and 600-space structured parking garage. The City is authorized by Ordinance 2043-2021, as amended by Ordinance 2932-2021, passed by Council on December 6, 2021, to execute subsequ...
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