e e
Mr Marcelino yes Mr hurle here Miss B
Miss sad here miss Lamy here Mr Markham
here and Mr Silverman here thank you
please rise and join me for the Pledge
of
Allegiance United States of
America
stand
andice all right Mr City attorney I'm
going to turn over our second reading of
our ordinance to you so it is a second
reading of ordinance 33-24 approving a
tax increment financing and Cooperative
agreement with the Columbus Franklin
County Finance Authority the city of
Bexley Ohio and CAG Bexley Apartments
LLC for the issuance of bonds by the
Columbus Franklin County Finance
Authority in support of the CAG Bexley
Apartments LLC pledging net service
payments received by the city from the
Trinity apartment's Tiff for the payment
of bonds to be issued by the Columbus
Franklin County Finance Authority
pursuant to that Cooperative agreement
and declaring an emergency introduced by
Miss
zad yes I would like to welcome our
special guest this evening to speak to
us on behalf of ordinance
33-24 Joshua Huber he's a managing
director at D Perna and Company and
Joshua if you would like to introduce um
your partner who's here with you as
well come on up to the mic and you can
turn it
onon so we can with the per and company
thank you for having me tonight um I was
told by Mr Cass that I would not need to
prepare a presentation but would answer
questions so I'm gonna blame him uh if
you were looking for a presentation
tonight uh but we are excited about the
project we serve as an adviser to
Continental uh we help them put together
the
uh Tiff bonds um that will be issued by
the Columbus Franken County Finance
Authority uh we are still targeting um a
closing for those bonds uh end of this
month which is uh why this meeting is
important uh
tonight um uh the principal amount of
the bonds will be $15 million paying
for uh mostly uh the parking garage and
some on and offsite public
infrastructure
improvements um
they are being issued on a 30-year term
to match up with uh this this Tiff term
of 30 years as well uh and I'm happy to
answer any questions this is Greg
Daniels who we do not work together we
work yeah we're not at the same firm but
we work together uh you know in the
development World project Josiah and
Greg thank you so much for being here
Greg Daniels is our development legal
council who's been helping us through
this and also the Franklin County
Finance Authority um Megan has prepared
a tiff presentation to talk through the
Ord if that works and Josiah and Greg
are here to Pitch hit as you ask us
technical curveball questions uh that
where we need to call in the big guns so
if that is That's Cool J I feel free to
have a seat and Megan uh floor is yours
fantastic thank you mayor um so just
wanted to make sure first of all that
Council received the memo um to kind of
help explain the difference between the
Tiff ordinance proposed to you for
consideration um later yet this month um
versus what was adopted last year by way
of ordinance 1923 so I'm just going to
start there um so as you are aware last
year um city council did adopt an
ordinance that Tiff the parcel um that
is now one combined parcel at the time
it was three um and what that did is it
made it exempt from um real property tax
for improvements to the parcel it
created what's known as a tax increment
financing fund within the city um so
that it is in our chart of accounts um
to which deposits from the developer
will be made um in lie of taxes paid um
and what that does is generate um a pot
of money if you will to go towards
public infrastructure improvements um so
all of that was approved last year the
terms on that were 30 years 100%
abatement there was also as part of that
ordinance a school um Revenue sharing
agreement made so when you do Tiff a
pural it does mean that there could be
loss of Revenue by way of taxes to other
jurisdictions within our taxiing
Authority and so one of those would be
the Bexley City School District and so
wisely as part of that um Arrangement
last year is part of that agreement
there was a pilot um some people to say
that whole acronym out that's um payment
in Li of taxes pilot so there's a pilot
payment of $56,000 annually um and we
can get into this and I'm sure both
Josiah and Greg could help kind of
explain this more that's a floor not a
ceiling um and in fact the way that the
bond financing is structured we would
anticipate that pot to grow
significantly um by out year 2031 you
could anticipate more like 200,000 all
the way up to something like 1.2 million
by the time the um Bond retires in 2051
or 2051 I'm saying that now I'm looking
down at my notes
2055 so with that um that's what was
addressed last year so what is actually
coming before you now um that ordinance
1923 actually stated that at a late
later date a new piece of legislation
would be brought back to you to
establish a payment um structure to a
bond issuer um from that Tiff fund um
and so that's where we are today right
so um Greg Daniels represents both the
city of Bexley and the Columbus Franklin
County Finance Authority who would be
issuing bonds to Continental which in
all the lingal jargon you're seeing
referred to as KAG Bexley or just KAG
cagd um and so in that capacity we would
then by way of this new ordinance pay
back the Columbus Franklin County
Finance auor Authority um for a $15
million Bond through that Tiff fund
established by developer fees um so if
you're lost that's okay but essentially
it's money that is going to support the
public infrastructure improvements on
that parcel specifically generated from
its own deferred tax revenue um and so
that's where we are now um the terms um
should look similar you know the 30
years and 100% that's what was already
adopted um the actual money will go to
support a number of public
infrastructure improvements namely a
parking garage and so we can kind of get
into the weeds because I know that
parking was a question I've already seen
come across an email so we can address
that as well um and we can expect um for
there to be healthy coverage so I think
at the last uh council meeting there is
a question related to what happens if um
the bond if the revenue from
the um Tiff actually overproduces well
that's a great thing for the school
district um the way we wrote the
ordinance 1923 anything above and beyond
the annual debt payment um on the bond
after Associated fees and after debt
Reserve fund has accumulated actually
goes to the Bexley City School District
so that would be fantastic news um for
everybody involved um and then beyond
that they are able to retire the bond
sooner than the 30-year period but then
that Tiff Revenue would continue to
collect um through the end of the
30-year term and so that money would
also go to the Bexley City School
District um and in the case that the
bond um I'm sorry that the Tiff under
produces that is the sole obligation of
the developer the city has no obligation
to make the Columbus Franklin County
Finance Authority whole that would rest
solely with
Continental so with that I'm sure there
are questions and I hope I didn't fly
through that too
quickly who's got uh questions um oh Mr
Markham uh first of all I want to thank
you I I think you're do the Thanks For
Preparing these documents uh the memo is
fantastic the tax uh productivity
analysis I also really appreciate uh the
those numbers are nice and easy to read
uh I can't take credit for that part but
these men's ch whoever deserves credit
for that I want to give it to them there
you go there you go team
effort um I having spent the last year
and a half on the land use uh strategy
committee uh you know we've walked
around beex we've talked to developers
we've looked at a lot of things and
something that comes up all the time is
parking so uh you know this is something
I know um super important for us will
become even more and more important um
I'm not sure I know that we have the
number of residential units here do we
have an idea of the number of parking
spaces the yeah it's 232 residential
units I believe it's 270 spaces within
the garage itself um and there's an
additional 50 spaces behind the um the
the current lot that exists there would
be retained and us as parking um and
before um and if there's to that
question great but I would ask um that
Mr Daniels real quickly explain that um
what what is required as part of the
Tiff process um to remain open to the
public good evening everyone how you
doing good to see everyone welcome um so
as Megan alluded to as part of the Tiff
and as part of the bonds that are being
issued uh a large number of them are
going to have to stay open to the public
uh throughout the term of the Bond so
that's 30 plus years um we are still
finalizing the analysis it's a tax code
analysis uh required by the IRS code
we're probably going to end up having
between 170 and
180ish parking spaces that the IRS code
is going to require to stay open to the
public and that's the term of the bonds
that's 30 plus years is there any way
that I'm can I continue asking this
question is there any way that is um we
have an iron agreement or would be I
assume would not be designated that way
how these uh spaces would be allocated
for instance when we say 170 180 out of
the 270 then would that imply that maybe
100 of the spaces would be maybe
protected or isolated from the public
unable to be used maybe overflow the for
the rest might be available to the
residents if they wanted how does that
Dynamic work so my understanding that
the developer is requesting
approximately 90 to 100 spaces could be
reserved for apartment residents so
still be in the same garage but signs
would be hung up Reserve parking no one
else can park there not open to the
public all right and then this question
still continues um what so the agreement
is the agreement for the parking garage
and those spaces and how that is
allocated does that uh is it concurrent
with the Tiff agreement does it survive
the Tiff agreement is there a point
where uh those could be taken back or
revised I am happy to jump in here
councilman um Markham um so there's
overlapping um things at play here so
the Tiff um is kind of the uh Beall for
the term of the T for the 30 years and
the 174 spaces Mr Daniels referenced
would be in effect for that term after
that we would then defer to the easement
which um we know that is you know tabled
currently as an ordinance because we're
still working out the terms of that
easement um with Continental um the
things that that would address would be
um what we're seeing as reciprocal
parking so what would be open to their
tenants and users in the Bexley Square
parking lot and what would be open to
our users in their garage um maintenance
of the Beckley Square Drive aisles
recognizing that this would likely be
the main point of access through the
signalized intersection and through
those Drive ises um and so we're still
working out the terms of that um but
that is where we get into the
nitty-gritty of saying we want 70 spaces
on the most easterly side of that lot to
be free unreserved open to anybody who's
using either facility um they've asked
for some you know caveats such as not
allowing um retail employee parking and
that and some things that we're still
massaging out with them so once we get
that ironed out with their legal council
you'll see all of those terms come back
to council and that will be contained in
the agreement that we're going to be
looking at that will go along with the
Tiff then actually no so that is a
separate ordinance um for the easan
agreement specifically okay but if I
could further layer on top of that real
quickly not to further confuse
things the numbers that you're referring
to are the IRS requirement for it to
qualify as a public Improvement so
that's a that's a simple Cal well maybe
not a simple calculation it is a
calculation yeah um Council does have
the right to require more than that in
the Tiff itself I think that the
important thing that we need to think
through when we're having these
concurrent conversations with the
easement which is a separate legal
matter entirely and and it could be more
rigorous than the Tiff um is that there
is a private development which does have
Market pressures on it in terms of what
residents might expect and their need to
lease apartment spaces so those all
sorts of things that we're balancing the
Tiff could be more rigorous than the
easement easement could be more rigorous
than the Tiff the two will basically the
most rigorous one during the 30-year
period we will take precedent and then
after that the easement is the only
thing left over
okay hang hang on a second Mr MC Mr
Hurley has had his hand up as well were
you following up on what Mr Markham
asked how' the auditor go I have a point
of clar yeah what what I wanted because
you talked through the these independent
yet related agreements I had an
understanding that the reason why we're
meeting today is because um there's an
intent to to have this
financed um following the next the next
city council meeting and it was my
understanding as well that the lending
Partners
were equally interested in the Tiff
agreement being in place as well as the
Cooperative agreement and the ease M so
because I I I to your point the most
restrictive agreement is what is of
interest to the lenders so or do I have
a misunderstanding here because I I
think what I why I understood is that we
would be needing to review all of these
documents at the same time um in order
to accomplish the the objective which is
to to help get this financing in place
so we were under the same understanding
uh we did have conversation this week
with the uh in-house Council for the
developer um thus far the easement
conversation has not been a conversation
that's been tied up in financing
financing has been concerned with the
Tiff um they are separate this is an
unusual situation because we are
adjacent property owners and and and
potentially and cooperating on this um
but that is what was represented to us
or a few days ago um Tiff I believe is
necessary for closing the financing um
the easement can continue to be
discussed and we don't anticipate that
we're going to have a finalized easement
next Tuesday we think that next Tuesday
we are hoping for and pushing
for finalized or near finalized terms
that the developer and our best efforts
internally have arrived at for that
discussion but that can continue to be
discussed I think past next Tuesday okay
and then just and again because I I want
to make sure I understand this
the perhaps the most meaningful document
or city council when it comes to how
we're going to share this space and the
arrangement between the city of XLE and
of the apartment is the easement
document um because that that's really
around how many sites parking SE are
going to be made available so I just I
want to make sure at least understand
and city council understands how these
two documents or or these two ordinances
inter relate and where the the real meat
is going to be yeah a lot of the meat so
that's great Point um a lot of the meat
is going to be on the Tiff for the first
30 years the easement is probably the
way that I think we're talking about it
we're going to find that the easement is
what we're going to care about in year
31 and Beyond um of course we'll all be
around year 31 and Beyond but we're in
good faith is if you know we want to set
up this site this site for future
success there's a lot I mean the access
is incredibly important cross access for
parking we want to make sure that the
city hall and the adjacent shopping
center remains
viable the property under next door
wants to make sure that you know we
don't turn around and build a 400 unit
apartment complex and then take up all
their parking so there's a lot of
conversation in there the the the
interest that's being discussed in the
Tiff ordinance is the public interest
for the public parking associated with
the public funds being used for that
public parking um it does not stop
Council and the cicu the two interested
Property Owners from continuing to look
at different
terms um as it relates to maintenance of
the Cross access areas and the parking
um past
20 uh
54 uh through that easement document so
there is some ven there but they are
kind of different purposes and if I can
add to if there's concern and I'm not
suggesting that there is but if there
was concern that proceeding with one
without knowing exactly the terms of the
other um Continental by way of their
Board of zoning and planning approval is
not allowed to start going vertical
until the easement is ined and adopted
by this board yeah um so we don't give
anything up um we just help them keep
their project on track the more that the
lender's Council listens to this the
more it's probably going to become an
underwriting criteria
I would think if I were
them piggybacking on this so I'm look I
have the uh the Tiff Bond model document
up uh total project cost 19.5 million if
I'm reading this right the financing is
going to cover 14.7 million and then the
developer is covering 4.7 million is
that yeah I have those numbers in front
of me but they may fluctuate a little
bit so so then the public and private
spacing allocation in this document is
really just reflecting the percentage
that each side is Right financing piece
yeah you're starting to get into some of
the math that goes on with the IRS
allocations for these but yeah and is it
would it be a fair way to look at this
to
say the IRS is going to come in and
roughly say Okay 17 spaces must be
public because that's the public that's
the tax exempt Bond piece of it is that
kind of like a floor we have to be
mindful of as we talk about the easement
other things that there isn't a scenario
where we could see more more than 100
more than I guess 90 or so spaces for
solely private use because then I think
we would get in trouble with the IRS is
that yeah easement you can do that as is
explaining during the financing period
okay the more restrictive covenants are
going to apply okay so if it's 175
spaces that have to be public for
financing purposes during those 30 years
that's what's going to happen and that's
that's what I'm more concerned about is
really that 30-year period because I
think that's what people are going to be
interested in um and then just ch thank
you for that and then just changing
gears for a sec um on the draft Tiff
Cooperative agreement exhibit a the
project description and final project
project cost budget is not included will
we see at least a draft of that
before requested from the developer um I
don't knowe they're pretty close on both
of those right
now on that just so that be looking for
it
um I know they
were latest
round
don't yeah and more just like I'm more I
guess interested in scope of work I mean
I think a lot of people assume this is
for the parking garage but it seems like
maybe there are some other smaller
pieces to it that Encompass the public
project or public infrastructure
Improvement component of this I just I'd
like to know I mean I'm I'm you know
generally supportive of this I just
would like to have the information just
so we have it right yeah and that's
something that the rest of the financing
working group has requested from the
developer um no one's going to close on
the Tiff bonds before all that's
finalized and we really can't because
some of the costs for those other
improvements L into the math for the
parking spaces we just talked about and
if those go up or down that could change
the percentage of parking spaces as well
um and question for the mayor and and
director uh director Meyer the schools
don't have any more action in this right
they've they've adopted their agreement
in November so okay that's correct
perfect thank you thank you I saw a hand
over here Mr Sil
Silverman I just wanted to get some
clarification on 1923 that was passed
that was the initial Tiff for the parcel
at the time the one we're reviewing
today is what will fund the bonds for
that ordinance so this is this is the
financial mechanism that moves forward
forward what was agreed upon in 1923 and
was the reason that it was waited to
release status because they were
figuring out the amounts so I guess what
happened from 1923 to lead up to this
3324 was it
Financial numbers that needed to get
figured out um be able to be able to
issue the bonds why why do we have to
have the delay it was a lot of it was a
lot of things the project was still
being finalized it was still going
through Zone approvals the developer was
still determining the type of financing
they would pursue and so that then
actually led to a different type of
ordinance than you would have had if it
was a different type of
financing um and uh I remember quite
clearly actually councilman Markham at
the time when 1923 was passed saying you
know well we're not going to be asked to
actually approve this until we know that
it's been through Bap and we know
exactly what we're looking at and that
was because at the time it was still a
very moving Target is there anything to
add to that Greg yeah I was just going
to say that 1923 was really it I think
of it as the ordinance by which we're
collecting the Tiff money this is the
ordinance by which we're spending the
Tiff money and we're doing this now
because we know so much more about the
project we thought about doing it with
1923 but we didn't know it
often we couldn't issue these bonds
that's correct the city would still
collect the Tiff money but but the
project wouldn't happen without spending
the Tiff money
so already um 1923 initiated the process
by which the developer pays Us in lie of
taxes um so that's already funding this
this is clearing the transaction between
us and the Columbus Franklin County
Finance Authority to then give them
those dollars based on bug on repayment
schedules does that make sense ites and
it's a little chicken and egg because
the developer would say like we're not
going to build this without the Tiff
funding to back it up so what would now
be coming into the Tiff is the land
value only prior to development of the
uh improvements also to remind Council
this was a tax exempt parcel three
Parcels prior to this so for the first
time ever in many decades at least U it
is collecting
taxes I had a couple questions Megan I
think they might be for you or they
might be for Mr Daniel
is there anything unusual about the pay
structure to the Bond issuer as
presented in this
ordinance now this is actually a very
standard structure for these sorts of
Tiff deals and really the city's only
obligation is to turn the money over as
it comes in to fund the bonds as
presented no other obligations the city
does have rights to approve the
dispersements of the bond proceeds so
you there's mechanisms built in here to
make sure the money is getting spent the
right way all of which is standard that
the Finance Authority works with cities
around the county and does several of
these a year so we get the benefit of a
public parking garage and we don't have
any of the
financial burdens or right um
responsibilities that might otherwise
come with that it's all on the developer
for that all the operation and
maintenance and the only funding
responsibility is these bonds solely
from the Tiff okay and uh Mr Ruben what
was the date of the
closing we're targeting October 17th
currently with an outside Target of the
end of the month okay um because that's
my understanding if this is a second
reading uh we we did do a special
meeting for this um next Tuesday would
be the third reading U which obviously
coincides with your your closing dat I
want to make sure I clarified that um I
had one other question who's responsible
for maintenance of the garage it's going
to get more use than normal because
you've got residents that are going to
use it more members of the public are
come and going who's responsible for the
upkeep and maintenance of a garage
that's going to deteriorate faster other
than the president of council yes
okay yeah that's the developer so as
part of the trans action between the
Finance Authority and the developer
there's a series of agreements included
in that is what's called an operation
and maintenance agreement that requires
the developer to take care of all the
omm uh to operate the garage with the
the right split of reserved and
unreserve public spaces everything we've
been talking about is wrapped up in
those agreements so again it's it's all
on the developer um really it's just the
Tiff that the public parties are great
contrib and if I could add to that as
part of the easement we are working out
um an arrangement for the ongoing
maintenance of this lot as well which
Continental has already um at least in
word agreed to and we we'll bring that
to Council in that
easen great thank you any other
questions from Council Mr Marcelina I
just want to make a statement I won't be
able to be here uh at the next vote and
whatnot so if I uh since I can't vote
I'll likely send a statement or
something along with my thoughts but
just to put it out there into the e so
okay any other oh Mr Markham yeah I I
guess I'm just going to follow up on a
question that Mr Hurley asked because it
sounds like these extra documents that
we're supposed to be getting um are
we're going to have those within a week
then right because if we're looking at a
third reading that's kind of what we our
needs
are right so I think the city documents
uh there's the Cooperative agreement
which uh there's a few additional
changes for that agreement the biggest
of which is finalizing the budgets and
getting that in there so that's one
agreement the city will be party to the
other is the easement and we've talked
about the timing and the track for the
easement the other agreements we've been
talking about the city's actually not a
party to those agreements those are
between the Finance Authority and the
developer okay yeah I yeah and I mean I
don't want to keep pushing the easement
obviously because it feels like 30 years
is probably way far away you know I mean
certainly I'm going to be in my 60s or
maybe 70s by the time that comes around
but you know I think we'd have to do our
due diligence a little bit and secure
the best we can this asset that we're
creating for the city as well and so
that's why uh I do have some concerns
about that I do appreciate the project
here and I think you know from what I
see I I like what I see and I like what
I'm hearing but I am
also I do have some concerns about those
Mr Huber um if for any reason that
closing through its own gets delayed
postponed would you please let uh Miss
Meyer the mayor know so that council's
aware thank you um Mr
mCP um I just want to just get clarity
on the is the public parking
free that was would be the requirement
for the public parking yes okay okay and
there's no negotiation around that it's
just in order to receive the Tiff that
is public parking correct it is public
parking my understanding the negotiation
around it is it has ended up being free
parking for the public parking yeah and
that's something that we're I think
redlined into the Tiff agreement is that
correct that would be one of the changes
that recently would be made uh again on
these exact parking issues there's been
very recent negotiations I think we're
close to Final on those but those are
the kind of final adjustments and I
guess that's that's just where I think
this is new for me and many and I it's
unclear to me what needs to be in the
Tiff agreement versus the easement and
free parking rep public parking seems to
be um an assumption but it is important
that it sits within the agreements okay
yep and I think there's going to be a
lot of overlap on that point yeah I
think you'll see in both agreements Mr
Marcelino just to clarify uh you said
the public parking and I know that's
getting really specific but is there a
portion of the garage that will be
private yeah that's the anticipation so
we're talking about the garage roughly
270 280 spaces about 175 due to the Tiff
funding will need to be public free open
okay the remaining spaces the 90 or so
remaining spaces the developer has
requested and this has been part of the
ongoing negotiation that those be
Reserve spaces for their apartment
tenants
thank you for that breakdown yeah I
recall that discussion in general and I
know also there's concern or question
around which floor the parking was on so
for example if we're thinking about that
one on Lane Avenue that's in Upper
Arlington I believe all the Public's on
the first floor so it gets to all the
restaurants Etc has there been further
clarification as to where those 90 or so
spots will be that'll be reserved I
think there's been a lot of discussion
about that and I think very recent
discussion so I'll defer to Megan on
some of the from that thank you um so so
that is going to be part of the easement
um and so we're still zeroing in on
exactly the number and that's been the
holdup to be frank um but they would
have to be conveniently located and
we're having the lawyers have fun
drafting exactly the language that makes
it um conveniently located so you could
expect those to be on the Eastern side
of the garage closest to where the
Bexley Square parking lot is um and and
so we are working out that language but
that would be reflected in the easement
but and to the extent that these parking
spaces May exceed the number that are in
the easement I think we can probably put
some location language in the Tiff and
that's a discussion that I don't think
we've had and I think is an important
one for us to have so we will raise that
Mr Hurley did you have another question
just just I guess a point of
clarification also is is just keep in
mind everyone that the um easement
covers more than just the parking garage
it also covers
the 40 or so spaces on the back side
plus our spaces out here correct yeah
and so the easan is um you know it's
it's factoring in the very
real uh we'll get into more depth on
this with the easan but the very real
possibility
likelihood uh eventuality where um the
surface parking that's here and people
can see it as they pull in will probably
be like the first parking spaces that
people want to take and as a result we
will need at least equal access onto the
adjacent side in order to provide for um
you know the most efficient movement of
parking which is I think what we as a
public good would like to see happen
we've had a lot of Conversation Over
what happens if we start to reserve some
spaces and they start to Res you know
and and so we there will be calculations
for that and what you see uh that's much
more focused on the economic impact and
the Practical impact to this property in
Bexley Square as it relates to this
cross parking as well as there specific
about cross access to your point and
you're right it does also take into
consideration the surface Barking Lot to
the North and then I I mentioned this at
our last meeting but um cic also on on
the easement side cic needs to adopt
that before we do correct okay and the
cic has leadership has been part of
these same conversations so we're kind
of having a round table about it great
thank you any other comments questions
from Council thank you both for for
joining us tonight uh I just want to
reiterate that council is meeting one
week from tonight hopefully for a third
reading if the closing date changes
please let uh Miss Meyer the mayor know
and I think to the extent that there's
documents referenced in this ordinance
that Council will need to review and
prepare for that third reading including
maybe that cost budget that was
referenced if you could please give that
um to Megan or the mayor so that they
can provide it to council that'd be much
much appreciated
um Mr MC PE this is a second reading do
we have any speaker
slips no speaker slips right council
with that I think we are um just about
ready to adjourn we'll be back here in a
week I will move to adjourn our meeting
tonight can I please have a
second second by Mr Silverman all in
favor say I I anyone opposed