To

Mayor and Council

Subject

Amendment to Intergovernmental Agreement with Development Authority

Initiator

David Arrington, Deputy City Manager

Recommendation

Authorize the City Manager to execute an amendment to the Intergovernmental \n \n Agreement between the Consolidated Government of Columbus, Georgia and the \n \n Development Authority of Columbus, Georgia to provide funding for economic \n \n development purposes.

Approval

Pending

Background

Council approved Resolution 234-09 authorizing an agreement with the

Development Authority providing funding for the NCR project in the amount of

$7,445,000 to be paid in installments over a 10 year period. The agreement

helped facilitate the creation of approximately 900 jobs and had a significant

impact on the local economy through increased ad valorem and sales taxes. The

City has met the financial commitment each fiscal year in accordance with the

agreement.

Analysis

The Development Authority has continued efforts to recruit major economic

development projects to Columbus. The recent decision by Blue Cross and Blue

Shield to expand their operation in Columbus will provide approximately 800 new

jobs and a major capital investment in the community. The recruitment of this

project will require additional financial resources beyond the capability of

the Development Authority. By amending the terms of the Intergovernmental

Agreement approved in Resolution 234-09, the City can fund the project

commitment while reducing our fiscal year allocation for economic development.

This will be accomplished by renegotiating the terms of the debt extending the

payback from the remaining five years to a ten year term. The City's annual

commitment for the commitments covered under the agreement will be reduced from

$949,000 to $800,000.

Financial Considerations

Projected Annual Fiscal Impact Statement

The City's annual commitment will be reduced from $946,000 over 5 years to

$800,000 over a 10 year period.

Legal Considerations

Council must approve an amendment to the Intergovernmental Agreement

Recommendations/ Actions

Authorize the City Manager to execute an amendment to the Intergovernmental

Agreement between the Consolidated Government of Columbus, Georgia and the

Development Authority of Columbus, Georgia to provide funding for economic

development purposes. And to further authorize the City Manager to execute any

and all documents necessary to facilitate the execution of the agreement.

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