Agenda Item # 2
Columbus Consolidated Government
Council Meeting
10/14/2014
Agenda Report # 32
TO: Mayor and Council
SUBJECT: Amendment to Intergovernmental Agreement with
Development Authority
INITIATED BY: David Arrington, Deputy City Manager
Recommendation: Approval is requested 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.
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.
A RESOLUTION
NO. _____
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE
INTERGOVERNMENTAL AGREEMENT WITH THE DEVELOPMENT AUTHORITY OF COLUMBUS FOR
FUNDING OF ECONOMIC DEVELOPMENT PROJECTS.
WHEREAS, Council approved an Intergovernmental Agreement between the
Consolidated Government of Columbus, Georgia and the Development Authority of
Columbus, Georgia to facilitate the development of 900 new jobs with expansion
of the NCR project; and,
WHEREAS, the Intergovernmental Agreement provided a funding mechanism to meet
the commitments made for the project which created jobs and had a positive
impact on the local economy through increased ad valorem and sales taxes
collected in Columbus, Georgia; and,
WHEREAS, it is necessary to amend to terms or the original agreement to
provide funding for additional economic development projects to increase job
creation and have a positive impact on the local economy; and,
WHEREAS, the amendment will extend the remaining terms of the agreement from 5
years to 10 years and reduce the annual payment from $948,000 per year to
$800,000 per year.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the City Manager is hereby authorized to execute an amendment to the
Intergovernmental Agreement between the Consolidated Government of Columbus,
Georgia and the Development Authority of Columbus, Georgia previously
authorized under Resolution 234-09 and further to authorize the City Manager to
execute any and all documents necessary to facilitate the execution of the
amended agreement.
___________
Introduced at a regular meeting of the Council of Columbus, Georgia, held
the _________ day of _____________ 2014, and adopted at said meeting by the
affirmative vote of _____________ members of said Council.
Councilor Allen voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
_____________________________ _________________________
Tiny B. Washington, Clerk of Council , Mayor
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