Agenda Item # 5
Columbus Consolidated Government
Council Meeting
August 9, 2016
Agenda Report # 28
TO: Mayor and Councilors
SUBJECT: Westville ? Requested Revisions and Extension of Memorandum of
Agreement
INITIATED BY: Community Reinvestment
Recommendation: Approval is requested to enter into an amended Memorandum of
Agreement with Historic Westville, Inc. to extend the timeframe to begin normal
operations of the Living History Museum for an additional one (1) year, and to
revise language within the MOA which will allow Westville to relocate as
planned and be successful in completing the requirements of the MOA.
Background: On August 13, 2013, Council approved per Resolution # 258-13 to
authorize the City Manager to enter into a Memorandum of Agreement (MOA) with
Historic Westville, Inc. for the purpose of relocating Westville's Living
History Museum to Columbus, Georgia. The agreement was executed on August 23,
2013 giving Historic Westville, Inc. 24 months to begin normal operations of
the Living History Museum with an expiration date of August 22, 2015.
On September 15, 2015, Council approved per Resolution #250-15 to authorize the
City Manager to execute an Amendment to the MOA with Historic Westville, Inc.
to extend the time frame to begin normal operation of the Living History Museum
for one additional year to expire on August 31, 2016.
Westville is requesting an additional extension for one (1) year to expire
August 31, 2017, along with the following revisions to the MOA:
1. Transfer of the City Property, ?Tract A? ?
? Change item A to state ?the property shall be utilized as security for debt,
but the City shall remain in 1st position to any liens on the property.?
Westville would like to utilize the property as collateral for a loan in order
to conduct improvements that they will not be able to do if they cannot use it
as collateral. It will be required that the City remain in 1st position of the
liens.
2. Lease of the City Property, ?Tract B? ?
? Change item A to state ?The initial term of the lease shall be at $1 per year
until the RV Park is developed in a future phase. Once the RV park is developed
the lease amount would increase to $1,200 per year.? At the current time
Westville does not have the necessary funding to develop the RV Park in the
first phase of construction. They have requested to utilize the unimproved area
as interpretative space until such time the construction of the RV park can be
funded.
3. ADD: Removal of Trees Along S. Lumpkin Road ? In order to relocate the
buildings for the Living History Museum, Historic Westville, Inc. will need to
remove the trees on City Right-of-Way on S. Lumpkin Road. Unfortunately, some
of the trees along S. Lumpkin Road are already dead. Once all of the buildings
have been relocated, Historic Westville will be responsible for replacing the
trees that are currently living at no cost to the City, but the City will be
responsible for replacing the trees that are currently dead.
4. ADD: Lease of City Building located at 3535 B South Lumpkin Road - Historic
Westville, Inc. has requested to lease the old scale building located at 3535 B
South Lumpkin Road as a promo office while construction is occurring at the
site. Westville will lease the building for $1 per year for a period of one
year and will be responsible for all maintenance, utilities, and insurance.
Analysis: The Memorandum of Understanding between the City and Historic
Westville, Inc. will remain the same except for providing a one-year extension
that will expire on August 31, 2017. Also the revised MOA will allow Westville
to use Tract A as collateral on a loan as long as the City remains in 1st
position on the lien, to lease Tract B for $1 per year instead of $1,200 per
year until the RV Park is funded, to remove the trees along S. Lumpkin Road for
the relocation of the structures and replace only the living trees after the
buildings are all relocated, and to utilize the scale house as a promo building
until the park opens for business.
The original MOU states the following: The City will donate a portion of the
land (Tract A) to Westville with a revisionary clause stating "Should Westville
cease to operate as agreed upon, the donated land will revert to the City. The
City will not allow Westville to utilize this property to secure debt. In
return for the donated land, Westville agrees to maintain and operate Wren Lake
as a public recreation facility to be open during Westville's normal operating
hours (Tract C - approximately 50 acres) at no cost to the City. In addition,
Westville will lease Tract B (approximately 11 acres) at a start up rate of
$1,200 per year for the first three years. Tract B will be sublet to a for
profit affiliate of Westville and be developed as an RV Park and primitive
camping area. The lease for Tract B will be renegotiated after 3 years to bring
the lease payments more in line with market rates for similar property. At any
point in the future, if an economic development project is determined to be
viable (such as a marina) there is an escape clause that will allow Westville 6
months to abandon Tract C so that the development may occur. The attraction
will have a positive impact on local tourism and the City will be able to offer
Wren Lake as a public amenity at no cost.
Financial Considerations: Historic Westville, Inc. is funding all relocation
expenses and improvements to the land. Although Tract B will be leased for only
$1 per year until the RV park can be constructed, once construction is complete
the revenue return through lease payments and ad valorem tax payments will be
approximately $6,000 per year. Also Westville will become a tourist attraction
for the City of Columbus which will likely increase revenues received from
tourism. Allowing Westville to use Tract A as collateral to a loan will be
no risk to the City considering the City will remain in 1st position on any
liens.
Legal Considerations: Council approval is required for all real estate
transactions.
Recommendations: Approve a resolution to authorize the City Manager to enter
into an amended Memorandum of Agreement with Historic Westville, Inc. to extend
the timeframe to begin normal operations of the Living History Museum for an
additional one (1) year, and to revise language within the MOA which will allow
Westville to relocate as planned and be successful in completing the
requirements of the MOA.
A RESOLUTION
NO. _____
A RESOLUTION TO AUTHORIZE THE CITY MANAGER TO ENTER INTO AN AMENDED MEMORANDUM
OF UNDERSTANDING WITH HISTORIC WESTVILLE, INC. TO EXTEND THE TIME FRAME TO
BEGIN NORMAL OPERATIONS OF THE LIVING HISTORY MUSEUM BY AN ADDITIONAL ONE (1)
YEAR, AND TO REVISE LANGUAGE WITHIN THE MOA WHICH WILL ALLOW HISTORIC
WESTVILLE, INC. TO RELOCATE AS PLANNED AND BE SUCCESSFUL IN COMPLETING THE
REQUIREMENTS OF THE MOA.
WHEREAS, on August 23, 2013, the City Manager to enter into a Memorandum of
Agreement (MOA) with Historic Westville, Inc., which was extended per
Resolution 250-151 for one additional year, for the purpose of relocating
Westville's Living History Museum to Columbus, Georgia; and,
WHEREAS, Historic Westville, Inc. has asked the City for an amendment to the
current MOA to extend the time frame to begin normal operations of the Living
History Museum by an additional one (1) year through August 31. 2017; and,
WHEREAS, Historic Westville has requested to utilize the property known as
?Tract A? as collateral to a loan, with the City?s lien staying in 1st
position, in an effort to obtain the necessary financing needed to allow
Westville to relocate as planned and be successful in completing the
requirements of the MOA; and,
WHEREAS, Historic Westville will lease the property known as ?Tract B? for $1
per year until there is enough funds to construct the RV Park which was
originally planned for Phase I; and,
WHEREAS, the trees located on City Right-of-Way along S. Lumpkin Road will need
to be removed in order to relocate the buildings for the Living History Museum
and Historic Westville, Inc. will be responsible for the removal of all trees
and replacement of the trees that are currently living once the relocation is
complete at no cost to the City; and,
WHEREAS, Historic Westville will lease the City owned building located at 3535
B. South Lumpkin Road for $1 per year for a period of one (1) year to utilize
as a promo building during the construction at the site.
NOW, THEREFORE, THE COUNCIL OF COLUMBUS, GEORGIA, HEREBY RESOLVES AS FOLLOWS:
That the City Manager is hereby authorized to execute an amended Memorandum of
Understanding with Historic Westville, Inc. to extend the timeframe to begin
normal operations of the Living History Museum for an additional one (1) year,
and to revise language within the MOA which will allow Westville to relocate as
planned and be successful in completing the requirements of the MOA.
_________________
Introduced at a regular meeting of the Council of Columbus, Georgia, held the
_________ day of _____________, 2016 and adopted at said meeting by the
affirmative vote of ____________ members of said Council.
Councilor Allen voting __________.
Councilor Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Garrett voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor Thomas voting __________.
Councilor Turner Pugh voting __________.
Councilor Woodson voting __________.
______________________________ __________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor
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