Agenda Item #
Columbus Consolidated Government
Council Meeting
04/24/2007
Agenda Report #
TO: Mayor and Council
SUBJECT: Economic Development Agreement with the State of Georgia for
the Columbus Convention and Trade Center
INITIATED BY: Finance Department
______________________________________________________________________
Recommendation: Approval is requested to enter into an Economic Development
Agreement with the State of Georgia, Department of Economic Development for the
Columbus Convention and Trade Center (the ?Trade Center?), an Intergovernmental
Ground Lease Agreement, deeds of conveyance and other related documents,
instruments and certificates.
Background: The city of Columbus has constructed the Trade Center. The
Columbus Building Authority issued lease revenue bonds, Series 2003A and 2004
to expand and renovate the Trade Center. The estimated cost of the renovation
and expansion was $35 million. The Georgia State Properties Commission has, at
its regularly scheduled meeting on October 23, 2006, approved the real property
acquisition and reconveyance of a portion of the Trade Center. An agreement
has been reached with the State of Georgia, Department of Economic Development,
to provide $22 million in funding for the Trade Center renovations and
expansion through a State general obligation bond issue. The state will
acquire a portion of the Trade Center and the City will lease back this portion
for $1 per year. At the end of the 20 years period or the term of the State
bond issue, the city will be required to certify to the State that the economic
factors of the agreement have been met. Upon this certification, the State may
reconvey this portion of the Trade Center back to the City. The city will
continue to be responsible for all aspects of the Trade Center?s operation and
maintenance.
Analysis: The Economic Development Agreement and the Intergovernmental Ground
Lease agreement is for a period of 20 years. The Intergovernmental Ground
Lease agreement requires the Trade Center to operate as a public trade and
convention center or other public facility meeting the goals of the Economic
Development agreement.
Financial Considerations: The City will be required to defease the Columbus
Building Authority Lease Revenue Bonds, Series 2004 and amend the terms of the
Lease with respects to the Columbus Building Authority Lease Revenue Bonds,
Series 2003A. The current principal balance of the Columbus Building Authority
Lease Revenue Bonds, Series 2004 is $20,805,000 plus accrued interest since
January 1, 2007. The city is also obligated to pay necessary expenses related
to this transaction to include attorneys, financial institutions, etc. The
balance of the net proceeds will remain in the Debt Service Fund.
Legal Considerations: Conveyance of a portion of the Trade Center property to
the State of Georgia requires approval of council. The City Attorney has
reviewed the agreement and resolution and approved as to form.
Recommendations/ Actions: Approval is requested to enter into an Economic
Development Agreement with the State of Georgia, Department of Economic
Development for the Columbus Convention and Trade Center (the ?Trade Center?),
an Intergovernmental Ground Lease Agreement, deeds of conveyance and other
related documents, instruments and certificates.
Attachments
No attachments for this document.