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 Baker voting __________.
Councilor Barnes voting __________.
Councilor Davis voting __________.
Councilor Henderson voting __________.
Councilor Huff voting __________.
Councilor McDaniel voting __________.
Councilor Turner Pugh voting __________.
Councilor Thomas voting __________.
Councilor Woodson voting __________.

_____________________________ _________________________
Tiny B. Washington, Clerk of Council Teresa Pike Tomlinson, Mayor

Amended Intergovernmental Agreement.pdfAmended Intergovernmental Agreement.pdf