Label
Amend Middlegrounds Development Agreement
Development / Law
B. Sehlhorst (1692)/ E. Granata (x1020)
Revised
Title
Authorizing amendments or supplements to the Development Agreement for the Middlegrounds dated June 1, 1994 as supplemented December 23, 2013; and declaring an emergency.
Body
SUMMARY & BACKGROUND:
Pursuant to an Urban Redevelopment Plan adopted by City in July of 1994, the City of Toledo and the Toledo-Lucas County Port Authority, Lucas County and State of Ohio and Toledo Edison jointly collaborated with Owens Corning to secure the construction of a new world class corporate headquarters on the Middlegrounds in Downtown Toledo.
A Development Agreement for the Middlegrounds dated June 1, 1994, originally executed among the City of Toledo, Lucas County, Owens Corning, the Toledo Lucas County Port Authority and Centerior Properties, Inc. and ratified by Toledo City Council Ordinance No. 314-94, established the framework for the cooperative development of the Middlegrounds. This Agreement was amended and supplemented by a Project Agreement between the City, Owens Corning, and the Toledo-Lucas County Port Authority dated December 23, 2013. Current discussions are related to, and a continuation of, the purposes of this Development Agreement.
The City has been working collaboratively with Owens Corning, and the Toledo Public Schools on an agreement that would enable Owens Corning to remain at and reinvest in its current downtown headquarters. Contingent upon all the necessary approvals by the appropriate authorities, including Toledo City Council, Owens Corning has agreed to renew its commitment to remain in its current headquarters for the foreseeable future and continue the connection between the City and Owens Corning that dates from its founding in 1938.
The commitments asked of the City of Toledo include an extension for thirty (30) additional years of the tax increment financing structure (TIF), which was critical to the initial financing of the building and site improvements. Owens Corning will be required to make payments in lieu of taxes to Toledo Public Schools for the extended TIF period.
Based on the City’s determination that it is in the best interests of the City to support continued investment in the Middlegrounds, retain Owens Corning’s World Headquarters and approximately 1036 jobs currently at the site, and to further encourage the creation of additional jobs, this Ordinance is necessary. This Ordinance authorizes the amendment of said Development Agreement to include necessary changes or additions related to economic development incentives and related commitments and investment in the Middlegrounds site and the parties’ respective responsibilities.
Summary
NOW THEREFORE Be it ordained by the Council of the City of Toledo:
SECTION 1. That Mayor is authorized to execute amendments or supplements to the Development Agreement for the Middlegrounds dated June 1, 1994 (the “Development Agreement”), as supplemented and amended by the Project Agreement dated December 23, 2013, upon such terms and conditions as are acceptable to the Mayor and the Director of Law, including but not limited to: provisions specifying the City’s agreement to the extension of a tax increment financing (TIF) structure for thirty (30) additional years as authorized by separate ordinance; the retention by Owens Corning of 1036 existing jobs and the creation of 25 new jobs; Owens Corning’s investment of $250 million in the Owens Corning Headquarters facilities and operations over the course of the extended TIF period; and the execution of agreements pertaining to the Glass City Riverwalk between the City, Owens Corning and the Toledo Lucas County Metropolitan Park District as authorized by separate ordinance.
SECTION 2. That the Mayor is authorized to execute and deliver such additional amendments or other agreements, documents or instruments as necessary and proper to carry out the purposes of this Ordinance as stated in Section 1 as may be in the best interests of the City of Toledo, upon such additional terms and conditions, and in such form, as are reasonable, proper and acceptable to Director of Law.
SECTION 3. That it is found and determined that all formal actions of this Council concerning and relating to the passage of this Ordinance were adopted in an open meeting of this Council, and that all deliberations of this Council and of any of its committees or subcommittees that resulted in such formal action were in meetings open to the public in compliance with law.
SECTION 4. That this Ordinance is declared to be an emergency measure and shall be in force and effect from and after its passage. The reason for the emergency lies in the fact that the same is necessary for the immediate preservation of the public peace, health, safety and property, and for the further reason that the Ordinance must be immediately effective to carry out the public purpose of preserving jobs and employment opportunities in the City of Toledo, preventing blight, and to encourage Owens Corning to retain its headquarters at its current site in the City of Toledo.
Vote on emergency clause: yeas _____, nays _____.
Passed: _________________, as an emergency measure: yeas _____, nays _____.
Attest: ________________________ __________________________________
Clerk of Council President of Council
Approved: _____________________ __________________________________
Mayor
I hereby certify that the above is a true and correct copy of an Ordinance passed by Council ________________________.
Attest: ________________________
Clerk of Council