This Ordinance authorizes execution of a Memorandum of Understanding (MOU) between the Worthington Arts Council (WAC) and the City of Worthington. The purpose of the MOU is to set forth the terms and conditions which must be satisfied before the City will execute a lease with WAC for the improvement and operation of the Packard Annex as a community arts center. A staff presentation will be given that overviews this MOU. It requires the following be accomplished in order for the City Manager to execute the lease:

 

·        A Total Project Cost Statement be submitted to the City outlining financial responsibility for each item associated with the renovation and construction project;

·        A Source and Use of funds Statement, Aged Accounts Receivable Statement, and Cash Flow Statement be submitted to and approved by the City;

·        A Project Cost Guarantee (insufficient funds guarantee) that outlines how the WAC will cover the difference between available (grants, cash) funds and the Total Project Cost be submitted to and approved by the City.

 

This MOU is intended to ensure that the project (without furniture, fixtures, and equipment – FFE) is fully financed prior to execution of the lease. Funding for FFE, which is estimated to cost $250,000, is to be separately raised during the construction term. 

 

A blank has been left in Section 4 of the MOU for the total remaining cost of the project and in Section 6 for the Insufficient Funds Guarantee. It is anticipated that additional expenses will be incurred and additional revenues will be raised or solidified between June 9^th and July 7^th. Therefore, staff and WAC will present both a current status of funding for the project and a conservative estimate of its status looking forward to July 7^th. This estimate will address items such as the State Capital Bill funding that is pending and other anticipated revenues.  

 

 

 

Recommendation: Set the public hearing for consideration of the Ordinance for

July 7, 2008.

 

This Ordinance provides for the execution of a lease between the Worthington Arts Council (WAC) and the City of Worthington for the 1.282 acres of property and a building located at the northwest corner of Dublin-Granville Road and Evening Street known and commonly referred to as the Packard Annex. The lease is being made to WAC to foster the creation of the Peggy R. McConnell Arts Center. A staff presentation will be given to overview the lease. Its provisions include the following:

 

·        Leasing the property and building as depicted in attachments to WAC for the purpose of constructing and operating an arts center;

·        The lease is subject to the provisions of the Real Estate Purchase Contract executed on August 28, 2006 between the City and the School District;

·        The lease will be executed and WAC shall have possession of the premises when provisions and conditions of a separate Memorandum of Understanding (MOU) are achieved;

·        The term of the lease is twenty (20) years unless earlier terminated or assigned;

·        In lieu of making lease payments, WAC shall make leasehold improvements in accordance with City approved construction documents;

·        Changes to the construction documents (change orders) that involve an alteration in the scope of the project, an additional expenditure of $1,000 or more, or any change involving the structural integrity of the premises or building system will require the approval of the City Engineer;

·        WAC shall require the payment of prevailing wages in accordance with Ohio Law;

·        WAC shall carry project insurance in limits set forth by the City;

·        WAC may sub-lease or assign the lease for purposes of engaging an entity to operate the Arts Center with the approval of the City.

Recommendation: Set the public hearing for consideration of the Ordinance for

July 7, 2008

The Grant Agreement is a document which provides a method of transferring the remaining balance of the City’s $1,000,000 pledge/contribution to the Arts Council to be used for renovations to the Packard Annex. The City anticipates that it will have appropriated $569,782 of the $1,000,000 by date of execution. These funds were appropriated for the purposes of architectural, engineering and survey services from preliminary design through the construction phase. This leaves $430,218 to be issued to WAC by grant, including the tap fee. 

Recommendation: Set the public hearing for consideration of the Ordinance for

July 7, 2008

This Ordinance provides for an appropriation from the Capital Improvements fund

unappropriated fund balance in the amount of $118,000 to pay the firm of DesignGroup for 

the cost of architectural services and related construction administration services during the

renovation and construction term of the Peggy R. McConnell Arts Center. 

Recommendation: Set the public hearing for consideration of the Ordinance for

July 7, 2008

 

           

A.     Peggy R. McConnell Arts Center – LEED-NC Viability Assessment