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72-97 OrdinanceORDINANCE NO. ~~ - 9 7 AN ORDINANCE AUTHORIZING THE CITY MANAGER, ON BEHALF OF THE CITY, TO EFFECT AND ENTER INTO AMENDMENTS TO A LEASE, AN OPERATIONS AGREEMENT AND A MULTIPARTY AGREEMENT, AND TO AMEND OR GRANT A MORTGAGE IN CONNECTION WITH, THE REFINANCING OF CENTRAL OHIO ICE RINKS, INC. PROJECT, AND AUTHORIZING THE CITY ' S PARTICIPATION IN THE REFINANCING, AND DECLARING AN EMERGENCY. WHEREAS, pursuant to Ordinance No. 116-92 passed by this Council on October 5, '~ 4° 1992, the City of Dublin and Columbus Hockey, Inc. on October 6, 1992 entered into a non-binding Agreement of Intent (the "Inducement Agreement") to induce Columbus Hockey, Inc. to construct in the City a new indoor ice hockey, ice skating, training, meeting, recreation and office facility (the Project) for the purpose of creating and preserving jobs and employment opportunities and improving economic welfare of the people of this City; and WHEREAS, pursuant to Ordinance No. 132-92 passed by this Council on December 21, 1992, the City and Central Ohio Ice Rinks, Inc. ("COIR"), an Ohio corporation, on December 22, 1992 entered into an Amended Inducement Agreement (the "Amended Inducement Agreement") to formalize the terms and conditions upon which the City and COIR, as successor to Columbus Hockey, Inc. under the Inducement Agreement, were willing to consummate the transactions contemplated by the Inducement Agreement, including the City's acquisition with non-tax revenues and leasing to COIR of a parcel of real property of approximately seven and one-half (7-1/2) acres located in the City at 7001 Dublin Park Drive (the Site), all for the purpose of creating and preserving jobs and employment opportunities and improving the economic welfare of the people of the City; and WHEREAS, for the purposes of carrying out of the intent of the Inducement Agreement and the Amended Inducement Agreement, and to create and preserve jobs and employment m~ opportunities and improve the economic welfare of the people of the City, the City entered into ~ a purchase option agreement for the Site and purchased the Site; and WHEREAS, in the Amended Inducement Agreement the City acknowledged that COIR's initial lender for the Project might impose certain requirements upon COIR with respect to the City's leasing of the Site to COIR, and the lender did impose certain requirements for the purposes of protecting that lender's security in the Project, and the City agreed in the Amended Inducement Agreement to reasonably accommodate those requirements; and WHEREAS, COIR's lender requested that their financing of the Project be secured, in part, by a Mortgage (as hereinafter defined) on the Site granted by the City to the lender; and WHEREAS, for the purpose of creating and preserving jobs and employment opportunities and improving the economic welfare of the people of the City, the City determined that it was and is in the best interests of the City to acquire the Site, lease the Site to COIR under the Lease (as hereinafter defined), enter into an Operations Agreement (as hereinafter defined) for the Project with COIR, and grant to COIR's lender a mortgage on the Site, all pursuant to and in accordance with Article VIII of Section 13 of the Ohio Constitution, and pursuant to Ordinance No. 9-93 passed by this Council on February 1, 1993, the City did lease the Site to COIR under that Lease, enter into an Operations Agreement for the Project with COIR and grant to COIR's lender a Mortgage on the Site; and WHEREAS, COIR now desires to refinance the Project under modified terms and conditions including eliminating Indianapolis Hockey, Inc. and Horn Chen as guarantors of the Project financing; and WHEREAS, in consideration of the City's agreement to release these two guarantors from their guarantee of the Project financing, COIR has agreed to (i) change the language in Section 15.01 of the Lease to confirm that no future refinancing (including this refinancing) can be for more than the balance then owed and will only be upon the terms and conditions then in effect with respect to any prior financing, (ii) give a commitment that the Project will continue to be used as the headquarters and practice site for the Columbus Chill hockey team, and (iii) increase the percentage of net revenues annually received from operation of the Project to make accelerated paydown on' the refinancing; NOW, THEREFORE, BE IT ORDAINED by the Council of the City of Dublin, State of Ohio, ~ of its elected members concurring: Section 1. This Council hereby approves the granting by the City to COIR's lender for the refinancing of a mortgage (the "Mortgage") on the Site pursuant to and in accordance with this ordinance; hereby finds and determines that the changes to the terms of the financing accomplished in the refinancing and the further covenants of COIR in amendments to the Lease and Operations Agreement, all in connection with the refinancing and all as described in the preambles of this ordinance, represent substantial additional valuable consideration to the City in exchange for the release of the guarantors described in the preambles and are for sufficient and satisfactory consideration and in pursuance of the purpose of the Project and the further carrying out of the City's public purpose of creating and preserving jobs and employment opportunities and improving the economic welfare of the people of the City. Section 2. This Council hereby authorizes and directs the City Manager to effect, execute and deliver, in the name and on behalf of the City, any necessary amendments to the Lease and the Operations Agreement being in such form as are approved by the City Manager and Director of Law as being consistent with the objectives and requirements of the City for the Project and this ordinance. The City Manager is also hereby authorized to execute a Mortgage on the Site from the City to COIR's lender for the refinancing of the Project, with that Mortgage being in such form as is approved by the City Manager and Director of Law as being consistent with the objectives and requirements of the City for the Project and this ordinance. The City Manager and Director of Law and other City officials, as appropriate, are also authorized to provide such information or certifications, and to prepare and execute such other documents or agreements, and to make delivery of such documents and agreements and certifications, and to do all other things, as are necessary and incidental to the carrying out of the requirements of the authorizations of this ordinance. Section 3. It is hereby found and determined that all formal actions of this Council "°`~" concerning and relating to the passage of this ordinance were taken in an open meeting of this Council, and that all deliberations of this Council and of any of its committees that resulted in such formal action were in meetings open to the public, in compliance with law. Section 4. This ordinance is declared to be an emergency measure necessary for the immediate preservation of the public peace, health, safety or welfare of the City and for the further reason that this ordinance is required to be immediately effective to provide for the refinancing of the Project and the creation and preservation of jobs and employment opportunities within the City at the earliest possible date; wherefore, this ordinance shall be in full force and effect immediately upon its adoption. Sign siding Officer Attest: ~y~ ;ii,~ Clerk of Council Passed: J~ 1997 Effective:. ~~ 1997 Were ~cst~~ i_e thn e~~~,..a 1~ntliSv~ ~~~e. fy that copies of this Ordinanc 25 of thw ~ hereby certi with Section 731. City of Dublin in accorbance (~ CAM v~ Council, Dublin, Ohio Clerk -2-