Explanation
BACKGROUND: This legislation authorizes the Director of Development to enter into a capital contribution agreement with the Furniture Bank of Ohio, (Furniture Bank) a non-profit organization, in an amount up to $2,000,000.00 to support the “Furnish Our Community Plan”, which is the building of a new onsite warehouse facility.
The Furniture Bank of Central Ohio is a nonprofit organization that has been providing services in the Columbus community for over 25 years. The organization is dedicated to helping families in need by providing essential furniture and household items. Since 1998, Furniture Bank has served nearly 80,000 families by distributing more than 1,000,000 pieces of furniture.
With the current capacity to serve only 4,000 families a year, the Furniture Bank recognizes a tremendous need to serve other families. The “Furnish Our Community Plan” seeks to serve up to 6,000 families a year by expanding the current facility. The plan also includes a capital campaign to raise $9.5 million to create a new onsite warehouse and renovate and improve the family showroom and offices. The wood shop will also be expanded and relocated in the new facility. With the support of more than 1,300 volunteers contributing over 20,000 hours of service each year, the Furniture Bank is able to build furniture such as dressers, bed frames, kitchen tables and kit furniture in the woodshop.
EMERGENCY DESIGNATION: An emergency exists as this capital contribution agreement is needed for the closing of their financing in order to pay for the construction of the new onsite warehouse facility in order to continue to serve the Columbus area.
FISCAL IMPACT: Funding in the amount up to $1,599,788.04 is available in existing cash within the Development Taxable Bond Fund. The remaining $400,211.96 will need to be certified against the General Fund 1000, Income Tax Set Aside Subfund 100099 and then be reimbursed upon the receipt of the sale of bonds related to the 2024 Capital Improvement Budget.
CONTRACT COMPLIANCE: The vendor number is 041005 and contract compliance is pending.
Title
To authorize the appropriation of funds within the Income Tax Set Aside Subfund; to authorize the transfer of cash between the Income Tax Set Aside Subfund and the Development Taxable Bond Fund; to authorize the amendment to the 2024 Capital Improvement Budget; to authorize the City Auditor to transfer cash and appropriation between projects; to authorize the expenditure with the Development Taxable Bond Fund in an amount up to $2,000,000.00 for a capital contribution agreement which will provide funding for the construction of a new onsite warehouse with the Furniture Bank of Central Ohio; to authorize expenditures prior to the approval of the purchase order; to advance funding on a predetermined schedule; and to declare an emergency ($2,000,000.00)
Body
WHEREAS, the Furniture Bank of Central Ohio is a nonprofit organization that has been providing services in the Columbus community for over 25 years. The organization is dedicated to helping families in need by providing essential furniture and household items. Since 1998, the Furniture Bank has served nearly 80,000 families by distributing more than 1,000,000 pieces of furniture; and
WHEREAS, with the current capacity to serve only 4,000 families a year, the Furniture Bank recognizes a tremendous need to serve other families. The “Furnish Our Community Plan” plans to serve up to 6,000 families a year by expanding the current facility; and
WHEREAS, the “Furnish Our Community Plan” seeks to serve 6,000 families a year, raise $9.5 million to create a new onsite warehouse and renovate and improve the family showcases and offices; and
WHEREAS, to authorize the payments of funds prior to the creation of the purchase order; and
WHEREAS, to authorize the advancement of payment on a predetermined schedule; and
WHERAS, it is necessary to authorize an amendment to the 2024 Capital Improvement Budget and a transfer of cash within the Development Taxable Bonds Fund for the purpose of providing sufficient spending authority for the aforementioned project expenditure; and
WHEREAS, it is necessary to authorize the transfer between projects and the expenditure within the Development Taxable Bond Funds in an amount up to $2,000,000.00
WHEREAS, it is necessary to certify the required funds, in the amount up to $400,211.96 dollars against the General Fund 1000, Income Tax Set Aside Subfund 100099 and authorize the appropriation and transfer of the funds in the amount up to $400,211.96 from the Income Tax Set Aside Subfund to the Development Taxable Bond fund and authorize the appropriation within the Development Taxable Bond Fund.
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the construction of the project described in this ordinance (the "Project"); and
WHEREAS, the City will reimburse the General Fund 1000, Income Tax Set Aside Subfund 100099; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $400,211.96; and
WHEREAS, the City of Columbus would like to provide support to the Furniture Bank of Central Ohio in its efforts to help families in need by supporting the building of a new warehouse facility; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to enter into a capital contribution agreement with Furniture Bank of Central Ohio for the closing of their financing in order to support the construction of the new onsite warehouse facility in order to serve the Columbus area all for the immediate preservation of the public health, peace, property, safety and welfare; NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development is authorized to enter into a capital contribution agreement, in an amount up to $2,000,000.00 with the Furniture Bank of Central Ohio, to build a new warehouse facility, and is authorized to allow the reimbursement of expenditures prior to the purchase order, and advance payments on a predetermined schedule.
SECTION 2. That from the unappropriated monies and from all monies estimated to come into said funds from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2025, the sum of $400,211.96 is appropriated within General Fund 1000, Income Tax Set Aside Subfund 100099, in Object Class 10 Transfer Out Operating, and into the Development Taxable Bond Fund, Fund No. 7739, in Object Class 06 Capital Outlay per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $400,211.96 or so much thereof as may be needed, is hereby authorized between the General Fund 1000, Income Tax Set Aside Subfund 100099, and the Development Taxable Bonds Fund, Fund No. 7739, per the account codes in the attachment to this ordinance.
SECTION 4. That the 2024 Capital Improvements Budget authorized by Ordinance 1907-2024 be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / Current / Change /Amended
7739 / P440104-100024 / Strategic Acquisition Fund (Unvoted Carryover) /$23,308 / $1,003,373 / $1,026,681 - authority to match cash
7739 / P782001-100000 / Housing Preservation (Unvoted Carryover) / $68,480 / $154,627 / $223,107 - authority to match cash
7739 / P440104-100024 / Strategic Acquisition Fund (Unvoted Carryover) /$1,026,681 / ($1,026,681) / $0.00
7739 / P200031-100000 / Commercial Downtown Marketplace Initiative (Unvoted Carryover) /$350,000 / ($350,000) / $0.00
7739 / P782001-100000 / Housing Preservation (Unvoted Carryover) / $223,107 / ($223,107) / $0.00
7739 / P441785-100000 / Furniture Bank of Central Ohio (Unvoted Carryover) /$0.00 / $1,599,788 / $1,599,788
Fund / Project / Project Name / Current / Change /Amended
7739 / P441785-100000 / Furniture Bank of Central Ohio (Councilmanic ITSA Supported) /$2,000,000 / ($1,599,788) / $400,212
7739 / P440104-100024 / Strategic Acquisition Fund (Councilmanic ITSA Supported) / $2,750,000 / $1,374,788 / $4,124,788
7739 / P782001-100000 / Housing Preservation (Councilmanic ITSA Supported) / $0.00 / $225,000 / $225,000
SECTION 5. That the transfer of $1,599,788.04 or so much thereof as may be needed, is hereby authorized between projects within Fund 7739 Development Taxable Bonds per the account codes in the attachment to this ordinance.
SECTION 6. The expenditure of $2,000,000.00, or so much thereof as may be needed, is hereby authorized in Fund 7739 (Development Taxable Bonds Fund), in Dept-Div 4402 (Economic Development), Project P441785-100000 (Furniture Bank of Central Ohio), in Object Class 06 (Capital Outlay) per the account codes attached to this ordinance.
SECTION 7. That upon obtaining other funds, the City Auditor is hereby authorized and directed to repay the General Fund 1000, Income Tax Set Aside Subfund 100099 the amount transferred under Section 3.
SECTION 8. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150 2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $400,211.96 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of Treasury Regulations Section 1.150 2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 9. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the Director of Department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 10. That the funds necessary to carry out the purpose of this ordinance are hereby deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 11. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 12. That for the reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.