Explanation
BACKGROUND: This legislation authorizes the Director of Development to modify a not-for-profit service contract with Columbus Downtown Development Corporation with respect to the Downtown Ground Floor Growth Initiative, authorized under Ordinance No. 2661-2023 and amended under Ordinance No. 1206-2024. This modification (Modification 1) will add $500,000.00 to the agreement to enable Ground Floor Growth LLC to continue to operate the Downtown Ground Floor Growth Initiative program. Of this total modification, $50,000.00 will be allotted for Columbus Downtown Development Corporation’s administrative costs.
Original contract amount $1,050,000.00 Ord. 1206-2024 PO448264
Modification No. 1 amount $ 500,000.00
Total contract amount $1,550,000.00
The Downtown Ground Floor Growth Initiative (formally called the Downtown Commercial Marketplace Program) is a small business program that seeks to achieve multiple goals through one comprehensive program. The Program includes:
• Providing downtown storefront space for small, local businesses who are oriented towards walk in customers (such as retail or restaurant businesses).
• Providing a master lease holder to: 1) sublease to small, local businesses in a way that promotes their growth and gives them a safe place to land, and 2) rent vacant properties downtown and guarantee stability for the property owners of those spaces.
• Providing technical assistance to the Program participants so that the businesses renting the downtown storefronts can grow and succeed.
This Program is designed to decrease vacancy downtown; promote small, local businesses; and promote the amenities of downtown as a neighborhood for Columbus residents living and working inside and outside of downtown. Ground Floor Growth, LLC, whose sole member is the Columbus Downtown Development Corporation (CDDC), will administer the master lease component of the program. The City does not have the human resources to administer the program through existing staffing.
In accordance with C.C. 329.09(a):
1. The amount of additional funds to be expended under this modification is $500,000.00.
2. The initial funding amount of $1,050,000.00 was insufficient to carry out the scope of work. Since this is a new program, initial funding was determined by a good-faith estimate and careful analysis; however, supplemental funding is required.
3. Another vendor is not in the interest of the City as the current vendor is already administering the program. Choosing another vendor would result in a less qualified administrator of this program and a less efficient and more costly outcome.
4. The additional funding needs were determined through a revised estimate as more information became available.
Further, this legislation seeks to declare an emergency to ensure that there are no delays in the continuation of the program, which includes the second round of the program which cannot be completed without additional funding.
FISCAL IMPACT: Funding is available within the Department of Development, Economic Development Division’s 2025 General Fund budget, this ordinance is contingent on the passage of the 2025 Operating Budget, Ordinance 3035-2024.
Title
To authorize the Director of Development to modify the agreement with Columbus Downtown Development Corporation, for the Downtown Ground Floor Growth Initiative program in order to add $500,000.00 to the agreement to continue the work outlined in the scope of work in that agreement; to authorize the expenditure of up to $500,000.00 from the 2025 General Fund budget; and to declare an emergency. ($500,000.00)
Body
WHEREAS, the Director of Development seeks to modify a contract with Columbus Downtown Development Corporation, and to authorize the expenditure of up to $500,000.00 from the 2025 General Fund budget; and
WHEREAS, $50,000.00 of this modification will be allotted for Columbus Downtown Development Corporation’s administrative costs; and
WHEREAS, the Downtown Ground Floor Growth Initiative is designed to decrease vacancy downtown; promote small, local businesses; and promote the amenities of downtown as a neighborhood for Columbus residents living and working inside and outside of downtown; and
WHEREAS, the purpose of Ground Floor Growth, LLC, as registered with the Ohio Secretary of State is to “support the activities of Columbus Downtown Development Corporation (“CDDC”), to act solely for the exclusive benefit of CDDC, and to exercise its powers only in furtherance of the exempt purposes of CDDC. Accordingly, the activities of this limited liability company will at all times be consistent with the requirements of Section 501(c)(3) of the Internal Revenue Code (the “Code”), and it shall at all times be operated exclusively for religious, charitable, scientific, literary, or educational purposes within the meaning of Section 501(c)(3) of the Code. No part of the net earnings of this limited liability company shall inure to the benefit of, or be distributable to, its directors, officers, or any other private persons, except that it may pay reasonable amounts for goods and services provided and rendered to it. No substantial part of the activities of the limited liability company shall be the carrying on of propaganda or otherwise attempting to influence legislation, and it shall not participate in or intervene in any political campaign on behalf of or in opposition to any candidate for public office. Upon dissolution, all of the assets of the limited liability company will be distributed to CDDC. Subject to the foregoing, the limited liability company is authorized to engage in any lawful act or activity for which limited liability companies may be formed under the Ohio Revised Code”; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, in that it is immediately necessary to modify the contract with Columbus Downtown Development Corporation to continue the implementation of the Program in a timely and effective manner to promote job creation and economic development, all for the immediate preservation of the public health, safety, peace, property and welfare; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of Development be and is hereby authorized to modify a contract, in an amount up to $500,000.00, with Columbus Downtown Development Corporation, for the Downtown Ground Floor Growth Initiative program.
SECTION 2. That for the purpose as stated in Section 1, the expenditure of $500,000.00, or so much thereof as may be necessary, is hereby authorized in fund 1000 (General Fund), Dept-Div 44-02 (Economic Development), object class 03 (Services) per the account codes in the attachment to this ordinance.
SECTION 3. That the funds necessary to carry out the purpose of this ordinance are deemed appropriated, and the City Auditor shall establish such accounting codes as necessary.
SECTION 4. 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 5. That this modification is made in accordance with the relevant provisions of the City Code Charter 329 relating to contract modifications.
SECTION 6. 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 approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.