Explanation
BACKGROUND
This legislation authorizes the Director of the Department of Development to refund the Reeb Avenue Center in the amount of $5,494.92 for the February 2025 lease payment made by the Reeb Avenue Center prior to the amendment of the lease agreement.
The City owns real property located at 280 Reeb Avenue that is currently leased to the Reeb Avenue Center, a non-profit entity, as Tenant. Reeb Avenue Center subleases portions of the building on the property to various non-profit groups providing social and educational services to Southside residents. South Side Learning and Development Center (dba SproutFive), a current tenant of the Reeb Avenue Center, ceased existence and operations at this location effective June 30, 2024. Ordinance 1898-2024 authorized the Director of the Department of Finance and Management to enter into a First Amendment to Lease Agreement in order to grant a six-month rent reduction to the Reeb Avenue Center between August 1, 2024 and terminating on January 31, 2025. In order to continue to assist Reeb Avenue Center, the City agreed to a rent reduction for the remainder of the lease term terminating on August 31, 2035. During this period, rent will be adjusted to $1.00 annually. Should the Tenant choose to exercise their Option to Renew, that shall commence September 1, 2035, the rent shall be negotiated at that time.
FISCAL IMPACT: Funding is available in the Property Management Fund (2294).
CONTRACT COMPLIANCE: the vendor number is 016050 and expires 9/5/2026.
Title
To authorize the Director of Development to refund the Reeb Avenue Center in the amount of $5,494.92; and to authorize the appropriation and expenditure of $5,494.92 from the Property Management Fund. ($5,494.92)
Body
WHEREAS, the City is the owner of certain real property located at 280 Reeb Avenue that includes a Building; and
WHEREAS, the City leases this real property and the Building to Reeb Avenue Center, a non-profit entity; and
WHEREAS, in order to assist Reeb Avenue Center with financial hardships, the City agreed to reduce its rent for the remainder of the lease term effective with rent due to the City on February 1, 2025 and terminating on August 31, 2035; and
WHEREAS, the Reeb Avenue Center made the February 2025 lease payment prior to the amendment of the lease and should be refunded for this payment; and
WHEREAS, to authorize an appropriation and expenditure in an amount up to $5,494.92 from the Property Management Fund; and
WHEREAS, in the usual daily operation of the Department of Development, the Director seeks authorization to refund the Reeb Avenue Center for their February 2025 lease payment for the 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 Development be and is hereby authorized to refund the Reeb Avenue Center in the amount of $5,494.92.
SECTION 2. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2026, the sum of $5,494.92 is appropriated in Fund 2294 (Property Management Fund), Dept-Div 44-11 (Real Estate and Land Redevelopment), in object class 05 (Other) per the account codes in the attachment to this ordinance.
SECTION 3. That for the purpose as stated in Section 1, the expenditure of $5,494.92 or so much thereof as may be needed is hereby authorized in Fund 2294 (Property Management Fund), Dept-Div 44-11 (Real Estate and Land Redevelopment), in object class 05 (Other) per the accounting codes in the attachment to this ordinance.
SECTION 4. Funds are hereby deemed appropriated and expenditures and transfers authorized to carry out the purposes of this Ordinance and the City Auditor shall establish such accounting codes as necessary.
SECTION 5. That the City Auditor is authorized to establish such accounting codes as necessary, to make any accounting changes to revise the funding source for all agreements, contracts, or modifications associated with this Ordinance.
SECTION 6. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.