Explanation
This legislation authorizes the Director of the Department of Development to enter into a Capital Contribution Agreements with Columbus Downtown Development Corporation (CDDC) in an amount up to $550,000.00 for the property renovation portion of the Downtown Ground Floor Growth Initiative.
The Downtown Ground Floor Growth Initiative (Program) (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.
• Provide funds for the renovation of properties rented as part of the Program.
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.
Capital funds in an amount up to $1,000,000.00, approved within the 2023 Capital Improvement Budget, will be used to renovate spaces selected for the Ground Floor Growth Initiative. This Ordinance represents $500,000.00 of the full commitment. Property owners and program participants will contribute to the planning of and investment in the selected spaces. The City will partner with CDDC to implement part of this Program and this legislation is one of multiple pieces of legislation being put forth for this Program. The City is also partnering with Columbus Compact Corporation (Ordinance 2044-2023) to identify up to 10 small businesses to participate in the Program and to provide technical assistance to the participants.
Using bond funds, CDDC will work with the City and Columbus Compact Corporation to identify vacant, ground floor, downtown space that, with assistance from the City and other stakeholders including the property owner and the program participants, can be transformed into a space for selected program participants. Once a business and space are approved for the Program, CDDC shall submit to the department a cost estimate for the renovation (design and construction costs). Once a project is approved by the City, funds will be advanced to CDDC to manage the renovation. With this ordinance, up to $500,000.00 of the $1,000,000.00 commitment is available for renovations costs. The additional $500,000.00 will be legislated at a later date. CDDC will be advanced $50,000.00 for administration services. Project funds will be advanced on a project by project basis, but the administration funds will be advanced in full. To further assist local business, CDDC shall publicly procure design and construction services for this Program and shall pay prevailing wage, as applicable under Ohio law.
Fiscal Impact: Funding in the amount of $500,000.00 is available in the 2023 Capital Improvement Budget. An amendment to the 2023 Capital Budget is required to establish sufficient budget authority for the project. Funding in the amount of $50,000.00 is available in the General Fund Job Growth subfund.
Contract Compliance: the vendor number is 010217 and expires 6/8/2024.
Title
To amend the 2023 Capital Improvement Budget; to authorize the City Auditor to transfer funds within the Taxable Bond Fund; to authorize the Director of the Department of Development to enter into a Capital Contribution Agreements with Columbus Downtown Development Corporation (CDDC) in an amount up to $550,000.00 for the property renovation portion of the Downtown Ground Floor Growth Initiative; to authorize the advance of funds to CDDC per the agreement schedule; to authorize the modification of Capital Contribution Agreements, up to the amount of funds on the ACPO; to authorize the expenditure of up to $500,000.00 from the Taxable Bond Fund; to authorize the appropriation and expenditure of up to $50,000.00 from the General Fund Job Growth subfund. ($550,000.00)
Body
WHEREAS, the Director of the Department of Development seeks to enter into a Capital Contribution Agreements with Columbus Downtown Development Corporation in an amount up to $550,000.00 for the property renovation portion of the Downtown Ground Floor Growth Initiative; 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 Director of the Department of Development has already executed a contract with Columbus Compact Corporation to identify up to 10 small businesses to participate in the Program and to provide technical assistance to the participants; and
WHEREAS, once Program participants and storefronts are determined, CDDC shall submit a renovation cost estimate to the department and upon approval by the department, funds shall be advanced to CDDC for the buildout and administration services; and
WHEREAS, to further assist local business, CDDC shall publicly procure design and construction services for this Program and shall pay prevailing wage, as applicable under Ohio law.
NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the 2023 Capital Improvements Budget authorized by ordinance 1711-2023 be amended as follows to establish sufficient authority for this project:
Fund / Project / Project Name / C.I.B. / Change / C.I.B. as Amended
7739 / P200026-100000 / Land Bank Properties / $500,000.00 / ($500,000.00) / $0.00
7739/ P200031-100000/Commercial Downtown Marketplace Initiative / $0.00 / $500,000.00 / $500,000.00
SECTION 2. That the transfer of $500,000.00 or so much thereof as may be needed, is hereby authorized within Fund 7739 (Taxable Bond Fund), Dept-Div 44-11 (Economic Development) per the account codes in the attachment to this ordinance.
SECTION 3. That for the purpose as stated in Section 6, the expenditure of $500,000.00, or so much thereof as may be necessary, is hereby authorized in fund 7739 (Taxable Bond Fund), Project 200031-100000, Dept. 44-11 (Economic Development), in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 4. That the City Auditor be and is hereby authorized to appropriate $50,000.00 in Fund 1000 (General Fund), Subfund 100015 (Jobs Growth Subfund), Dept-Div 4402 (Economic Development), in Object Class 05 (Other), per the accounting codes in the attachment to this ordinance.
SECTION 5. That the expenditure of $50,000.00 or so much thereof as may be needed pursuant to the action authorized in SECTION 6 of this ordinance, is authorized in Fund 1000 (General Fund), Subfund 100015 (Jobs Growth Subfund), Dept-Div 4402 (Economic Development), in Object Class 05 (Other), per the accounting codes in the attachment to this ordinance.
SECTION 6. That the Director of the Department of Development is authorized to enter into a Capital Contribution Agreements with Columbus Downtown Development Corporation (CDDC) in an amount up to $550,000.00 for the property renovation portion of the Downtown Ground Floor Growth Initiative; to authorize the modification of Capital Contribution Agreements, up to the amount of funds on the ACPO; and to make advance payments for projects on a project by project basis for the renovation costs (up to $500,000.00) and to advance the administration fee in full (up to $50,000.00).
SECTION 7: 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 8: That the City Auditor is authorized to make any accounting changes to revise the funding source for all agreements or agreement modifications associated with this legislation.
SECTION 9: That this ordinance shall take effect and be in force from and after the earliest period allowed by law.