Explanation
BACKGROUND: This legislation authorizes the Public Service Director to enter into a lease agreement with the Columbus Compact Corporation for city-owned property commonly known as 1393 East Broad Street, Columbus, Ohio. The Columbus Compact Corporation is the governing body and implementation agent for the Columbus Empowerment Zone. The activities and responsibilities of the Columbus Compact Corporation focus primarily on the promotion of economic opportunity, neighborhood life, community values, and cultural life.
Fiscal Impact: The City will receive $25,300 annually for the initial period of the lease agreement. In addition, the Columbus Compact Corporation shall pay the City $15,000.00 annually which will be deposited in a separate capital reserve fund to be used for certain building maintenance costs.
Emergency action is requested for the immediate authorization of this lease that will provide revenue to the City for a facility that would otherwise be under utilized and an expense to the City of Columbus.
Title
To authorize the Public Service Director to enter into a lease agreement to lease the City owned property at 1393 East Broad Street to Columbus Compact Corporation for the amount of $25,300.00 per year plus a $15,000.00 per year capital reserve fee for an initial period of three years with five options to renew, and to declare an emergency. ($0.00)
Body
WHEREAS, the City of Columbus, Ohio owns certain real property commonly known as 1393 East Broad Street; and,
WHEREAS, the City of Columbus, Ohio, acting through its Facilities Management Division, has negotiated a mutually satisfactory lease agreement with Columbus Compact Corporation, an Ohio non-profit corporation, for the lease of said real property; and,
WHEREAS, the City of Columbus desires to enter into a lease agreement with Columbus Compact Corporation for the real property commonly known as 1393 E. Broad Street; and,
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus, in that it is immediately necessary to authorized the Director of the Department of Public Service to execute those documents necessary to enter into a lease agreement for the real property located at 1393 East Broad Street, and for the immediate preservation of the public health, peace, property and safety; now, therefore:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the Public Service Director be and is hereby authorized to execute those documents approved by the Department of Law, Division of Real Estate, necessary to enter into a lease agreement by and between the City of Columbus, Ohio and Columbus Compact Corporation, an Ohio non-profit corporation, for certain real property identified as Franklin County Tax Parcel Number 010-024870, and more commonly known as 1393 East Broad Street, Columbus, Ohio.
Section 2. That the material terms and conditions of the lease shall be in form approved by the City Attorneys Office and shall include the following:
a) The annual rent shall be $25,300.00.
b) The lease shall be for a period of three (3) consecutive one (1) year terms, with 5 options to renew.
c) The Lessee shall pay City $15,000.00 annually as a non-refundable "capital reserve" fund held by the City to cover unforeseen expenses related to maintenance and/or repair of certain building components.
d) Such other terms and conditions as are required and/or approved by the City Attorney's Office.
Section 3. That the City Auditor shall set up a "1393 East Broad Street Capital Reserve Fund," separate and distinct from the "General Fund," in which to deposit the annual $15,000.00 capital reserve payment to the City, and such fund shall be held by the City Auditor solely for the payment of costs and expenses relative to maintenance and repair of the subject leased real property.
Section 4. 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.