Explanation
BACKGROUND
The City owns and leases to the North Market Development Authority, Inc., an Ohio nonprofit corporation (NMDA, hereinafter the “Grantee”) a longstanding public market on Franklin County Auditor Tax Parcel No. 010-054645 that is an incubator and innovator of small businesses while providing the residents and visitors local products and cultural vibrancy (the “North Market”). Construction activities began in the autumn of 2023 on the adjacent parcels of the Grantee’s previously leased parking lot. In accordance with Ordinance No. 2137-2023, the Director of the Department of Development entered into the Grant Agreement dated December 12, 2023 (the “Agreement”) with the Grantee for the advancement and reimbursement of funds for the Grantee’s daily operation of the North Market during calendar years 2023, 2024, and 2025 including operations incurred prior to any purchase order for this grant. That ordinance contemplated the Department of Development would, pursuant to the Agreement, submit for City Council consideration all necessary legislation to authorize grants not to exceed the amount of nine hundred fifty thousand dollars ($950,000.00) to be distributed over the course of three (3) consecutive budget years to help mitigate the business disruption to the North Market and the small businesses operating there during calendar years 2023, 2024, and 2025. Four hundred seventy-five thousand dollars ($475,000.00) was dispersed from the 2023 budget under Ordinance No. 2137-2023, three hundred fifty thousand dollars ($350,000.00) was dispersed from the 2024 budget under Ordinance No. 0804-2024. Up to one hundred twenty-five thousand dollars ($125,000.00) was to be dispersed under to the 2025 budget, but the Grantee has demonstrated an additional operational gap above $950,000.000 and has requested another three hundred seventy-five thousand dollars ($375,000.00) in addition to the $125,000.00 for a total of five hundred thousand dollars ($500,000.00). This ordinance authorizes the transfer and expenditure of $125,000.00 from the General Fund for the grant, and $375,000.00 from the Neighborhood Economic Development Fund for the grant. This ordinance also authorizes an amendment to the Agreement.
EMERGENCY JUSTIFICATION
An emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the amendment to the Agreement to allow the expenditure of the final grant amount of up to $500,000.00 prior to the year-end invoice deadline in early December and prior to the Agreement and Amendment expiring on December 31, 2025 to thereafter immediately provide the funds from the City necessary to support the Grantee’s daily operations during construction of the adjacent project.
CONTRACT COMPLIANCE
The contract compliance number for North Market Development Authority, Inc. is 034112 and contract compliance is pending.
FISCAL IMPACTS
This legislation authorizes the transfer within and the expenditure of one-hundred twenty-five thousand dollars ($125,000.00) from the 2025 General Fund and three hundred seventy-five thousand dollars ($375,000.00) from the Neighborhood Economic Development Fund.
Title
To authorize an amendment to the Grant Agreement dated December 12, 2023 between the City and North Market Development Authority, Inc.; to authorize the transfer and expenditure of up to $125,000.00 from the General Fund; to authorize the appropriation and expenditure of up to $375,000.00 from the Neighborhood Economic Development Fund pursuant Grant Agreement and the amendment to the Grant Agreement; to allow for the advancement and reimbursement of funds for the Grantee’s daily operation of the North Market during calendar years 2023, 2024, and 2025 including operations incurred prior to any purchase order for this grant pursuant to that agreement and amendment; and to declare an emergency. ($500,000.00)
Body
WHEREAS, the City owns and leases a long-standing public market on Franklin County Auditor Tax Parcel No. 010-054645 that is an incubator and innovator of small businesses while providing the residents and visitors local products and cultural vibrancy (the “North Market”) to the North Market Development Authority, Inc., an Ohio nonprofit corporation (NMDA, hereinafter the “Grantee”); and
WHEREAS, the construction activities on and in the vicinity of the adjacent former North Market parking lot have impacted the ability for patrons to access the North Market by ways of limiting parking and entrance into the North Market; and
WHEREAS, pursuant to Ordinance No. 2137-2023, the Director of the Department of Development entered into the Grant Agreement dated December 12, 2023 (the “Agreement”) with the Grantee to help mitigate the operational impact of the Grantee and the small businesses operating at the North Market during the construction period from calendar year 2023 to expected completion in calendar year 2026; and
WHEREAS, under the Agreement, the Department of Development made a commitment to support the North Market and the Grantee in the amount of up to nine hundred fifty thousand dollars ($950,000.00) collectively over three consecutive budget years; and
WHEREAS, Ordinance No. 2137-2023 authorized the transfer and expenditure of the first four-hundred seventy-five thousand dollars ($475,000.00) for the purposes under the Agreement; and
WHEREAS, Ordinance No. 0804-2024 authorized the transfer and expenditure of the next three-hundred fifty thousand dollars ($350,000.00) for the purposes under the Agreement: and
WHEREAS, an additional one-hundred twenty-five thousand dollars ($125,000.00) was committed in the 2025 budget for the General Fund; and
WHEREAS, the Grantee has demonstrated an additional operations gap above $950,000.00 and has requested another three hundred seventy-five thousand dollars ($375,000.00) in addition to the $125,000.00 for a total of five hundred thousand dollars ($500,000.00); and
WHEREAS, this legislation will authorize an amendment to the Agreement (the “Amendment”); and
WHEREAS, this legislation authorizes a transfer and expenditure within the General Fund in an amount up to $125,000.00; and
WHEREAS, this legislation authorizes an appropriation and expenditure in an amount up to $375,000.00 from the Neighborhood Economic Development Fund; and
WHEREAS, the total expenditure of the final year’s grant in the amount of five hundred thousand dollars ($500,000.00) is authorized for the purposes under the Agreement and the Amendment; and
WHEREAS, this grant will allow for the continual operation of the North Market by the Grantee during the construction on the adjacent parcel commencing in 2023 through 2026; and
WHEREAS, an emergency exists in the usual daily operations of the Department of Development in that it is immediately necessary to authorize the Amendment to allow the expenditure of the final grant amount of up to $500,000.00 prior to the year-end invoice deadline in early December and prior to the Agreement and Amendment expiring on December 31, 2025 to thereafter immediately provide the funds from the City to support the Grantee’s daily operations during construction on the adjacent project. all for the immediate preservation of the public health, peace, property, safety and welfare; and NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development, or his or her authorized designee, on behalf of the City, is authorized to enter into the Amendment presently on file with the Department of Development, along with any changes or amendments thereto not inconsistent with this Ordinance and not substantially adverse to the City and which shall be approved by such director and the City Attorney, provided that the approval of such changes and amendments thereto, and the character of those changes and amendments not being substantially adverse to the City, shall be evidenced conclusively by the execution and delivery thereof, that such changes are not inconsistent or adverse to the City.
SECTION 2. That the transfer of $125,000.00, or so much thereof as may be needed, is hereby authorized within Fund 1000 (General Fund), from Dept.-Div 44-02 (Economic Development), object class 03 (Services) to object class 05 (Other) per the account codes in the attachment to this ordinance.
SECTION 3. 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, 2025, the sum of $375,000.00 is appropriated in Fund 2237 (Neighborhood Economic Development Fund), Dept-Div 44-02 (Economic Development Division), in object class 05 (Other) per the account codes in the attachment to this ordinance.
SECTION 4. That for the purposes herein and under the Agreement and the Amendment including, but not limited to, for the advancement and reimbursement of funds for the Grantee’s daily operation of the North Market during calendar years 2023, 2024, and 2025 including operations incurred prior to any purchase order for this grant, the expenditure of $125,000.00, or so much thereof as may be needed, is hereby authorized in Fund 1000 (General Fund), Dept. 44-02 (Economic Development), in Object Class 05 (Other) and the expenditure of $375,000.00, or so much thereof as may be needed, is hereby authorized in Fund 2237 (Neighborhood Economic Development Fund) per the accounting codes in the attached to this ordinance. This Council ratifies all prior advancements and reimbursements of funds for the Grantee’s daily operation of the North Market during calendar years 2023, 2024, and 2025 including operations incurred prior to any purchase order for this grant.
SECTION 5. 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 6. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contract modifications associated with this ordinance.
SECTION 7. That for the reasons states in the Preamble hereto, which is hereby made a part of hereof, this Ordinance is hereby declared to be an emergency measure and shall take effect and be in force from after its passage and approval by the Mayor of ten days after the passage if the Mayor neither approves nor vetoes the same.