Explanation
Background: This legislation authorizes the modification of a promissory note and loan agreement, with Maryhaven, Inc.
Ordinance 3440-2025 authorized a promissory note and loan agreement with Maryhaven, Inc. for operations support. Maryhaven began implementation of a new Electronic Health Records (EHR) to replace existing ineffective software. This new software adoption also included training and system integration. While a necessary and valuable investment in IT infrastructure, the migration to a new billing system coupled with training and system integration, resulted in a slowdown in billing and revenue recognition.
This software integration is now complete and the new EHR system has been fully implemented. However, due to a longer than anticipated implementation period, Maryhaven has experienced a delay in revenue generation and related cash flow. As such, this ordinance seeks authority to modify the existing promissory note to provide for an amended repayment schedule. The original repayment schedule provided for a repayment period of March 2026 through December 2026. This ordinance authorizes an amended repayment schedule which will consist of two phases. Phase one will provide for a $10,000 monthly loan payment for the period November 2026 through July 2027. Phase two will commence in August 2027 at a yet to be determined monthly loan payment amount.
Maryhaven has developed a Financial Sustainability Plan, which includes loan repayment to the City of Columbus. However, the initial phase under this plan concludes on June 30, 2027 which is the end of Maryhaven's current fiscal year. This plan will be updated for the 2027-28 fiscal year and the City and Maryhaven will discuss modifying the loan repayment at that time. It should be noted that Maryhaven remains committed to loan repayment and will continue to partner with the City and provide timely financial briefings.
Maryhaven is a nonprofit addiction treatment provider that operates four campuses in Columbus, as well as three regional clinics. Maryhaven provides comprehensive services for patients at all stages of recovery, including residential and outpatient care, medically assisted treatment as well as cognitive behavioral and other proven therapies, as well as individual and group counseling. Additionally, Maryhaven works closely with 12-step and other peer-to-peer recovery groups as they can be critical to long-term success for many patients. Maryhaven’s expert clinicians and counselors have served more than 350,000 men, women and adolescents since 1953.
Contract Compliance: Maryhaven, Inc., vendor number:004267, FID: 31-0732345.
Emergency Justification. Emergency action is requested in order to amend a previously authorized promissory note and loan agreement to continue needed financial support to Maryhaven in a timely manner. This financial support is necessary to sustain existing operations.
Fiscal Impact: This ordinance authorizes the amendment of a previously authorized promissory note and loan agreement. No additional funds are being requested or authorized by this legislation.
Title
To authorize the Director of the Department of Finance and Management to modify a previously established loan agreement and promissory note with Maryhaven Inc. to provide funding for operational support to extend the loan repayment schedule; and to declare an emergency. ($0.00)
Body
WHEREAS, Maryhaven Inc, is a valued community partner that provides addiction treatment services to Columbus residents; and
WHEREAS, the Department of Finance and Management desires to modify an existing loan agreement and promissory note with Maryhaven, Inc. related to previously authorized operations support; and
WHEREAS, this modification is being requested in order to amend the repayment schedule and does not impact the total loan and/or promissory note amount: and
WHEREAS, an emergency exists in the usual daily operations of the Department of Finance and Management, in that it is immediately necessary to authorize the Director of the Department of Finance and Management to modify an existing loan agreement and promissory note with Maryhaven, Inc. related to previously authorized financial operating support for existing operations, which financial support is necessary to sustain existing operations, all for the immediate 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 the Department of Finance and Management is hereby authorized to modify an existing loan agreement and promissory note with Maryhaven, Inc. to extend the loan repayment schedule.
SECTION 2. 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.