Explanation
BACKGROUND: To authorize the Director of the Department of Development to accept a grant from the Jobs and Commerce Economic Development Program (SAC 4JC7) Account of the Ohio Department of Transportation (the “Grantor”) valued at up to one hundred seventy-five thousand dollars ($175,000.00) for costs associated with the completion of public roadwork improvements in support of the relocation and expansion of operations by CoverMyMeds LLC (“CoverMyMeds”). At the end of the grant period, any repayment of unencumbered balances required by the grantor is hereby authorized and any unused City match monies may be transferred back to the City fund from which they originated in accordance with all applicable grant requirements.
CoverMyMeds, in collaboration with a real estate development partner, is desirous of constructing or causing the construction of one (1) new approximately 200,000-square-foot Class A office building, ancillary campus amenities and surface parking (“Phase 1”), and, subject to market conditions, may construct or cause the construction of another one (1) Class A office building of up to approximately 200,000 square feet along with one or more associated parking structures containing up to approximately 1,150 parking spaces at a later date (“Phase 2”) (the building or buildings, related amenities, and parking structure or structures that are actually constructed shall be collectively referred to as the “Project”) to serve as a new headquarters campus for CoverMyMeds.
In total, this new headquarters campus Project is expected to support the retention and relocation of approximately 592 existing full-time permanent employment positions with an associated annual payroll of approximately $43,162,000 from their current offices located at 2 Miranova Place, Columbus, Ohio 43215 and 41 South High Street, Columbus, Ohio 43215 to the Project Site. Additionally, CoverMyMeds expects to create approximately 1,032 net new full-time permanent employment positions with an associated annual payroll of approximately $75,000,000 at the Project Site by December 31, 2022.
These roadwork investments are necessary to maintain current traffic flow with additional traffic volume near the Project Site along McKinley Ave., Souder Ave., Dublin Rd., John St., Hartford Ave., and in the general area as a result of this investment. These improvements to the existing roadway network will aid in supporting the expansion of operations of CoverMyMeds and other growing employers in the Franklinton neighborhood. Expected improvements include pavement widening, modifications to pavement markings, new turn lanes, and new traffic signals.
FISCAL IMPACT: There is no cost to accept the state roadwork development grants. The City will receive a total of up to $175,000 to apply towards public roadway improvements along McKinley Ave., Souder Ave., Dublin Rd., John St., Hartford Ave., and the general area. This ordinance contains an appropriation within the General Government Grant Fund and authorizes expenditure for this purpose.
EMERGENCY JUSTIFICATION: Emergency legislation is required to allow for immediate execution of the Jobs and Commerce Economic Development grant, which is necessary to facilitate the construction of the roadway improvements and to maintain the Project schedule.
Title
To authorize the appropriation of grant funds within the General Government Grants Fund; to authorize the Director of the Department of Development to accept a grant from the Jobs and Commerce Economic Development Program Account of the Ohio Department of Transportation valued at up to $175,000.00 for costs associated with the completion of public roadwork improvements in support of the expansion of operations by CoverMyMeds LLC; to authorize the expenditure of $175,000.00, or so much as may be necessary from the General Government Grant Fund; and to declare an emergency. ($175,000.00)
Body
WHEREAS, CoverMyMeds, in collaboration with a real estate development partner, is desirous of constructing or causing the construction of one (1) new approximately 200,000-square-foot Class A office building, ancillary campus amenities and surface parking (“Phase 1”); and
WHEREAS, subject to market conditions, CoverMyMeds may construct or cause the construction of another one (1) Class A office building of up to approximately 200,000 square feet along with one or more associated parking structures containing up to approximately 1,150 parking spaces at a later date (“Phase 2”); and
WHEREAS, the building or buildings, related amenities, and parking structure or structures that are actually constructed (collectively referred to as the “Project”) shall serve as a new headquarters campus for CoverMyMeds; and
WHEREAS, CoverMyMeds LLC is expected to retain and relocate 592 existing full-time permanent employment positions with an associated annual payroll of approximately $43,162,000 and create approximately 1,032 net new full-time permanent employment positions with an associated annual payroll of approximately $75,000,000 at the Project Site by December 31, 2022 following construction and occupancy of the campus; thereby increasing job opportunities and strengthening the economy of the City; and
WHEREAS, infrastructure improvements near the Project Site to accommodate the relocation and expansion of operations by CoverMyMeds are estimated to cost approximately $2,814,000; and
WHEREAS, the Columbus Department of Development was awarded $175,000 in grant assistance from the Jobs and Commerce Economic Development Program (SAC 4JC7) Account of the Ohio Department of Transportation to facilitate improvements to a public roadway near the Project Site to benefit the relocation and expansion of operations by CoverMyMeds; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus, in that it is immediately necessary to apply for and accept the roadwork development grant to maintain the Project schedule; thereby preserving the public health, peace, property, safety and welfare; NOW THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That from the unappropriated monies in Fund 2220 (General Government Grants Fund) and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the grant period, the sum of $175,000 is appropriated upon receipt of an executed grant agreement in Fund 2220 (General Government Grants Fund) Dept-Div 4402 (Economic Development) Grant No. to be determined by Auditor, Object Class 06 (Capital Outlay) Amount $175,000.
SECTION 2. That the Director of the Department of Development is hereby authorized to accept a grant from the Jobs and Commerce Economic Development Program (SAC 4JC7) Account of the Ohio Department of Transportation valued at up to $175,000 and is authorized to execute a grant agreement and any other documents necessary to effectuate said application and acceptance on behalf of the Department of Development and for costs associated with the completion of public roadwork improvements in support of the expansion of operations committed to by CoverMyMeds LLC.
SECTION 3. That for the purpose of roadway improvements as authorized by the grant terms and conditions, the expenditure of $175,000, or so much thereof as may be necessary, is hereby authorized in Fund 2220 (General Government Grants Fund), Dept.-Div 4402 (Economic Development), Grant No. to be determined by Auditor, in Object Class 06 (Capital Outlay) per the accounting codes in the attachment to this ordinance.
SECTION 4. At the end of the grant period, any repayment of unencumbered balances required by the Grantor is hereby authorized and any unused City match monies may be transferred back to the City fund from which they originated in accordance with all applicable grant requirements.
SECTION 5. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the Director of the department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 6. That the City Auditor is authorized to make any accounting changes to revise the funding source for any contract or contract modification associated with this ordinance.
SECTION 7. 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 8. 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 passage and approval by the Mayor, or ten (10) days after passage if the Mayor neither approves nor vetoes the same.