Explanation
BACKGROUND
This legislation authorizes the Director of the Department of Development to enter into a grant agreement with Community Partners Youth Development Organization, Inc. (dba Columbus Center of Entrepreneurial Development or COED), an Ohio nonprofit corporation, in an amount of up to $1,000,000.00 for construction costs at 1878-1890 E. Main Street. Approval is also requested to advance funding per a pre-determined schedule to be included in the agreement and reimbursement of construction expenses incurred prior to execution of the purchase order, starting January 1, 2025.
COED focuses on improving major deficiencies within the entrepreneurial ecosystem with a particular focus as it pertains to underserved entrepreneurs. The renovated historic icehouse at 1878-1890 E. Main Street was redeveloped into a multi-use facility including offices, co-working spaces, an event space, a fitness center, and business incubators.
EMERGENCY DESIGNATION: To ensure that construction is not delayed, emergency action is requested.
CONTRACT COMPLIANCE
Community Partners Youth Development Organization, Inc.’s vendor number is 043748 and contract compliance expires on 05/06/2027.
FISCAL IMPACTS
Funding for this project will not be available to the Department of Development until the bonds are sold related to the 2025 Capital Improvement Budget and are available at a future date, therefore it is necessary to certify the required funds, in the amount up to $1,000,000.00, against the General Fund 1000, Income Tax Set Aside Subfund 100099. The subfund will be reimbursed upon receipt of the bond sale proceeds.
Title
To authorize the Director of the Department of Development to enter into a grant agreement with the Community Partners Youth Development Organization, Inc., an Ohio nonprofit corporation, in an amount of up to $1,000,000.00 for construction expenses at 1878-1890 E. Main Street; to authorize the appropriation of funds within the Income Set Aside Subfund and the Development Taxable Bonds Fund; to authorize the transfer of cash between the Income Tax Set Aside Subfund and the Development Taxable Bond Fund; to authorize the expenditure within the Development Taxable Bonds Fund in an amount up to $1,000,000.00; to allow for payment of grant funds on a predetermined schedule; to allow reimbursement of expenses incurred prior to the creation of the purchase order; and to declare an emergency. ($1,000,000.00)
Body
WHEREAS, with Community Partners Youth Development Organization, Inc. (dba Columbus Center of Entrepreneurial Development or COED) is an Ohio non-profit corporation that seeks to improve deficiencies within the entrepreneurial ecosystem; and
WHEREAS, COED is investing in a community center at 1878-1890 E. Main Street that will include offices, co-working spaces, an event space, a fitness center, and business incubators; and
WHEREAS, the City seeks to promote jobs training and creating pathways toward economic stability through entrepreneurship; and
WHEREAS, it is necessary to certify the required funds, in the amount up to $1,000,000.00 dollars against the General Fund, Income Tax Set Aside Subfund and authorize the appropriation and transfer of the funds in the amount up to $1,000,000.00 from the Income Tax Set Aside Subfund to the Development Taxable Bond fund and authorize the appropriation within the Development Taxable Bond Fund; and
WHEREAS, it is necessary to authorize the expenditure within the Development Taxable Bond Fund in an amount up to $1,000,000.00; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the construction of the project described in this ordinance (the "Project"); and
WHEREAS, the City will reimburse the General Fund, Income Tax Set Aside Subfund; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligation which the City will issue to finance this project is presently expected not to exceed $1,000,000.00; and
WHEREAS, payments will be made on a predetermined schedule and reimbursement of expenses incurred prior to the creation of the purchase order, starting January 1, 2025, are permitted; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development to authorize the Director to enter into a grant agreement with the Community Partners Youth Development Organization, Inc. to ensure there are no delays in construction, 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 Development is authorized to enter into a grant agreement with Community Partners Youth Development Organization, Inc. (dba Columbus Center of Entrepreneurial Development or COED) in an amount up to $1,000,000.00 in support of construction at 1878-1890 E. Main Street; to advance funding per a pre-determined schedule to be included in the agreement and to reimburse construction expenses incurred prior to execution of the purchase order, starting January 1, 2025.
SECTION 2. That from the unappropriated monies and from all monies estimated to come into said funds from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2025, the sum of $1,000,000.00 is appropriated within General Fund (1000), Income Tax Set Aside Subfund (100099), in Object Class 10 (Transfer Out Operating), and into the Development Taxable Bond Fund, Fund (7739), in Object Class 06 (Capital Outlay) per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $1,000,000.00 or so much thereof as may be needed, is hereby authorized between the General Fund (1000), Income Tax Set Aside Subfund (100099), and the Development Taxable Bonds Fund, Fund (7739), per the account codes in the attachment to this ordinance.
SECTION 4. The expenditure of $1,000,000.00, or so much thereof as may be needed, is hereby authorized in the Development Taxable Bonds Fund, Fund (7739), in Dept-Div 4401 (Admin), Project P441790-100000 (Center of Entrepreneurial Development), in Object Class 06 (Capital Outlay) per the account codes attached to this ordinance.
SECTION 5. That upon obtaining other funds, the City Auditor is hereby authorized and directed to repay the General Fund (1000), Income Tax Set Aside Subfund (100099) the amount transferred under Section 3.
SECTION 6. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150 2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $1,000,000.00 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of Treasury Regulations Section 1.150 2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
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 the City Auditor is hereby authorized and directed to transfer any unencumbered balance in the project account to the unallocated balance 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 no longer required for said project.
SECTION 9. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this Ordinance.
SECTION 10. 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 approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.