Explanation
BACKGROUND: The purpose of this ordinance is to authorize the Director of the Department of Development to accept a grant from the Roadwork Development (629) Account of the Ohio Development Services Agency valued at $300,000 and a grant from the Ohio Department of Transportation valued at $250,000, contingent on State Controlling Board approval, for improvements to a public roadway near Schrock Road (Parcel ID 610-291371) to benefit the expansion of operations of SEA, Ltd. (Scientific Expert Analysis, Ltd.), to appropriate the monies within the General Government Grant Fund and, in turn, authorize the Director of the Department of Public Service to enter into a guaranteed maximum cost agreement with SEA, Ltd. to construct the improvements.
The roadwork grants, and this associated request for authorization to accept the grants, are part and parcel of an incentive package to allow SEA, Ltd. to expand in Columbus. SEA, Ltd. will invest an estimated $9.4 million at the site with $9 million toward building construction and $400,000 in machinery, equipment, furniture and fixtures. A total of 96 existing full-time positions will be retained and 30 new full-time permanent positions will be created within three years.
Total infrastructure costs to accommodate the construction of a new global corporate headquarters for SEA, Ltd. are estimated to be approximately $1.224 million and will be shared by the State of Ohio and SEA, Ltd.
Authorization to apply for said grant funds was approved under Columbus City Council Ordinance 2906-2013, dated December 16, 2013.
This legislation is submitted as an emergency in order to make use of the state grants as soon as possible after State Controlling Board approval.
FISCAL IMPACT: The City will receive a total of $550,000 to apply towards public roadway improvements near Schrock Road. This ordinance contains an appropriation within the General Government Grant Fund and authorizes expenditure for this purpose.
Title
To authorize and direct the Director of the Department of Development to accept $300,000.00 in grant assistance from the Ohio Development Services Agency and $250,000.00 in grant assistance from the Ohio Department of Transportation for public roadway improvements near Schrock Road to benefit the construction of a new global corporate headquarters for SEA, Ltd.; to authorize the appropriation of these monies within the General Government Grant Fund; to authorize the Director of the Department of Public Service to enter into a guaranteed maximum cost agreement with SEA, Ltd. pursuant to Section 186 of the Columbus City Charter to construct roadwork improvements near Schrock Road; to authorize the expenditure of $550,000.00 or so much as may be necessary from the General Government Grant Fund; and to declare an emergency. ($550,000.00)
Body
WHEREAS, SEA, Ltd. desires to construct and equip a new facility on Schrock Road, Parcel ID 610-291371; and
WHEREAS, SEA, Ltd. proposes to invest approximately $9.4 million, with $9 million toward the new construction of a 90,000-100,000 square foot facility and $400,000 for equipment, furniture and fixtures; and
WHEREAS, SEA, Ltd. will create 30 new full-time permanent jobs with an annual payroll of $3 million and will retain 96 full-time positions to be relocated to the project site; and
WHEREAS, infrastructure improvements on and around Schrock Road to accommodate the construction of a new global corporate headquarters for SEA, Ltd. are estimated to cost approximately $1.224 million; and
WHEREAS, the Columbus Department of Development was invited to apply for $300,000 in grant assistance from the Roadwork Development (629) Account of the Ohio Development Services Agency and $250,000 in grant assistance from the Ohio Department of Transportation to facilitate improvements to a public roadway near Schrock Road to benefit the SEA, Ltd. project; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary to accept, appropriate and expend a total of $550,000 in state roadwork grants as soon as possible after State Controlling Board approval to benefit the SEA, Ltd. expansion project, all for the preservation of 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 hereby authorized and directed to accept a grant from the Ohio Development Services Agency valued at $300,000 and a grant from the Ohio Department of Transportation valued at $250,000, contingent on State Controlling Board approval, for public roadway improvements near Schrock Road to benefit the construction of a new global corporate headquarters for SEA, Ltd.
Section 2. That the sum of $550,000 be and hereby is appropriated from the unappropriated balance of Fund 220, the General Government Grant Fund, and from all monies estimated to come into said Fund from any and all sources and unappropriated for any purpose during the fiscal year ending December 31, 2014, to the Department of Public Service, Division No. 59-12, Object Level One 06, Object Level Three 6631, with OCA and grant codes to be issued by the City Auditor upon receipt of an executed grant agreement. Appropriation effective upon receipt of executed grant agreement.
Section 3. That the monies appropriated in Section 2 shall be paid upon order of the Director of the Department of Public Service and that no order shall be drawn or money paid except as by voucher, the form of which shall be approved by the City Auditor.
Section 4. That the Director of the Department of Public Service is hereby authorized to enter into a guaranteed maximum cost agreement with SEA, Ltd. pursuant to Section 186 of the Columbus City Charter to construct roadwork improvements near Schrock Road (Parcel ID 610-291371) under said grant.
Section 5. That the expenditure of $550,000 or so much thereof as may be necessary be and is hereby authorized from Fund 220, the General Government Grant Fund, Department of Public Service, Division 59-12, Object Level One 06, Object Level Three 6631, with OCA and grant codes to be issued by the City Auditor upon award of said grant.
Section 6. 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 7. 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 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 days after passage if the Mayor neither approves nor vetoes the same.