Explanation
Background: This legislation authorizes the Director of Development, or designee, on behalf of Columbus Public Health, to execute a Lease Agreement with Columbus Neighborhood Health Center, Inc. (CNHC), dba PrimaryOne Health, as Tenant, for use of city-owned medical office space located at 1905 Parsons Avenue, known as the East Central Health Center. Columbus Neighborhood Health Center, Inc., a non-profit corporation, has been the Tenant and Columbus Public Health’s service provider of primary health care services to medically underserved residents at the Southside Health Center for the past 12 years. With the City’s approval to allow CNHC to construct a pharmacy within the Premises, it is necessary to enter into a new Lease Agreement to memorialize changes to the lease including term and the rent structure. The proposed Lease Agreement will be for an initial period of twenty (20) years with two (2) renewal options, each for a period of five (5) years, subject to the renewal of CNHC's annual contract with Columbus Public Health as its provider of primary health care services at its neighborhood health center. This legislation is presented as emergency measure in order implement these necessary changes at the earliest possible time and for the Health Center’s operation to continue uninterrupted.
Fiscal Impact: No funding is required for this legislation. The City will receive no rental income from the lease effective date through August 31, 2026 at which time rental income will increase to $114,391.00 for the period September 1, 2026 through August 31, 2027 and then to $228,782.00 for the third, fourth and fifth lease year. Thereafter, annual rent will increase every five (5) years through expiration. Income will be deposited in Fund 7784, the Neighborhood Health Capital Reserve Fund, which was established for the support of the City's neighborhood health center facilities to assist in covering the expenses related to the repair and replacement of building interior and exterior components and for the replacement cost of associated equipment and furnishings that have reached the end of their useful life.
Emergency Action: This legislation is presented as emergency measure to implement these necessary changes at the earliest possible time and allow for the Health Center’s operation to continue uninterrupted.
Title
To authorize the Director of Development, or designee, to execute, on behalf of Columbus Public Health, those documents necessary to enter into a Lease Agreement with the Columbus Neighborhood Health Center, Inc. for the use of the City’s neighborhood health center located at 1905 Parsons Avenue, Columbus, Ohio, commonly known as Southside Health Center, and declare an emergency. ($0.00)
Body
WHEREAS, the Department of Development, leases city-owned medical office space to Columbus Neighborhood Health Center, Inc., at 1905 Parsons Avenue, Columbus, Ohio; and
WHEREAS, the current Lease with Columbus Neighborhood Health Center, Inc. will be terminated, and a new Lease will be entered into that will allow for necessary and negotiated changes needed to the term and the rent structure; and
WHEREAS, the Department of Development has negotiated a new Lease Agreement with terms and conditions acceptable to the City and Columbus Neighborhood Health Center, Inc.; and
WHEREAS, an emergency exists in the usual daily operation of the City in that it is immediately necessary to authorize the Director of the Department of Development, or designee, to execute, on behalf of the City, a Lease Agreement with Columbus Neighborhood Health Center, Inc. to allow it to continue providing health care services to the public without interruption 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 Development, or designee be, and hereby is, authorized to execute a Lease Agreement by and between the City and Columbus Neighborhood Health Center, Inc., an Ohio non- profit corporation, dba PrimaryOne Health, for the lease of medical office space located at 1905 Parsons Avenue, Columbus, Ohio 43204.
SECTION 2. That the terms and conditions of the Lease Agreement shall be in a form prepared and approved by the Department of Law, Division of Real Estate, and shall include terms, conditions, covenants, and provisions that are acceptable to the City including a term of twenty (20) years with two options to renew, each for five (5) years subject to the renewal of Lessee's annual contract with Columbus Public Health as its provider of primary health care services for its neighborhood health center. The Lessee's annual rent shall be deposited in Neighborhood Health Center Capital Reserve Fund held by the City, established for the support of the City's neighborhood health center.
SECTION 3. That the City Auditor is authorized to make any accounting changes necessary to ensure that this lease is properly accounted for and recorded accurately on the City’s financial records.
SECTION 4. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared 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.