Explanation
Background: Since 1974, the Columbus Health Department ("City") has provided primary health care services to the City's medically underserved residents through contracts with community-based health providers. More specifically, since 1998 the Columbus Health Department has contracted with the Columbus Neighborhood Health Center, Inc. ("CNHC"), a not-for-profit corporation, to provide primary health care services to medically underserved patients at the City's neighborhood health centers. The City and CNHC now desire to enter into a lease agreement for the use of that City new medical office facility located at 2300 West Broad Street, commonly known as the Columbus West Family Health and Wellness Center. The proposed lease is for a period of five (5) consecutive one (1) year terms, commencing upon completion of the construction of the facility and the issuance of a final certificate of occupancy, and subject to the renewal of CNHC's annual contract as the City's provider of primary health care services for its neighborhood health centers.
This ordinance authorizes the Director of the Department of Finance and Management to execute those documents necessary to enter into a lease agreement with CNHC for that real property located at 2300 West Broad Street, commonly known as the Columbus West Family Health and Wellness Center. The rent proceeds will be deposited in the City's "Neighborhood Health Center Capital Reserve Fund", established for the support of the City's neighborhood health center facilities, to assist in covering the expenses related to the repair and replacements of building interior and exterior components, or for the replacement cost of the associated equipment or furnishings that have reached the end of their useful life as defined by IRS depreciation guidelines.
Fiscal Impact: The City will receive rental funds for the term of the lease which shall be deposited in Neighborhood Health Center Capital Reserve Fund. Annual rent payments will be finalized based upon the City's 2010 contract with Columbus Neighborhood Health Center, Inc. and will be graduated to increase over the term of the lease based on market rates and estimated building component repair and replacement costs and replacement costs of fully depreciated associated equipment or furnishings.
Title
To authorize the Director of the Department of Finance and Management to execute on behalf of the Columbus Health Department (Lessor), those documents necessary to enter into a lease agreement with the Columbus Neighborhood Health Centers, Inc. (Lessee) for the use of the City's neighborhood health center located at 2300 West Broad Street, commonly known as the Columbus West Family Health and Wellness Center, to provide primary health care services to the City's medically underserved residents; and to declare an emergency.
Body
WHEREAS, since 1974, the Columbus Health Department ("City") has provided primary health care services to the City's medically underserved residents through contracts with community-based health centers; and
WHEREAS, more specifically, the Columbus Health Department has contracted with the Columbus Neighborhood Health Center, Inc. ("CNHC"), a not-for-profit corporation, to provide primary health care services to medically underserved patients at its neighborhood health centers since 1998; and
WHEREAS, the City and CNHC now desire to enter into a lease agreement for the use of that City owned medical office facility located at 2300 West Broad Street, currently under construction and nearing completion, commonly known as the Columbus West Family Health and Wellness Center; and
WHEREAS, the proposed lease is for a period of five (5) consecutive one (1) year terms commencing upon the completion of construction and the issuance of a final certificate of occupancy , subject to the renewal of CNHC's annual contract as the City's provider of primary health care services for its neighborhood health centers; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus, in that it is immediately necessary to authorize the Director of the Department of Finance and Management to execute, on behalf of the City, those documents necessary to enter into a lease agreement with the Columbus Neighborhood Health Center, Inc. ("Lessee"), a Ohio non-profit corporation for that real property known as 2300 West Broad Street, commonly known as the Columbus West Family Health and Wellness Center, to be used as a "neighborhood health center" to benefit the public health for the immediate preservation of the public health, peace, property and safety; 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, on the behalf of the City, be, and hereby is, authorized to execute those documents as approved by the Department of Law, Division of Real Estate, necessary to enter into a lease agreement by and between the City of Columbus, ("Lessor"), and the Columbus Neighborhood Health Center, Inc. ("Lessee"), a Ohio non-profit corporation for that real property known as 2300 West Broad Street, Columbus West Family Health and Wellness Center, to be used as a "neighborhood health center" to benefit the public health.
Section 2. That the terms and conditions of the lease shall be in form approved by the City Attorney's Office and shall include the following:
The lease shall be effective for a period of five (5) consecutive one (1) year terms commencing upon the completion of construction and the issuance of a final certificate of occupancy, with two options to renew, subject to the renewal of Lessee's annual contract with the Columbus Health Department as its provider of primary health care services for its neighborhood health centers.
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 centers, to assist in covering the expenses related to the repair and replacements of building interior and exterior components, or for the replacement cost of the associated equipment or furnishings that have reached the end of their useful life as defined by IRS depreciation guidelines.
Such other terms and conditions as agreed to and approved by the City Attorney.
Section 3. 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.