Explanation
Background: The City owns real property located at 280 Reeb Avenue that is currently leased to the Reeb Avenue Center, a non-profit entity, as Tenant. Reeb Avenue Center subleases portions of the Building on the property to various non-profit groups providing various social services to Southside residents. South Side Learning and Development Center (dba SproutFive), a current tenant of the Reeb Avenue Center, will cease existence and operations at this location effective June 30, 2024. This legislation is presented as an emergency and authorizes the Director of the Department of Finance and Management to enter into a First Amendment to Lease Agreement in order to grant a six-month rent reduction to the Reeb Avenue Center. All other terms and conditions of the Lease Agreement will remain unchanged and in effect. The Reeb Avenue Center plans to sublet the space vacated by SproutFive to Columbus Early Learning Centers to provide similar childcare and early learning services for the neighborhood. There is a six-month gap before Columbus Early Learning Center begins to pay rent to Reeb. In order to assist Reeb Avenue Center during the six months that it will not receive rent for the former SproutFive space, the City has agreed to a rent reduction for a six (6) month period starting with rent due on August 1, 2024 and terminating on January 31, 2025. The base term of the current Lease expires on August 31, 2035. During this period, rent will be reduced from $1.50 per square foot to $1.00 per square foot for a total reduction in rent of $32,969.50. Beginning with the rent due on February 1, 2025, the rent shall return to the $1.50 per square foot rate for the remainder of the term of the Lease Agreement.
Fiscal Impact: The City’s rental income supporting the capital requirements for the real property will be reduced by $32,969.50.
Emergency Action: This legislation is presented as emergency to grant a rent reduction to Reeb Avenue Center beginning with rent due on August 1, 2024 to help alleviate financial hardship as soon as possible caused by the six month gap in receiving rent for the childcare and early learning space located in the Building.
Title
To authorize the Director of the Department of Finance and Management to enter into a First Amendment to Lease Agreement with Reeb Avenue Center to grant a six-month reduction in rent; and to declare an emergency ($32,969.50)
Body
WHEREAS, the City is the owner of certain real property located at 280 Reeb Avenue that includes a Building; and
WHEREAS, the City leases this real property and the Building to Reeb Avenue Center, a non-profit entity; and
WHEREAS, Reeb Avenue Center subleases portions of the Building to various non-profit groups providing social and educational services supporting Southside residents including a space to the South Side Learning and Development Center, dba SproutFive, a provider of childcare and early learning services; and
WHEREAS, the South Side Learning and Development Center is ceasing existence and operations effective June 30, 2024 and is vacating its childcare and early learning rental space in the Building; and
WHEREAS, Reeb Avenue Center plans to sublet the vacated SproutFive rental space to Columbus Early Learning Centers to provide similar childcare and early learning services at the Center; and
WHEREAS, the Reeb Avenue Center will be without rental income for the childcare and early learning space located in the Building for a six month period; and
WHEREAS, in order to assist Reeb Avenue Center during the six (6) months that it will not receive rent for the former SproutFive childcare and early learning space, the City has agreed to reduce its rent for a six (6) month period effective with rent due to the City on August 1, 2024 and terminating on January 31, 2025; and
WHEREAS, effective February 1, 2025, Reeb Avenue Center rent shall return to the established rate stated in the Lease Agreement for the remainder of the term of the Lease Agreement; and
WHEREAS, an emergency exists in the usual daily operation of the City in that it is immediately necessary to authorize the Director of Department of Finance to enter into a First Amendment to Lease Agreement by and between the City of Columbus and Reeb Avenue Center to provide for a six-month reduction in rent to help alleviate the financial strain from the loss of rental income from the childcare and early learning space located in the Building, thereby providing 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 Finance and Management be, and hereby is, authorized to execute those documents as prepared and approved by the Department of Law, Division of Real Estate, necessary to amend the Lease Agreement by and between the City and Reeb Avenue Center for space located at 280 Reeb Avenue.
Section 2. That the terms and conditions of the First Amendment to Lease Agreement shall be in a form approved by the Department of Law, Division of Real Estate, and shall provide for a six (6) month rent reduction from $1.50 per square foot to $1.00 per square foot, for a total reduction in rent of $32,969.50, effective August 1, 2024 through January 31, 2025 with all other terms and conditions of the Lease Agreement remaining unchanged.
Section 3. 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 its passage and approval by the Mayor, or ten (10) days after passage if the Mayor neither approves nor vetoes the same.