Explanation
Background: The Dublin Road Water Plant is to undergo a plant expansion that requires the demolition of the 910 Dublin Road office building making it necessary for the Department of Public Utilities to acquire office space as a replacement. This legislation authorizes the Director of Development, on behalf of the Department of Public Utilities, to execute those documents necessary to enter into a Lease Agreement with CDDC Holdings 37, LTD. (“CDDC”), an Ohio limited liability corporation, and the RiverSouth Authority (“RSA”), as may be required, for the lease of approximately 145,639 rentable square feet of office space (“Leased Premises”) within the building located at 37 West Broad Street, Columbus, Ohio, Franklin County Tax Parcel Number 010-027268 (“Parcel”). The Lease Agreement will contain a provision, subject to the future appropriation of funds by City Council and the certification of funds availability by the City Auditor, for the purchase of the entire Parcel, which includes the Leased Premises, basement area, a restaurant space, and an underground parking garage along with a surface parking lot above the garage. The Leased Premises will be used by the City’s Department of Public Utilities. The Lease Agreement shall be for a term of ten (10) years, consisting of ten (10) consecutive one (1) year renewal terms, the first being an abbreviated term commencing on or about January 5, 2026, with each subsequent renewal subject to the appropriation of funds by City Council and the certification of funds availability by the City Auditor. This ordinance shall further authorize the expenditures associated with the Lease Agreement, $10,000,000.00 to be applied towards the final purchase price of the Parcel, an additional up to $300,000.00 for Net Operating Income for 2026 and up to $1,500,000.00 for annual building operating expenses funded collectively from the Water Operating Fund, the Sanitary Sewer Operating Fund, and the Stormwater Operating Fund.
Emergency action is requested in order for the lease to be finalized and so the City of Columbus, Department of Public Utilities, may commence occupancy at the earliest possible date.
Fiscal Impact: The Lease Agreement consists of a payment of $10,000,000.00 towards the final purchase price, $300,000.00 for Net Operating Income for 2026, and annual building operating expenses up to the amount of $1,500,000.00 for the Lease Agreement. These funds were not budgeted and will be supported with supplemental appropriation. ($11,800,000.00)
Title
To authorize the Director of Development or his designee, on behalf of the Department of Public Utilities, to execute those documents necessary to enter into a Lease Agreement by and between the City, CDDC Holdings 37, LTD, and the RiverSouth Authority (“RSA”) as may be required; to authorize the appropriation and expenditure of $4,819,120.00 from the Water Operating Fund; to authorize the appropriation and expenditure of $1,608,340.00 from the Stormwater Operating Fund; to authorize the appropriation and expenditure of $ 5,372,540.00 from the Sanitary Sewer Operating Fund;; and to declare an emergency. ($11,800,000.00)
Body
WHEREAS, the Department of Public Utilities is to undergo an expansion of the Dublin Road Water Plant necessitating the demolition of the 910 Dublin Rd. office building; and
WHEREAS, the Department of Development, through its Real Estate and Land Redevelopment Division, is to acquire office space located at 37 West Broad Street on behalf of the Columbus Department of Public Utilities to be used as a replacement for the 910 Dublin Road office building; and
WHEREAS, the City desires to enter into a Lease Agreement with the CDDC Holdings 37, LTD. and the RiverSouth Authority (“RSA”), as may be required, for the lease of approximately 145,639 rentable square feet of office space located at 37 West Broad Street, Columbus, Ohio for an initial term of ten (10) consecutive one (1) year renewal terms, the first being an abbreviated term commencing on or about January 5, 2026 and terminating December 31, 2026; and
WHEREAS, the Lease Agreement will contain a provision, subject to future appropriation of funds by City Council and the certification of funds availability by the City Auditor, for the purchase of 37 West Broad Street, Columbus, Ohio, being all of Franklin County Tax Parcel Number 010-027268; and
WHEREAS, the City’s payments under the Lease Agreement consists of a payment of $10,000,000.00 towards the final purchase price, up to $300,000.00 for Net Operating Income for 2026, and up to $1,500,000.00 for annual building operating expenses; and
WHEREAS, the net operating income and reserve fund payments will recur annually; and
WHEREAS, subsequent year operating expenses will route through Columbus Water and Power; and
WHEREAS, these funds were not budgeted and will be supported with a combination of remaining appropriation transfer and supplemental appropriation; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Public Utilities in that it is immediately necessary to authorize the Director of Development to execute those documents necessary to enter into a Lease Agreement with the CDDC Holdings 37, LTD. and the RiverSouth Authority (“RSA”), as may be required, to allow for immediate working office space for the Department of Public Utilities, thereby preserving 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 his designee 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, containing a provision, subject to future appropriation of funds by City Council and the certification of funds availability by the City Auditor, for the purchase of 37 West Broad Street, Columbus, Ohio, Franklin County Tax Parcel Number 010-027268, by and between the City, CDDC Holdings 37, LTD., and the RiverSouth Authority (“RSA”), as may be required, with a Lease Term of ten (10) years, consisting of ten (10) consecutive one (1) year renewal terms for 145,639 square feet of office space within the building located at 37 West Broad Street, Columbus, Ohio.
SECTION 2. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2025, the sum of $4,819,120.00 is appropriated in Fund 6000, Water Operating Fund, Object Class 03, Lease or Rental of Property or Building, per the account codes in the attachment to this ordinance.
SECTION 3. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2025, the sum of $1,608,340.00 is appropriated in Fund 6200, Stormwater Operating Fund, in Object Class 03, Lease or Rental of Property or Building, per the account codes in the attachment to this ordinance.
SECTION 4. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2025, the sum of $5,372,540.00 is appropriated in Fund 6100, Sanitary Sewer Operating Fund, in Object Class 03, Lease or Rental of Property or Building, per the account codes in the attachment to this ordinance.
SECTION 5. That the expenditures of $11,800,000.00 or so much thereof as may be needed, are hereby authorized from object class 03, Professional Services, in the Public Utilities Operating Funds per the accounting codes in the attachment to this ordinance.
SECTION 6. That the monies appropriated in Sections 2 through 4 shall be paid upon order of the Director of Public Utilities and that no order shall be drawn, or money paid, except by voucher, the form of which shall be approved by the City Auditor.
SECTION 7. That the City Auditor is authorized to make any accounting changes necessary to ensure that payment of this contract is properly accounted for and recorded accurately on the city's financial record and to make any changes to revise the funding source for any contract or contract modification associated with this ordinance.
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 its passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.