Explanation
BACKGROUND
This legislation authorizes the Director of the Department of Development to enter into a Grant Agreement with the Mid-Ohio Foodbank dba Mid-Ohio Food Collective in an amount up to $2,000,000.00 for the organization’s new Eastland Prosperity Center.
The Mid-Ohio Food Collective is a non-profit organization that services twenty counties in Ohio. Their mission is to end hunger one nourishing meal at a time while co-creating communities where everyone thrives. The Mid-Ohio Food Collective is currently renovating a vacant 67,000 square foot former grocery store into a multi-purpose thriving center called the Eastland Prosperity Center and anchored by the Mid-Ohio Market and the Mid-Ohio Kitchen.
The new Prosperity center will offer emergency feeding services, primary health care, medical pharmacy services, benefits navigation assistance, and additional supportive services identified in partnership with the community. The Eastland Prosperity Center will host an on-site production kitchen, dedicated healthcare facilities offered in partnership with The OSU Total Heath Care Center, and customized office space for a variety of social service providers.
This legislation seeks to authorize the Director of the Department of Development to enter into a grant agreement with the Mid-Ohio Foodbank dba Mid-Ohio Food Collective for $2,000,000.00. Grant funding will be used to pay for costs related to the planning, designing, and construction of the Eastland Prosperity Center. Approval is also requested for reimbursement of expenses incurred on or after July 1, 2023 prior to execution of the purchase order.
2. FISCAL IMPACTS
Funding for this project will not be available to the Department of Development until the bonds are sold related to the 2024 Capital Improvement Budget and are available at a future date, therefore it is necessary to certify the required funds, in the amount up to $2,000,000.00, against the General Fund 1000, Income Tax Set Aside Subfund 100099. The fund will be reimbursed upon receipt of the bonds. There is sufficient budgetary authority for this project.
3. CONTRACT COMPLIANCE
The vendor number is 004402 and expires on November 4, 2026.
Title
To authorize the Director of the Department of Development to enter into a Grant Agreement in an amount up to $2,000,000.00 with the Mid-Ohio Foodbank dba Mid-Ohio Food Collective for the Mid-Ohio Food Collective - Eastland Prosperity Center project; to authorize the appropriation of funds within the Income Set Aside Subfund and the Development Taxable Bonds Fund; to authorize the transfer of cash between the Income Tax Set Aside Subfund and the Development Taxable Bond Fund; to authorize the expenditure of up to $2,000,000.00 within the Development Taxable Bond Fund; and to allow for the reimbursement of expenditures prior to the purchase order. ($2,000,000.00)
Body
WHEREAS, The Mid-Ohio Food Collective is a non-profit organization that’s mission is to end hunger one nourishing meal at a time while co-creating communities where everyone thrives; and
WHEREAS, The Mid-Ohio Food Collective is renovating a 67,000 square foot former grocery store into a multi-purpose center that will offer emergency feeding services, grocery, healthcare, and benefits assistance; and
WHEREAS, the City made a commitment of $2,000,000.00 to provide the Mid-Ohio Food Collective with a capital grant supporting the renovation of the former grocery store; and
WHEREAS, expenses incurred on or after July 1, 2023, prior to execution of the purchase order, will be reimbursable; and
WHEREAS, it is necessary to certify the required funds, in the amount up to $2,000,000.00 dollars against the General Fund 1000, Income Tax Set Aside Subfund 100099 and authorize the appropriation and transfer of the funds in the amount up to $2,000,000.00 from the Income Tax Set Aside Subfund to the Development Taxable Bond fund and authorize the appropriation within the Development Taxable Bond Fund.
WHEREAS, it is necessary to authorize the expenditure within the Development Taxable Bond Fund in an amount up to $2,000,000.00; and
WHEREAS, the City anticipates incurring certain Original Expenditures (as defined in Section 1.150-2(c) of the Treasury Regulations (the "Treasury Regulations") promulgated pursuant to the Internal Revenue Code of 1986, as amended) with respect to the construction of the project described in this ordinance (the "Project"); and
WHEREAS, the City will reimburse the General Fund 1000, Income Tax Set Aside Subfund 100099; and
WHEREAS, this transfer should be considered as a temporary funding method; and
WHEREAS, the aggregated principal amount of obligations which the City will issue to finance this project is presently expected not to exceed $2,000,000.00; and
WHEREAS, t in the usual daily operation of the Department of Development in that it is necessary to authorize the Director enter into Grant Agreement with the Mid-Ohio Foodbank dba Mid-Ohio Food Collective in an amount up to two million dollars ($2,000,000.00); NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development be and is hereby authorized to enter into a Grant Agreement, in an amount up to $2,000,000.00, on behalf of the City, with the Mid-Ohio Foodbank dba Mid-Ohio Food Collective to advance the planning, design, and construction of the Eastland Prosperity Center. That such grant agreement may authorize expenses incurred on or after July 1, 2023 prior to the execution of the purchase order to be reimbursable.
SECTION 2. That from the unappropriated monies and from all monies estimated to come into said funds from any and all sources and unappropriated for any other purpose during the fiscal year ending December 31, 2025, the sum of $2,000,000.00 is appropriated within General Fund 1000, Income Tax Set Aside Subfund 100099, in Object Class 10 Transfer Out Operating, and into the Development Taxable Bond Fund, Fund No. 7739, in Object Class 06 Capital Outlay per the account codes in the attachment to this ordinance.
SECTION 3. That the transfer of $2,000,000.00 or so much thereof as may be needed, is hereby authorized between the General Fund 1000, Income Tax Set Aside Subfund 100099, and the Development Taxable Bonds Fund, Fund No. 7739, per the account codes in the attachment to this ordinance.
SECTION 4. The expenditure of $2,000,000.00, or so much thereof as may be needed, is hereby authorized in Fund 7739 (Development Taxable Bonds Fund), in Dept-Div 4402 (Economic Development), Project P441787-100000 (Mid-Ohio Food Collective - Eastland Prosperity Center), in Object Class 06 (Capital Outlay) per the account codes attached to this ordinance.
SECTION 5. That upon obtaining other funds, the City Auditor is hereby authorized and directed to repay the General Fund 1000, Income Tax Set Aside Subfund 100099 the amount transferred under Section 3.
SECTION 6. That the City intends that this ordinance constitute an "official intent" for purposes of Section 1.150 2(e) of the Treasury Regulations, and that the City reasonably expects to reimburse itself for certain Original Expenditures incurred with respect to the Project from the proceeds of obligations to be issued by the City in a principal amount currently estimated to be $2,000,000.00 (the "Obligations").
The City intends to make a reimbursement allocation on its books for the Original Expenditures not later than eighteen months following the later to occur of the date of the Original Expenditure to be reimbursed or the date the Project for which such Original Expenditures were made is "placed in service" within the meaning of Treasury Regulations Section 1.150 2(c). Upon the issuance of the Obligations, the proceeds of such Obligations shall be used to reimburse the fund from which the advance for costs of the Project will be made.
SECTION 7. That this agreement is awarded pursuant to the relevant provisions of Columbus City Code related to awarding grant agreements.
SECTION 8. 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 9. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contract modifications associated with this ordinance.
SECTION 10. That the City Auditor is hereby authorized to transfer the unencumbered balance in a project account to the unallocated balance account within the same fund upon receipt of certification by the Director of the Department administering said project that the project has been completed and the monies are no longer required for said project.
SECTION 11. That this ordinance shall take effect and be in force from and after the earliest date permitted by law.