Explanation
Background: This legislation authorizes the appropriation of $169,628.16 and the expenditure of $164,000.00 from the UDAG Fund and the expenditure of $1,326,380 from the CDBG Fund for a contract with the Community Capital Development Corporation (CCDC) for the administration of economic development loan programs. CCDC has administered the economic development loan programs for the past three years and will continue to administer the loan programs from July 1, 2007 through June 30, 2008. The economic development loan programs include the Business Development Fund Loan Program, the Working Capital Loan Program and the Neighborhood Commercial Revitalization Loan Program.
The funding for the administration of these loan programs and the actual loan funds will remain within the City of Columbus. CCDC will submit monthly requests for funds for administrative costs and will request loan funds on a case-by-case basis upon approval by a loan committee and the City of Columbus.
Emergency action is requested so that the agreement with the Community Capital Development Corporation can be executed immediately.
Fiscal Impact: This legislation authorizes the appropriation of $169,628.16 and expenditure of $164,000.00 from the UDAG Fund and the expenditure of $1,326,380 from the CDBG fund to provide funding for a contract with the Community Capital Development Corporation for the administration of economic development loan programs. The appropriation of UDAG funds includes an additional $,5628.16 needed to process an expenditure correction for a loan previously issued from the wrong fund.
Title
To authorize the appropriation of $169,628.16 from the UDAG Fund to the Department of Development; to authorize the expenditure of $164,000.00 from the UDAG Fund; to authorize the expenditure of $1,326,380 from the CDBG Fund; to authorize a contract with the Community Capital Development Corporation; and to declare an emergency. ($1,490,380.00)
Body
WHEREAS, the Community Capital Development Corporation (CCDC) successfully administered the economic development loan programs from July 1, 2004 through June 30, 2007; and
WHEREAS, the City, Department of Development, Economic Development Division wishes to continue the good working relationship with CCDC and is desirous of contracting with them for an additional year of administration of the loan programs; and
WHEREAS, the activities proposed by CCDC within this legislation are permitted by the Federal Department of Housing and Urban Development, (HUD) pursuant to 24 CFR, Part 570; and
WHEREAS, since its inception in 1981, CCDC's sole purpose has been to underwrite, service and monitor loans, and can undertake these objectives more efficiently, more accurately and more economically than City staff; and
WHEREAS, the need exists to work with CCDC to market economic development loan programs as part of an unified, one-stop, financing mechanism for new businesses; and
WHEREAS, CCDC will continue to promote the City of Columbus' philosophy of taking informed risk to assist businesses to grow and flourish; and
WHEREAS, all Economic Development loan administrative costs are eligible under CDBG funding guidelines; and
WHEREAS, emergency action is requested to allow CCDC to continue to administer the economic development loan programs uninterrupted; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, in that it is immediately necessary to authorize the appropriation and expenditure of said funds for a contract with Community Capital Development Corporation, 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 from the unappropriated monies in the fund known as the UDAG Fund, the sum of $169,628.16 be and is hereby appropriated to the Department of Development, Economic Development Division, Division No. 44-02, Fund No. 243, Subfund 018, Object Level One 03, Object Level Three 3336, OCA Code 497033.
Section 2. That the Development Director is hereby authorized to enter into contract with the Community Capital Development Corporation for the administration of economic development loan programs.
Section 3. That for the purpose stated in Section 2, the expenditure of $1,326,380.00 or so much thereof as may be necessary, be and is hereby authorized to be expended from the CDBG Fund, Fund 248, Subfund 002, Department of Development, Economic Development Division, Division 44-02, Object Level One 03, Object Level Three 3336, OCA Code 497020.
Section 4. That for the purpose stated in Section 2, the expenditure of $164,000.00 or so much thereof as may be necessary, be and is hereby authorized to be expended from the UDAG Fund, Fund 243, Subfund 018, Department of Development, Economic Development Division, Division 44-02, Object Level One 03, Object Level Three 3336, OCA Code 497033.
Section 5. That this contract is awarded in accordance with Chapter 329.15 of the Columbus City Codes, 1959.
Section 6. 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 passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.