Explanation
BACKGROUND: The purpose of this ordinance is to authorize the Director of the Department of Development to apply for and accept $150,000.00 in grant assistance from the Roadwork Development (629) Account of the Ohio Development Services Agency and $150,000.00 in grant assistance from the Ohio Department of Transportation, contingent on State Controlling Board approval, for improvements to a public roadway near 6700 Tussing Road, Columbus, OH 43068 to benefit the expansion of operations by Daifuku America Corporation, to appropriate the monies within the General Government Grant Fund and, in turn, authorize the Director of the Department of Public Service to enter into a guaranteed maximum cost agreement with Daifuku America Corporation to construct the improvements.
The roadwork grants, and this associated request for authorization to apply for and accept the grants, are part and parcel of an incentive package to allow Daifuku America Corporation to expand in Columbus. Daifuku America Corporation will invest approximately $3 million related to improving and expanding its facility. A total of 99 full-time permanent positions will be retained and 80 new full-time permanent positions will be created within three years.
Letters dated December 19, 2013 and January 9, 2014 from the Ohio Development Services Agency and JobsOhio and the Ohio Department of Transportation, respectively, extended a total of $300,000.00 in public roadwork development grant assistance to the City of Columbus in support of the proposed investment by Daifuku America Corporation. The Director of the Department of Development responded to both letters on January 10, 2014 accepting the offers of assistance.
Total infrastructure costs to accommodate the expansion of the facility are estimated to be approximately $360,000.00 and will be shared by the State of Ohio and Daifuku America Corporation.
This legislation is submitted as an emergency in order to meet the state roadwork grant application deadline and to make use of the state grants as soon as possible after State Controlling Board approval.
FISCAL IMPACT: There is no cost to apply for and accept the state roadwork development grants. If successful, the City will receive a total of $300,000.00 to apply towards public roadway improvements near 6700 Tussing Road. This ordinance contains an appropriation within the General Government Grant Fund and authorizes expenditure for this purpose.
Title
To authorize and direct the Director of the Department of Development to apply for and accept $150,000.00 in grant assistance from the Ohio Development Services Agency and $150,000.00 in grant assistance from the Ohio Department of Transportation for public roadway improvements near 6700 Tussing Road to benefit the expansion of operations of Daifuku America Corporation; to authorize the appropriation of these monies within the General Government Grant Fund; to authorize the Director of the Department of Public Service to enter into a guaranteed maximum cost agreement with Daifuku America Corporation pursuant to Section 186 of the Columbus City Charter to construct roadwork improvements near 6700 Tussing Road; to authorize the expenditure of $300,000.00 or so much as may be necessary from the General Government Grant Fund; and to declare an emergency. ($300,000.00)
Body
WHEREAS, Daifuku America Corporation desires to improve and expand their facility located at 6700 Tussing Road, Columbus, OH 43068; and
WHEREAS, Daifuku America Corporation will invest approximately $3 million related to improving and expanding its facility, retain 99 full-time permanent positions, and create 80 new full-time permanent positions with an annual payroll of approximately $5.36 million; and
WHEREAS, infrastructure improvements near 6700 Tussing Road to accommodate the expansion of the Daifuku America Corporation facility are estimated to be approximately $360,000.00; and
WHEREAS, the Columbus Department of Development was invited to apply for $150,000.00 in grant assistance from the Roadwork Development (629) Account of the Ohio Development Services Agency and $150,000.00 in grant assistance from the Ohio Department of Transportation to facilitate improvements to a public roadway near 6700 Tussing Road to benefit the expansion of operation by Daifuku America Corporation; and
WHEREAS, an emergency exists in the usual daily operation of the City of Columbus in that it is immediately necessary to apply for, accept, appropriate, and expend a total of $300,000 in state roadwork grants as soon as possible to benefit the Daifuku America Corporation expansion project, all for the preservation of 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 Development is hereby authorized and directed to apply for and accept $150,000.00 in grant assistance from the Roadwork Development (629) Account of the Ohio Development Services Agency and $150,000.00 in grant assistance from the Ohio Department of Transportation, contingent on State Controlling Board approval, for public roadway improvements near 6700 Tussing Road to benefit the expansion of operation by Daifuku America Corporation.
Section 2. That the sum of $300,000.00 be and hereby is appropriated from the unappropriated balance of Fund 220, the General Government Grant Fund, and from all monies estimated to come into said Fund from any and all sources and unappropriated for any purpose during the fiscal year ending December 31, 2014, to the Department of Public Service, Division 59-12, Object Level One 06, Object Level Three 6631, with OCA and grant codes to be issued by the City Auditor upon award of said grant. Appropriation effective upon receipt of executed grant agreement.
Section 3. That the monies appropriated in Section 2 shall be paid upon order of the Director of the Department of Public Service and that no order shall be drawn or money paid except as by voucher, the form of which shall be approved by the City Auditor.
Section 4. That the Director of the Department of Public Service is hereby authorized to enter into a guaranteed maximum cost agreement with Daifuku America Corporation pursuant to Section 186 of the Columbus City Charter to construct roadwork improvements near 6700 Tussing Road under said agreement.
Section 5. That the expenditure of $300,000.00 or so much thereof as may be necessary be and is hereby authorized from Fund 220, the General Government Grant Fund, Department of Public Service, Division 59-12, Object Level One 06, Object Level Three 6631, with OCA and grant codes to be issued by the City Auditor upon award of said grant.
Section 6. 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 7. At the end of the grant period, any repayment of unencumbered balances required by the grantor is hereby authorized and any unused City match monies may be transferred back to the City fund from which they originated in accordance with all applicable grant requirements.
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 passage and approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.