Explanation
BACKGROUND
The 2022 Downtown Strategic Plan, adopted by Resolution No. 0164X-2022, recommends: making downtown a “thriving and attractive place to work” by: (1) reinforcing the value of downtown as the economic engine of the city and region; (2) adding and occupying Class A office space; (3) working with institutions to better integrate campuses into downtown; and (4) supporting small business education and training programs. Rev1 Ventures (“Rev1”) is a not-for-profit corporation that is a seed stage venture development organization that combines investment capital and strategic services to help entrepreneurs build products that people want and companies that succeed. Rev1 is currently located in two separate sites in Columbus at 1590 N. High Street, Suite 200 within the University Area Commission and 1275 Kinnear Road within the 5th by Northwest Area Commission with limited space for future expansion to increase the number of start-up and growth companies subleasing space from Rev1. Since 2007, the City has provided annual financial support for several of Rev1’s programs including providing early-stage capital to meet the needs for pre-seed capital for Ohio start-up and growth technology companies some of whom are co-located with Rev1. The parties desire to enter in a memorandum of understanding (the “MOU”) outlining the parties’ respective commitments to implement the 2022 Downtown Strategic Plan. With financial support from the City’s future operating budgets, the MOU proposes Rev1 relocating its operations and staff to a downtown campus (the “Rev1 Downtown”) in order to reinforce the value of downtown as the economic engine of the city and region but also to allow start-up and growth companies who could not otherwise afford to rent Class A office space in downtown to have that opportunity within the Rev1 Downtown. This Ordinance authorizes the Director of Development to enter into the MOU.
Fiscal Impact: No funding is required for this legislation. The Department of Development will request one million five hundred thousand dollars per year in the department’s operating budget, beginning in 2025, for a period of ten years.
Title
To authorize the Director of Development to execute a memorandum of understanding with Rev1 Ventures, a not-for-profit corporation, to memorialize the parties’ understandings by executing on the 2022 Downtown Strategic Plan by having Rev1 Ventures relocate its operations, staff, and its start-up and growth company tenants to a downtown campus with the financial support of the City. ($0.00)
Body
WHEREAS, the 2022 Downtown Strategic Plan, adopted by Resolution No. 0164X-2022, recommends: making downtown a “thriving and attractive place to work” by: (1) reinforcing the value of downtown as the economic engine of the city and region; (2) adding and occupying Class A office space; (3) working with institutions to better integrate campuses into downtown; and (4) supporting small business education and training programs; and
WHEREAS, Rev1 Ventures (“Rev1”) is a not-for-profit corporation that is a seed stage venture development organization that combines investment capital and strategic services to help entrepreneurs build products that people want and companies that succeed; and
WHEREAS, since 2007, the City has provided annual financial support for several of Rev1’s programs including providing early-stage capital to meet the needs for pre-seed capital for Ohio start-up and growth technology companies some of whom are co-located with Rev1; and
WHEREAS, Rev1 is currently located in two separate sites in Columbus at 1590 N. High Street, Suite 200 within the University Area Commission and 1275 Kinnear Road within the 5th by Northwest Area Commission with limited space for future expansion to continue increasing the number of start-up and growth companies subleasing space from Rev1; and
WHEREAS, Rev1 has agreed to relocate its operations and staff to a downtown campus (the “Rev1 Downtown”) in order to reinforce the value of downtown as the economic engine of the city and region but also to allow start-up and growth companies who could not otherwise afford to rent Class A office space in downtown to have that opportunity within the Rev1 Downtown; and
WHEREAS, subject to future legislation submitted for City Council consideration and approval, the Department of Development will request one million five hundred thousand dollars per year in the department’s operating budget, beginning in 2025, for a period of ten years, to provide rental support to Rev1 for leasing the Rev1 Downtown and subleasing such space to start-up and growth companies; and
WHEREAS, Rev1 has agreed to annually reimburse the City, the sum of the tenants rent collected from the subleases of the start-up and growth companies; and
WHEREAS, further subject to consideration and approval of additional legislation by City Council, the City and Rev1 will enter into subsequent agreement(s), such as not-for-profit or grant agreements on City standard templates to effectuate such remittances and to work collaboratively to graduate as many start-up companies from Rev1 Downtown to another Class A office space, or other suitable locations downtown, to help reduce the amount of office vacancies and reestablish downtown as the economic engine of the City and region; and
WHEREAS, the parties desire to enter in a memorandum of understanding (the “MOU”) outlining the parties’ respective commitments described herein in order to implement the 2022 Downtown Strategic Plan; NOW, THEREFORE:
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
SECTION 1. That the Director of the Department of Development, or his or her designee (together, the “Director”), on behalf of the City, is hereby authorized to enter into a Memorandum of Understanding with Rev1 Ventures (the “MOU”), along with any changes or amendments thereto not inconsistent with this Ordinance and not substantially adverse to the City and which shall be approved by the Director and the City Attorney, provided that the approval of such changes and amendments thereto, and the character of those changes and amendments not being substantially adverse to the City, shall be evidenced conclusively by the execution and delivery of the MOU with Rev1, to outline the plans and certain commitments of the City and Rev1 relating to the proposed relocation of Rev1 and its start-up and growth company tenants to a downtown campus to implement the 2022 Downtown Strategic Plan.
SECTION 2. That this ordinance shall take effect and be in force from and after the earliest period allowed by law.