Explanation
Background: The City owns real property located at 280 Reeb Avenue that is currently leased to the Reeb Avenue Center, a non-profit entity, as Tenant. Reeb Avenue Center subleases portions of the Building on the property to various non-profit groups providing social and educational services to Southside residents. South Side Learning and Development Center (dba SproutFive), a current tenant of the Reeb Avenue Center, ceased existence and operations at this location effective June 30, 2024. Ordinance 1898-2024 authorized the Director of the Department of Finance and Management to enter into a First Amendment to Lease Agreement in order to grant a six-month rent reduction to the Reeb Avenue Center between August 1, 2024 and terminating on January 31, 2025. In order to continue to assist Reeb Avenue Center, the City has agreed to a rent reduction for the remainder of the lease term terminating on August 31, 2035. During this period, rent will be adjusted to $1.00 annually. Should the Tenant choose to exercise their Option to Renew, that shall commence September 1, 2035, the rent shall be negotiated at that time.
Fiscal Impact: There are not expenditures requested in connection with the lease amendment.
Emergency Action: This legislation is presented as emergency to grant a rent reduction as soon as possible to Reeb Avenue Center beginning with rent due on February 1, 2025 to help alleviate financial hardship.
Title
To authorize the Director of the Department of Finance and Management to enter into a Second Amendment to the Lease Agreement with Reeb Avenue Center; and to declare an emergency.
Body
WHEREAS, the City is the owner of certain real property located at 280 Reeb Avenue that includes a Building; and
WHEREAS, the City leases this real property and the Building to Reeb Avenue Center, a non-profit entity; and
WHEREAS, Reeb Avenue Center subleases portions of the Building to various non-profit groups providing social and educational services supporting Southside residents; and
WHEREAS, the South Side Learning and Development Center ceased existence and operations effective June 30, 2024 and it vacated its childcare and early learning rental space in the Building causing financial hardships to the operation; and
WHEREAS, the Reeb Avenue Center continues to be without rental income for the childcare and early learning space located in the Building; and
WHEREAS, in order to assist Reeb Avenue Center with financial hardships, the City has agreed to reduce its rent for the remainder of the lease term effective with rent due to the City on February 1, 2025 and terminating on August 31, 2035; and
WHEREAS, effective September 1, 2035, if the Tenant exercises their Option to Renew, Reeb Avenue Center rent shall be negotiated at that time; and
WHEREAS, an emergency exists in the usual daily operation of the City in that it is immediately necessary to authorize the Director of Department of Finance to enter into a Second Amendment to Lease Agreement by and between the City of Columbus and Reeb Avenue Center to provide for a reduction in rent to help alleviate the financial strain from the loss of rental income from the childcare and early learning space located in the Building, thereby providing for the immediate preservation of 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 the Department of Finance and Management be, and hereby is, authorized to execute those documents as prepared and approved by the Department of Law, Division of Real Estate, necessary to amend the Lease Agreement by and between the City and Reeb Avenue Center for space located at 280 Reeb Avenue.
Section 2. That the terms and conditions of the Second Amendment to Lease Agreement shall be in a form approved by the Department of Law, Division of Real Estate, and shall provide for an annual rent reduction from $1.50 per square foot to $1.00 per annum, effective February 1, 2025 and terminating on August 31, 2035, with all other terms and conditions of the Lease Agreement remaining unchanged.
Section 3. That for reasons stated in the preamble hereto, which is hereby made a part hereof, this ordinance is hereby declared an emergency measure and shall take effect and be in force from and after its passage and approval by the Mayor, or ten (10) days after passage if the Mayor neither approves nor vetoes the same.