Explanation
Background: This legislation authorizes the Director of Finance and Management, on behalf of Columbus Public Health, to execute a Lease Agreement with Columbus Neighborhood Health Center, Inc. (CNHC), dba PrimaryOne Health, as Tenant, for use of city-owned medical office space located at 1180 East Main Street, commonly known as the East Central Health Center. Columbus Neighborhood Health Center, Inc. has been Columbus Public Health’s service provider of primary health care services to medically under served residents at the East Central Health Center for the past 15 years. The current Lease has no remaining renewal options and expired on February 28, 2022 thus necessitating the need for a new lease agreement. The proposed Lease Agreement will be for and initial term of five (5) consecutive one (1) year periods and will include two (2) automatic renewal options each for a period of five (5) consecutive one (1) year terms. Each one-year lease period is subject to the renewal of CNHC's annual contract with the Columbus Health Department as its provider of primary health care services to medically under served residents. This legislation is presented as emergency measure in order for operation of the East Central Health Center to continue uninterrupted.
Fiscal Impact: No funding is required for this legislation. The City will receive annual rent income of $257,370.00 in the first year of the Lease that will be deposited in Fund 7784, the Neighborhood Health Capital Reserve Fund, which was established for the support of the City's neighborhood health center facilities to assist in covering the expenses related to the repair and replacements of building interior and exterior components and for the replacement cost of associated equipment and furnishings that have reached the end of their useful life.
Emergency Action: This legislation is presented as emergency measure to allow for the Health Center’s operation to continue uninterrupted.
Title
To authorize the Director of Finance and Management to enter into a Lease Agreement with the Columbus Neighborhood Health Center, Inc. for the use of 1180 East Main Street, Columbus, Ohio, commonly known as East Central Health Center, and to declare an emergency.
Body
WHEREAS, the Department of Finance and Management through its Real Estate Management Office, on behalf of Columbus Public Health, leases city-owned medical office space to Columbus Neighborhood Health Center, Inc., at 1180 East Main Street, Columbus, Ohio, commonly known as East Central Health Center, to provide primary health care services to medically under served residents; and
WHEREAS, the current Lease Agreement with Columbus Neighborhood Health Center, Inc. has no renewal options remaining and expired February 28, 2022 thus necessitating the need for a new lease agreement; and
WHEREAS, the Real Estate Management Office has negotiated a new Lease Agreement with terms and conditions acceptable to the City and Columbus Neighborhood Health Center, Inc.; and
WHEREAS, an emergency exists in the usual daily operation of the City in that it is immediately necessary to authorize the Director of the Department of Finance and Management to execute, on behalf of the City, a Lease Agreement with Columbus Neighborhood Health Center, Inc. to allow it to continue providing primary health care services to medically under served residents without interruption and 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 Finance and Management be, and hereby is, authorized to execute those documents necessary to enter into a Lease Agreement by and between the City and Columbus Neighborhood Health Center, Inc., an Ohio non-profit corporation, dba PrimaryOne Health, for the lease of medical office space located at 1180 East Main Street, Columbus, Ohio 43204.
SECTION 2. That the terms and conditions of the Lease Agreement shall be in a form prepared and approved by the Department of Law, Division of Real Estate, and shall include terms, conditions, covenants, and provisions that are acceptable to the City including i) an initial term of five (5) consecutive one (1) year periods commencing March 1, 2022, ii) two automatic renewal options each renewal option containing five (5) consecutive one (1) year periods; and iii) that each one-year lease period shall be subject to the renewal of Lessee's annual contract with the Columbus Health Department as its provider of primary health care services to medically under served residents.
SECTION 3. That the Lessee's annual rent shall be deposited in Fund 7748, the Neighborhood Health Center Capital Reserve Fund, established for the support of the City's neighborhood health centers.
SECTION 4. That the City Auditor is authorized to make any accounting changes necessary to ensure that this lease is properly accounted for and recorded accurately on the City’s financial records.
SECTION 5. 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 passage and approval by the Mayor, or ten (10) days after passage if the Mayor neither approves nor vetoes the same.