Explanation
Background: This legislation authorizes the appropriation of $838,311 from the CDBG Fund, the transfer of $761,689 within the CDBG Fund and the appropriation of $200,000 from the UDAG Fund to provide the funding for a contract with the Community Capital Development Corporation for the administration of economic development loan programs. The Community Capital Development Corporation will be administering the Business Development Fund Loan Program, the Working Capital Loan Program and the Neighborhood Commercial Revitalization Loan Program.
The funding for the administration of this loan program 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 $838,311 from the CDBG Fund, the transfer of $761,689 within the CDBG Fund and the appropriation of $200,000 from the UDAG Fund to provide funding for a contract with the Community Capital Development Corporation for the administration of economic development loan programs.
Title
To authorize the appropriation of $838,311 from the CDBG Fund to the Department of Development; to authorize the transfer of $761,689 within the CDBG Fund; to authorize the appropriation of $200,000 from the UDAG Fund to the Department of Development; to authorize a contract with the Community Capital Development Corporation; to authorize the expenditure of $1,600,000 from the CDBG Fund; to authorize the expenditure of $200,000 from the UDAG Fund; and to declare an emergency. ($1,800,000.00)
Body
WHEREAS, the Department of Development and the Economic Development Division have enjoyed a good working relationship with the Community Capital Development Corporation and is desirous of having the City's loan programs and underwriting handled by an outside agency; and
WHEREAS, the activities proposed by the Community Capital Development Corporation 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 Community Capital Development Corporation's sole purpose has been to underwrite, service and monitor loans, and can undertake these objectives more efficiently, more accurately and more economically than present City staff; and
WHEREAS, the need exists to work with the Community Capital Development Corporation to market economic development loan programs as part of an unified, one-stop, financing mechanism for new businesses; and
WHEREAS, the Community Capital Development Corporation will continue to promote the City of Columbus' philosophy of taking informed risk to assist businesses to grow and flourish; and
WHEREAS, the transfer of these loan programs will allow City staff to be dedicated specifically towards the attraction, recruitment, and retention of new business within the City of Columbus; and
WHEREAS, all Economic Development loan administrative costs are eligible under CDBG funding guidelines; and
WHEREAS, emergency action is requested to allow CCDC to enter into a contract by the beginning of June, 2004 in order to expedite the underwriting and closing of loans already in process; 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, transfer 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 Community Development Block Grant
Fund, the sum of $838,311.00 be and is hereby appropriated to the Department of Development, Economic
Development Division, Division No. 44-02, Fund No. 248, Subfund 002, Object Level One 03, Object Level Three
3336, OCA Code 494020.
Section 2. That the City Auditor is hereby authorized and directed to transfer $761,689 within the Department of Development, Economic Development Division, Division No. 44-02, CDBG Fund, Fund 248, Subfund 002, as follows:
FROM:
Object Level One Object Level Three OCA Code Amount
05 5528 494021 $761,689
TO:
Object Level One Object Level Three OCA Code Amount
03 3336 494020 $761,689
Section 3. That from the unappropriated monies in the fund known as the UDAG Fund, the sum of $200,000.00 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 443021.
Section 4. 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 5. That for the purpose stated in Section 4, the expenditure of $1,600,000.00 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 494020.
Section 6. That for the purpose stated in Section 4, the expenditure of $200,000.00 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 443021.
Section 7. That this contract is awarded in accordance with Chapter 329.15 of the Columbus City Codes, 1959.
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.