Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to enter into a grant agreement with Rev1 Ventures in an amount up to $1,875,000.00 for the purpose of providing rent support per section 2 of the Memorandum of Understanding authorized by Columbus City Council on December 16, 2024, per Ordinance Number 3275-2024 in furtherance of the 2022 Downtown Strategic Plan. Authorization is also requested to advance funds per a predetermined schedule to be included in the agreement.
Rev1 Ventures, formerly known as TechColumbus, 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 Ventures led a successful regional proposal to the State of Ohio to secure $18.7 million for the Entrepreneurial Signature Program (ESP) which accelerated the creation and growth of new technology companies in Central Ohio. The ESP Program includes early-stage capital to meet the needs for pre-seed capital for Ohio start-up technology companies. The City of Columbus has been in support of the ESP since 2007 by providing financial support.
Rev1 Ventures is currently located in two separate sites in Columbus at 1590 N. High Street, Suite 200 (the “Rev1 Gateway”) and 1275 Kinnear Road Commission (the “Rev1 Labs”) with limited space for future expansion to increase the number of start-up and growth companies subleasing space from Rev1 Ventures.
Rev1 Ventures, per the Memorandum of Understanding and in furtherance of the 2022 Downtown Strategic Plan, has agreed to relocate its Rev1 Gateway and Rev1 Labs operations and staff to the office building located at 330 Rush Alley on Franklin County Parcel No. 010-300602 (“Rev1 Downtown”) to establish a downtown campus for themselves and associated start-up and growth companies. The goal of relocating to Rev1 Downtown is to continue 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 downtown to have that space within Rev1 Downtown.
Per the Memorandum of Understanding, subject to the approval of Columbus City Council, the City of Columbus will pay the annual rent of up to $1,875,000.00 for Rev1 Ventures. This payment includes rent from December 2025 through February 2027.
EMERGENCY DESIGNATION: Emergency action is needed to meet committed project timelines for funding to ensure the project stays on planned timeline.
FISCAL IMPACT: Funding of $1,875,000.00 is included in the Department of Development’s 2025 Neighborhood Economic Development Fund.
CONTRACT COMPLIANCE: The vendor’s contract compliance 011852 expires on 7/8/26.
Title
To authorize the Director of the Department of Development to enter into a grant agreement with Rev1 Ventures for the purpose of proving rent support per section 2 of the Memorandum of Understanding and in furtherance of the 2022 Downtown Strategic Plan; to authorize the appropriation and expenditure of up to $1,875,000.00 from the Neighborhood Economic Development Fund; to authorize the advancement of funds on a predetermined schedule; and to declare an emergency. ($1,875,000.00)
Body
WHEREAS, Rev1 Ventures, formerly known as TechColumbus, 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 Ventures led a successful regional proposal to the State of Ohio to secure $18.7 million for the Entrepreneurial Signature Program (ESP) which accelerated the creation and growth of new technology companies in Central Ohio; and
WHEREAS the City of Columbus provides financial support to the Entrepreneurial Support Program and the Diversity Equity and Inclusion Grant Fund Program; and
WHEREAS Rev1 Ventures is currently located in two separate sites in Columbus at 1590 N. High Street, Suite 200 (the “Rev1 Gateway”) and 1275 Kinnear Road (the “Rev1 Labs”); and
WHEREAS, Rev1 Ventures, per the Memorandum of Understanding and in furtherance of the 2022 Downtown Strategic Plan, has agreed to relocate its Rev1 Gateway and Rev1 Labs operations and staff to the office building located at 330 Rush Alley on Franklin County Parcel No. 010-300602 (Rev1 Downtown”) to establish a downtown campus for themselves and associated start-up and growth companies; and
WHEREAS, per the Memorandum of Understanding, subject to the approval of Columbus City Council, the City of Columbus will pay the annual rent of up to $1,875,000.00 for Rev1 Ventures; and
WHEREAS, the $1,875,000.00 includes rent for December 2025 through December 2027; and
WHEREAS, to authorize an appropriation and expenditure in an amount up to $1,875,000.00 from the Neighborhood Economic Development Fund; and
WHEREAS, funding will be advanced to the agency on a predetermined schedule; and
WHEREAS an emergency exists in the usual daily operation of the Department of Development to authorize the Director enter into a grant agreement to continue to support Rev1 Ventures in the furtherance of the 2022 Downtown Strategic Plan and to ensure there are no delays to the project timeline, all 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 Development is hereby authorized to enter into a grant agreement with Rev1 Ventures in an amount up to $1,875,000.00 for the purpose of providing rent support per the Memorandum of Understanding in furtherance of the 2022 Downtown Strategic Plan and to advance funds per a predetermined schedule to be included in the agreement.
SECTION 2. That from the unappropriated monies and from all monies estimated to come into said fund from any and all sources and unappropriated for any other purpose during the fiscal year ended December 31, 2025, the sum of $1,875,000.00 is appropriated in Fund 2237 (Neighborhood Economic Development Fund), Dept-Div 44-02 (Economic Development Division), in object class 05 (Other) per the account codes in the attachment to this ordinance.
SECTION 3. That for the purpose as stated in Section 1, the expenditure of $1,875,000.00 or so much thereof as may be needed is hereby authorized in Fund 2237 (Neighborhood Economic Development Fund), Dept-Div 44-02 (Economic Development Division), in object class 05 (Other) per the accounting codes in the attachment to this ordinance.
SECTION 4. 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 5. That this grant agreement is awarded in accordance with the relevant provisions of City Code.
SECTION 6. That the City Auditor is authorized to make any accounting changes to revise the funding source for all contracts or contract modifications associated with this ordinance.
SECTION 7. 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 its approval by the Mayor, or ten days after passage if the Mayor neither approves nor vetoes the same.