Explanation
Background: This legislation authorizes the Director of Development, or designee, 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 a city-owned medical office space located at 1180 East Main Street, known as the East Central Health Center. Columbus Neighborhood Health Center, Inc., a non-profit corporation, has been the Tenant and Columbus Public Health’s service provider of primary health care services to medically underserved residents at the East Central Health Center for the past 18 years. With the City’s approval to allow CNHC to construct a pharmacy within the Premises, it is necessary to enter into a new Lease Agreement to memorialize changes to the lease including term and the rent structure. The proposed Lease Agreement will be for an initial period of twenty (20) years with two (2) renewal options, each for a period of five (5) years, subject to the renewal of CNHC's annual contract with Columbus Public Health as its provider of primary health care services at its neighborhood health center. This legislation is presented as an emergency measure in order implement these necessary changes at the earliest possible time and for the Health Center’s operation to continue uninterrupted.
Fiscal Impact: No funding is required for this legislation. The City will receive no rental income from the lease effective date through August 31, 2026 at which time rental income will increase to $142,633.50 for the period September 1, 2026 through August 31, 2027 and then to $285,267.00 for the third, fourth and fifth lease year. Thereafter, annual rent will increase every five (5) years through expiration. Income 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 replac...
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