Explanation
Background: This legislation authorizes the Director of Development to amend the existing contract with Community Capital Development Corporation (CCDC) for the purpose of changing the job requirement for the CDBG-R business applicants only. The business recipients of the CDBG-R funding will be responsible for the creation of one full-time equivalent permanent job per $50,000 of CDBG-R funds used instead of one full-time equivalent permanent job per $30,000 of CDBG-R funds used. CDBG-R is a one-time funding grant issued by the American Recovery and Reinvestment Act of 2009 to the Community Development Block Grant program under Title 1 of the Housing and Community Development Act of 1974. The Community Capital Development Corporation has been administering the economic development loan programs for nine years. The economic development loan programs include the Business Development Fund Loan Program, the Working Capital Loan Program and the Neighborhood Commercial Revitalization Loan Program.
Emergency action is requested to allow the Community Capital Development Corporation to amend their agreements with the CDBG-R business recipients and to report to HUD accordingly regarding job creation.
Fiscal Impact: No funding is required for this legislation.
Title
To authorize the Director of Development to amend the existing contract with the Community Capital Development Corporation for the purpose of changing the job requirement for the CDBG-R business applicants only; and to declare an emergency.
Body
WHEREAS, CCDC has successfully administered the economic development loan programs since July 1, 2004; and
WHEREAS, CCDC has received CDBG-R funding from the City of Columbus to administer the loan programs; and
WHEREAS, CDBG-R is a one-time funding grant issued by the American Recovery and Reinvestment Act of 2009 to the Community Development Block Grant program under Title 1 of the Housing and Community Development Act of 1974; and
WHEREAS, there are six (6) business recipients of the CDBG-R funding through CCDC; and
WHEREAS, the CCDC contract needs to be amended to reflect a change in the job requirement of the CDBG-R business recipient; and
WHEREAS, the amendment should change the job requirement to the creation of one full-time equivalent permanent job per $50,000 of CDBG-R funds used instead of one full-time equivalent permanent job per $30,000 of the CDBG-R funds used; and
WHEREAS, CDBG-R reporting on job creation will be submitted to HUD after the contract is amended; and
WHEREAS, the need exists to work with the Community Capital Development Corporation to report job creation to HUD for CDBG and CDBG-R business recipients; and
WHEREAS, emergency action is requested to allow CCDC to amend their agreements with the CDBG-R business recipients in a timely manner; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development, in that it is immediately necessary to authorize the amendment of the contract with the 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 the Development Director is hereby authorized to amend the existing contract with the Community Capital Development Corporation (CCDC) for the purpose of changing the job requirement for the CDBG-R business recipients only.
Section 2. That this contract amendment of one full-time equivalent permanent job per $50,000 of CDBG-R funds is consistent with HUD's CDBG-R job creation requirement.
Section 3. 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.