Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to enter into contract with the Economic Community Development Institute (ECDI) for the purpose of administering the Microenterprise Revolving Loan Program. The City has been working with ECDI since 2005 to provide Columbus residents with loans to start businesses. Since that time, ECDI has closed over 175 microenterprise loans to Columbus based businesses.
ECDI is a 501(c)3 non-profit economic development organization located in Columbus, Ohio. Its mission is to invest in people to create measurable and enduring social and economic change. Since its inception in 2004, the Institute's programs and services have grown into a comprehensive suite of programming designed to lead low-income Ohioans out of poverty. Program participants are given the training and assistance needed to start a business. ECDI also provides foundational financial literacy training, innovative microenterprise development training and capitalization programs, and business incubation services. To date, ECDI's programs have been supported by over $25 million in federal, state, local and private funds. The Institute is a veteran economic development organization whose core programs provide training, technical assistance, and capitalization to entrepreneurs.
FISCAL IMPACT: $355,878 is available in the 2015 CDBG budget for this purpose.
Title
To authorize the Director of the Department of Development to enter into contract with the Economic Community Development Institute to administer the Microenterprise Revolving Loan Program to assist small business in the City of Columbus; to authorize the expenditure of $355,878 from the Community Development Block Grant Fund; and to declare an emergency. ($355,878.00)
Body
WHEREAS, $355,878 has been allocated to the Economic Community Development Institute from the 2015 CDBG Budget to administer the Microenterprise Revolving Loan Program; and
WHEREAS, small businesses are essential to the growth of the City of Columbus; and
WHEREAS, micro lending is an opportunity for individuals to start or expand their small business in the City of Columbus; and
WHEREAS, the Economic and Community Development Institute has over 11 years of experience administering micro-loan programs; and
WHEREAS, ECDI will partner with other non-profit organizations to provide training and technical assistance to participants of the Microenterprise Revolving Loan Program; and
WHEREAS, emergency action is requested to allow ECDI to continue the Microenterprise Revolving Loan Program in the City of Columbus without interruption; and
WHEREAS, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to enter into contract with the Economic and Community Development Institute for administration of the Microenterprise Revolving Loan Program for the 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 contract with the Economic and Community Development Institute from February 1, 2015 to January 31 2016 for the administration of the Microenterprise Revolving Loan program.
SECTION 2. That this contract is awarded pursuant to the relevant provisions of Chapter 329 of City Code relating to the process for awarding not-for-profit service contracts.
SECTION 3. That for the purpose stated in section 1, the expenditure of $355,878 or so much thereof as may be necessary, be and is hereby authorized to be expended from the CDGB Fund, Fund 248, Department of Development, Economic Development Division, Division 44-02, Object Level One 03, Object Level Three 3336, OCA Code 415420.
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 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.