Explanation
BACKGROUND: This legislation authorizes the Director of the Department of Development to enter into contract with the Economic and Community Development Institute (ECDI) for the purpose of administering the Microenterprise Revolving Loan Program. The City has contracted with ECDI since 2005 to provide Columbus residents with loans to start a business. Since that time, ECDI has closed over 190 microenterprise loans to Columbus based businesses.
ECDI is a 501©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. ECDI has benefited local communities throughout the State of Ohio, assisted over 6,500 individuals, disbursed over $25 million through 1,250 small business loans and retained over 4,600 jobs, with the comprehensive services, throughout the State of Ohio.
Emergency action is requested to allow ECDI to continue the Microenterprise Revolving Loan Program in the City of Columbus without interruption.
FISCAL IMPACT: This legislation authorizes the expenditure of $242,493.00 within the 2016 CDBG Budget.
Title
To authorize the Director of the Department of Development to enter into contract with the Economic and Community Development Institute to administer the Microenterprise Revolving Loan Program; to authorize the expenditure of $242,493.00 from the 2016 CDBG Fund; and to declare an emergency. ($242,493.00)
Body
WHEREAS, $242,493.00 has been allocated to the Economic and Community Development Institute ("ECDI") from the 2016 CDBG Budget; 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, ECDI has over twelve (12) years of experience administering micro-loan programs; and
WHEREAS, ECDI is a not for profit 501© (3) economic development organization located in Columbus, Ohio with the mission to invest in people to create measurable and enduring social and economic change; 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, an emergency exists in the usual daily operation of the Department of Development in that it is immediately necessary to authorize the Director to enter into contract with the Economic and Community Development Institute for administration of the Microenterprise Revolving Loan Program, all 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 March 1, 2016 to February 28 2017 for the administration of the Microenterprise Revolving Loan Program.
SECTION 2. That for the purpose stated in section 1, the expenditure of $242,493.00 or so much thereof as may be needed, is hereby authorized in Fund 2248 Community Development Act in Object Class 03 Contractual Services per the accounting codes in the attachment of this ordinance.
SECTION 3. That this contract is awarded in accordance with the relevant provisions of City Code Chapter 329 relating to not-for-profit service contracts.
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 its passage and approval by the Mayor or ten days after passage if the Mayor neither approves nor vetoes the same.