Explanation
Background: This legislation authorizes the Director of Development to enter into a contract with the Economic and Community Development Institute (ECDI) for the purpose of administering the Economic Development 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 200 Economic Development loans to Columbus based businesses.
ECDI is a 501(c)(3) not-for-profit economic development organization located in Columbus, Ohio. Its mission is to invest in people to create measurable and enduring social and economic changes 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 6,550 individuals, disbursed over $25 million through 1,275 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 administrative services to support the City’s Economic Development Loan Program.
Fiscal Impact: This legislation authorizes the expenditure of $227,816.00 within the 2017 CDBG Fund Budget
Title
To authorize the Director of the Department of Development to enter into a contract with the Economic and Community Development Institute for the purpose of administering the Economic Development Loan Program; to authorize the expenditure of $227,816.00 from the Community Development Block Grant; and to declare an emergency.
Body
WHEREAS, small businesses are essential to the growth of the City of Columbus; and
WHEREAS, entrepreneurial education is essential for individuals to start or expand a small business in the city of Columbus; and
WHEREAS, accesses to capital are essential to the entrepreneur, and
WHEREAS, an Economic Development Loan Program will help inspiring entrepreneurs who have successfully completed foundational financial literacy training program; and
WHEREAS, the Economic and Community Development Institute (ECDI) has over thirteen (13) years of experience in providing training and education to entrepreneurs; and
WHEREAS, the City of Columbus has provided funding to ECDI since 2005 to administer a microenterprise program and, later, an economic development loan program; and
WHEREAS, $227,816.00 will be allocated to Economic and Community Development Institute (ECDI) from the 2017 CDBG Fund; 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 the administration of the Economic Development 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 a contract with the Economic and Community Development Institute for the purpose of administration of the Economic Development Loan Program.
SECTION 2. That for the purpose stated in section 1, the expenditure of $227,816.00 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 to this ordinance.
SECTION 3. That this contract is awarded pursuant to the provisions of City Code Chapter 329 that relate to non-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 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.