Columbus Next Generation

Corporation Strategic Plan

September 20, 2013

Background • Columbus Next Generation Corporation (CNGC) was formed with

the purpose of identifying underutilized property in core

neighborhoods that have the potential to thrive and become

appealing to commercial developers with the ultimate goal of

creating a productive tax-revenue generating development.

• CNGC will accomplish this by identifying underutilized land and

properties and securing control, creating a master plan for

properties/land, completing feasibility studies, and soliciting local

community input and support. These projects will be positioned for

sale to developers nationally to complete the development and

building process.

• CNGC will be funded annually by the City of Columbus in

accordance with goals and objectives set by the Mayor, Executive

Director and Board.

• Critical to the success of this new venture will be the creation of a

strategic plan to establish the groundwork of and provide direction

for CNGC and to secure input and agreement from key constituents.

2

Experience Summary

Jacqueline D. Neal is an experienced business professional with over 20

years of management experience working across multiple disciplines.

Strategic skills and accomplishments include: company restructuring for

maximum value, board development and management, developing margin

enhancement strategies, developing integrated strategic business and

marketing plans, idea generation, implementing quantitative and qualitative

analytical tools, leadership team evaluation and refocusing, to name a few.

Jacqueline served as President of Glory Foods, Inc. and played a critical

role in shoring up the company for the eventual sale to maximize

shareholders’ returns. She has strategic marketing experience across

multiple categories within a number of Fortune 100 based consumer package

goods companies, e.g. M&M/Mars, Quaker Oats, Heinz, Nabisco, and Kraft.

Jacqueline Neal earned a bachelor’s degree in Finance from Howard

University and an MBA from the Fuqua School of Business at Duke

University.

Ms. Neal founded J. Neal Consulting, LLC to help businesses increase

market value and business owner wealth.

3

Table of Contents I. Strategic Plan: Purpose and Process Pages 5 - 7

II. Executive Summary Page 8

III. Vision, Mission, Values Pages 9 - 10

IV. Positioning Statement Page 11

V. Objectives, Scope and Strategies Page 12

VI. Situation Assessment Page 13

VII. Market and Opportunity Assessment Pages 14 - 17

VIII. Environmental Factors Page 18

IX. Competency Identification Page 19

X. SWOT Analysis Page 20

XI. Critical Success Factors, Risk Assessment Page 21

XII. Proposed Process Page 22

XIII. Constituency Assessment: What’s In It For Me Page 23

XIV. Organization Design Page 24

XV. Funding Model Diagram Page 25

XVI. Organization Expectations Page 26

XVII. Milestones Page 27

XVIII. Challenges Page 28

XIX. Tactical Plan Page 29

XX. Value-add Package Page 30

XXI. Organization Information Flow Page 31

XXII. Responsibilities for Executive Director and Board Page 32 – 34

XXIII. Conclusion Page 35

4

Purpose of Strategic Plan

Critical to the success of this new venture

is the creation of a strategic plan to

establish the groundwork of and provide

direction for Columbus Next Generation

Corporation (CNGC) and to secure input

and agreement from key constituents.

5

What is Strategic Planning? Figure out what the world is like today,

to determine how it could be tomorrow.

6

Strategic Planning Process

Assessments Choices Organizational

Behavior Operations Implementation Results

• Environmental

Factors

• Market and

Opportunity

Assessment

• Situation

Assessment

• Core

Competency

Identification

• Competitive

Positioning

• SWOT Analysis

• Critical

Success

Factors

• Identify What’s

in it For Me?

(WIFM) for all

stakeholders

• Vision/Mission

• Values

• Goals

• Organization

Design

• Strategic and

Financial

Objectives

• Strategies

• Tactics

• Capital Allocation

• Structure

• Interaction

• Information Flow

• Integration

• Decision Making

• Roles and

Responsibilities

• Tasks

• Technology

• Tools and Data

Needed

• Staffing

• Metrics

• Effectiveness

• Efficiency

• Timeline

• Growth

• Profitability

• # Projects

7

Executive Summary

8

• Expectations for commercial development in Columbus look promising in several sectors (office, multi-

family, retail, industrial, hotels), as well as in two emerging areas – healthcare and data centers. This

growth is being driven by several factors including:

– Columbus has the lowest unemployment rate of Ohio’s major metro areas

– Columbus is expected to make the transition from economic recovery to expansion in 2013

– Columbus maintains one of the most competitive corporate tax climates in the Midwest

• However, there is a significant supply of underutilized land and properties in communities in need of

economic stimulation.

• Columbus Next Generation Corporation (CNGC) has been formed by the City of Columbus to address that

gap. The organization’s primary objective will be to identify and synthesize real estate development

prospects and transform them into opportunities that will provide an attractive return for developers. The

ultimate goal is to develop desirable neighborhoods that generate incremental taxes, e.g. property, sales,

payroll, etc.

• CNGC will act as the catalyst by adding value to the prospects by completing the necessary pre-work:

– Developing the concept

– Gaining site control

– Completing land design, feasibility studies, and appraisals; handling zoning and code issues, etc.

– Identifying city incentives, and market, state and federal funds

– Securing community input and “sign-off”

• Prospects will be sourced within Columbus’ 1950s boundaries, not including downtown, and will focus on

areas where commercial and residential development has been lagging. CNGC will screen prospects

through its 10-point criteria with the goal to maximize the value of the site.

• Critical to the organization’s success will be securing developer input at the concept development phase,

as well as throughout the process. Additionally, exploring public and private partnerships when relevant,

will help with developer and community acceptance.

• CNGC will also explore the possibility of securing private funding to supplement City of Columbus monies.

Values

Trust and integrity will be critical to CNGC’s success. CNGC’s

method of operating will include operating with speed and

agility, and being honest, candid, very transparent and

accessible as relationships with the community, city

government, investors, and developers are being fostered.

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Vision CNGC will catalyze opportunities that will ultimately transform

communities into vibrant and productive places desired by both

residents and businesses.

Mission CNGC will identify, study, assess and evaluate neighborhoods

and their needs while purchasing and packaging properties in

such a way that will provide an attractive return for developers.

Prospects

CNGC explores prospects of all sizes that have

potential

Opportunities

Prospects are transformed

into opportunities

that are attractive to developers

10

CNGC acts as

a catalyst to

add value to

selective

prospects

Developer A

Developer B

Developer C

CNGC is the bridge between prospects and desirable opportunities

Positioning Statement For developers seeking competitive returns by

transforming neighborhoods that have the

potential for strong development, Columbus Next

Generation Corporation creates and provides

attractive real estate opportunities.

Reason To Believe (RTB): The upfront pre-work (e.g. site control,

feasibility studies, appraisals, zoning and code issues, community input,

etc.) will be completed before marketing to a developer, thereby

mitigating some of the upfront risk.

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Primary Objective

Enhance the quality of life for Columbus residents and employers by creating desirable tax-revenue generating

neighborhoods throughout the city.

Scope

Focus on 1950 Columbus boundaries – outside of downtown – where commercial and residential development has been

lagging. Core neighborhoods are defined as areas that:

Contain multiple vacant lots and/or abandoned homes, multi-family dwellings and/or commercial buildings

Have not generated a significant amount of incremental property and employment taxes over the last several

years or have experienced a reduction in these taxes.

Have experienced a significant decline in population due to lack of services and employment opportunities and

a decline in quality housing, businesses and other amenities.

Have experienced a lack of investment over the years

Strategies

• Develop funding alternatives to complement City of Columbus resources

• Explore the possibility of securing a private partner to act as a champion for specific projects

• Create a master plan for properties/land

• Identify and secure control of underutilized land and properties

• Engage local community to gain input and support

• Complete feasibility studies and analysis of land and property (e.g. zoning, utilities, appraisals, etc.)

• Develop “packages” of opportunities and sell to developers to complete the development and building process

• Work with other CDCs and community groups to develop capacity to identify and complete key projects

Secondary Objective

Working with Blue Mile, in conjunction with the Columbus Economic Development Division and Columbus Department of

Technology, CNGC will negotiate with the private sector to determine payment (sale and/or lease) of fiber optic cable

needed for development projects. The revenue from these arrangements will be an additional funding source for CNGC.

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Situation Assessment

Historically, development throughout Columbus has been primarily led by the Department of Development and

private developers. In 2013, however, the City of Columbus established a non-profit with an independent focus

that would have several benefits:

a) Increase property tax revenue Columbus’ core neighborhoods

b) Job creation which generates employment and taxes

c) Improved quality of life for residents (improved residence options; access to retail, etc.)

d) More attractive neighborhoods for new and re-locating businesses

While Columbus is experiencing strong growth in many areas and sectors, there remains a significant supply of

underutilized land and properties in communities that are in need of economic stimulation. Columbus Next

Generation Corporation (CNGC) will serve as the conduit for identifying and securing development opportunities

for those neighborhoods with the following notable advantages:

1. Speed and agility: CNGC’s ability to work in conjunction with city systems and approval processes will

allow CNGC to act quickly and pursue opportunities

2. Customizable scope: CNGC’s efforts will be tailored to each project and developer’s goals thereby

maximizing the possibility for success.

3. Planned development: CNGC will be deliberate in its efforts to identify development opportunities which

should increase the likelihood of success.

4. Working capital: CNGC will be able to minimize debt levels and carrying costs thereby using the majority

of its funds to achieve its goals and objectives.

Additionally, every Columbus neighborhood has now completed a plan (e.g. Near East Side PACT), which

should facilitate projects and community acceptance.

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Market and Opportunity Assessment

The commercial real estate market in Columbus was impacted by the recession, although not as hard as the rest of Ohio. It has rebounded and is growing due to a lower cost of financing projects and the availability of federal government funds, especially for multi-family developments.

Deals are being financed by a combination of banks, private equity firms, and new market tax credits (a federal financing mechanism) providing developers with confidence about financing. However, single-family developments and office buildings are still viewed as somewhat risky. Business suites could be an attractive opportunity, depending on the neighborhood.

The market opportunity in Columbus is significant. There are currently 3,346 vacant lots and brownfields in Columbus neighborhoods. In addition, there are countless vacant buildings that can be repurposed to become productive assets.

CNGC’s criteria for selecting projects with the “highest and best use” will include:

1. Major traffic access points

2. Adequate infrastructure (water, sewer, etc.)

3. Minimal environmental concerns

4. Major corridor

5. Condition within a 5-block radius (north, south, east, west)

6. Independent of other development projects in the neighborhood. For instance, can the project change the neighborhood by itself, or does it need other amenities/projects or another acquisition to make it successful and/or attractive?

7. Identifiable and attractive developer return

8. Consistency with community plan

9. Architectural compatibility

10. Potential private “champion” in area

11. Proximity to other City of Columbus investments

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Columbus Commercial Real Estate Outlook*

The 2013 expectations for commercial development in Columbus look promising in traditional segments (office, multi-family, retail, industrial, hotels), as well as in 2 emerging areas (health care and data centers).

Key drivers for this positive outlook are:

• Columbus has the lowest unemployment rate of Ohio’s major metro areas.

• Columbus is expected to make the transition from economic recovery to expansion in 2013.

• Columbus maintains one of the most competitive corporate tax climates in the Midwest.

• More than 54 colleges and university campuses with more than 147,000 students enrolled annually are based in the Columbus region.

• Columbus is one of the fastest growing metropolitan areas in the Midwest with a median age of 35.2 and an annual workforce growth rate of 1.3%.

• Nearly 100% of the Columbus metro population is able to access broadband internet.

.

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*Source: CBRE Columbus Market Outlook 2013

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Segment Retail Office Multi-Family Industrial Hotels

Total Vacancy 7.8% vs 7.9% YAG 18.7% -YAG Class A/B <4%

Class C ~10%

11.8% -YAG NA

2012 Net

Absorption or

Activity

145k +YAG 257k SF -YAG 7,665 units

transferred

@$49k avg

~$377m

2.8m SF +YAG NA

Under

Construction

427k SF at end of

2012

280k SF +YAG ~5k – 6k units

developed or

planned

603k SF +YAG NA

Outlook for 2013 • Retail environment

is poised to improve

as housing market

improves.

• Large shopping

center development

has slowed (despite

Simon/Tanger

speculative outlet

mall) but

commercial strip

growth continues to

expand.

• Retail will face

challenges from

aging pop w/multi-

family benefiting.

• Biggest deals

continue to be in

renewals or

relocation w/some

expansion.

• Public sector

contraction will

increase vacancy

rates especially

downtown.

•Primarily a tenants

market.

• Efficiency & cost

considerations may

lead private & govt

to chose owned vs

leased space.

• Multi-family sales

market will not be

as active due to

increased cap

gains taxes. In

2012.

• Franklin Cty pop

growth will be

1.1%; job growth

1.4% for a net

+18,200 jobs.

• Minimal rent

growth for Class C

expected.

• Large # of new

units will impact

occupancies &

rental growth.

• Build-to-suit

expected to

increase due to

strong economy &

access to major

transportation

corridors.

• Demand for bulk

distribution space

will increase

interest in I-70

Industrial Parks.

• Less avail space

will result in

increased base

rental rates as

economy recovers.

• Buyers see

stability & modest

growth as positive

•RevPAR* growth

will continue above

natl avg w/both

rate & demand as

factors.

• Central city or

emerging locations

expected to be “hot

markets” but

mostly from

branded props.

• Market will benefit

from strengthening

economy, State

Capitol & OSU

According to CBRE, Columbus will continue to have a very vibrant commercial real estate market.

*Revenue per available room: avg room rate times occupancy rate

Nonetheless, commercial leasing and construction remain focused on

areas primarily outside of the 1950s boundaries (except for the

downtown area).

CNGC should explore creative and perhaps, non-traditional, methods

to bring partners together to maximize interest, success and developer

returns. For instance, the recently announced Morgan Stanley/Kresge

Foundation’s $100 million Healthy Futures Fund, is designed to expand

access to health care and affordable housing. Working with healthcare

providers and home developers could result in a profitable

collaboration, while also providing jobs and healthcare in needed

communities.

Despite the lack of statistics and trends, CNGC will rely on select case

studies and its prime objective for improving the city’s tax base and the

lives of its citizens.

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Environmental Factors

There are several factors specific to Columbus that impact CNGC’s objective and strategies:

1. Columbus leadership (Mayor and City Council) have made this a priority and budgeted for this initiative.

2. Psychological views on certain neighborhoods are changing stemming from an influx of out-of-towners, a greater acceptance of living in more urban areas, and the growth of the Short North and downtown.

3. Despite changing views, racial and economic segregation still exists. Community perception of gentrification will have to be handled delicately. Project criteria should include a focus on developing economically and racially diverse neighborhoods and include a broad mix of housing when residential projects are being pursued.

4. Columbus has an abundance of service-oriented, white-collar businesses.

5. Columbus’ business base is very diversified; not dependent on a concentration of industries resulting in a more stable economy relative to other Ohio/mid-western cities.

6. Potentially low appraisals could hinder deal flow and increase deal risk. CNGC will attempt to fill the gap in a variety of ways, e.g. discounting real estate, tax incentives, creative financing vehicles, etc.

7. Strong interstate systems provide broad access and ensure efficient transportation.

8. OSU’s presence as a brain trust acts as a catalyst for development near and around campus.

9. Battelle’s presence and commitment to community enrichment and development adds value to surrounding neighborhoods.

10. Significant amount of start-ups are located in Columbus.

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Competency Identification

To accomplish the objective, CGNC will need independent private funding, access to

information and local government resources, and strong relationships with key people,

e.g. developers, commercial brokers, etc. CNGC’s Executive Director and board have

a significant understanding of the inter-connectedness of commercial real estate,

business, neighborhoods and government inner-workings that will provide a distinct

advantage over other organizations. Subsequent board members should be evaluated

based on this criteria.

SWOT Analysis (see next page)

An assessment of CGNC’s Strengths reveal an Executive Director (ED) with a breadth

of real estate experience, as well as a process that implements a unique approach to

transforming neighborhoods. While the opportunities are vast, the lack of an identified

successor to the ED, lack of staff capacity, and the current reliance on city funding

pose noteworthy risks for the ongoing viability of the organization.

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Columbus Next Generation Corporation SWOT

Strengths Weaknesses

Opportunities Threats

• Experienced commercial real estate team

• Executive Director has strong relationships with key

city government officials and staff, local and regional

developers, business leaders and community leaders

and organizations

• Flat organization enables faster decisions

• Unique: No other organization identifies properties,

secures control, removes obstacles and markets

properties

• CNGC will focus on identifying and packaging

properties, not development and construction

• CNGC will remove obstacles and barriers for

commercial developers

• Columbus’ diversified (primarily white-collar), stable

economy is appealing to developers

• Abundance of available properties and vacant

land in Columbus

• Low interest rates make projects more appealing

to developers

• Perception of neighborhoods and areas ripe for

development is improving within broader

developer community

• Creating a source of private funds

• Organization’s success is highly dependent on one

person, the Executive Director (ED)

• Developers have had long and mostly positive

experiences working with commercial brokers versus

a non-profit

• Success of individual projects may rely heavily on

ED’s involvement beyond closing, which could

impact ED’s focus on new projects

• No other funding source has been identified yet

• May take longer and cost more than expected to

secure control of desired properties

• Receptiveness of commercial developers too early

to gauge

• Potential for lack of community acceptance

• Election cycles could impact City Council/Mayoral

commitment and financial support

• Economic downturn could impact funding from City

and interest rates for developers 20

Critical Success Factors (CSFs)

The expectation is that CNGC will work on 1-3 projects per year, while developing a pipeline for the following year. To successfully achieve the state objective, CNGC must:

Assemble land

Identify developers

Complete a deal

Risk Assessment

Risks to achieving the CSFs are stated as part of the Threats section in the SWOT:

Lack of alternative funding sources

May take longer and cost more than expected to secure control of desired properties

Receptiveness of commercial developers too early to gauge

Potential for lack of community acceptance

Election cycles could impact City Council/Mayoral commitment and financial support

Economic downturn could impact funding from City and costs for developers

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Proposed Process

To increase the possibility of success, the approach for every project should be customizable. This ensures flexibility in working with multiple constituents and partners.

As an example:

1. Identify desired land/building(s) and current owner(s)

2. Conduct appraisal

3. Bid/Negotiate with property owner(s)

4. Money legislated by City Council transfers to CNGC

5. CNGC closes on deal

6. CNGC holds land

7. CNGC continues to develop package o Architect for site plan layouts

o Code compliance

o Re-zone if necessary

o Examine possibility of getting variances (cost passed to developer) or having developer do it

8. CNGC sells/markets package to developers o As part of developer agreement, establish time for completion for developer

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What’s In It For Me

CNGC is designed to meet the needs of all constituencies.

Developers want buildable land with known obstacles addressed:

• Identify infrastructure

• Community on-board

• City incentives in place

• Feasibility studies and appraisals completed

• Market, state and federal funds identified

Residents want a better quality of life:

• Developments that complement and enhance the community

• Elimination of vacant and abandoned properties

• Projects that have gathered their input

Mayor and City Council want consistent and growing tax revenues:

• Ability to provide city services and amenities

• Significant portion of population gainfully employed

• Safer and more attractive neighborhoods

23

Mayor

CNGC

Board

Executive

Director

Administrative

Assistant

Appraiser Legal Architect Plus Other 3rd Party

Relationships

as needed

Organization Design

City

Departments (as needed)

City

of

Columbus

Mayor

City Council

24

Project Manager

(as needed)

Project Manager

(as needed)

Funding Model

25

Private Funding City of Columbus

To maximize effectiveness of the organization, expectations for Next

Generation Development Corporation are as follows:

Year 1:

Evaluate 1 – 2 projects (identification, upfront assessment, negotiation).

East Franklinton is the organization’s primary project

Next Generation will assess other prospects to determine viable projects

If warranted, Next Generation will focus on ONE project in addition to East

Franklinton

Year 2 and beyond:

Will assess opportunities that fit with established criteria and budget

26

Key milestones for accomplishing the primary objective are as follows.

27

Milestones

Exploration and Planning and Identification of prospects. Developer input is gathered during

this step.

Initial Appraisal and Assessment (infrastructure, zoning, concept development, initial

financials, etc.).

Seller Negotiation (varies depending on complexity of deal and number and type of parcels)

Closing with Seller(s)

Packaging opportunity for developer(s) (varies based on whether there were changes to

original concept from idea to closing). Also includes securing key stakeholder input (City

Council, Mayor, community groups, non-profits, churches, etc.)

Marketing and selling property(ies) to developer. Includes closing.

Development completed

Tenants (retail, office, residential, etc.) in place

CNGC’s Responsibilities Developer’s Responsibilities

28

Challenges exist regarding achieving the milestones in a timely fashion:

Identifying and communicating with owners who may not have properties

listed

Assembling site due to multiple owners

Environmental challenges especially if development has not occurred for

many years (environmental laws and regulations have changed over the

years). Negotiations may take longer and buyer may have to allow for

abatement or clean-up costs and timing.

Infrastructure updates and modifications to meet current requirements

(voltage, water, sewer, etc.) and demands, e.g. fiber optics, wireless,

underground electric wires, etc.

Difficulty finding an interested or capable developer

Developer may not be able to secure financing

Solution: Critical to continually assess multiple prospects and several

developers to determine the best possible opportunities and options.

Tactical Plan

Select prospects based on criteria established in Phase I, combined with rationale for

project based on “highest and best use” definition (maximizing the value of the site

taking into consideration the surrounding area), Executive Director will consult with

developers and experienced commercial brokers to get input before securing property.

29

ED filters

prospects

through

criteria AND

“highest &

best use”

definition;

review

community

plans

ED develops

concept;

consults with

developers and

commercial

brokers;

provides

rationale for

project.

Presents

concept to

Development

Committee for

input and

approval.

ED develops

package

including site

layout, land

design,

architectural

drawings, etc.

ED meets

with

community

and city

stakeholders

for input

No major

objections or

only minor

changes,

project

moves

forward

If not

accepted by

city or

community,

ED will

explore

substantive

reasons,

determine

changes and

represent if

necessary.

Completed

and

approved

package will

be marketed

to

developer(s)

for

purchase.

ED presents

contract to

purchase

property to

full board for

approval.

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Overall concept

Attractive opportunities for

developer

Site layout

Land Design • Parcel layout

• Types and numbers of buildings

• Parking

• Elevation

• Number of units

• Commercial spaces

• Retail bays

Potential cost of developing • Cost to build

• Rents

City input: Building and Zoning

Services Department • Zoning: utilize current zoning or change;

additional cost to change passed to developer

• Inspections: permits, Certificate of Occupancy

• Site Plan to determine if it meets code and

any changes needed based on code

Utilities

Infrastructure commitments from

City of Columbus if necessary

City and State Incentives • Tax Credits: historic or housing

• Job growth incentives

• Tax abatements: resident and commercial

Community Input and “Sign-off” • Area Commissioners

• Major property owners

• Churches

• Non-Profits

CNGC develops “value-add package” to include:

Organization Information Flow

ED will solicit board’s input as part of the established quarterly board meetings,

but is also able to submit packages for input and approval on an interim basis.

As a for instance, ED may submit materials to board in the following manner:

1st presentation to Board Development Committee

overall concept, property, size, owner, range to negotiate, type of property

(residential, commercial, etc.), initial appraisal

2nd presentation to Board Development Committee

site layout, developer perspective, developer package

3rd presentation to Full Board

expression of interest or letter of intent from developer, capability assessment,

developer financials, developer experience with similar properties, city and

community input, etc.

31

The Executive Director (ED) will act as the strategic, operational and project leader for Columbus Next Generation Corporation. As such, the ED’s responsibilities are as follows: 1. Identification of properties

2. Initial assessment of development opportunity including soliciting input from relevant developer(s)

3. Concept development

4. Engage necessary professionals for feasibility studies (appraisers, commercial brokers, title company, environmental engineers, civil engineers, surveyors, architects, etc.)

5. Act as liaison between professionals and relevant city departments (Economic Development, Finance, Building and Zoning Services, etc.)

6. Determine strategy for involving community groups, non-profits, private organizations, etc.

7. Research zoning issues, liens, code issues, etc. and resolve

8. Develop proposal for entire project

9. Present proposal to Board Development Committee and Board for approval

10. Present funding request to City of Columbus

11. Prepare sales contract and letter of intent to purchase

12. Negotiate with Seller(s)

13. Select title company

14. Ensure funding has been transferred to CNGC

15. Close deal to purchase property(ies)

16. Update and solidify project assumptions, adjust architectural plans

17. Communicate with board, City of Columbus, community organizations and private leaders regarding status, updates and next steps

18. Finalize deal package

19. Contact developer(s) and pitch development concept

20. Negotiate price and development concept with developer(s)

21. Finalize package incorporating updates or new information

22. Secure final approval to proceed from board

23. Communicate with City of Columbus (City Council and Mayor)

24. Close deal to sell property(ies)

25. Issue joint developer/CNGC/Mayor/City Council announcement to community, non-profits and private leaders

26. Perform operational duties consistent with duties outlined in employment contract

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A board of directors is the governing body of a non-profit organization and has many

responsibilities categorized as follows:

1. Setting the policy for the organization:

Creating or updating the mission and vision statements

Determining the organization’s programs and services

Approving the strategic plan

2. Monitoring the organization’s operations:

Hiring and periodically evaluating the organization’s executive director

Working with and providing support to the executive director

Approving the annual budget, annual report, etc.

Exploring and evaluating alternative funding sources

Approving major contracts and grants

Soliciting and reviewing program evaluations

Troubleshooting as necessary

3. Serving as a public figure for the organization:

• Advocating for the organization

4. Fulfilling other board responsibilities:

• Documenting policies and decisions to create an organizational memory

• Preparing for and attending board meetings

• Researching and discussing issues before decisions are made

• Replacing and orienting board members when a vacancy arises

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A board of directors also has certain legal obligations or duties:

• Legal obligation to act in the best financial interest of the organization (fiduciary responsibility)

• Take reasonable care when making decisions for the organization (duty of care)

• Act in the best interest of the organization (duty of loyalty)

• Act in accordance with the organization’s mission (duty of obedience)

• Stand aside when there is a conflict of interest (recusal)

While a board has many responsibilities, there are also things it should avoid. Board members should avoid being over- or under-involved. More specifically, the board of directors should not:

• Concern itself with the day-to-day management of the organization because that is the executive director’s job.

• Rubber stamp decisions. While the board should take the recommendations of the organization’s director and staff into consideration, the board needs to be an independent decision-making body.

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Conclusion

• CNGC has identified strategies and tools necessary to achieve its primary objective.

• Critical to the organization’s success will be:

– Developing a secondary source of funds

– Getting developers involved early in the process

– Exploring public/private partnerships

– Working with CDCs and other development non-profits

– Maintain flexibility to accommodate various opportunities

– Keeping key stakeholders informed throughout the process

• A thorough upfront assessment, involving developers at the outset, will mitigate some of the risk of developer acceptance. Gathering community input at the appropriate time should minimize issues for developers on the backend.

• Key stakeholders should be mindful of CNGC’s role in development versus the expectations of developers to ensure the organization’s success and longevity.

• With consistent and necessary funding in place, along with support from the City of Columbus, CNGC should be in a position to ultimately transform Columbus neighborhoods into viable and desirable places to live, shop and work.

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