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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: January 27, 2015 <br />Action Agenda <br />Item No. 2 <br />SUBJECT: Proposed Draft Applications, Guidelines & Scoring Sheets for Article 46's <br />Business Investment Grant & Agriculture Economic Development Grant <br />DEPARTMENT: Economic Development <br />1 <br />PUBLIC HEARING: (Y /N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />A. Economic Development Uses of Steve Brantley, Director <br />"Article 46" (One Quarter Cent (919) 245 -2326 <br />Sales Tax — Key Sectors) <br />B. Business Investment Grant — Draft <br />Application, Guidelines & Scoring <br />Sheet <br />C. Agriculture Economic Development <br />Grant — Draft Application, <br />Guidelines & Scoring Sheet <br />PURPOSE: To receive information regarding the proposed draft Application, Guidelines & <br />Scoring Sheet for each of two grant programs — Business Investment Grant & Agriculture <br />Economic Development Grant — which are funded by Article 46's one quarter cent sales tax <br />proceeds to support economic development. <br />BACKGROUND: In November 2011, Orange County voters approved a referendum to levy a <br />one - quarter (1/4) cent sales tax that provides additional annual funding for education and <br />economic development purposes. This "Article 46" funding program generates approximately <br />$2.5 million annually in new local sales tax proceeds which are split equally between education <br />(shared between the Orange County & Chapel Hill /Carrboro school systems) and economic <br />development. The 50/50 share of Article 46 funds for economic development, averaging $1.25 <br />million per year, is initially set for 10 years. The BOCC adopted a Resolution in December 2011 <br />authorizing the new one - quarter cent sales tax. <br />Key Sectors for Use <br />% of Total <br />$ Annually <br />• Debt service on water, sewer & associated <br />60% <br />$750,000 <br />Infrastructure made in Orange County's 3 <br />Economic Development Districts <br />(Eno, Hillsborough and Buckhorn) <br />• Orange County's Small Business Loan Fund <br />16% <br />$200,000 <br />• Entrepreneurial & Incubator Support <br />8% <br />$100,000 <br />• Business Investment Grants <br />8% <br />$100,000 <br />• Agriculture Economic Development Grants <br />5% <br />$60,000 <br />• Marketing & Collaborative Outreach <br />1.5% <br />$20,000 <br />• Advertising, Publishing & Collateral Materials <br />1.5% <br />$20,000 <br />