Minutes 01-27-2015 - Laserfiche WebLink

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Economic Development Districts (Eno, Hillsborough and Buckhorn) • Orange County's Small Business Loan Fund 16% $200,000 • Entrepreneurial & Incubator Support 8% $100,000 • Business Investment Grants 8% $100,000 • Agriculture Economic Development Grants 5% $60,000 • Marketing & Collaborative Outreach 1.5% $20,000 • Advertising, Publishing & Collateral Materials 1.5% $20,000 100% $1,250,000 While some Article 46 "key use" funding categories had immediate activity and expenditure needs, such as utility infrastructure improvements in the County's three economic development districts, the two grant programs lacked basic guidelines to help guide the best use of Article 46 funds. As a result, although funds began to accrue in accounts being set up for that eventual use, the specific grant programs were not immediately active. Also, the Economic Development Advisory Board was just being re-formed and had not yet assumed specific tasks. The Economic Development Advisory Board members did meet throughout 2014 and drafted a recommended set of Applications, Guidelines and Procedures (see Attachments B and C) recommending how to administer the Business Investment Grant and Agriculture Economic Development Grant programs. Much of the advisory board's effort was patterned after the County's Small Business Loan program and current By-Laws, Policies & Procedures, Application and review process. For Article 46's two grant programs, the Economic Development Advisory Board has offered to receive, review and award all grant applications, subject to the BOCC's comments and approval. Current accrued balances available to disburse are approximately $200,000 in the Business Investment Grant program and $120,000 in the Agriculture Economic Development Grant program. FINANCIAL IMPACT: There is no direct financial impact associated with discussion of Article 46's two grant programs. There are no action items requiring formal decisions during the work session. Eventual funding of the Business Investment Grant and the Agriculture Economic Development Grant programs would be provided by Article 46 proceeds, and not from the General Fund. Jim Kitchen thanked the Board of County Commissioners for their support. He said this is an important proposal before the Board. He said there is approximately $200,000 in grant funding that has been allocated, but there is no policy or criteria in place for the allocation. He said a subcommittee with a wide variety of representation was formed to work on this, and it is still a work in progress. Jim Kitchen said the group is proposing two grants —a small grant up to $1,000, and a large grant up to $10,000. He said the purpose of this grant program is to grow the entrepreneurial ecosystem in the County and to encourage small business development, with the goal of increasing jobs and opportunities in Orange County. He said the Orange County Economic Development Committee and the sub-committee will bear most of the burden of the administration and will do most of the work, supported by the County staff. Jim Kitchen said the details are in the materials before the Board. He said businesses will fill out a simplified application for the smaller grants, and a 4 to 5 page, more complex document for the larger grants. He said mentoring will be an important part of this process, and