Minutes 11-10-2016 - Laserfiche WebLink

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4 could either require a cash payment or provide that the use of the building is part of the County's consideration for the services to be provided by the agency. Matters of maintenance, taxes and insurance would also have to be resolved in connection with the lease. The construction of the building would likely be subject to the construction and bid laws otherwise applicable to County projects. As an alternative, the County could establish a nonprofit corporation of its own to undertake the financing and construction, although the lenders would still look to the County to make the loan payments, and the construction and bids laws would likely still apply. Make a restricted capital grant The County would use cash on hand to make a larger than usual grant that the agency could use for a capital expense. The performance agreement would restrict the use of the funds for the planned capital expense, and would extend for a term commensurate with the size of the grant. Because County money would be the intended source for the payment of the construction costs, the construction of the building would likely be subject to the construction and bid laws otherwise applicable to County projects. Make a multi-year grant that could be used for lease or loan payments The outside agency would contract for a capital project, and the County would enter a multi-year grant agreement that was sized to provide for the agency's lease or loan payments related to the project. Fund a loan-loss reserve to back loans to the outside agencies. As the County has done with its business loan programs, the County could fund a loan- loss reserve to support loans incurred by the outside agencies. Considerations for all approaches The function to be served by the outside agency must be a function the County is authorized to provide directly. Each arrangement should be supported by a contract with the outside agency that specifies the work to be done by the agency. If the County uses a multi-year grant approach, then the contract should extend for the term of the grant. If the County uses a lease approach, then the performance contract should extend for the term of the lease. There should in all events be some level of proportionality between the funding from the County and the service by the agency. In undertaking any program of this sort, the County should build a strong record documenting the public benefit expected from the arrangement. To the extent the County views the project and benefitting agencies as enhancing employment and business prospects in the County, the County would be well-served to also follow the statutory procedures (including public hearings) provided for in the business incentive statutes. A big issue at looking at capital funding is you have to look how much of a commitment they would want to do. Chair McKee asked Bob Jessup what would happen if the County had a five-year contract with an agency for a building, and in year two the agency stopped performing, and the County had to evict the agency.