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W- <br />SanfordHolshouser <br />www.Sanfordholshouserlaw.com <br />commensurate with the size of the grant. Because County money would be the <br />intended source for the payment of the construction costs, the construction of the <br />building would likely be subject to the construction and bid laws otherwise applicable to <br />County projects. <br />Make a multi -year grant that could be used for lease or loan payments <br />The outside agency would contract for a capital project, and the County would <br />enter a multi -year grant agreement that was sized to provide for the agency's lease or <br />loan payments related to the project. <br />Fund a loan -loss reserve to back loans to the outside agencies. <br />As the County has done with its business loan programs, the County could fund a <br />loan -loss reserve to support loans incurred by the outside agencies. <br />Considerations for all approaches <br />The function to be served by the outside agency must be a function the County is <br />authorized to provide directly. <br />Each arrangement should be supported by a contract with the outside agency <br />that specifies the work to be done by the agency. If the County uses a multi -year grant <br />approach, then the contract should extend for the term of the grant. If the County uses <br />a lease approach, then the performance contract should extend for the term of the <br />lease. There should in all events be some level of proportionality between the funding <br />from the County and the service by the agency. <br />In undertaking any program of this sort, the County should build a strong record <br />documenting the public benefit expected from the arrangement. To the extent the <br />County views the project and benefitting agencies as enhancing employment and <br />business prospects in the County, the County would be well- served to also follow the <br />statutory procedures (including public hearings) provided for in the business incentive <br />statutes. <br />* * * * * * * * * * * * * ** <br />Please let me know if you have any questions for me. <br />Thanks, as always. <br />