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17 <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 />