Minutes 06-07-2018 Budget Work Session

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14 o Total projected collections - $3,651,952 0 50% or$1,825,976 Allocated to Schools and Distributed by Average Daily Membership (ADM) ■ Chapel Hill-Carrboro City Schools - $1,108,367 for Technology and Facility Improvements ■ Orange County Schools - $717,609 for Technology 0 50% allocated to Economic Development- $1,825,976 - chart Article 46 Economic Development Sales Tax Distribution FY 2018-19 Recommended (pie chart Commissioner Rich said there is a large balance in the small business loan line item, and this should be spent down as people are questioning the amount in there. Steve Brantley said this balance fluctuates with repayments, and some businesses have recently repaid their full balances. He said the Town of Carrboro asked about a new business, seeking financial assistance from the County. He said the Carrboro loan program is a bit different from the County's program, and he does not think the programs can be combined; but there can be supplemental loans. Commissioner Rich said there is some chatter out there that more should be spent on the smaller, local companies. Steve Brantley said half of the small business loan grant funds go to Chapel Hill and Carrboro small businesses, and none of the grants can go to companies with revenues over a million dollars. He said about half of the funding goes to Hillsborough based companies, and the LaUNCh incubator funding is in Chapel Hill. Commissioner Price asked if the incentives recipients could be identified. Steve Brantley said that is primarily for Morinaga. Commissioner Price referred to page 63 - food farm products—and asked if there is a reason for the budget change with this item. Steve Brantley said the County received a grant from the NC Department of Agriculture to fund the NC Crop loan, which is a micro loan for Piedmont Food and Agricultural Processing Center (PFAP) tenants. He said the first loan from this was made to Seal the Seasons. He said these funds had a matching requirement, which is fulfilled by Weaver Street Market. Commissioner Jacobs said Asheville has regulations for Airbnb properties, and asked if Orange County has something similar. Laurie Paolicelli said no, and she said it is time to look into this item. She said Commissioner Rich is bringing this to the VB board. She said there is an unlevel playing field between hotels and Airbnbs, as the latter have no health and safety regulations. She said Asheville is seeking several regulations that are good to keep an eye on. Commissioner Jacobs said he sent an article to Laurie Paolicelli about Airbnbs in Manhattan and Brooklyn, which drove up the cost of housing in their neighborhoods. Laurie Paolicelli said it takes a lot of affordable housing off the market. Commissioner Jacobs said yes, this works counter to the County's other purposes. He said it may be wise to ask someone at UNC Business School to look into the effect on tax values by having Airbnbs in a particular neighborhood. Laurie Paolicelli said there are 385 active Airbnb dwellings in Orange County, with rates and demands ever increasing. She said the problem is not as big as it is in larger cities, but it does need to be closely monitored. Steve Brantley said he misspoke regarding adjustments of article 46 funds for agriculture. He said the County was successful in pursuing a golden leaf grant, which is funding new machinery for PFAP. He said it is this program that has a co-pay requirement, which the County has provided.