2010-2616-Resolution No. 2010-038 Recorded 5/20/2010COUNTY OFFICIAL
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NANCYUBLANKENSHIP, COUNTY CLERKpS 0J 2010,2616
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For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
A Resolution Establishing Fund 105 as the
Economic Development Fund
RESOLUTION NO. 2010-038
WHEREAS, Deschutes County faces historically high levels of unemployment and
economic distress; and
WHEREAS, business recruitment and retention, and in particular job creation, are high-
level priorities for the Deschutes County Board of Commissioners (`Board"); and
WHEREAS, Deschutes County budgets certain monies in Fund 105, which has
historically been known as the "Business Loan Fund;" and
WHEREAS, the Board wishes to repurpose those funds in Fund 105 and use them for the
above -stated priority of job creation;
NOW, THEREFORE, THE BOARD OF COUNTY COMMISSIONERS OF
DESCHUTES COUNTY HEREBY RESOLVES AS FOLLOWS:
1. Fund 105 shall henceforth be known as the Economic Development Fund.
2. Monies currently in Fund 105 and other monies that may be transferred to Fund 105 at the
sole discretion of the Deschutes County Budget Committee and the Board shall be used only
for the purposes described in Exhibit A, attached hereto and incorporated herein.
DATED this Jday of , 2010.
DE IS R. LUKE, Chair
ALAN UNGER, Vice Chair
A TEST: TAMMY B , Co issioner
Recording Secretary
Page I of 3 Resolution No. 2010-038
EXHIBIT A
Fund 105, to be known at the Economic Development Fund, shall be used for the
exclusive purpose of job -creating business recruitment, retention and expansion, using
the following criteria and procedures. Fund disbursements may take the form of low-
interest loans, forgivable loans or grants, however, all disbursements shall be tied directly
to the creation or retention of jobs in Deschutes County. Fund 105 shall not be used for
investment purposes or to cover the start-up costs of a new business venture.
Criteria
1. For purposes of this resolution, "relocation" means the move of an existing
business from outside of Deschutes County into Deschutes County.
2. Business "retention" means the keeping of a business in Deschutes County that
has verifiable, bona fide plans to move outside of Deschutes County and to take
jobs that are currently provided by that business in Deschutes County to one or
more areas outside of the County.
3. Business "expansion" means the verifiable, bona fide plans of an existing
business in Deschutes County to expand its operation in such a way that the result
is the creation of regular, full-time jobs that did not exist prior to the expansion.
4. For purposes of Fund 105, relocation or retention expenses include a business'
costs of moving equipment, furnishings and personal business property to or
within Deschutes County, but shall not include the costs of moving the personal
household goods of any employee or potential employee to or within Deschutes
County. Relocation expenses may also include: 1. short-term rent relief in a
business' new location; and 2. the costs associated with the recruitment of new
staff, including, but not limited to, advertising or travel allowances.
5. For purposes of Fund 105, expansion expenses include a business' costs of
building or leasing new space necessary to provide for newly created jobs, the
lease or purchase of new equipment or personal business property necessary to
accommodate newly created jobs, and/or the costs associated with recruitment or
training of new staff.
6. The Board of Commissioners may, in its sole discretion, approve other uses of
Fund 105 if they are consistent with the uses listed above.
Procedure
Deschutes County contracts with Economic Development for Central Oregon
(EDCO) for economic development strategic planning, counsel and support.
EDCO is engaged directly in the recruitment of new traded -sector businesses to
the County.
Page 2 of 3 Resolution No. 2010-038
2. All requests for disbursements from the Economic Development fund shall be
made by Deschutes County pursuant to a written request to the County by EDCO.
All such requests shall conform to the criteria above.
EDCO shall determine whether a disbursement from Fund 105 will be structured
as a low-interest loan, a forgivable loan or a grant. In all cases, disbursements
from the fund shall be tied directly to the creation of jobs. For forgivable loans,
all agreements between EDCO/County and the recipient business shall include a
"clawback" provision requiring the repayment of some or the entire loan for the
failure to create an agreed-upon number of jobs by an agreed-upon date.
4. A forgivable loan shall generally not exceed an amount equivalent to $2,000 per
newly created job. Deschutes County reserves the right to waive this limit in its
sole discretion after considering EDCO's recommendation.
5. EDCO shall be responsible for tracking the number of jobs created pursuant to a
loan, forgivable loan or grant and for reporting to Deschutes County not less than
semi-annually on the performance of loan and grant recipients.
6. Interest rates on low-interest loans shall be determined by Deschutes County in
consultation with EDCO. Loan administration and collection shall be the
responsibility of Deschutes County, which reserves the right to subcontract such
responsibility to a third party.
Page 3 of 3 Resolution No. 2010-038