HomeMy WebLinkAboutEcon Devel Fund DiscussionDepartment of Administrative Services
Dave Kanner - County Administrator
1300 NW Wall St., Suite 200, Bend, OR 97701 1960
(541) 388-6570 - Fax (541) 3853202
www.co.deschutes or.us
March 18, 2010
TO: Board of Commissioners
FROM: Dave Kanner
RE: Economic Development Fund
I had previously discussed with you the idea of taking the remaining money in the
business loan fund, adding to it some of the one-time revenue arising from the
foreclosure crisis and "repurposing" the fund as an economic development fund for
business recruitment and retention. Attached is a draft resolution that spells out
allowable uses of such a fund. This has been reviewed by EDCO staff and they are
pleased with it. I am asking for your input on it at the March 29th work session. The
resolution would be brought to you as part of the budget adoption process.
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 1 0 and use them for the
above -stated priority of job creation;
NOW, THEREFORE, THE BOARD OF COUNTY CO 4, ERS OF
DESCHUTES COUNTY HEREBY RESOLVES AS
1. Fund 105 shall henceforth be known as the Ec • • mic Development
2. Monies currently in Fund 105 and other movie
the sole discretion of the Deschutes County Budget
used only for the purposes described Exhibit A, atta
herein.
transferred t• and 105 at
ittee and the Board shall be
hereto and incorporated
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 or forgivable loans, however, all disbursements shall be tied directly to the
creation or retention of jobs in Deschutes County and only 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 t - a' ove of an existing
business from outside of Deschutes County to De f,•unty.
2. Business "retention" means the keeping a b Desch
verifiable, bona fide plans to move to an ,, a outside of Desch
take the jobs that are currently provide • ' that bu ess in Desch
that area outside of the County.
3. Business "expansion" means u e verifiable, bo
business in Deschutes County .and its operat
is the creation of regular, full -ti a, . t did not
4. For purposes of Fund 105, relocati
costs of movin.: ; a: nt, furnishi
within Desc but shall n
household • • f any ployee or p
County. Reloca : „ x ay also
busi s loca
s
ounty that has
ounty and to
ty to
e plans of an existing
such a way that the result
'fior to the expansion.
enses include a business'
and per al business property to or
nclude the costs of moving the personal
'al employee to or within Deschutes
elude: 1. short-term rent relief in a
associated with the recruitment of new
ited to, advertising or travel allowances.
105, #''.ansion expenses include a business' costs of
w sp ce necessary to provide for newly created jobs, the
lease ea f; p chase o r = ew equipment or personal business property necessary to
accom E. e new ' created jobs, and/or the costs associated with recruitment or
training o f.
6. The Board o Commissioners may, in its sole discretion, approve other uses of
Fund 105 if they are consistent with the uses listed above.
Procedure
1. 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.
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.
3. EDCO shall, in its sole discretion, determine whether a disbursement from Fund
105 will be structured as a loan or as a forgivable loan. 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 nu •er of jobs by an
agreed-upon date.
4. A forgivable loan shall generally not exceed an a
newly created job. Deschutes County reserves th= ight t
sole discretion after considering EDCO's re ation.
5. EDCO shall be responsible for trackin
loan or forgivable loan and for reporting
annually on the performance of loan recipie
6. Interest rates on low-interest 1
consultation with EDCO. Loan
responsibility of Deschutes Coun
responsibility to a third party.
all be determ
tion and c
es th
valent to $2,000 per
ve this limit in its
f jobs create
ounty not le
t to a
than semi -
by Deschutes County in
on shall be the
ight to subcontract such