HomeMy WebLinkAboutAgenda - 01-27-2015 - 2ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: January 27, 2015
Action Agenda
Item No. 2
SUBJECT: Proposed Draft Applications, Guidelines & Scoring Sheets for Article 46's
Business Investment Grant & Agriculture Economic Development Grant
DEPARTMENT: Economic Development
1
PUBLIC HEARING: (Y /N) No
ATTACHMENT(S): INFORMATION CONTACT:
A. Economic Development Uses of Steve Brantley, Director
"Article 46" (One Quarter Cent (919) 245 -2326
Sales Tax — Key Sectors)
B. Business Investment Grant — Draft
Application, Guidelines & Scoring
Sheet
C. Agriculture Economic Development
Grant — Draft Application,
Guidelines & Scoring Sheet
PURPOSE: To receive information regarding the proposed draft Application, Guidelines &
Scoring Sheet for each of two grant programs — Business Investment Grant & Agriculture
Economic Development Grant — which are funded by Article 46's one quarter cent sales tax
proceeds to support economic development.
BACKGROUND: In November 2011, Orange County voters approved a referendum to levy a
one - quarter (1/4) cent sales tax that provides additional annual funding for education and
economic development purposes. This "Article 46" funding program generates approximately
$2.5 million annually in new local sales tax proceeds which are split equally between education
(shared between the Orange County & Chapel Hill /Carrboro school systems) and economic
development. The 50/50 share of Article 46 funds for economic development, averaging $1.25
million per year, is initially set for 10 years. The BOCC adopted a Resolution in December 2011
authorizing the new one - quarter cent sales tax.
Key Sectors for Use
% of Total
$ Annually
• Debt service on water, sewer & associated
60%
$750,000
Infrastructure made in Orange County's 3
Economic Development Districts
(Eno, Hillsborough and Buckhorn)
• Orange County's Small Business Loan Fund
16%
$200,000
• Entrepreneurial & Incubator Support
8%
$100,000
• Business Investment Grants
8%
$100,000
• Agriculture Economic Development Grants
5%
$60,000
• Marketing & Collaborative Outreach
1.5%
$20,000
• Advertising, Publishing & Collateral Materials
1.5%
$20,000
100% $1,250,000
While some Article 46 "key use" funding categories had immediate activity and expenditure
needs, such as utility infrastructure improvements in the County's three economic development
districts, the two grant programs lacked basic guidelines to help guide the best use of Article 46
funds. As a result, although funds began to accrue in accounts being set up for that eventual
use, the specific grant programs were not immediately active. Also, the Economic Development
Advisory Board was just being re- formed and had not yet assumed specific tasks.
The Economic Development Advisory Board members did meet throughout 2014 and drafted a
recommended set of Applications, Guidelines and Procedures (see Attachments B and C)
recommending how to administer the Business Investment Grant and Agriculture Economic
Development Grant programs.
Much of the advisory board's effort was patterned after the County's Small Business Loan
program and current By -Laws, Policies & Procedures, Application and review process. For
Article 46's two grant programs, the Economic Development Advisory Board has offered to
receive, review and award all grant applications, subject to the BOCC's comments and
approval. Current accrued balances available to disburse are approximately $200,000 in the
Business Investment Grant program and $120,000 in the Agriculture Economic Development
Grant program.
FINANCIAL IMPACT: There is no direct financial impact associated with discussion of Article
46's two grant programs. There are no action items requiring formal decisions during the work
session. Eventual funding of the Business Investment Grant and the Agriculture Economic
Development Grant programs would be provided by Article 46 proceeds, and not from the
General Fund.
RECOMMENDATION(S): The Manager recommends that the Board receive and review
information regarding the proposed draft Applications, Guidelines & Scoring Sheets for each of
two grant programs — Business Investment Grant & Agriculture Economic Development Grant
the report, and provide comments to staff for follow -up and next steps. Pending Board
feedback, staff proposes to bring this item back for approval at the February 3, 2015 regular
Board meeting.
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Attachment A
ECONOMIC DEVELOPMENT USES OF "ARTICLE 46"
QUARTER CENT SALES TAX
Key Sectors
Proposed Uses for Economic Development
Percentage of
Allocation
Debt Service on Water & Sewer Infrastructure in 3
Economic Development Districts of Orange County
$ 750,000
60%
Marketing & Collaborative Outreach
$ 20,000
1.5%
Small Business Loan Fund
$ 200,000
16%
Collateral Materials, Advertising, Publishing
$ 20,000
1.5%
Innovation Center for Entrepreneurial Development
(LaUNCh incubator)
$ 100,000
8%
Agricultural Economic Development Grants
$ 60,000
5%
Business Investment Grants
$ 100,000
8%
TOTAL
$ 1,250,000
100%
1.5%
Proposed Economic Development Uses of
Quarter Cent Sales Tax
8%
1; o/
■ Debt Service on Water & Sewer
Infrastructure
■ Marketing Collaborative Outreach
■ Small Business Loan Pool
■ Collateral Materi als, Advertising, Publishing
■ Innovation Center (LaUNCh Incubator)
■ Agri cultural Economic Development Grants
■ Business Irniestment Grants
Attachment B
ORANGE COUNTY
BUSINESS INVESTMENT GRANT PROGRAM
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Attachment B
ORANGE COUNTY BUSINESS INVESTMENT GRANT PROGRAM
PURPOSE
The purpose of the Orange County Business Investment Grant Program (Grant
Program) is to stimulate successful non -farm Business Investment development and
expansion in Orange County (County). Farmers should complete the Orange County
Agricultural Grant Application.
By making economic development grant funds available, the County will be growing its
entrepreneurial ecosystem, supporting existing Business Investment and early -stage
venture growth, in order to increase jobs, opportunities and grow the commercial tax
base in Orange County.
Businesses receiving funding through this program will be encouraged to be good
corporate citizens as defined in Orange County's Economic Development Strategic Plan
and encouraged to employ Orange County residents.
The program will provide two types of grants:
Small Grants: Up to $1,000, and,
Large Grants: From $1,001 - $10,000
GRANT SUBCOMMITTEE
The Grant Subcommittee (Subcommittee) will review all applications and make grant
recommendations. The Subcommittee will be comprised of 5 members from the
Orange County Economic Development Committee.
The Subcommittee Chair, elected by the Subcommittee, shall generally monitor the
duties of the Grant Program administration; make sure grant proposals are properly
prepared prior to their presentations at the Subcommittee meetings; and oversee the
preparation of commitment letters to approved grantees, with the assistance of County
staff if needed. Grant commitment letters will be signed by the Chair and /or by County
staff.
The Subcommittee will have the following responsibilities:
1. Find creative ways to grant funds to stimulate successful Business Investment
development and job creation.
2. Review grant applications quarterly and,„ determine which applications meet
eligibility requirements and whether an eligible application will be approved,
approved with conditions, or submitted to the applicant for more information.
3. Periodically review status of existing grants to determine if funds are being used
in the manner in which they were intended, and recommend appropriate
6
Attachment B
corrective action where needed.
4. Evaluate grant application requirements and make appropriate adjustments as
needed to accomplish the objectives of the program.
5. Conduct annual review of grants and their impact on the County's Business
Investment environment.
GRANT PROGRAM ADMINISTRATION
The Grant Program will be administered by a Subcommittee consisting of members
from the Orange County Economic Development Committee. The Subcommittee will
meet quarterly to make and facilitate grants. A quorum will consist of 3 voting members
of the Subcommittee. County staff may be utilized to service grants, including receiving
applications, notifying applicant's of the Subcommittee's decision, making payment to
recipients, and generating administrative reports.
F1 iNiniNir,
The County will provide funding for the Grant Program through revenues generated
from the Orange County quarter cent sales tax.
COMMITMENT PERIOD
The County will support the Program until funding is exhausted; demand for the
Program no longer exists, or until it is no longer financially feasible.
ELIGIBILITY
1. Applicant's business must be located in Orange County in areas zoned
appropriately for their use.
2. Applicants must be business entities whose gross revenues do not exceed $3
million per year.
3. Applicants and their businesses must not have any past due tax, fee, or fine in
Orange County.
CONDITIONS OF RECEIVING A GRANT
1. Applicant must fill out a grant application.
2. Applicant must appear before the Subcommittee for an interview to detail how
grant funds will be used, and answer any questions about their business or
application.
3. Each venture receiving a grant must provide an accounting of how all funds were
used and key milestones reached by the venture within 180 days of the receipt of
7
Attachment B
the grant.
4. As a condition of receiving grant funds, all recipients must commit to a six -month
mentoring period with an experienced business coach or mentor at:
A. Launch Chapel Hill
B. 1789 Venture Lab
C. SCORE
D. SBTDC
E. A mentor approved by the Subcommittee
ELIGIBLE USES OF GRANT PROCEEDS
1. Start up funding
2. Working capital or operational funds.
3. Purchase of equipment, or machinery.
4. Expansion of business services or products.
5. Work force expansion.
6. Tenant up -fit or leasehold improvements.
GRANT PROCEEDS SHALL NOT BE USED FOR THE FOLLOWING
1. Paying off or down existing bank debt or investor loans.
2. Purchase of equipment or improvement of real estate, which are used or to be
used for personal use.
3. Political activities.
4. Owner salary.
5. Speculative ventures (Examples: drilling for gas or oil, commodity futures).'
6. Lending or investment.
7. Real property held for sale or investment.
8. Pyramid sales - distribution plan businesses.
8
Attachment B
9. Floor plan financing (defined as a revolving line of credit that allows the
borrower to obtain financing for retail goods.
10. Foreign controlled businesses.
11. Private membership clubs.
COMPLIANCE WITH APPLICABLE REGULATIONS
In all cases, grants made from this program must be consistent and in accordance
with the following:
1. All state and local regulations governing the applicant's business.
2. Terms and conditions established by the Subcommittee for each
particular applicant.
3. Policies established by the Board of County Commissioners dealing with the
Grant Program.
AMOUNT OF GRANTS
Minimum: Up to $1,000.
Grant applications for $1,000 or less will have a separate and simplified application.
Maximum: $10,000.
Grant applications for $1,001 or more will require additional financial information
and documentation of how grant proceeds will be used. Should market conditions
change, or in the event of an applicant with extraordinary conditions, a grant
amount exceeding the maximum may be considered by the Subcommittee. All
grants are subject to availability of funds.
GRANT APPLICATION GUIDELINES:
Large Grant Application Requirements
($1,001 - $10,000: 8 - 15 pages)
Business Information:
1. Business Name /DBA
2. Street Address /Mailing Address
3. Date Established
4. Number of Employees
5. Business phone number
6. E -mail address
7. Tax ID/ Employment Identification
Number
8. Primary bank
9. Accounting firm
10. Attorney
Business Financial Information:
11. Annual Sales for the past 3 years (if
applicable)
12. Business Financial Statements (for 3
years, if applicable)
13. Last 3 Year's Business Tax Returns (if
applicable).
14. Current Business Checking Account
Balance
15. Balance(s) In Other Accounts
16. Existing Business Debts
Description of Business Operations:
17. Detailed Written Business Plan (5 -10
pages) -or- PowerPoint Pitch Deck
Personal Financial Information:
18. Personal Financial Statement for any
person owning 10% or more of company
19. Personal Tax Return for the past 3 years
20. Principal owner information
a. Name
b. Home address
c. Percent ownership of business
21. Amount of Grant Requested &
Detailed Use of How Funds Will Be Used
(2 -3 pages)
9
Attachment B
Small Grant Application Requirements
($1.000 or less: 2 - 3 Daaes)
Business Information:
1. Business Name /DBA
2. Street Address /Mailing Address
3. Date Established
4. Number of Employees
5. Business phone number
6. E -mail address
7. Tax ID/ Employment Identification
Number
Business Financial Information:
8. Annual Sales for the past 3 years (if
applicable)
9. Business Financial Statements (for 3
years, if applicable)
10. Last 3 Year's Business Tax Returns (if
applicable)
1'. Current Business Checking Account
Balance
11. Balance In Other Accounts
12. Existing Business Debts
13. 250 -500 Word Description Of Business
(When & where it was started, market,
target customer, future plans, etc.)
14. Amount of Grant Requested &
Detailed Use of How Funds Will Be
Used (1 -2 pages)
10
Attachment B
SUGGESTED SMALL GRANT GUIDELINES
1. Use of Funds — Priority will be given to ventures demonstrating a clear need for
grant funds to grow their business, hire additional staff, grow the commercial tax
base, and /or create a significant social and economic impact in the County.
SUGGESTED LARGE GRANT GUIDELINES
1. High Potential Founders - Although all applicants will be considered, business
owners who exhibit the following characteristics will be given priority:
a. Have a thorough understanding of their market
b. Have assembled a talented team
c. Have a passion for building their venture in Orange County
2. High Potential Ventures — Priority will be given to "growth" ventures capable of
expanding rapidly, renting office space in Orange County, and hiring Orange
County employees.
3. Use of Funds — Priority will be given to applicants demonstrating a clear
need for grant funds to grow their business, hire additional staff, grow the
commercial tax base, or create a significant social impact in the County.
PROCEDURES
1. Applicants will be referred to the Orange County Economic Development
(Department) website, where they will complete and submit their application.
2. Applicants will be provided interview dates and times no later than three weeks
prior to the Subcommittee's next meeting date.
3. County staff will provide completed applications to the Subcommittee for their
review no later than two weeks prior to its next scheduled meeting.
4. At its scheduled quarterly meeting, the Subcommittee will discuss the strengths
and weaknesses of complete grant application(s) and decide whether or not to
take action on the request, based on the information provided.
5. The Subcommittee shall approve, deny or request additional information from
the applicant. They will submit determinations in writing to County staff.
6. The applicant will be informed in writing by County staff of the Subcommittee's
decision to deny, grant, grant with condition, or seek more information. If the
Subcommittee denies a grant request, it shall provide a copy of the score
sheet(s) to the applicant.
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Attachment B
7. Should the Subcommittee deny an application, the Subcommittee will not
consider any applications from that applicant for at least six months. Should an
applicant think that their application has been improperly denied, then the
applicant may notify, in writing, the Subcommittee. The notice to the
Subcommittee shall state why the applicant thinks the grant should be approved.
The application shall then be given further consideration by the Subcommittee
and its decision is final.
8. At its discretion, the Subcommittee may impose any additional terms to a grant
request. The Subcommittee may require an itemized budget detailing the
proposed use of grant funds.
9. Applicants agree to utilize grant funds for their intended use. Each venture
receiving a grant must provide an accounting of how all funds were used and
key milestones reached by the venture within 180 days of the receipt of the
grant.
10. As a condition of receiving grant funds, all recipients must commit to a six -month
mentoring period with an experienced business coach or mentor at Launch
Chapel Hill, 1789 Venture Lab, SCORE, SBTDC, or a mentor approved by the
Subcommittee.
11. If an applicant fails to complete items #9 and #10 in a timely manner, the County
has the right to require all grant funds back from the applicant, and may initiate
legal proceedings against the applicant.
12. The Subcommittee shall provide annual reports to the Economic Development
Department and the BOCC of the number of grants requested, approved and
denied, and a 2 -3 page written analysis of the program's success metrics to
date.
13. Documents, including but not limited to financial statements, business plans,
customer and supplier lists, description of inventory or assets, contractual
obligations and existing liabilities, submitted during the application process shall
be treated as confidential information.
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Orange County Business Investment Grant Attachment B
Program Scoring Sheet
13
Attachment C
ORANGE COUNTY
AGRICULTURAL ECONOMIC DEVELOPMENT
GRANT PROGRAM
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Attachment C
ORANGE COUNTY AGRICULTURAL ECONOMIC
DEVELOPMENT GRANT PROGRAM
Application for Individual Farmers or Collaborative Farmer projects
The grant program assists farmers in developing new sources of agricultural income
through the provision of cost -share grants. The program will provide two types of grants:
1. Small Grants: Up to $1000, and
2. Large Grants: From $1,001 - $10,000
Farmer Eligibility
- Must reside in Orange County and their business must be headquartered in
Orange County.
- Collaborative /Group grants must include at least 3 farmers and may include
agricultural groups and agencies
Expenses
- Suitable expenses are those associated with the production and marketing of
diversified farm enterprises and agri- tourism endeavors. Examples include, but
are not limited to: seeds, fertilizer, plants, amendments, livestock, trainings,
advertisements, packaging, fences, signage, facilities, supplies, tools and
specialized equipment. Funds should be used as stated in the applicant's
proposal.
- Grant funds can be used to offset costs for: specialized equipment; retrofitting
and adaptation of existing equipment; supply needs; outreach expenses; new
marketing, handling or processing operations; labor for contractors, employees.
- Grant funds cannot be used for: purchase of livestock; new, general -use farm
equipment.
Collaborators: Collaborators are not required but increase the likelihood of success of
your project. Collaborators may include other farmers, marketing, and production
specialists, extension agents, crop consultants, non - profit organizations, business and
other agricultural advisors. The best collaborators bring needed expertise to the project
and have a clear role in helping the project succeed.
15
Attachment C
2015 Agricultural Reinvestment Fund Grant Application
(Individual Farmer)
*Please read the instructions and eligibility guidelines prior to completing this
application.*
Project title:
First name:
Last name:
Mailing address:
Street address:
City, State: Zip.
Home phone:
Email:
Fax:
1. How long have you been farming?
Website:
7, 0 • •
2. Percentage of personal income generated from your farm operation:
3. Please list the primary sources of your farm income (crops, etc.):
4. Do you or your farming operation carry liability insurance? YES NO
5. Will this project create an opportunity for a new generation of farmers in your family to
be employed on the farm? YES NO
6. Will this project create additional jobs? How many?
7. What is your total current farm size? Indicate owned or rented.
8. What is your current acreage in production?
9. How much money are you requesting for your project (up to $10,000)? $
10. What is the total estimated cost for your project? $
16
Attachment C
Small Grant Applicants (Up to $1, 000) — Complete Questions 1 -5.
Large Grant Applicants ($1,001- 10,000) — Complete Questions 1 -12.
Please answer the following questions on a separate sheet:
1. Briefly describe your project (250 words maximum):
2. Tell us about yourself. What is your farm and off -farm experience? What skills do you
have that will be useful to the successful completion of your project? (250 words
maximum)
3. What is new or innovative about your project? How is your project different than what
others in your community are already doing? Are you aware of other farmers who are
doing something similar? If so, where are they located and what are they doing? (250
words maximum)
4. Describe in detail your plan for completing your project. Tell us the specific tasks to be
completed. Give dates by which you will complete them. (250 words maximum)
5. How will the new project fit into your existing farming operation? What are the labor
requirements of the new project? (250 words maximum)
6. What research have you done to determine if this project will work? Why do you
believe that this project can be successful? (250 words maximum)
7. How have you determined that there is a market demand for the products? Briefly
describe your marketing strategy. (250 words maximum)
8. If your project is successful, what might other farmers learn from your experience? Is
this an enterprise that could be duplicated by others without causing too much
competition? (250 words maximum)
9. In what areas do you believe you will need assistance in order to successfully
complete your project? Who have you identified to assist you in those areas? Are those
individuals aware of your project and have they agreed to help you? (250 words
maximum)
10. What is your goal for the project? If you are successful, how will the project contribute
to keeping you or others sustainably employed on the farm? (250 words maximum)
11. How much income do you expect to generate from the project annually? What other
sources of income will you have during the course of this project? (250 words maximum)
12. Are you leveraging funds from other sources aside from yourself? If yes, please note
the sources and approximate amounts. How much money are you personally investing
17
Attachment C
in this project? (250 words maximum)
Budget Form
Use the following pages to estimate your budget. Please list all of your expected
expenses in the appropriate categories and calculate a total on the last page. Your
budget should clearly show how grant funds will be used on your project. Items that you
list under the grant contribution heading are those for which you will use grant funds
provided by the grant program
1. Subcontractors and Other Off -farm Services
Grant Contribution
Item
Quantity
Cost per
Unit
Total
Example: Well Driller
1
N/A
$$$$$
Total grant contribution for Personnel Compensation:
Total grant contribution for Subcontractors and Other Off -farm Services:
2. Personnel Compensation (Only labor directly related to the grant activities
completed by contractors and employees over and above normal farm operations
is eligible for funding. Family members are not eligible to be paid from grant
funds.)
Grant Contribution
Employee
# of Hours
Hourly Wage
Total
Total grant contribution for Personnel Compensation:
In
Attachment C
3. Use of Farm Equipment (for equipment rental)
Grant Contribution
Equipment Item
Acres in
Project
Charge per
Acre /Hour
Total
Example: Auger
?? Acres
Rental rates
$$$$$
Total grant contribution for Travel:
Total grant contribution for Use of Farm Equipment:
4. Supplies, Materials and Equipment (We do not fund general use equipment)
Grant Contribution
Item Quantity Cost per Unit Total
Total grant contribution for Supplies and Materials:
5. Travel
Grant Contribution
From /To
Miles per Trip
Cost per Mile
Total
Example: Attending an educational workshop
specifically related to your project
Total grant contribution for Travel:
19
Attachment C
6. Marketing
Grant Contribution
Item
# of Units
Cost per Unit
Total
Example: Printed flyers, signage, or postcards
100
0.05
3. Use of Farm Equipment
4. Supplies and Materials
5. Travel
6. Marketing
Total grant contribution for Marketing
7. Other (Explain)
Budget Summary Form I Use this worksheet to summarize information from
previous pages.
Grant Contribution by line item:
Line Item
Grant Contribution
Cost -share Contribution
1. Subcontractors and Other Off -farm
Services
2. Personnel Compensation for
contractors and employees
3. Use of Farm Equipment
4. Supplies and Materials
5. Travel
6. Marketing
7. Other (Explain)
TOTAL CONTRIBUTION:
Please transfer the total amount of grant contribution to the Amount Requested line on
the cover sheet of the application packet. If applicable, please list other sources of
funding for the project:
SIGNATURES
Thank you for your effort in completing the application form. Please sign the proposal
below.
Signature
Signature
Date
Date
20
Attachment C
Agriculture Application Evaluation Worksheet (Used by the Review Committee)
*This is a copy of the evaluation worksheet the review committee will be using to score
the grant applications.*
Point Scale:
1 -3 is a low score that reflects a low percentage or low quality or small outcome.
3 -6 is a moderate score that reflects 50% or average quality or moderate outcome.
7 -10 reflects a high percentage or excellent quality, big outcome or return.
Will this project create an opportunity for the next generation to be employed
on the farm? (10 points)
If successful, will the project contribute a significant amount of income to
farmer participants? (10 points)
If successful, will the project help to maintain existing farm employment or
create new farm employment opportunities? (10 points)
Has the applicant adequately researched the production and processing
requirements of the product? (10 points)
Has the applicant evaluated the market potential for the product? Does the
applicant have a sufficient market? (10 points)
Does the applicant have the appropriate skills to carry out the project? Has
the applicant identified cooperators to supplement gaps in the applicant's
skills and abilities? (10 points)
Is it clear who will lead and carry out project activities? (10 points)
Is the budget realistic? (10 points)
Is the project innovative? Does the project represent a new direction or
opportunity for farmers? (10 points)
If successful, will the experiences of the project be useful to other groups of
farmers in developing new income sources? Can the project be expanded to
include additional farm families (10 points)
TOTAL: