Loading...
HomeMy WebLinkAboutAgenda - 03-03-2015 - 6iORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 3, 2015 Action Agenda Item No. 6 -i SUBJECT: Revised Applications, Guidelines & Scoring Sheets for Orange County's Business Investment Grant & Agriculture Economic Development Grant DEPARTMENT: Economic Development ATTACHMENT(S): 1) Agriculture Economic Development Grant — Revised Application, Guidelines & Scoring Sheet 2) Business Investment Grant — Revised Application Guidelines & Scoring Sheet 1 PUBLIC HEARING: (Y /N) No INFORMATION CONTACT: Steve Brantley, Director (919) 245 -2326 PURPOSE: To approve revised draft Applications, Guidelines & Scoring Sheets for each of two grant programs — Business Investment Grant & Agriculture Economic Development Grant — which are funded by Article 46 one quarter cent sales tax proceeds to support economic development. BACKGROUND: Two intended uses of Article 46 funds for economic development include the Business Investment Grant and the Agriculture Economic Development Grant, which will support the attraction and growth of small business development and farming related enterprises. The two grant programs have not been utilized to date due to a lack of basic guidelines addressing how to administer the programs and evaluate applications. However, during 2014 the Orange County Economic Development Advisory Board established a preliminary draft set of guidelines, applications and scoring sheets. This work was presented to the BOCC for review at the January 27, 2015 work session and received a number of recommended suggestions for the Orange County Economic Development Advisory Board to consider adding to the two grant programs' documentation. The Advisory Board has now modified the recommended grant programs to address the feedback from BOCC members. The revised documents are provided as Attachments 1 and 2. Agriculture Economic Development Grant (Attachment 1) The attached "Agriculture Economic Development Grant" documents have been amended to reflect comments made by BOCC members during the January 27th work session as follows: • Adds a set of Procedures outlining the recommended steps (1 -13) for a completed Agriculture grant to be received and reviewed by the grant review Subcommittee. • Proposes a 5- member Subcommittee that will review grant applications. Members are selected as follows: ➢ Agriculture representative from the Orange County Economic Development Advisory Board ➢ A member of the Orange County Cooperative Extension staff ➢ The Agriculture Economic Development staff member from the Orange County Economic Development office ➢ Two farmer members from the Orange County Agriculture Preservation Board • Includes an Orange County Economic Development staff member as a possible Collaborator /Mentor to assist grant recipients with project counseling. • Amends the Application to include more specific details about the applicant's grant proposal to include asking for the following: ➢ Asks if the farm is included in the County's Farm Use Value program for property tax valuation; ➢ Asks for the total estimated cost of the project seeking the grant; ➢ Asks for the name of the farm, the specific crops grown, and the Tax Identification or Social Security Number. • Recommends that a Farm Business Plan (250 words max.) be included in the Application. • Deemphasizes the expectation that "innovation" be a part of the Agriculture grant's use. • Adds a section to the Evaluation Worksheet to ask if the project fills a niche opportunity for farmers, will work well in Orange County, or fits well with currently established or niche marketing opportunities in the County. Business Investment Grant (Attachment 2) The attached "Business Investment Grant" document has been amended to reflect comments made by BOCC members during the January 27th work session as follows: • Amends the eligibility requirements for applicants' gross revenues by reducing the maximum revenues to $1 million (originally proposed at $3 million). And adds a provision that businesses with revenues exceeding $1 million will be considered on a case -by -case basis. • Increases the size of the Small Grant to $1,500 (originally proposed at $1,000). • Reduces the length of time for required mentorship for Small Grants to four (4) months (originally proposed for six (6) months). • Adds diversity language to the Compliance section. K ➢ `7n all cases, grants made from this program must be consistent and in accordance with the following: (4) Ventures that implement planning and economic development policies which create a balanced, dynamic local economy that promotes diversity, sustainable growth, and enhanced revenue while embracing community values will also be given priority." One recommendation to digitize the application process and make applications available to applicants via a County web site is still in development. FINANCIAL IMPACT: There is no direct financial impact associated with approval of the two Article 46 grant programs. Funding of the Business Investment Grant and the Agriculture Economic Development Grant programs would be funded by Article 46 proceeds, and not from the General Fund. 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. RECOMMENDATION(S): The Manager recommends that the Board approve the attached modified grant documents. Attachment 1 ORANGE COUNTY AGRICULTURAL ECONOMIC DEVELOPMENT GRANT PROGRAM 67 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: • Small Grants: Up to $1000, and • 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 Agricultural Grant Subcommittee • The Agricultural Economic Development Grant Subcommittee will be made up of five (5) members including: • The Agricultural Representative from the Orange County Economic Development Advisory Board • One member from the Orange County Cooperative Extension Staff • The Agriculture Economic Developer from Orange County's Economic Development staff. • Two farmers who are members of the Orange County Agricultural Preservation Board Prnr_Prlu rPc 1. Applicants will be referred to the Orange County Economic Development Department's website, where they will complete and submit their application. 2. Applicants will be provided interview dates and times no later than three (3) weeks prior to the Agriculture Economic Development Grant Subcommittee's next meeting date. 3. County staff will provide completed applications to the Subcommittee for their review no later than two (2) weeks prior to its next scheduled meeting. 2 C.1 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. 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. If an applicant fails to complete item #9 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. Expenses • Suitable expenses are those associated with the production and marketing of diversified farm enterprises, value- added and agri- tourism endeavors. Examples include, but are not limited to: seeds, fertilizer, plants, amendments, 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, or salary for farmers. Collaborators • Collaborators/ Mentors are not required, but increase the likelihood of success of your project. Mentors may include County Agriculture Economic Development Coordinators, 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. rA 11 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: Farm name: Mailing address: Street address: City, State: Zip. Home phone: Work phone- Email- Fax- Website Social Security # or Tax I.D. # 1. How long have you been farming? 2. Percentage of personal income generated from your farm operation: 3. Please list the primary sources of your farm income (specific 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? Give specifics 9. Is your farm in the Farm Use Value program for county property taxes? 10. How much money are you requesting for your project (up to $10,000)? 11. What is the total estimated cost for your project? $ IQ 5 01 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 followin_g 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. 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? Will your project fill an unfilled market niche? (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 mentoring 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 in this project? A farm business plan is encouraged. (250 words maximum) fits] Budget Form (For both Small & Large Grant Applications) 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 $$$$$ Total grant contribution for Personnel Compensation: Total grant contribution for Subcontractors and Other Off -farm Services: 2. Personnel Compensation (Only labor directly related to the completed by contractors and employees over and above normal is eligible for funding. Family members are not eligible to be funds.) Grant Contribution grant activities farm operations paid from grant Employee # of Hours Hourly Wage Total Total grant contribution for Personnel Compensation: 7 11 3. Use of Farm Equipment (for equipment rental) Grant Contribution Equipment Item Acres in Project Charge per Acre /Hour Total Example: Auger ?? Acres Rental rates $$$$$ Total grant contribution for Travel: Total grant contribution for Use of Farm Equipment: 4. Supplies, Materials and Equipment (The Grant does 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: IN 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 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 I li 191 Agriculture Application Evaluation Worksheet (Used by the Review Subcommittee) This is a copy of the evaluation worksheet the review Subcommittee 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. 10 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) Does the project fill a niche opportunity for farmers? Will the project work in Orange County? Will it fit well with current conventionally, established or niche marketing opportunities? (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: 10 W Attachment 2 ORANGE COUNTY BUSINESS INVESTMENT GRANT PROGRAM W 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 $1,500, and, • Large Grants: From $1,501 - $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: • Find creative ways to grant funds to stimulate successful Business Investment development and job creation. • 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. 1[.1 • Periodically review status of existing grants to determine if funds are being used in the manner in which they were intended, and recommend appropriate corrective action where needed. • Evaluate grant application requirements and make appropriate adjustments as needed to accomplish the objectives of the program. • Conduct annual review of grants and their impact on the County's Business Investment environment. • Provide explanation of why grant was not approved, if requested. GRANT PROGRAM ADMINISTRATION The Grant Program will be administered by a Subcommittee consisting of five 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. FUNDING 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 • Applicant's business must be located in Orange County in areas zoned appropriately for their use. • Applicants must be business entities whose gross revenues do not exceed $1 million per year. • Applicants and their businesses must not have any past due tax, fee, or fine in Orange County. iVA CONDITIONS OF RECEIVING A GRANT • Applicant must fill out a grant application. • 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. • 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. • Asa condition of receiving grant funds, Small Grant recipients must commit to a four -month mentoring period and Large Grant 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 ➢ A mentor approved by the Subcommittee ELIGIBLE USES OF GRANT PROCEEDS • Startup funding. • Working capital or operational funds to be used for a specific purpose. • Purchase of equipment, or machinery. • Expansion of business services or products. • Work force expansion. • Tenant up -fit or leasehold improvements. GRANT PROCEEDS SHALL NOT BE USED FOR THE FOLLOWING • Paying off or down existing bank debt or investor loans • Purchase of equipment or improvement of real estate, which are used or to be used for personal use • Political activities • Owner salary 114 • Speculative ventures (Examples: drilling for gas or oil, commodity futures).' • Lending or investment • Real property held for sale or investment • Pyramid sales - distribution plan businesses • Foreign controlled businesses • Private membership clubs COMPLIANCE WITH APPLICABLE REGULATIONS n a cases, grants made from this program must be consistent and in accordance with the following: • All state and local regulations governing the applicant's business. • Terms and conditions established by the Subcommittee for each particular applicant. • Policies established by the Board of County Commissioners dealing with the Grant Program. • Ventures that implement planning and economic development policies which create a balanced, dynamic local economy that promotes diversity, sustainable growth, and enhanced revenue while embracing community values will also be given priority. Wel AMOUNT OF GRANTS Minimum: Up to $1,500.00 Grant applications for $1,500.00 or less will have a separate and simplified application. Maximum: $10,000.00 Grant applications for $1,501.00 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 ($1,501 - $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: 21. Amount of Grant Requested & Detailed Use of How Funds Will Be Used (2 -3 pages) Small Grant Application Requirements ($1.500 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) 11. Current Business Checking Account Balance 12. Balance In Other Accounts 13. Existing Business Debts 14. 250 -500 Word Description Of Business (When & where it was started, market, target customer, future plans, etc.) 15. Amount of Grant Requested & Detailed Use of How Funds Will Be Used (1 -2 pages) K11 21 SUGGESTED SMALL GRANT GUIDELINES 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 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 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. 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. M 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, Small Grant recipients must commit to a four -month mentoring period and Large Grant 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. 091 Orange County Business Investment Grant Program Scoring Sheet