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HomeMy WebLinkAboutAgenda - 10-13-2015 - 1 - Report on Article 46 Funds (One-Quarter Cent Sales Tax) to Support Education and Economic Development Programs in Orange County ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 13, 2015 Action Agenda Item No. 1 SUBJECT: Report on Article 46 Funds (On,e-Quarter Cent Sales Tax) to Support Education and Economic Development Programs in Orange County DEPARTMENT: Economic Development, PUBLIC HEARING: (Y/N) No Finance, & Administrative, Planning & Inspections ATTACHMENT(S): INFORMATION CONTACT: (A) June 21, 2011 Resolution Regarding Paul Naughton, (91 9) 245-2152, Uses of Potential Revenues from a Acting Chief Financial Officer One-Quarter (14) Cent County Sales Steve Brantley, g1'g 245-2326, & Use Tax Director, Economic Development (B) Article 46 Sales Tax Budgeted and Craig Benedict, (919) 245-2592, Use (Since Inception on April 1, Director, Planning & Inspections 201 2) (C) Article 46 PowerPoint Presentation PURPOSE: To, receive a report on Orange County's education and economic development programs paid from "Article 46" proceeds. BACKGROUND: Orange County voters approved a referendum in November 2011 to levy a supplemental one-quarter (1/4) cent sales tax that generates approximately $2.5 million in additional annual funding for education and economic development purposes. Called "Article 46" funds, the program collects and shares these funds between education and economic development, with each receiving half, or $1.25 million annually. The 50/50 share of Article 46 funds for economic development is initially set for 10 years. (See Attachment A June 21, 2011 Adopted Resolution.) The Orange County Board of Commissioners adopted a Resolution in December 2011 authorizing the new one-quarter cent sales tax, and actual proceeds began to accrue April 1, 2012. Attachment A reflects a summary of the Article 46 Sales Tax Budgeted and Use amounts, since its inception on April 1, 2012. The attachment includes a summary table for both education and economic, development, and is followed by detailed information related to economic development. The summary tables also include Actual Article 46 Collections information since inception, which reflect collections exceeding prior years' budgets. The following summary table and pie chart identify, 7 core programs where Article 46 funds are used for economic development throughout Orange County for an initial 10 year period, as specified in the BOCC Resolution. Based on an average of $1.25 million in 2 sales tax collections, these seven 7 programs provide the following support for economic development programs: Economic Development 'Prograrns in Orange County Funded by "Article 46'f One quarter Cent Sales Taxfor Economic Development) 1.5. Percentage of Allocation 1.5%a 1 ■Debt Service an Infrastructure MON\ ■Small Business Loan Fund :41i Innovation tenter 8% ■Small Business Investrnerrt Grants 6 60% Agricultural Economic Development °�!n Grants Collaborative Outreach Collateral Materials 3 ECONOMIC DEVELOPMENT PROGRAM'S IN ORANGECOUNTY" FUNDED BY ARTI,CLE 46, E ICI CENT ° FOOR ECOrNOMIC DEVELOPIVIENTI IkPy Sectors Percentage N Econom i c Devalopm ent U secf Fu nd s Annual Funds, Allocation a r a ,o s„ r, I"c (,a D I I $75D,000,r: 601.0% fir. Small Business,Lo' uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuumnnn-�uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu uuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuu I n n oval I n cu bator enter f or E i .I Devel ii L a I I I as 1 ,,. F I1 Business Invesft,entGrants $10,0,10"0"0, • Agricultural Economic DeveloypMentGrarits, $60,20,00" 5.01%, Mark & Collaborative Outreach $' , a . Collateral Materials.,Advertising, Publishing $2?00,00, 1.5% ANNUAL TOTAL $1 250, 000, 1101,01.01% 1 Debt Service on utilities of funds $750,,0 Article 46 funds for economic development support infrastructure projects - primarily public water and sewer wit in land use designated economic development zones. Interlocal agreements with utility providers for eventual maintenance are necessary as the County has accomplished with Mebane and Durham. A ten-year program is underway to install `backbone' or primary collector utilities in 3 economic development zones -- EflandlBuckhorn/Mebane, Hillsborough and Eno (1-85/U.S. o and was planned within the Capital Investment Plan. In total, these areas Fever over 3,000, acres. However, these primary systems do not provide adjacency to every lot, but provide the major collector back to the existing utility. Funding for infrastructure is mainly in three financial lines: 0 Debt service - When the construction phase of the project is bid and awarded, the cost can be part of a loan package with other County capital and paid by Article 4 . Economic Development Account PROCEEDS NOT CAE Infrastructure Servriees/Adden du ms - The design and easement acquisition phase and later construction oversight (also, known as soft costs) have been paid with existing Article 46 proceeds. They were therefore not subject to the higher cost of interest laden dept service, and due to the time-frame, would be more difficult to include in a more finite capital loan package. This could also be used for site certification; geo-technical & environmental testing, etc. 4 Economic Development Ut'll'ity Extensi"ons - This budget item is for specific industry projects that come forward througih the Economic Development Department that are not adjacent to the to the primary collector infrastructure. This may be a project such as Morinaga where $250,000 was used for an extension for water, sewer and design services that permitted Orange County to obtain Community Development Block Grants (CDBG)l and construction work by the North Carolina Department of Transportation (NCDOT). Buckhorn Economic Development District For example, during 2012 and 2013, the County made an initial $4 million expenditure to create a "backbone" water and sewer network stretching from the Cheeks and Efland areas westward through the Buckhorn Economic Development District. At that same time, the Japanese candy company Morinaga & co., Ltd., which was considering sites across a dozen North Carolina counties and in other states, was able to find a preferred Orange County site now served by utilities. In September 2013 the company selected Orange County and announced nearly 100 new manufacturing jobs and an initial investment of up to $48 million. Morinaga America Foods became Orange County's largest manufacturing facility, and is expected to make an expansion of equal size in three to, five years. Town of Carrboro Another example of Article 46 funding for utility infrastructure is the Carrboro/County Interlocal Agreement used to, repair a failing sewer line on obersoin Street. This privately owned sewer line, whit Il serves over 20 downtown businesses employing more than 100 people, has now been repaired. Carrboro received State funding from a Community Development Block Grant that paid for up to 75%, of' the repair cost, and the County participated financially with Carrboro by sharing in the cost of the CDBG's required 25% Co-pay. (2) Small Business Loan Fund of funds ($200,0 The Orange County Economic Development office manages a loan program to financially assist small and start-up businesses, including agriculture and food processing firms, to grow and remain in operation in the County. The loan program provides necessary growth capital to firms which are typically unable to receive normal bank financing due to having short operating experience or credit issues that would preclude the firm from receiving a bank loan. Article 46 funds are available, when needed, to replenish the loan progiram's lending capabilities. Typical loans can be made for as much as $100,0010 with up to a 1 0-year repayment term. Borrowers: Location,: • Ceremony Salon Carrboro • Tin Can Ventures Cedar Grove • Phd Hillsborough • Skram Furniture Hillsborough • The Depot Hillsborough • Mystery Brewing Hillsborougih • Accidental Baker Hillsborougih • MasterPeace Barber Shop Hillsborough • Santosha Chapel Hill 5 0 Isis I.T. Chapel Hill • Orange County Gymnastics Chapel Hill • Flawless Day Spa Chapel Hill To, date, a total of twelve (12) loans have been made to eleven (11) small businesses, and there are 10 current loans outstanding totaling $214,,099. The loan program has experienced no delinquent history or negative write-offs. (3) Entrepreneurl'all & Incubator su art % of funds ($1 00,OOOY The retention of promising entrepreneurial start-up talent originating here in the County, such as UNC, Chapel Hill students, has been difficult due to a lack of affordable office space in an attractive incubator environment. Article 46 allows the County to participate in a program that provides an affordable and creative work environment that can better retain innovation talent that had historically been leavingi the community. The current Interlocal Agreement between Orange County and the Town of Chapel Hill supports the monthly lease requirements for the "LaUNCh Chapel' Hill" innovation center, located on �rosemary Street. Over the initial 3 1/2 year period established in the Interlocal Agreement, the County will have provided $,140,0100 in economic development funding to support entrepreneurial growth through incubator funding. "La I" Chapel Hill" has over 20-plus full-time promising start-up firms, and receives additional financial backing and student men,toring from the University of North Carolina and from private donors. At the request of LaUNCh, the Town of Chapel Hill and URIC, Orange County staff will soon present to the BOCC a proposal for a 3-year extension of the Interlocal Agreement, at the same annual cost, to continue the County's financial commitment to LaUNCh. (4) Business Investment Grants of annual funds ($100,000Y The new small business grant program became active in early 2015 following the Board of Commissioners' approval of an application, grant scoring sheet and set of guidelines, patterned after the Small Business Loan Program, which had been drafted by the Orange County Economic Development Advisory Board in 2014., This grant program assists in the retention and expansion of' small businesses and start-ups in Orange County. A subcommittee of the advisory board is now conducting quarterly reviews of submitted applications, and recently approved 8 initial small business grants totaling $61,712. To nd date,, there are 34 new and/or deferred grant applications up for review on Oct. 22 Grant recipients represent small businesses located in all municipalities and rural areas of Orange County, and provide another example of Article 46 funding benefitting the community. (5) Agri'Culture Investment Grants 5% of funds ($60,000]) The new agriculture grant program also became active in early 2015 following the Board of Commissioners' approval of an application, grant scoring sheet and set of guidelines, patterned after the Small Business Loan Program, which had been drafted by the Orange County Economic Development Advisory Board in 20114. This grant program assists in the retention and expansion of local farming operations, food processing firms and start- ups, and related agricultural and food systems businesses here in Orange County. A subcommittee comprised of agriculture-based economic developers is also conducting quarterly reviews of submitted applications, and recently approved seven initial small 6 business grants totaling $57,987. Grant recipients and a dozen new applications represent farms and food processing businesses located in all municipalities and rural areas of Orange County, and provide another example of Article 46 funding benefitting the community. (6) Marketinc I i & Collaborative Ou treach 11.5% of funds 20,00:0 The final two categories allow Orange County Economic Development the ability to fund marketing efforts and promote Orange County's economic development advantages. Applications have included the following examples: • Develop marketing materials to promote business retention & expansion efforts, agriculture ventures & local food systems businesses throughout the County. • Sponsor specific requests the County receives from the County's economic development partners (towns' economic developers, & chambers of commerce) to participate in consultant studies, ad campaigns, tourism events & business networking venues. (7) Advertising, P!ubIlsl i & Collateral 11. % of funds ($20,000]) • Maintain the Orange County Economic Development department's web page, and create a new searchable web guide of small, locally owned businesses. • Buxton software to assist in retail marketing. • Radio, ad campaign (with the Orange County Visitors Bureau) on WCHL 13601. • Funding for local newspaper ads & marketing collateral development. FINANCIAL IMPACT: There is no direct financial impact associated with discussion of Article 46's One-Quarter Cent Sales Tax program. There are no action items requiring formal decisions. SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goals are applicable to this agenda item: GOAL.- ENSURE, ECONOMIC SELF-SUFFICIENCY The creation and preservation of infrastructure, policies, programs and funding necessary for residents to provide shelter, food, clothing and medical care for themselves and their dependents. GOAL-.: ESTABLISH SUSTAINABLE AND EQUITABLE, LAND-USE AND ENVIRONMENTAL POLICIES The fair treatment and meaningful involvement of people of all races, cultures, incomes and educational levels with respect to the development and enforcement of environmental laws, regulations, policies, and decisions. Fair treatment means that no group of people should bear a disproportionate share of the negative environmental cons RE,COMMENDATION(S): The Manager recommends that the Board receive the Article 46 report and provide any comments or questions. ATTACHMENT...] ORANGE COUNTY BOARD OF COMMISSIONERS A Resolution Regarding Uses of Potential Revenues from aOne-Quarter Cent (1/4¢) County Sales and Use Tax WHEREAS, there are significant pressing infrastructure, economic development, school, and other County capital needs that are precipitated by growth pressures and the new economic reality facing Orange County; and WHEREAS, it is important to provide Orange County taxpayers with alternatives to the pressure to raise property taxes to address these and other County needs; and WHEREAS, the levy of a Article 46 one-quarter cent (1/4¢) County sales and use tax would provide a new County revenue source and would generate approximately $2,500,000 annually for the County; and WHEREAS, it is important for Orange County to plan for future economic development that will enable the County to recruit, retain, grow, and generate businesses and jobs that are desirable; and WHEREAS, it is important that Orange County expand collaboration and cooperation of economic development efforts and decisions between Orange County and the towns of Chapel Hill, Carrboro and Hillsborough and the cities of Mebane and Durham; and WHEREAS, it is important for Orange County to meet public school needs; and WHEREAS, the Board of Commissioners establishes aten-year commitment to allocate Article 46 one-quarter cent (1/4¢) County sales and use tax proceeds as follows: a. 50% of the funding will be allocated in an equitable manner between the County's two school systems, based on the Average Daily Membership of each school system, for the dedicated purpose of funding capital projects, including but not limited to facility improvements at `older' schools and the procurement of technology. The Board requests that each school system furnish the Board of Commissioners with a detailed list of prioritized projects that could be completed with anticipated funding over the next ten years. The Board will evaluate the projects and approve aten-year plan which will be incorporated into the County's Capital Investment Plan. As part of the Capital Investment Plan annual review, progress will be evaluated annually and adjustments made according to needs agreed upon by the School Boards and Board of County Commissioners; b. 50% of the funding will be allocated to Economic Development initiatives generally as shown on the attached chart and the Board of Commissioners will approve aten-year Economic Development Plan as part of the County's Capital Investment Plan; and 8 r WHEREAS, if additional funding does not come from the one-quarter cent (114¢) County sales and use tax, the property tax will be the primary funding source available for schools and economic development initiatives; and WHEREAS, to distinguish and separate the revenues produced through this Y4 cent sales tax, if approved by Orange county voters, a Special Revenue Fund will be established to receive and account for the sales tax revenue. These funds will not supplant funding for the Board's endorsed funding target of 48.1% for annual spending on both school systems. The funds will remain separate from the county's general fund to allow for more accurate tracking of revenues and expenditures in accordance with initial ten-year allocation plan established as part of this resolution; NOW, THEREFORE, BE IT RESOLVED THAT the Orange County Board of Commissioners hereby states its intent to use the revenues from the Article 46 one-quarter cent (114¢) County sales and use tax, if approved by the voters of Grange county, for currently unfunded or underfunded economic development and public school capital needs for a period of ten years, with a scheduled implementation date of April 1, 2012. BE IT FURTHER RESOLVED THAT proceeds from the one-quarter cent (1/40) County sales and use tax in later years will be used to address priorities as established by the Board of Commissioners in the County's Capital Investment Plan. This the 21St day of June, 2011. Bernadette Pelissier, Chair Orange county Board of Commissioners PROPOSED ECONOMIC DEVELOPMENT USES OF SALES TAX PROCEEDS 9 Focus Area Percentage Estimated Example Activities Frequency of Funds' Annual Ex enditures Debt Service on (Q% $750,000 • Installation of water and sewer infrastructure in Annually for 10 years Infrastructure EDDs Collaborative 1.5% $15fOOO - 20,000 • Trade shows targeted to specific industry Annually for 10 years; Outreach clusters amount of funding will • Industry Appreciation events businesses vary • Local "Economic Health" Summit Collateral Materials 1,05% $20,000 • Updated Internet interface Funding only required • Utilization of appropriate social media tools every 2 to 3 years • Development of informative brochures Innovation Space 5 - 10% $75fOOO - • Up fit of a county-owned innovation space Funding will vary with site $125,1000 Rent subsidies and/or leasehold improvements improvement on private!y owned leasable space requirements Agricultural 2 -20% $25,000 - • Focused counseling for food-based businesses 10 years,but funding will Economic $250,000 graduating from PFAP vary with program Development • Creation of a`culinary kitchen facility to requirements rovide facilities for PFAP raduates Business 8°fo $100,f000 • Advanced site preparation 10 years,but funding will Investment Grants • Relocation assistance vary with project Small Business 0% - 16% Up t0 �2�0,��� • Start-up capital and expansion funds for Orange After several years, Loan Program for next few County small businesses program will be self sufficient years Establishment of 12- 16% Up t0 $20Q,000 • Develop public-private stand alone economic Expenditures in Years 2— 501c (4) entity for several years develop entity 5 for start up funding 1 Reflects the percentage of economic development funds,rather than overall funds Sales Tax Initiative- Orange County Economic Development June 13, 2011 DRAFT Page 7 of 1 ATTACHMENT 10 Article 46 Sales Tax Proceeds Budgeted and Use (since Inception on April 1, 2012) Actuals Current (th ru Budget 9139115) Committed` Balance Education Summary Chapel Hill-Carrboro City Schools: ClassroomlAcademic Improvements 3801000 2751731 1041269 0 Renovations and Site Improvements 1,335,306 930,675 404,631 0 Technology 117641982 1,332,239 4329743 0 Subtotal 354805288 295389645 9419643 0 Grange County Schools: Technology 211951490 1493,152 7021338 0 Subtotal 251959490 194939152 7029338 0 Total 55675,778 490319797 156439981 0 Revenues:Actual Collections in excess of prior years'budgets (since inception) -Note:A Budget Amendment would be required 382,806 382,805 Grand Total - Education 650585584 382,806 Actuals Current (th ru Economic Development Summary Budget 9139115) Committed Balance Economic Development Account(includes FY 11-12 and FY 12-13- prior to budgeting by Initiatives) 1,562,500 1,108,741 9735635 (519,876) Debt Service on Infrastructure 25463,278 1,271,083 7065996 4853199 Infrastructure- Utility Service Agreement with Mebane 1501000 150,000 501000 (50,000) Collaborative Outreach 605000 161583 0 43,417 Small Business Loan 6002000 0 0 6003000 Collateral Materials 605000 15,000 0 45,000 Innovation Centers 3001000 1201000 209000 1601000 Agricultural Economic Development Grants 180,000 59,724 0 120,276 Business Investment Grants 3001000 613712 0 2383288 Total 556755778 298029843 197509631 1,1229304 Revenues:Actual Collections in excess of prior years'budgets (since inception) -Mote:A Budget Amendment would be required 382,8x6 382,808 Grand Total-Economic Development 690589584 19505,110 ATTACHMENT B Actuals Current (thru Economic Development Detail Budget 9130115) Committed Balance Economic Development Account: 1,062,500 1,062,500 Designated: Economic Development Infrastructure Project(Morinaga) -BOA#9-D on 6117114 253Y341 717659 (325,000) Buckhorn EDD Phase 2-Rock Contingency-BOA #3-B on 1212113 and BOA#1-C on 1017114 427,500 561016 (477,516) McGowan Creek Outfall-BOA #2-D on 1115113 15,498 427316 (57,814) AKG North American-County Incentive 801 000 (80,000) Emil Malizia-Economic Development Consultant 2,1730 (2,730) Buxton Company-Retail Recruitment and Business Retention Analysis 711000 (71,000) Town of Carrboro-Roberson Street Sewer Project 38,244 (38,244) JF Wilkerson-Morinaga Infrastructure Support 121 784 (12,784) Morinaga- 1st County Incentive Payment-August 2015 213,644 (213,644) Morinaga-2nd County Incentive Payment-January 2016 213Y644 (213,644) Economic Development Infrastructure Project(FY 14-15 CIP) 1007000 (100,000) Hillsborough EDD Project(FY 14-15 CIP) 150,000 (150,000) Efland Sewer to Mebane Project(FY 15-16 CIP) 240,000 (240,000) Economic Development Infrastructure Project(FY 15-16 CIP) 50,000 (50,000) Eno EDD Project(FY 15-16 CIP) 507000 (50,000) Designated Sub Total 7,062,500 7,108,741 973Y635 (1,019,876) Undesignated: Economic Development Utility Extension Projects (FY 14-15 CIP)** 2505000 2503000 Economic Development Utility Extension Projects (FY 15-16 CIP)** 250,000 250,000 Undesignated Sub Total 500,000 500,000 Total 175627500 7,108,741 9737635 (519,8 76) Debt Service: 274637278 1,277,083 7067996 485,199 Infrastructure: 150,000 150,000 Utility Service Agreement with Mebane 1503000 50,000 (200,000) Total 1507000 150,000 507000 (50,000) Collaborative Outreach: 60,000 60,000 Chapel Hill Chamber-Study 41000 (4,000) Site To Do Business, Inc. - Online Software providing demographic info on the region and County 11595 (1,595) Motivators, Inc. -Promotional Materials 388 (388) Chapel Hill Magazine-Advertising/Breakfast Series(partner with Town of Chapel Hill) 10,000 (10,000) Hillsborough/Orange County Chamber-Sponsored Event 600 (600) Total 60,000 16,7583 0 437417 ATTACHMENT B 12 Actuals Current (th ru Budget 9130115) Committed Balance Small Business Loan:*** 6009000 0 500,000 Collateral Materials: 601096 691969 WCHL -Advertising 15,non (15,099) Total 60,000 153000 45,909 Innovation Centers: 3901646 3091909 "LaUNCh Chapel Hill" 129,990 20,000 (140,000) Total 390,090 1201 900 20,090 1607000 Agricultural Economic Development Grants: 1861696 1893969 Ag Summit-Sponsorship 7,736 (1,736) Grant Program-Awards 57,988 (57,988) Total 1807000 59,724 120,2 76 Business Investment Grants: 300,000 3001000 Grants Awarded 61,712 (61,712) Total 3007000 611712 238,288 Grand Total 55675,778 298029843 197509631 191229304 *Committed-includes Budget Amendments approved by the Board of Commissioners and Approved C1P allocations **No specific projects have been currently identified for utility extensions ***To date, all Small Business Loans have been allocated from available funds within the Revolving Loan Fund;no allocations have been made from the Small Business Loan within the Article 46 Sales Tax Fund 13 ATTACHMENT... r 17 52 Orange County Economic Development Discussion of Article 46 (One Quarter Cent Sales Tax for Economic Development) October 13,, 2015 Economic Development Programs in Orange County Funded by "Article 46 P) (One Quarter Cent Sales Tax for Economic Development) 1.5/ Percentage of Allocation 1.5% __ _ ■ Debt Service on Infrastructure 5% Small Business Loan Fund 8% k Innovation Center 8% � ■ Small Business Investment Grants 16/ 0 60% a Agricultural Economic Development Grants Collaborative Outreach Collateral Materials 15 ECONOMIC DEVELOPMENT PROGRAMS IN ORANGE COUNTY FUNDED BY "ARTICLE 46" (ONE QUARTER CENT SALES TAX FOR ECONOMIC DEVELOPMENT) KEY SECTORS ANNUAL PERCENT OF ECONOMIC DEVELOPMENT USES OF FUNDS FUNDS ALLOCATION Debt Service on Water & Sewer Infrastructure in Orange County's 3 Economic Development Districts $7505000 60.0% Small Business Loan Fund $200,000 16.0% Innovation/Incubator Center for Entrepreneurial Development C'LaUNCh Chapel Hill") $100,000 8.0% Small Business Investment Grants $100,000 8.0% Agricultural Economic Development Grants $60,000 5.0% Marketing & Collaborative Outreach $20,000 1.5% Collateral Materials, Advertising, Publishing 1 $2050001 1.5% TOTAL ALLOCATION PER YEAR $13250,000 100.0% 16 E °°° --4 Debt Service on Utilities 17 32 & Infrastructure to 3 Economic Development Districts Article 46 annual funding: $750,000 or 60% of total Examples of Use: Town of Carrboro • County's 50/50 financial participation with the Town of Carrboro to share in the co-pay requirement for the Community Development Block Grant (CDBG) that funded the repair of a failing sewer line on Roberson Street. The utility line has now been repaired. Buckhorn Economic Development District • Over $4 million spent or committed to fund a backbone water & sewer utility line in the Buckhorn Economic Development District to help recruit prospective industries & business considering sites. m Debt Service on Utilities 11 .52 & Infrastructure to 3 ° CaO Economic Development Districts b Article 46 annual funding: $750,000 or 60% of total Projects • Buckhorn-Mebane Phase 2 - Completed • Buckhorn EDD Phase 2 Extension - Design 99% • Eno EDD Utilities — Feasibility • Hillsborough EDD Utilities — Conceptual • Buckhorn-Mebane Phase 3 and 4 — Conceptual Economic Development Account (Undesignated P Not Debt) • Morinaga Area Infrastructure — Completed • ED Utility Extension Projects — Prospective industry, project specific infrastructure Ah Aft miss ILBSs ���^ CIP 2015-20 CIP 2015-20 0 Mi��� McGowan creek�utfall Efa r dlNorth B uckh am Sewer Expansion 1111111-29- -- � � —` - (Completed)CIP 2015-20 IN Phase 3 and 4 �1 4 , CIP 2015-2 r *� Morinaga Area Infrastructure M. l DI ly -- WCs-r TEN RD ji �. CIP 2015-20 - - �� CIP 2015-20 Buckhom-Mebane 0 Buckharn EDD 'f EDD Prase 2 a Phase 2 Extension � . (Completed) � *Central Eflar�d 1 and 2 To Mebane Regional Sewer Station (MRSLS) ■ w Area A Area D2 ��entral Efland Phase 1 City Limits- Area B 3 L:IJCCentral Efland Phase 2 ETJ Purple Cornn-ermal Industrial Transition k•,I l r+ OAreaD4 Future Land Use ■Lavender -- ■ !mi c;Deve lopme nt Tra nsition =Area D 1 =]Area D5 0 E2 Future Land Use w Eno EDP CIP Project Area J RD,* # 41S 7TE 3 `; Streams Land Use Element Base Data Agricultural F side nti ai DSrna[l,Study Area 10 Year Transition City Limits Water Bodies Rural Residential Activity Nodes � I inch=2,000 feel 0 1.000 Water Supply Watersheds Dural Buffer Econornic Development Transition r, I eev O C/C H/CA Joint P la n n i ng Area API Orange County Pfammng and Inspections Department Alf GIS flap Prepared t�y EWian Carwi.101212015 Hillsborough EDD CIP Project Area 20 NEW5 f I� r r w-f i i J I All Streams Land Use Element Base Data Rural Residential ETJ ®Water Bodies 10 Year Transition Rural Buffer Activity Nodes � fR 1 inch I.GN feH %ti 4 Water Supply Watersheds 20 Year Transition City Limits Economic Development Transition rY ti O /C H/CA Joint P la n n i ng Area Orange Count'Planning and Inspectiort5 Department GIs flap Prepared by Brian Car 6w.1012/2015 21 Ze Small Business Loan Fund '^p Article 46 annual funding: $200,000 or 16% of total • Article 46 includes a provision to provide up to $200,000.00 annually in additional lending flexibility to Orange County's existing Small Business Loan Program. • The Program's current loan portfolio is supported by a separate source of revolving funds previously authorized by the BOCC, and no Article 46 monies have been required, to d to supplement the Program. • There are no loan delinquencies in the Program's activity. poa+ ' eo„o m` ,> >2 Entrepreneurial Incubator Support �«b Cap Article 46 funding: $100,000 or 8% of total Examples of Use: • "LaUNCh Chapel Hill” innovation center is funded 50/50 through an Interlocal Agreement between Orange County & Town of Chapel Hill. The Interlocal Agreement expires on 12/31/15. • Orange County will contribute $140,000.00 for 3 Y2year through the initial Interlocal Agreement. UNC & private sponsors also contribute. • At the request of LaUNCh, the Town of Chapel Hill and UNC, staff will soon present to the BOCC a recommended proposal fora 3-year extension of the Interlocal Agreement, at the same annual cost, to continue the County's financial commitment to LaUNCh. 23 AL � Small Business Investment Grant Am, c "max Article 46 annual funding: $100.000 or 8% of total Summary of Grant Awards to date: • Grant program was approved by the BOCC in March 2015. • Subcommittee comprised of Orange County Economic Development advisory board members meet quarterly to review grant applications. • 8 initial grants totaling $61,712.00 were recently awarded in the program's first round of application reviews during the 2"d Q 2015. • 5 applications were deferred until the second review period • 34 new and/or deferred grant applications requesting a total of $243,541.67 in grant awards have been submitted for the second subcommittee review meeting on Oct. 2012015. 24 m` Small Business Investment Grant Article 46 annual funding: $100,000 or 8% of total Approved Grants: • Carrboro Community Acupuncture (Kim Calandra — business expansion) • Tempeh Girl (Beth May — sales expansion) • Woman Craft (Katherine Palomba — promotional activities) • Trill Financial (Simon Jung — computer testing equipment) • MasterPeace Barber (Mark Holt — repairs to business location) • Regulator Brewing (Anna McDonald Dobbs — marketing) • Seal The Seasons (Patrick Mateer & Will Collins — machinery) • The Accidental Baker (Kevin Mason — new bakery equipment) � X4e ' roe �- Agricultural Investment Grant Article 46 annual funding: $60,000 or 5% of total. Summary of Awards to date: • Grant program was approved by the BOCC in March 2015. • 7 initial agriculture grants totaling $57,987.00 were recently approved in the program's first quarterly round of applicant reviews. • Grant program is funded by up to $60,000.00 annually from Article 46 proceeds. poa+ ' eo„o Zb m` ,> >2 Agricultural Investment Grant Article 46 annual funding: $60,000 or 5% of total. Approved Grants (first quarterly review): • Taylor Fish Farm (Valee Taylor — tilapia fish farming) • BoxCarr Farm (Austin Genke — fencing for milk goats) • ColorFields Farm (Kelly Morrison — greenhouses) • Four Leaf Farm (Tim McCaller — greenhouses) • Smith Family Farm (Dawn Denson — well for irrigation) • Dawn Breaker Farms (Ben Grimes — poultry processing equipment) • Sweet Retreat Orchards (Aniko Redmon — irrigation system) poa+ ' eo„o m` ,> >2 Agricultural Investment Grant �«b CaO Article 46 annual funding: $60,000 or 5% of total. New Proposed Agriculture Grants: (scheduled for second quarterly review on Nov. 18, 2015): • 3 new applications have been received. • 6 additional applications are anticipated to be submitted. • $60,000 in total awards is forecast for the upcoming second quarterly review of new applications. • Initial marketing round included radio and newspaper ads; most recent marketing effort had 800 post cards mailed out in Sept. 2015 to County-wide farms & agricultural-related small firms zs A. Eo4r ' ro, - Marketing Collaborat'ive Outreach Article 46 annual funding: $20.000 or 1.5% of total Examples of Use: • Co-sponsor of the Chapel Hill/Carrboro Chamber of Commerce 's Partnership for a Sustainable Community & Town of Chapel Hill to jointly fund apublic-private consultant study by the firm "Urban3 LLC.11. The study created a 3-D mapping of property tax values per acre throughout the Orange County, and the economic development impact of increasing commercial and retail density in an urban area. • Hillsborough Chamber's "Riverwalk Movie S sponsor in 2015. • Carrboro Film Festival sponsor. • Hillsborough Chamber of Commerce's "General Member Breakfast" guest speaker series sponsor in 2015. • Orange County Agriculture Summit sponsor in 2015 to provide free attendance & meal for all participants. .X4e ' �oQ .17 32� Advertising, Publishing Collateral Materials 'n c "max Article 46 annual funding: $20,000 or 1.5% of total Examples of Use: • Participation in the Chapel Hill/Carrboro Chamber of Commerce's annual PRIMETIME Business Expo. • New ad campaign & series of 3 business networking breakfast presentations with the Town of Chapel Hill, assisted by Chapel Hill Magazine, will begin in early 2016. • Ad campaign with WCHL 1360 AM radio highlighting activity by Orange County's Visitors Bureau & Economic Development. • Subscription to Buxton Company's "Scout" software to support retail retention & recruitment efforts.