AGENDA ITEM 20
July 20, 2010
Action
MEMORANDUM
TO:
FROM:
County Council
~MiChael
Faden, Senior Legislative Attorney
Action:
Bill 28-10, Economic Development Business Development Corporation
- Establishment
SUBJECT:
Planning, Housing and Economic Development Committee recommendation: enact
with amendments.
Bill 28-10, Economic Development
Business Development Corporation ­
Establishment, sponsored by Council President Floreen, Councilmember Trachtenberg, Council
Vice President Ervin and Councilmembers Navarro, Knapp, Leventhal and Berliner, was
introduced on April 27, 2010. A public hearing was held on June 22 (see testimony, ©13-17). A
Planning, Housing and Economic Development Committee worksession was held on July 12, at
which the Committee (2-1, Councilmember EIrich dissenting) recommend enactment as
redrafted by Council President Floreen.
As introduced, Bill 28-10 would have authorized and encouraged County govemment to
support a Montgomery Business Development Corporation (MBDC) and specified the members
of, and the process to appoint and confirm members of, the Corporation Board of Directors.
Committee redraft
Responding to issues raised by the County Attorney's Office about the legal status of and
extent of County control over the proposed Corporation, Council President Floreen, the Bill's
primary sponsor, offered a redraft that -- rather than directly creating a Business Development
Corporation (BDC) whose Board of Directors is appointed by the County Executive, as the
original Bill did -- would require the Council to designate a private corporation as the County's
Business Development Corporation to perform certain specified functions. The County Attorney
informed Council staff that this redraft satisfied his Office's concerns. The PHED Committee,
at its worksession on July 12, recommended enactment of this redraft (2-1, Councilmember
EIrich dissenting), which is shown on © 1-9.
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The redraft's approach is modeled on the current County law (County Code §2-117) that
authorizes the Council to "designate a quasi-public, nonprofit corporation that is not an
instrumentality of the County to act as the County's local management board" to "ensure the
implementation of a local, interagency service delivery system for children, youth, and families."
In Council staffs view, this model allows greater flexibility in the Corporation's organizational
structure and more independence in its actions, while preserving basic County oversight.
The major feature of the proposed Corporation, as modified in this redraft, are:
Objectives, activities These are broadly spelled out on ©2-3, lines 5-34. They include
strategic planning and advice, legislative and regulatory advocacy, and evaluation of County
government's economic development performance. Presumably the Board of Directors, as
business leaders in the County, could also join the County Executive and Department of
Economic Development (DED) in attempting to persuade specific businesses to move to or stay
in the County.
Designation process This is outlined on ©3-4, lines 36-61. The Council, with the
Executive's concurrence, by resolution would designate a nonprofit corporation which complies
with the law's criteria as the County's Business Development Corporation for a 5-year term.
The Council would have to notify the Corporation by the end of the 4th year if it intends to
reopen the process for the next term, although the Council could suspend or revoke the
designation at any time. As indicated by the timetable on ©9, lines 197-201, Council President
Floreen hopes to have a BDC designated in time for the next state legislative session.
Board of Directors The designated Corporation's Board, which is not appointed by the
County, would have to meet standards set in the Bill (see ©4-5, lines 66-89).
It
would be limited
to 11 voting members, including a Chamber of Commerce representative, a small business
owner, an ovvner or manager of a medium sized business, and up to 8 senior managers of major
companies in the County. The Board should also include, as non-voting ex-officio members, the
Director of DED, the Superintendent of Montgomery County Public Schools, the President of
Montgomery College, and either the Planning Board Chair or the Planning Director.
Members of the Board would not be County officials or employees and would not be
subject to the County Ethics law, but the Corporation's bylaws would regulate conflicts of
interest by Board members and staff. (This provision is similar to the law governing the
Bethesda Urban District Corporation, County Code §68A-1O(g)(2).) The Board's meetings also
would be required to comply with the state Open Meetings Law (again, similar to the Bethesda
Urban District Corporation).
The County government and Planning Board could provide administrative and research
support for the Corporation (see ©8, lines 176-186).
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Issues/Committee recommendations
Any element or detail of the redrafted Bill, summarized above, is subject to discussion
and amendment. The two cross-cutting issues raised so far with respect to this concept are:
1)
Why is a County Business Development Corporation needed?
Testimony from the County Executive and business representatives uniformly supported
creation of a County Business Development Corporation (see hearing testimony, ©13-17). No
one at the hearing opposed the concept.
One alternative could be an economic advisory body, similar to the County's other
advisory boards and commissions. (The current Economic Advisory Council was created
informally, without any amendment to County law.) However, the Business Development
Corporation model arguably could add a certain level of independence and status as well as
allowing Board members to do more fund-raising on its behalf. Unlike an Economic
Development Authority, initially discussed by Council President Floreen, the BDC would not
directly administer County economic development loans or grants, operate other economic
development programs, or otherwise exercise any governmental authority_Rather it is intended
to be a high-level catalyst for public action.
Committee recommendation
(2-1,
Councilmember Eirich dissenting): designate a
County Business Development Corporation. Councilmember EIrich preferred to consider other
economic development advisory models before enacting this Bill.
2) What level of transparency is appropriate?
At the hearing on this Bill, Councilmember Andrews questioned whether the new
Corporation would be subject to the County Ethics law or the state Open Meetings Law and
asked Council staff to compare similar County bodies on those points. As a private corporation,
the Business Development Corporation's Board members normally would not have to comply
with the County ethics law, as members of all County advisory boards and commissions must in
their official capacity_
The requirements for similar quasi-public County-designated bodies vary quite a bit. The
most comparable bodies, and the County Code provisions which authorized them, are the
Bethesda Urban District Corporation (Bethesda Urban Partnership or BUP, §§68A-9, 68A-I0),
the Arts and Humanities Council (AHC, §§5A-l
5A-7), the designated local management
board (LMB, §§2-117 2-123), and Montgomery Community Television (MCT, a "community
access organization" which receives a County contract under §8A-32). Before comparing these
somewhat disparate organizations, Council staff notes that all 4 administer significant County
funds, which the Business Development Corporation, at least initially, is not expected to receive.
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County law requires BUP, the LMB, and the ABC to comply with the state
Open
Meetings Law.
BUP's bylaws must specify how it will comply with the state
Public Information
Act.
Only the LMB' s meeting minutes must be made pUblic. None of the 4 organizations are
directly covered by the
County ethics law.
The ABC must comply with the ethics law's conflict
of interest standards, and the LMB and BUP's bylaws must impose their own conflict of interest
standards. ABC and MCT board members are subject to limited
financial disclosure
requirements, applying only to activities and interests directly related to the organization's scope.
Under the Committee redraft, the Business Development Corporation would conform to
the state Open Meetings Law and would not be covered by the County ethics law but would have
to adopt and follow its own conflict of interest standards. In Council staff's view, this midway
position strikes a reasonable balance, especially because the BDC is not expected to administer
significant County funding as the other quasi-public bodies do.
Committee recommendation:
require the Corporation to conform to the state Open
Meetings Law and to adopt its own conflict of interest standards.
This packet contains
Bill 28-10 with Committee amendments
Legislative Request Report
Fiscal Impact Statement
Bearing testimony
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Expedited Bill No.
28-10
Concerning: Economic Development ­
Business Development Corporation ­
[[Establishmentl1 .Designation
Revised: 7-8-10
Draft No.
-1..1
Introduced:
April 27, 2010
Expires:
October 27,2011
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _-,---_ _ _ _ _ __
Sunset Date:
_N:...!.o"",n~e=--~
_ _ _ __
Ch. _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President Floreen, Councilmember Trachtenberg, Council Vice President Ervin and
Councilmembers Navarro, Knapp, Leventhal and Berliner
AN EXPEDITED
ACT
to:
(1)
authorize [[and encourage]] County government to [[support]] designate a
[[Montgomery]] Business Development Corporation to supplement the County's
economic development programs and activities;
(2) specify [[the members of, and]] the process to [[appoint and confirm members of,
the Corporation Board of Directors]] designate a nonprofit comoration to function as
the Countv's Business
D~velopment
Comoration;
(3) define the nature and powers ofthe Corporation; and
(4)
generaIJy amend County laws relating to economic development.
By adding
Montgomery County Code
Chapter 30B, [[Montgomery)) Business Development Corporation
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bi/l.
Deletedfrom existing law by original bill.
Added by amendment.
Deletedfrom existing law or the bill by amendment.
Existing law unaffected by bill.
The County Council for Montgomery County, Maryland approves the following Act:
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ExPEDITED BILL
No. 28-10
1
2
3
4
Sec.
1.
Chapter
30B,
[[Montgomery]]
Business
Development
Corporation, is added as follows:
Chapter 30B, [Reserved] [[Montgomery]] Business Development Corporation.
30B-I.
Policy objectives[l.i. Corporation activities]]:.
5
6
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Recognizing that
ill
the
future success of Montgomery County related to
education, infrastructure, public safety, public welfare, and quality of life is built
on
£!
vibrant and growing economy,
ill
successful businesses are the key to
8
9
creating this economy, and
ill
government must [[create]1 foster
£!
legislative and
regulatory environment which encourages business success, to achieve these goals
the County Government [[supports the formation of
£!
Montgomery Business
Development Corporation]] must designate a nonprofit corporation as the County's
Business Development Corporation to enhance and supplement the County'
~
economic development programs and activities.
The mission of the [[Montgomery]] Business Development Corporation is to
develop the vision for the County's economic future and to recommend and
advocate for legislative and regulatory changes that move the culture and
regulatory environment so that business success can create that vibrant and
growmg economy.
The Corporation must be able to:
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ill
(hl
establish
£!
vision of the economic future of the County founded on
sound financial and economic condition and policies;
develop and articulate strategies designed to achieve that VISIon,
advocate for legislative and regulatory changes necessary to
accomplish that vision, set measurements, and regularly report on the
County's success in meeting its objectives and goals;
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ill
provide leadership on economic issues at both the County and State
levels;
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EXPEDITED BILL
No.
28-10
28
@
engage business leaders and other key stakeholders in developing and
implementing economic development strategies;
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maintain close liaison with government agencies and elected
representatives at both the County and State levels to achieve the
goals of the Corporation; and
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34
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ill
30B-2.
undertake any other activities deemed
Qy
the Board of Directors to
support the mission of the Corporation.
[[Definition]] Designation.
W
In this Chapter "Corporation" means the [[Montgomeryl1 Business
Development Corporation that the County has designated to study,
evaluate.
enhance.
and
supplement
the
County's
economIC
37
38
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development programs and activities.
!Jil
The County Council must designate. by resolution approved by the
County Executive. a single nonprofit corporation which complies with
all requirements and criteria of this Chapter as the County's Business
Development Corporation.
If . the
E~ecutive
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disapproves the
resolution within
10
days after receiving
it.
the Council may readopt
the resolution with at least 6 affirmative votes.
(c)
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ill
Any designation under this Section expires at the end of the
fifth full fiscal year after the resolution is adopted unless the
Council extends the designation by adopting another resolution
under this Section.
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al
However, if the Council President doesnot notify the Chair of
the designated Corporation's Board ofDirectors, not later than
June 300f the Jourth full fiscal year of the designationterm,
that the Council may allow the current designation to expire,
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ExPEDITED BILL
No.
28-10
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the designation
term.
(ill
IS
automatically extended for another 5-year
The Council at any time may suspend or revoke the designation of a
corporation as the
County'~
Business Development Corporation by
resolution, adopted after at least 15 days public notice, that is
approved by the Executive,
OJ;,
if the Executive disapproves the
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61
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resolution within 10 days after receiving it, is readopted by a vote of
at least 6 Councilmembers.
W
To continue to qualify as the County's Business Development
Corporation, a corporation's articles of incorporation and bylaws must
comply with all requirements of this Chapter.
65
66
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68
30B-3.
Board of Directors.
ill
[[The]]
To
qualify as the
County's
Business
Development
Corporatio]). a corporation's Board of Directors [[of the Corporation]]
must have no more than
11
voting members. [[In addition,]]
69
corporation's bylaws should also allow the Director of the Department
of Economic Development, the Superintendent of the County Public
Schools
[[or
~
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Deputy
Presid~nt
Superintendent
assigned
Qy
the
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Superintendent]]~
the
ofMontgomery College, and the chair
of the County Planning Board or the Planning Director [[assigned
Qy
the
chair]]~
serve as ex-officio non-voting members along with any
~
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other nonvoting members authorized under the bylaws.
(hl
Each voting member must be either
resident of the County or
employed in the senior management of
~
[[major]] company which
has
~
significant presence in the County. The [[County Executive
79
must appoint the remaining members, subject to confirmation
Qy
the
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ExPEDITED BILL
No.
28-10
80
81
County Council, as follows]] voting members of the Board of
Directors should
incl~
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one volunteer ([officer]] representative of
~
Chamber of
Commerce in the County who is recommended
Chambers of Commerce;
lIT
the
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ill
ill
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one owner of
~
small business in the County;
one owner or officer of the senior management of
~
medium­
sized business located in the County; and
!!Q
to
~
officers from the senior management of major
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companies which have
~
significant presence in the County.
[[{£)
The Board must recommend one or more persons to the Executive to
fill any vacancy on the Board. The Executive may reject any person
recommended to serve on the Board and in that case must request
additional recommendations from the Board.]]
[[@
Of the members initially appointed to the Board,
~
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95
must be appointed
to I-year terms,
~
must be appointed to 2-year terms, and
.;i
must be
~
~
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appointed to 3-year terms. Thereafter each voting member serves
~
year term. At the end of
~
term,
member continues to serve until
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99
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successor is confirmed. A member who is appointed to complete an
unexpired term serves only for the rest of that term or until
successor is confirmed.1]
~
[[W
The Executive may reappoint
is recommended
~
member for one additional term who
~
lIT
the Board to serve an additional term, but
member must not serve more than
~
consecutive full terms.]]
104
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106
[[ill
The Executive may remove
~
member for malfeasance, misfeasance,
or nonfeasance, or another reason specified in the Corporation
bylaws.]]
~
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EXPEDITED BILL
No.
28-10
107
[[(g} The Board must periodically select
~
chair and vice-chair, and may
108
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select from among its members any other officer to perform duties it
finds
necessary.]]
11 0
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[[QillJ££l
A member must not be paid for service on the Board but may be
reimbursed for necessary travel expenses.
[[.culJ@
A member is not subject to Chapter 19A because of serving on the
Board. The Corporation's bylaws must include provisions defining
and regulating conflicts of interest by Board members and
Corporation staff.
116
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Notwithstanding any inconsistent provision of County Code Section
19A-21. a member of the Board of Directors who engages in
legislative or administrative advocacy as part of that member's duties
on the Board is not required to register as a lobbyist under Article V
of Chapter 19A because of that advocacy.
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[[ill]]
ill
The Board must direct the program,
the [[Corporation]] corporation.
management, and finances of
30B-4.
Status; incorporation; bylaws.
[[The Corporation is
laws of Maryland.
government.]]
~
ill
quasi-public corporation organized under the
It
is not an instrumentality of County
To Qualify as the County's Business Development
Corporation, a corporation's articles of incorporation must provide
that the corporation is:
ill
(2)
a tax-exempt nonprofit corporation;
not an instrumentality of the County; and
incorporated for the sole purpose of serving as the County's
Business Development Corporation.
ill
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EXPEDITED BILL
No. 28-10
133
134
135
(hl
The Corporation's bylaws may contain any provision. not inconsistent
with law. or the articles of incorporation, necessary to govern and
manage the Corporation.
[ffi]]
The Corporation may exercise all
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powers and is subject to all requirements which apply to non-stock
corporations under the Corporations and Associations Article of the
Maryland Code.
[[(hl
The Executive, or any person designated Qy the Executive, must
execute and file Corporation articles of incorporation, approved Qy
resolution Qy the Council, for recording with the State Department of
Assessments and Taxation. When the articles of incorporation are
accepted for recording Qy the Department of Assessments and
Taxation, the Corporation becomes
f!
body corporate, lawfully and
properly created.]]
[[ill
The Council may amend the articles of incorporation Qy adopting
f!
resolution submitted Qy the Board of Directors and approved Qy the
Executive or, if the resolution is disapproved Qy the Executive,
readopting it Qy
f!
vote of
§
Councilmembers. Any amendment must
be filed and recorded with the State Department of Assessments and
Taxation.]]
[[@]](£)
The Board must adopt and may amend the Corporation's bylaws
[[for the Corporation]].,. subject to approval Qy the Council. [[Those
bylaws must include provisions regulating conflicts of interest Qy
Board members and Qy Corporation staff, if any.]] The public must
be given at least
12
days to comment on the proposed by-laws, or any
amendment to the bylaws, before the Council approves them.
(Q}
The bylaws must require the Corporation to comply with the state
open meetings law and provide that all meetings of the Board of
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EXPEDITED BILL
No. 28-10
160
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163
Directors must be open to the public except when closed on a
recorded vote of the Board for a reason expressly listed in the state
law or the bylaws.
30B-S.
Work program.
164
165
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167
!ill
The [[Corporation]] Boardof Directors must adopt
~
work program
each year to advance the policy objectives and perform the activities
listed in Section 30B-l.
{Q}
In its work program, the Corporation should complement the strategic
economic development activities of the Department of Economic
Development.
168
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The Corporation's work program may include
~
plan for sponsorship
of private investment, marketing, and advocacy initiatives.
@
The Board must meet with the Executive and the Council at least
semi-annually.[[~
173
174
and]] The Board must advise the Executive and
Council on economic development and related matters.
30B-6.
Staff; support from County Government.
175
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178
!ill
The
[[County
Government must]]
Department
of Economic
Development should, if the Board of Directors requests, provide
administrative [[and financial]] support for the Corporation, including
contracts, grants, or services in kind, subject to appropriation.
{Q}
179
180
The Office of Management and Budget, the Department of Finance!
and other departments of County government and County-funded
agencies, if [[requested]] the Board of Directors requests, [[must]]
should provide relevant economic data to the Corporation.
The
181
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184
research division of the Planning Board must provide research support
to the Corporation to the extent assigned by the Planning Board's
work program, as approved by the Council.
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E~PEDITED
BILL
No. 28-10
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202
(£l
[[The Corporation should reVIew and comment on data furnished
under subsection
(b1]]
[[@]]The Corporation may also raise private funds and may accept services
from any source consistent with its purposes.
30B-7.
Report.
The Board of Directors must report annually on the activities and finances of
the Corporation to the Executive and Council.
Sec. 2.
Expedited Effective Date.
The Council declares that this Act is necessary for the immediate protection of
the public interest. This Act takes effect on the date when it becomes law.
Sec. 3. Timetable.
The first resolution adopted under Section 30B-2. inserted
by Section 1 of this Act. must take effect on October 1. 2010. Any comoration that
seeks to be designated as the County's Business Development Comoration must
submit proposed articles of incomoration and bylaws to the County Executive and
County Council by September 1,2010.
Approved:
203
Nancy Floreen, President, County Council
204
Date
Approved:
205
Isiah Leggett, County Executive
Date
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LEGISLATIVE REQUEST REPORT
Bill 28-10
Economic Development
-
Business Development Corporation
-
Establishment
DESCRIPTION:
Authorize and encourage County government to support a
Montgomery Business Development Corporation.
Specify the
membership of and process to select the Corporation's Board of
Directors.
The County's economic development efforts would benefit from
support and advice from a high-level private business organization
To advance the economic development and prosperity of the County
County Executive, Department of Economic Development
To be requested.
To be requested.
To be requested.
To be researched.
Michael Faden, Senior Legislative Attorney, 240-777-7905
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENAL TIES:
Not applicable
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B\,-L
-\0
·056743
OFFICE OF MANAGEME]\'i AND BUDGET
Isiah Leggett
Joseph
••1
Beach
F.
,"
County Executive
IJ,lt!.ctor
MEMORANDUM
May 10, 2010
TO:
FROM:
Nancy Floreen, President, Cou ty Council
Joseph F. Beach, Directo ,\ ,.. . .
J~
fManagement and Budget
evelopment - Business Development Corporation ­
SUBJECT: Bill 28-10, Economic
Establishment
The purpose of this memorandum is to transmit a fiscal impact statement to the
Council on the subject legislation.
LEGISLATION SUMMARY
This legislation allows the CoUnty to further its economic mission through the
formation of a Montgomery Business Development Corporation (MBDC). The legislation
authorizes and requires the County government to support a MBDC and specify the members of,
and the process to appoint and confirm members of, the Corporation Board of Directors.
FISCAL A..ND ECONOMIC SUMMARY
This legislation requires the County Government to provide administrative and
financial support for the MBDC and the assumption is that the Department of Economic
Development (DED) will be the administering agency responsible for recommendations set forth
by the County Executive and County CounciL The proposed legislation contains specific
provisions on reimbursing the costs of travel to the Board Members. Travel expenses to other
regions to either study, evaluate, and monitor the economic development strategies and outcomes
of other regions is difficult to gauge at this time but DED anticipates it to be minimal.
Based on DED's experience with supporting similarly chartered entities such as the
Workforce Investment Board, the Bioscience Task Force, the Green Economy Task Force, DED
estimates the staff support requirement to be intensive. DED anticipates that at least a .5 work
year will be needed assuming the allocation ofan existing mid-level professional staffto support
the MBDC.
'
DED assumes they are to absorb these costs and a breakdown of projected direct
and indirect costs is provided.
@
Office of the Director
101 Monroe Street, 14th Floor • Rockville, Maryland 20850 • 240-777-2800
ww'W,montgomerycountymd.gov
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Nancy Floreen
May 10,2010
Page 2
Projected Direct Costs:
• Non-Local Travel Members may choose to participate in conferences and trade shows,
or to visit other locations in the country. Costs per person range from $1,000-$1,500
depending upon location, number attending, and length of stay. The estimated direct
costs related to the travel reimbursement could range from $4,000 to $6,000 per fiscal.
year.
• Local Travel- Local travel expenses covers the cost of mileage and parking
reimbursement requests for participating members. DED estimates that each member
will request reimbursement for at least 100 mites of local travel per year at the current
mileage rate of $.50/rnile. Total projected cost for travel and parking for the fourteen
members is approximately $1,000.00.
• Printing costs - The copies and supplies ,needed for committee meetings as well as
potential for copies of a report that may be generated could range from $300 to $1,000.
Projected Indirect Costs:
• The predominant cost associated with the County's participation in the MBDCis the time
of the Director of the Department of Econornic Development, but also assignment of·
duties to a DED Business Development Specialist. Based on the relationship between the
mission ofDED and the MBDC, DED anticipates that at least a .5 work year will be
needed at approximately $55,000. Resppnsibilities will most likely include but not be
limited to: necessary research, monitoring of the budget, meeting planner, event
organizer, responsible for meeting
minu~es,
distributipn of information, point of contact,
and the drafting of the by-laws.
Under the broad mission defmed within the bill, the County recognizes that the
MBDC will need to establish a detailed action plan and sub-committee structure. The scope of
the plan and time required to develop the committees will likely result in the County's need to
provide direct financial support until the MBDO is able to raise adequate funding to support
activities. Furthermore, if and when the County accepts and implements recommendations made
by the MBDC, there will be larger financial resource
requi~ements
that will need to be
considered during the annual budget process.
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The following contributed to and c;oncurred with this analysis: Peter Bang,
Department of Economic Development, and
Al~son
Dollar, Office of Management and Budget.
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cc: Kathleen Boucher, Assistant Chief Administrative Officer
Dee Gonzalez, Offices of the County Executive
Steve Silverman, Director, Department of Economic Development
Alison Dollar, Office of Management and Bpdget
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Bill 28-10
Economic Development -Business Development Corporation -Establishment
Public Hearing, June 22, 2010
Testimony of Steve Silverman, Director, Department of Economic
Development, on behalf of County Executive Isiah Leggett
For the record, my name is Steve Silverman. I am director of the Montgomery County
Department of Economic Development, and I am here today to speak on behalf of the County
Executive in support of Bill 28-10 - Economic Development -Business Development
Corporation -Establishment.
This bill would authorize County government to support a Montgomery Business
Development Corporation (MBDC). The MBDC board, comprised of 11 County business
leaders, will have a mission to "develop the vision for the County's economic future and to
recommend and advocate for legislative and regulatory changes that move the culture and
regulatory environment so that business success can create that vibrant and growing economy."
The MBDC will work in close concert with the Department of Economic Development to
engage Montgomery County's business community in crafting strategies to achieve this vision.
It
will also develop performance measures to track and report on how the County is meeting its
economic development objectives.
County Executive Leggett and I have worked with Council President Floreen and local
business leaders to shape this bill. The MBDC will bring a valuable private sector perspective to
the County's efforts to enhance the success and growth of our existing business community, and
to identify actions the County can take to create a more enabling environment for the attraction
and creation of new companies.
The County Attorney has raised a number of issues regarding the legal status of the
MBDC. We will work with Council to address those issues during upcoming work sessions.
We are competing regionally, nationally and globally to retain and attract 21
st
century,
knowledge-based jobs and grow the County's tax base.
It
is critically important that County
government have a robust mechanism to regularly take the pulse of the business community and
solicit private sector input in order to identify how County policies, programs and regulations
can foster a supportive business climate. On behalf of County Executive Leggett, I urge the
County Council to support this bill.
1
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Marriott International, Inc.
Corporate Headquarters
[ lie
[l11111
Marriott Drive
Washington, D.C. 20058
Testimony for the Montgomery County Council June 22, 2010
Deborah Marriott Harrison
SVP Government Affairs for Marriott International
Deborah Marriott Harrison
Senior Vice President
Government Affairs
301/380-4392
Phone
301/380-8957 Fax
Good afternoon and thank you for the opportunity to testify on behalf of this important
bill.
Those of us who live and work in Montgomery County already know what a great
location this is. Now, with the proposed Montgomery Business Development
Corporation we, the business community, will be in a better position to help the County
roll out the welcome mat for other companies to locate here. By maintaining and
recruiting other head quartered companies to corne to the County, we will see benefits not
only in increasing the tax base and in creating more jobs, but the community will also
benefit from philanthropy that will enhance our lives.
In representing Marriott International, I fully support the establishment of this group and
the unique and independent voice it will have. I applaud the County in reaching out to
harness the experience of the business community.
It
shows that the County values our
input. We care a lot about the County's economic future, so we are happy to be able to
assist in developing a vision for it.
The Montgomery Business Development Corporation will connect various economic
initiatives in green business, biotech, workforce development, information technology,
and large and small businesses. The MBDC will create a strategic forum where
employers can speak to fellow business leaders and policy makers about the current and
future business needs that go beyond the borders of the County and that also need to be
addressed at the State level.
It will prioritize the re-establishment of Montgomery County as a premier business
location by implementing strategies that set Montgomery County apart as a thriving
center of technology, entrepreneurship, and business. Currently there is a perception that
the County and the state ofMD are not business friendly. These perceptions will take
time to change and the MBDC is a great vehicle to start moving the dialog.
Speaking on behalf of Marriott International, I am glad to be a part ofthis new
organization. To me, it says, 'We're open for business," which is a vital message during
these fragile economic times. Business is the economic engine of the County and State.
Now is the window of opportunity to make business, job creation, and innovation, a
priority.
Thank you.
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Gaithersburg-Gerl11antown
Chal11ber
of
COInl11erce,
Inc.
ere
Marilyn Balcombe, President/CEO
4
Professional Drive, Suite
132,
Gaithersburg, MD
20879
301-840-1400
x 15
I
mbalcombe@ggchamber.org
Montgomery County Council
Public Hearing - June 22, 20 I 0
BILL 28-10
BUSINESS DEVELOPMENT CORPORATION
My name is Marilyn Balcombe, I am the Executive Director of the Gaithersburg-Germantown
Chamber of Commerce. Thank you for the opportunity to speak with you today.
The Gaithersburg-Germantown Chamber supports Bill 28-10 and the establishment of the
Business Development Corporation. Economic development has always been a priority for the
Chamber and our members. As we strongly supported the approval of the Germantown and the
Great Seneca Science Corridor Master Plans, we are anxious to bring new jobs to those areas.
We support the mission of the Business Development Corporation to develop the vision for the
County's economic future and to move the County to a more business friendly culture. More
specifically we support the establishment of a comprehensive strategic economic development
plan for the County.
Once a strategic plan is in place, the County Executive and the County Council must support
the plan. Throughout the budget process, I've heard most everyone on the Council talk about
growing the County's tax base, to do so the Council must invest in making that happen. By
working with the business community, the Business Development Corporation can hopefully
come up with a concrete plan for moving forward.
In terms of the specific aspects of the Bill:
• We request that the Corporation be required to establish metrics for determining the
success of economic development in the County in terms of actual job growth.
• We support the requirement that the Corporation must engage business leaders and
other key stakeholders in developing and implementing the strategic plan. I would
suggest that the Chambers of Commerce have the infrastructure in place to facilitate that
interaction.
• We support and appreciate having a Chamber representative on the Board, but would
also like to have input in nominating other business owners
I
officers to the Board. As a
note of clarification, line 47 references "one volunteer officer of a Chamber of
Commerce" we think this is too restrictive and should state "one volunteer
representative"
• We support the composition of the Board of Directors. although we would like to ensure
some geographic diversity to ensure that the businesses in the Upcounty have some
representation.
Thank you for your time. I look forward to working with the Business Development Corporation
in bringing jobs to Montgomery County.
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THE GREATER BETHESDA-CHEVY CHASE CHAMBER OF COMMERCE
TESTIMONY ON REGARDING BILL 28-10, ECONOMIC DEVELOPMENT - BUSINESS
DEVELOPMENT CORPORATION - ESTABLISHMENT
BEFORE THE MONTGOMERY COUNTY COUNCIL -
June
22, 2010
Good afternoon. I am Andy Shulman with McShea
&
Company and Vice President of Economic
Development for The Greater Bethesda-Chevy Chase Chamber of Commerce. On behalf ofthe Board
of Directors and the more than 650 members of our Chamber, I am here today to lend support for Bill
28-10, which creates and defines the new Montgomery Business Development Corporation.
In order to ensure the economic security of Montgomery County and the means to provide the
nationally recognized school system, social services and community amenities ofwhich We are so
proud, we must encourage our tax base to grow through the cultivation of existing and attraction of
new businesses to the county.
At a time when our economy is suffering and the tax base is dwindling, the establishment of the MBDC
will be an excellent vehicle to support and complement the Department ofEconomic Development and
to ensure that the County remains focused on attracting new and retaining existing businesses in
Montgomery County. Similar to other jurisdictions that have created successful economic
development organizations throughout the region and country, Montgomery County needs to increase
the engagement and involvement ofthe business community in determining the best direction for the
future of economic development in our County.
We support the proposed composition of the leadership of the Corporation, including the Board
member who will represent the chambers of commerce in our County as well as the small and medium
sized business representation. We believe that the Chamber rep to the MBDC should meet with and
report back to the chambers on a regular basis, bringing back to the Board the recommendations from
the chambers of commerce and the thousands of businesses they represent.
We believe that after the creation of the mission and vision for the corporation, the first priority for the
MBDC should be the development of a strategic plan for economic development, including the
establishment of metrics for determining success for the County as it relates to job growth.
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The Greater Bethesda-Chevy Chase Chamber of Commerce stands ready to work with the County
Council, County Executive and members of the MBDC in support of the new direction of economic
development for our County.
Thank you for the opportunity to present these comments.
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