Agenda Item 5
September 18, 2012
Action
MEMORANDUM
TO:
FROM:
County Council
Robert H. Drummer, Senior Legislative Atto.m
,
meeVy!DI
Jacob Sesker, Senior Legislative Analyst
vII\.
J
Action:
Bill 14-12, Economic Development Fund - Amendments
&'
SUBJECT:
Planning, Housing and Economic Development Committee recommendation (3-0): approve
the Bill with amendments.
Bill 14-12, Economic Development Fund - Amendments, sponsored by Council
President Berliner, and Councilmembers Riemer, Ervin, EIrich, Leventhal, Navarro, and Rice
was introduced on March 20, 2012. A public hearing was held on April 10 and a Planning,
Housing and Economic Development Committee worksession was held on September 10.
Bill
14-12 would require the Executive to propose and update an economic development
strategic plan, subject to approval by the Council. The success or progress of the strategic plan
must be measurable and the plan must include measures to address:
(l)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
job creation;
private sector compensation and benefits;
target industries;
target geographic areas;
workforce education and training;
gro\\t1h in tax base;
economic opportunity for residents;
encouragement of entrepreneurs and small business;
land use; and
other actions necessary to promote economic development in the County.
The Bill would also amend the Economic Development Fund (EDF) law by establishing
criteria for offers of assistance from the EDF, modify the time and content of the notice the
Executive must give to the Council before making a tentative offer of more than $100,000, and
require Council approval ofa tentative offer of more than $500,000.
Public Hearing
There were 2 speakers at the April 10 public hearing. Virginia Sheard, speaking on
behalf of the Montgomery County Civic Federation (©13) supported the Bill as a measure that
would increase transparency and accountability of the County's economic development
activities. Gigi Godwin, speaking on behalf of the Montgomery County Chamber of Commerce
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14-15) supported the portion of the Bill that would require the Executive to regularly submit a
strategic plan for economic development to the Council for approval, but opposed the portion of
the Bill that would require Council approval ofEDF loans or grants in excess of $500,000.
PHED Worksession
Council President Roger Berliner and Councilmember Hans Riemer joined the
Committee for the worksession on the Bill. DED Director Steve Silverman represented the
Executive Branch. The Committee also heard from Larry Shulman, representing himself.
The Committee discussed the legal and the policy issues raised in the staff packet and the
relationship between this Bill and Bill 4-12.
The Committee (3-0) approved the following amendments.
1.
Require the Executive to propose a new strategic plan by regulation.
2.
Prohibit EDF loans and grants over $500,000 without a special or supplemental
appropriation.
3.
Increase the time between plan updates from every 2 years to every 4 years at the
beginning of a new Council term.
4.
Amend lines 71-72 by adding the phrase "the plan must" after the word "and."
The Committee approved (3-0) the Bill with these amendments.
Issues
1.
Does the Bill violate the separation of powers provisions of the County Charter?
The County Attorney raised 2 legal issues in his Bill review memorandum at (©16-26).
The County Attorney opined that the Bill violates the separation of powers provisions in the
County Charter by: 1) authorizing the Council to amend and approve the strategic economic plan
developed by the Executive; and 2) authorizing the Council to veto an Executive's decision to
expend appropriated funds. The County Attorney also pointed out that both legal issues can be
resolved by amendments to the Bill.
Council staff disagrees with some, but not all of the County Attorney's conclusions. As
the County Attorney concedes, the adoption of a strategic economic development plan "involves
the creation of a policy of general application." The County Attorney compares this to the
adoption of a regulation. However, it is also comparable to an act of the legislature. The
difference is that the Bill would delegate to the Executive the task of developing a proposed
strategic plan for Council approval. Council staff agrees that an amendment requiring the
Executive to adopt a strategic plan by regulation would serve a similar purpose. However, we
disagree that the Bill, as drafted, necessarily violates the separation of powers in the Charter by
delegating to the Executive the task of proposing a strategic plan that the Council could adopt on
its own as legislation.
This issue can be avoided by amending the Bill as suggested by the County Attorney to
require the Executive to develop a strategic economic development plan by a method I
2
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Executive Regulation.
©27.1
Committee recommendation
(3-0):
approve staff amendment 1 at ,
Council staff agrees that the Council cmll10t reserve the right to veto the Executive's
expenditure of appropriated funds. The County Attorney suggested that the Council could
produce the same result by prohibiting expenditures greater than
$500,000
in the appropriation
for the Economic Development Fund in the budget resolution. Council staff believes that this
cap could also be placed in the Bill directly. Committee recommendation
(3-0):
approve staff
Amendment
2
at
©28.
.
2. What is the fiscal and economic impact of the Bill?
OMB estimates that the Department of Economic Development (DED) would need to
hire a Senior Business Development Specialist, Grade
27,
to help develop a strategic economic
development plan every
2
years at an annual cost of
$122,500.
See
©8-12.
The County's
current economic development strategic plan was published in December
2008,z
DED
workyears have been significantly reduced in the last 4 years along with many other County
departments and agencies. The fiscal impact statement concludes that the development of a new
strategic economic development plan and measuring success in implementing it cannot be done
with existing staff unless the department reduces some of the responsibilities assigned to existing
staff? Council staff believes that developing a new strategic plan with measurable goals that are
tied to EDF grants and loans is important enough to either increase additional staff or consultant
services or to reduce other assignments to implement this function.
The Economic Impact Statement concludes that the development and implementation of
a new strategic economic development plan would have an impact on the County's economy, but
it is impossible to estimate the positive or negative impact. However, a new strategic plan for
economic development that results in a negative impact on the County's economy would be an
unsuccessful plan.
3. Should the
Bill
require the Executive to compare the County's economic development
structure with the structures used
by
peer jurisdictions?
The transition section of the Bill would require the Executive to develop the initial
economic strategic plan within
180
days after the Bill becomes law. DED retained the
International Economic Development Council (IEDC) to compare the County's economic
development structure with the structures used by peer jurisdictions. In a report dated July
18,
2012,
the IEDC compared the County's economic development structure with those used by the
Counties of Fairfax, Prince William, Baltimore, Howard, Miami-Dade, and St. Louis.
4
The
report includes a comprehensive comparison of each County's economic development structure,
The Committee also approved an amendment to Staff Amendment I to extend the time to update the plan from
every
2
years to every
4
years. The amendment is described on pp.
6-7
of this memorandum.
2
The
2008
strategic plan for economic development is at
©39-52.
1
The
2008
strategic plan and OED's annual perfonnance tracking indicates that some resources are already devoted
to a strategic planning function.
4
An excerpt of the
2012
EDF Annual Report is at
©53-59.
The full report is available at:
b11l2:.L!.wW.2L(2.:mol}!],Q!Tl~_unb2nd.gov/contenticotHJcillp'dt!REPORTS/org
assessmenLpc,lf
3
3
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but does not include any recommendations. Therefore, much of the work that would be required
in the Bill's transition clause has already been completed.
4. What is strategic planning for economic development?
Strategic planning is a proactive, future-oriented approach to planning. The strategic
planning process involves assessing the status quo, defining goals and objectives, and identifying
a way to achieve those goals and objectives with current/expected resources. Strategic planning
helps to chart a path from goals, to strategies, to specific actions or projects.
A strategic plan for economic development helps an organization to focus on satisfying
the community's needs within the constraints of the community's resources, rather than merely
reacting to current opportunities or attempting to induce relocations of firms. All economic
development organizations also react to opportunities and seek to attract new firms. However,
combining those efforts with strategic planning improves the efficiency of the organization's
efforts to use their scarce public resources for maximum benefit.
The strategic planning process helps to create a consensus about a County's economic
development goals. Different communities have different economic development goals, but
those goals tend to fall into 3 general categories:
(l)
maintaining quality of life; (2) increasing
economic opportunity for residents; and (3) stabilizing and growing the local economy and tax
base.
Having established the community's goals, a strategic planning process then draws upon
its research to identify the appropriate mix of strategies. Most of the strategies selected should be
subjectively optimal, i.e., strategies selected should be those that are likely to be most effective
in the specific community given that community's social and economic profile.
Ultimately, implementing the strategies requires an allocation of resources. Work
programs and budgets must be aligned with the strategic plan. Resources should be allocated to
actions or projects that are likely to produce significant benefits at little cost or risk to the public.
The implementation must be monitored to ensure that execution of the plan is effective and that
the strategies selected are advancing the community's efforts to achieve the agreed-upon goals.
5. Why link the strategic plan for economic development to the economic development
incentive process?
The Bill would require the Executive to develop a new strategic plan for economic
development with measurable goals and would create a link between these goals and the projects
funded by the EDF. This linkage would create a framework for the Executive and the Council to
evaluate each individual request for EDF assistance. The County has not previously created an
explicit link between any strategic planning effort and the County's economic development
incentives. A plan without such links cannot be effective.
5
5
Economic development incentives may be effective without a plan, but there is no way to ensure that this success
did not come at the expense of more important potential alternative uses for these scarce resources.
4
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Many communities have tied their incentive programs to their strategic plans. Some
communities have simply created an economic development incentive policy pursuant to their
overall economic development plan or policy. For example, Kerr County, Texas, along with the
City of Kerrville and the City of Ingram, adopted (2008) an economic development incentive
policy to implement its economic development plan. The economic development incentive
policy specified how the jurisdictions would score potential recipients of economic development
incentives.
Some communities have developed economic development incentive policies that require
consistency with the economic development plan or policy (e.g., the Town of Farmington,
Connecticut). Farmington's incentive policy (see ©29-32) establishes twelve criteria, two of
which address consistency with the plan:
Applicant's project must provide new employment or enhance the tax base
or encourage technological innovation investment and address a goal or
objective identified in the Town's Strategic Plan.
• The project must meet goals and objectives identified in the Strategic
Plan.
Regardless of how the incentive program and the strategic plan are linked, it is important
to link incentives to the strategic plan. University of Texas Professor Michael Oden,6 a scholar
in the field of planning and economic development, has argued for more closely linking
economic development incentives to strategic planning processes:
City and civic leaders must fashion strategies based upon the kind of industries
and economic development they want to encourage. The primary goals ofa city's
economic development enterprise must correspond to the community's vision of
what kind ofjobs, businesses, and products they want to promote in their city. To
be effective, economic development strategies and policies must be tied to goals
consistent with deeply held community values and visions for the future. Setting
clear goals based upon the kind ofeconomic activities a region wants to stimulate
and carefully targeting public investments based on a clear and sophisticated
strategy is what separates successful local economic development efforts from
unsuccessful and wasteful initiatives. The goals determine what kinds of
industries and activities a city wants to attract. Strategies to. attract target
industries must then build on existing strengths and address key gaps in the
location factors ... that might be holding back desired industry development.
The economic development strategic plan should create a framework that drives the
decisions that are made on individual projects, including individual economic development
incentive projects. Grants and loans from the EDF that are consistent with a strategic plan are
more likely to complement other economic development efforts and improve the efficiency of
the overall economic development service delivery structure.
Regulations to implement the EDF currently exist (see ©33-38). The Department does
not refer to those regulations in any written documents (public or confidential) related to an
6
Oden, Michael. "Building a more sustainable economy: economic development strategy and public incentives in
Austin," 2008.
5
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incentive or proposed incentive.
7
The regulations do refer to "the County's economIC
development goals and objectives."g The regulations do not create a scoring system or give any
indication as to how different criteria should be weighted, other than the frequent use of
undefined terms such as "priority," "highest consideration," and "special consideration." These
terms, if defined, might be adequate if the Director was making a determination at one point in
time between multiple, competing applications for economic development assistance.
9
Bill 14-12 (see Lines 32-33) would require the Director to provide the Council with "an
analysis of how the proposed assistance supports the overall goals of the economic development
strategy." Bill 14-12 would also require the Executive's annual EDF report to "describe the
success of each award of financial assistance in satisfying the economic development goals
supporting the assistance" (lines 89-91) and further "track the progress of the Fund in satisfying
the overall goals of the approved economic development strategic plan" (lines 94-95). The
initial analysis and subsequent monitoring required under Bill 14-12 will strengthen the link
between the strategic plan, the economic development awards, and the annual EDF report.
10
6. Why create a new strategic plan for economic development?
The Department of Economic Development's most recent strategic plan was completed
in 2008 (see ©39-52). Strate¥ic plans for economic development are often completed in cycles
from 3 to 5 years in length.
I
An effective strategic planning process must be continuous and
include frequent updating to reflect current needs and resources, and must also have the support
of the organizations that must implement the plan.
12
Bill 14-12 contemplates a 2-year strategic planning cycle. To require a biennial plan
creates a risk that scarce resources will be devoted updating the strategic plan even when needs
and resources have not changed. Council staff recommends that a new plan be developed every
4 years on or before July 1 of the year after a new Executive and Council takes office. This
would provide time to implement the plan and measure its success and still ensure that the plan is
fluid and reflects changes in the County's goals.
Committee recommendation
(3-0): amend
the Bill as follows:
Amend lines
32-33
at
©3
as follows:
For example, there is no reference to the regulations in the EDF Annual Report for CY2012. An excerpt of the
2012 EDF Annual Report is at ©53-59. The full report is available at:
http://www6.montgomerycountvmd.gov/content/counci I/pdf/R EPO RTS/org: assessment. pdf
8
COM COR 20.73.01.04(a) states: "Priority will be given to assistance that will materially improve the County's
economy and advance the County's economic development objectives and strategies." The document does not
indicate how that priority is reflected in practice, given the non-competitive nature of EDF awards and the potential
conflicts between this "priority" and the various "considerations" also identified in the regulations.
9
The Bill does not require that the Executive establish a scoring system, and does not contemplate any deviation
from the current system in which award determinations are made on a rolling basis.
to
For example, there is no reference to a strategic plan in the EDF Annual Report for CY2012.
II
For example, the Louisiana Department of Economic Development uses a 5-year strategic planning cycle. Prince
George's County (MD) also uses a 5-year strategic planning cycle. The Wisconsin Economic Development
Corporation and Prince William County (V A) are examples of entities that use a 4-year strategic planning cycle.
However, effective strategic planning requires constant feedback and is more a continuous process than an iterative
one. Consequently, mid-cycle adjustments and annual updates are common.
12
Larry Shulman suggested a framework for a revised strategic plan for economic development. See ©60.
7
6
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@
an analysis of how the proposed assistance supports the overall goals of
the economic development [[strategy]] strategic plan; and
Amend lines
66-69
at
©4
as follows:
(a)
The Executive must
submit~
by method 1 regulation,
[[l!
proposed]]
~Il
economic
development strategic plan for the County to the Council for approval on or
before July 1.2015 and
[[Qft]
each [[even numbered]) fourth year thereafter.
7. How does this Bill relate to Bill 4-12, Economic Development - Urban Renewal- Wage
and Health Insurance Requirements?
Bill 4-12 would amend the EDF law to require a direct recipient or a third party
beneficiary of grants in excess of$100,000 from the Economic Development Fund who operates
a large retail store to comply with the County Living Wage Law. Bill 14-12 would require the
Executive and the Council to consider targeting certain industries in certain geographic areas that
would provide reasonable wages and benefits. The comprehensive approach of Bill 14-12
should result in EDF agreements that assist only employers who provide reasonable wages and
benefits for most of its employees. Bill 4-12 attempts to resolve only this 1 issue in only 1
industry. Council staff believes that the comprehensive approach of Bill 14-12, if enacted,
should eliminate the need for Bill 4-12.
8. What must be in the strategic plan for economic development?
The Committee discussed the 10 factors listed on lines 73-83 of the Bill at ©4-S. The
Committee was concerned that the Bill could be interpreted to require the plan to measure each
of these factors. The Committee approved (3-0) an amendment to clarify that the success or
progress of the plan must be measurable, but that the plan must address the factors listed on lines
73-83, but did not require that each of these factors be measured. Committee recommendation
(3-0):
approve an amendment to lines 71-72 at ©4 as follows:
success or progress of the strategic plan must be measurable and the plan must include
measures to address:
This packet contains:
Bill 14-12
Legislative Request Report
Fiscal Impact Statement
Testimony of Virginia Sheard
Testimony of Gigi Godwin
County Attorney Bill Review Memorandum
Staff Amendment 1
Staff Amendment 2
Farmington Incentive Policy
EDF Regulations
DED 2008 Strategic Plan
2012 EDF Annual Report excerpt
Circle #
I
7
8
\3
14
16
27
28
29
33
39
53
Shulman email dated September 10
F:\LAW\8ILLS\1214
EDF
Amendments\Action MemoDoc
60
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Bill No.
14 -12
Concerning: Economic
Development
Fund - Amendments
Revised: September 11, 2012 Draft No.
Z
Introduced:
March 20, 2012
Expires:
September 20, 2013
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: _--:-::-::----::--_ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council President Berliner and Councilmembers Riemer, Ervin, EIrich, Leventhal, Navarro,
and Rice
AN
ACT to:
(1)
(2)
(3)
(4)
require the Executive to propose and update an economic development strategic plan
for the County, subject to Council approval;
establish criteria for offers of financial assistance from the Economic Development
Fund that promote the County's approved economic development strategic plan;
require the Council to approve certain offers of assistance from the Economic
Development Fund; and
generally amend the County economic development laws.
By amending
Montgomery County Code
Chapter 20, Finance
Sections 20-75 and 20-76
Boldface
Underlining
[Single boldface brackets]
Double underlining
[[Double boldface brackets]]
* * *
Heading or defined term.
Added to existing law by original bill.
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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BILL No. 14-12
1
Sec. 1. Sections 20-75 and 20-76 are amended as follows:
20-75. Use of Fund.
2
3
4
(a)
The Director may spend or allocate funds from this Fund consistent
with the economic development strategic plan approved under Section
20-76 [[and on the basis of criteria defined)] in a Regulation adopted
under method (1), including the following criteria:
.
(1)
5
6
7
the proposed assistance will materially improve the County's
economy and advance County economic development objectives
and strategies; or
8
9
10
11
12
(2)
the assistance is necessary to:
(A) bring a significant number of new jobs to the County;
(B) add a significant number of new jobs to an existing
operation in the County;
(C) retain a significant number ofjobs at an existing operation
in the County or
(D) respond to other economic development objectives.
13
14
15
16
17
(b)
The Director must provide the Council with all fiscal analyses and other
supporting documents for any proposed offer of assistance to
f!
private
employer valued at more than $100,000. The supporting documents
must include:
18
19
20
21
ill
the name, industry, location, employee compensation profile, and
estimated current and future taxes paid
.Qy
the prospective
recipient;
22
23
24
ill
ill
the estimated employment and tax revenue gains resulting from
the proposed assistance;
each assumption, variable, and model used to generate estimates
of employment and tax revenue gains;
f:\Iaw\bills\1214 edf amendments\bill7.doc
25
26
27
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BILL NO.
14-12
28
29
30
31
ill
ill
®
the number of new residents estimated to move into the County
resulting from gains in employment
Qy
the proposed recipient;
the number and cost of new students estimated to enroll
County public schools;
an analysis of how the proposed assistance supports the overall
goals of the economic development strategy; and
III
32
33
34
ill
if)
offers, if any, made
Qy
or expected from other competing
jurisdictions.
35
36
The Executive must notify the Council at least [2]
l
working days
before the Executive tentatively offers assistance valued at more than
$100,000 to a private employer, including all fiscal analyses and other
supporting documents described in subsection
(hl.
During a Council
recess of one week or longer, the Executive must notify the Council at
least [5] 10 working days before the Executive tentatively offers
assistance valued at more than $100,000 to a private employer.
If
37
38
39
40
41
42
43
44
45
46
during either notice period the Council President notifies the Executive
that more time is necessary for the Council to [comment] review the
tentative offer, the Executive must wait an additional [2]
l
working days
(or [5]
lQ
working days during a Council recess) before [offering]
making
~
tentative offer of assistance to the private employer.
[(c)]
@
The [[Council]] Executive must [[approve each]] not provide
~
47
48
49
50
[[offer oft] assistance to
private employer valued at more than
$500,000 unless the grant or loan is approved by the Council in a
special or supplemental appropriation. The amount of any discount
from market value in the sale of County property offered as part of the
assistance must be included in the value of the assistance.
The
51
52
53
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BILL
No. 14-12
54
55
56
57
Executive must submit an economic development agreement to the
Council within 60 days after all parties to the agreement execute it.
W
The notice required under subsection [(b)]
(£}
must also specify the
proposed terms of any assistance offered, including any repayment
prOVIsIons.
58
59
[(d)]
ill
Unless expressly inconsistent with any other federal, state, or County
law, the terms of any assistance from the Fund must require the
recipient to meet certain performance criteria specified in the offer of
assistance, including a repayment agreement unless the Executive
[describes] justifies why repayment of assistance is not required.
60
61
62
63
64
65
66
[(e)](g}
*
*
*
20-76. Economic Development Strategic Plan, Administration.
(a)
The Executive must submit l2YJnethod 1 regulation,
[[f!:
proposedll
economic development strategic plan for the County to the Council for
approval on or before July
1,
2015 and
[[ofl]
each [[even numbered]]
fourth year thereafter. [[The Council may amend the proposed strategic
plan and must approve
f!:
final strategic plan
Qy
resolution.]]
The
67
68
69
70
71
72
73
success or progress of the strategic plan must be measurable and the
. plan must include measures to address:
ill
job creation;
private sector compensation and benefits;
target industries;
target geographic areas;
workforce education and training;
growth in tax base;
economic opportunity for residents;
encouragement of entrepreneurs and small business;
f:\law\bills\1214 edf amendments\biU7.doc
74
75
m
ill
ill
ill
®
ill
76
77
78
79
80
tID
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BILL
No. 14-12
81
82
83
84
85
86
87
88
89
90
91
.QQ)
other actions necessary to promote economic development in the
County.
{hl
The Executive may adopt Regulations under method (1) to administer
this Fund.
[(b)]
(£}
The Executive must report by March 15 each year on the status and
use of the Fund.
This report can be included in the Executive's
proposed operating budget. The annual report must:
ill
describe the success of each award of financial assistance m
satisfying the economic development goals supporting the
assistance;
92
93
94
95
m
ill
identify any assistance agreement where the recipient did not
satisfy the perfonnance criteria in the agreement; and
track the progress of the Fund in satisfying the overall goals of
the approved economic development strategic plan.
96
97
98
99
100
101
102
103
104
105
106
Sec. 2. Transition.
The County Executive must submit the initial [[proposed]] method 1
regulation containing an economic development strategic plan to the Council for
approval not later than 180 days after this Act becomes law.
In
addition to the
requirements of 20-76(a), the initial proposed economic development strategic plan
must:
(a)
(b)
(c)
analyze the County's economic development structure;
compare the County's structure with peer jurisdictions;
identify and analyze different alternative government and non­
government entities that could perfonn each core function of economic
development;
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BILL
No. 14-12
107
108
109
(d)
determine the total amount of public and private money spent in each
peer jurisdiction to achieve current levels of service; and
(
e)
recommend changes, if appropriate, to the County's structure.
110
Approved:
111
Roger Berliner, President, County Council
Date
112
Approved:
113
Isiah Leggett, County Executive
Date
114
This is a correct copy ofCouncil action.
115
Linda M. Lauer, Clerk ofthe Council
Date
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LEGISLATIVE REQUEST REPORT
Bill 14-12
Economic Development Fund
-
Amendments
DESCRIPTION:
This Bill would require the Executive to propose and update an
economic development strategic plan, subject to approval by the
CounciL The Bill would also amend the Economic Development
Fund (EDF) law by establishing criteria for offers of assistance from
the EDF, modify the time and content of the notice the Executive
must give to the Council before making a tentative offer of more than
$100,000, and require Council approval of a tentative offer of more
than $500,000.
The County needs to establish an economic development strategic
plan and follow it.
To establish an economic development strategic plan and ensure that
the plan is followed.
CAO, DED Director
To be requested.
To be requested.
To be requested.
To be researched.
Robert H. Drummer, Senior Legislative Attorney, 240-777-7895
To be researched.
PROBLEM:
GOALS AND
OBJECTIVES:
COORDINATION:
FISCAL IMPACT:
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENALTIES:
Not applicable.
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ROCKVILLE, MARYLAND
MEMORANDUM
April 10, 2012
TO:
FROM:
Roger Berliner, President, County Council
,
get
Jennifer
A.
Hughes, Director, Office ofManagement and
Joseph
F.
Beach, Director, Department ofFinance
~
Bill 14-12 - Economic Development Fund- Amendments
SUBJECT:
Attached please
fmd
the fiscal and economic impact statements for the above­
referenced legislation.
JAH:ad
c: KathJeen Boucher, Assistant ChiefAdministrative Officer
Lisa Austin, Offices of the County Executive
Joy Nurmi, SpeciaJ Assistant
to
the County Executive
Patrick Lacefield, Director, Public Information Office
Alex Espinosa, Office of Management and Budget
Peter Bang, Depmtment ofEconomic Development
Michael Coveyou, Department of Finance
Adam Damin, Office of Management and Budget
Naeem Mia, Office ofManagement and Budget
®
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Fiscal Impact Statement
Bill 14-12, Economic Development Fund-Amendments
1. Legislative Summary
Bill 14-12 would require the County Executive to propose and update
an.
economic development
strategic plan every two years, subject to County Council approval, with the initial plan due not
later than 180 days after enactment ofthe legislation. Bill 14-12 also modifies the time and
content ofthe notice the Executive must give to the Council before making an offer ofassistance
from the Economic Development Fund of more
than
$100,000, and requires Council approval of
an offer greater than $500,000.
2.
An
estimate of changes
in
Coanty revenues and expenditures regardless ofwhefher the
revenues or expenditures are assumed in the recommended or approved budget. Includes
source of information, assumptions, and methodologies
used.
The changes to the Economic Development Fund (EDF) transaction process do not have a fiscal
impact on revenues or expenditures. It is possible, however, that the provision requiring Council
approval of transactions greater than $500,000 would affect the number oftransactions approved
in the future, thus impacting County revenues and expenditures.
The requirement to submit an economic development strategic
pl~
including specific
measurable elements,
within
180 days ofenactment and to update the plan on or before July of
each even numbered
year
would have a fisca1 impact. The Department Economic Development
(DED) would need resources equivalent to hire an additional Senior Business Development
Specialist, grade 27, to :fulfill the requirements ofthe bill
at
an estimated annual cost of$I22,500,
assuming salmy above mid-point and employee benefits.
3. Revenue and expenditure estimates covering at least the next 6 fiscal years.
The minimum cost over six years would
be
$735,000.
4. An actuarial analysis through the entire amortization period for each bill that would affect
retiree peusion or group insurance costs.
Not applicable.
S. Later aetions that may affect future revenue and expenditures if the bill authorizes future
spending.
Not applicable.
The
bill does not require future spending.
6. An estimate ofthe staff time needed to implement the bill.
There would
be
no impact on staff time to implement
the
changes
to
the EDF transaction process.
The development every two
years
ofthe strategic plan and on-going monitoring of progress
would have an impact on
staff
time. DED estimates the equivalent ofan additional FTE for a
Senior Business Development Specialist, grade 27, at an annual cost of$122,500 would be
needed to implement the bill's requirements.
1
(9)
'-'
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7. An explanation of how the addition of new
staff
responsibilities wouJd affect other duties.
The bill's additional requirements regarding development of a strategic plan and on-going
monitoring ofprogress would reduce the capacity ofexisting staff
to
fullill
current
responsibilities, unless additional resources are provided to assume these new responsibilities.
8.
An estimate of costs when an additional appropriation
is
needed.
See #2
above.
9. A
description of any variable that could affect revenue and cost estimates.
The level of detail and complexity required by the Council
in
approving the strategic plan and on­
going monitoring ofprogress could affect the cost estimate.
10.
Ranges of revenue or expenditures that are uncertain or difficult to project.
A range cannot
be
provided.
11. H
a biD is
likely
to have no fIScal
impact,
why that is the case.
Not applicable.
12. Other fIScal impacts or comments.
Not applicable. '
13. The following contributed to and concurred with this analysis:
Peter Bang, Chief Operating Officer, Department of Economic Development
Adam Damin,
Offi~e
of Management and Budget
~erulifuIOHughes,
Director
Office
ofManagement and Budget
Date
2
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Economic Impact Statement
Council Bill 14-12
Economic Development Fund - Amendments
Background:
Bi1l14-12
(Bill),
Economic Development Fund - Amendments would require the County
Executive (Executive) to propose and update an economic development strategic plan
(plan) that would require the approval of the County Council (Council). The Bill would
also amend the Economic Development Fund (EDP) law that:
1. establishes criteria for offers of assistance from the EDF,
2. modifies the time and content of the notice the Executive must give to the
Council before making a tentative offer of more than $100,000. and
3. requires approval by the Council of a tentative offer of more than $500,000.
L The sources of information, assumptions, and methodologies used.
The Bill requires the development of an economic strategic plan by the Executive and
sets a date when such a plan is approved by the Council. The Council may amend the
plan and must approve a final strategic plan by resolution on or before July 1 of each
even numbered year. While the Bill
itself
has no direct economic impact to the
County,
its
provisions including requiring an economic strategic plan may have an
economic impact. According to the provisions of the Bill, "the success or progress of
the strategic plan must
be
measurable and include measures to address:
a. job creation,
b. private sector compensation and benefits,
c. target industries,
d. target geographic areas,
e. workforce education and training,
f. growth in the
tax
base,
g. economic opportunity for residents,
h. encouragement of entrepreneurs and small business,
i.
land use, and
j.
other actions to promote economic development."
Of the criteria that will measure success, specific items a. b. c, d, e, g. h may have an
impact on the County's economy subject to the specific details of the plan, how well
it
aligns with market conditions and how the plan is implemented. However. until such
plan is developed and adopted,
it
is premature at this time to determine the economic
impacts.
([i)
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2. A description of any variable that could affect the economic impact estimates.
While the Bill does not have a direct economic impact, the development and approval
of such plan, specific those items in the Bill (noted in item #1) and outlined in the
strategic plan, would have an economic impact.
3. The Bill's positive or negative effect,
if
any on employment, spending, saving,
investment, incomes, and property values in the County.
See the response to #1 above.
4.
If
a Bill is likely to have no economic impact, why is that the case?
The Bill will not have a direct economic impact but establishes a requirement to
develop an economic strategic plan that would have an impact on the County's
economy.
5. The following contributed
to
and concurred with this analysis: David Platt and Mike
Coveyou, Finance
Department of Finance
~IMec~~
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3
April 10, 2012
3303 Geiger Ave., Kensington MD 20895
(301)949-3372
email- boots3303@aoLcom
Civic Federation Testimony to County Council on
ZTA 12-05, ZTA 12-06 and Bill 14-12
My name is Virginia Sheard, and I am a member of the Planning and Land Use
Committee of the Montgomery County Civic Federation, presenting the Federation's
testimony on Zoning Text Amendments 12-05 and 12-06, and Bill 14-12.
ZTA 12-05, CR Zones - Grandfathering
The Civic Federation respectfully urges Council members to adopt ZTA 12-05 as
introduced by the PHED Committee. We support the continued enforcement of the
terms and conditions of any existing Special Exception on properties rezoned into a CR
zone, until the Planning Board approves a plan for CR redevelopment of those
properties. And we believe the Board should be required when hearing the CR plan to
consider the Special Exception terms and conditions, which were imposed in large part
to ensure compatibility with the adjacent neighbors and surrounding community.
ZTA 12-06, CR Zones - Transit Proximity
The MCCF respectfully urges Council members to adopt ZTA 12-06, legislation to
disallow CR Zone development projects from receiving public benefit points for
incentive density as a result of proximity to MARC train stations. We believe this is
appropriate, since MARC provides only a limited number of stops for commuters
traveling in one direction during morning rush hours and in the opposite direction
during afternoon rush hours.
Bill 14-12, Economic Development Fund - Amendments
The Federation respectfully urges Council members to approve Bill 14-12, based on an
MCCF position of record in urging transparency and accountability in local
government. We particularly support the bill's requirement that the Department of
Economic Development (DED) must file an economic development strategic plan with
the Council every two years, and then report on whether the goals of that plan have been
met. And, MCCF believes the additional information required by the bill to be included
in the Economic Development Fund Annual Report will increase the Council's ability to
provide oversight ofDED activities. Thank you for considering our comments.
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The Voice of Montgomery County Business
TOM McELROY, CHAIRMAN
ORI REISS, CHAIR-ELECT
GEORGEnE "GIG!" GODWIN, PRESIDENT
&
CEO
MONTGOMERY COUNTY COUNCIL
HEARING ON BILL 14-12, ECONOMIC DEVELOPMENT FUND - AMENDMENTS
APRIL 10} 2012
TESTIMONY BY GIGI GODWIN
MONTGOMERY COUNTY CHAMBER OF COMMERCE
Good Afternoon.
My name is Gigi Godwin and I am the President
&
CEO of the Montgomery County Chamber of
Commerce. There are two elements to Bill 14-12. The first would require the County Executive
to submit an updated and specific strategic plan to the Council that would also examine the
structure of our County's economic development activities. The second would expand the
requirements of the County Executive related to reporting} notifying} and seeking approval
from the County Council to spend the Economic Development Fund.
We commend the Council on the first element of this legislation regarding an Economic
Development strategic plan. This is a necessary step to understanding how the County
Government plans to grow its business community and tax base. The County should take a
close look at how to attract new and retain existing businesses that will employ our highly
skilled workforce} contribute to our community} and create other economic opportunities.
The Chamber strongly supports the requirement to review} analyze} and compare economic
development structures with other jurisdictions because Montgomery County's economic
development efforts appear to be lagging behind our neighbors. According to the March 29
issue of the Washington Business Journal} Fairfax County spends $7.05 million on economic
development and has created
8J65
jobs in the last year. By contrast} Montgomery County
th
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spends $6.25 million, to create 556 jobs. At a time when the economic focus of our Country
has been on jobs and employment, that metric alone is disconcerting.
The Chamber believes that the County's performance should be attributed not to individuals,
but to the ineffective structure of our economic development efforts coupled with the overall
lack of a strategic direction when it comes to job growth and employer attraction and
retention. This proposed legislation's mandate to 1) create a comprehensive strategic plan and
2) to analyze structural issues would be important steps toward strengthening the County's
effectiveness in creating new jobs.
For these reasons, the Chamber believes that the Council should adjust this bill's proposed
Economic Development Fund plan by participating earlier in the process and working with the
County Executive to set the goals and parameters for the uses of the fund. In negotiations to
attract companies and incentivize them to remain in our County, the County Executive must
be vested with the authority to execute a deal.
The Chamber understands the Council's point about its need to participate in the decision
making process. By approving the first element of this legislation, the strategic plan, the
concern that sparked the second element is more effectively addressed because the Council
has given clear instructions, goals, and metrics to execute decisions pertaining to the Economic
Development Fund.
The Council can oversee the strategic direction of economic development activities in the
same manner than an effective Board of Directors gives clear directives and metrics to a CEO
to execute a vision. If the Council is out County's Board of Directors, protecting the taxpayer's
(shareholders) assets, it has fulfilled its role appropriately and responsibly.
The Chamber commends the Council for putting forward Bill 14-12 for discussion. The
Chamber supports the strategic plan and study element of this bill and, with that element,
recommends revising the other provision of the legislation.
Thank you.
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OFFICE OF THE COUNTY ATTORNEY
Isiah
Leggett
County Executive
Marc P. Hansen
County
Attorney
MEMORANDUM
April 5. 2012
TO:
Steve Silvennan, Director
Department of Economic Development
FROM: Marc Hansen
i11aA.c:::.-
County Attorney
RE:
!I?~
Bill No. 14-12, Economic Development Fund - Amendments
Opinion
The County Charter vests executive functions in the County Executive and establishes an
annual appropriation process that does not allow the Council to condition or control funds after
the funds have been appropriated. Bill 14-12
(Bill)
violates the separation of powers provisions
of the County Charter by: 1) authorizing the Council to amend and approve an economic
development strategic plan prepared by the Executive pursuant to criteria set out
in
the Bill; and
2) authorizing the Council to veto an executive decision to expend appropriated funds.
Both of these legal flaws may be avoided by amendments to the Bill. The Council may
require that the strategic economic development plan be adopted by a method (1) or (2)
executive regulation. This would preserve Council input on the details of the plan without
violating the Charter's separation of powers provisions. The Council may
in
the annual budget
provide that no expenditure
in
excess of
$500.000
(or some other sum certain) may be made
from the Economic Development Fund (EDF). This,
in
effect. would require the Department of
Economic Development to obtain a supplemental or special appropriation to make an economic
development fund loan or grant
in
excess of the ceiling set in the annual budget resolution.
Background
The Bill proposes to modifY
§
20-75 of the County code and create a new
§
20-76.
The
Bill would authorize the Council to exert greater control over the expenditure of funds allocated
to the EDF. Section 20-73 authorizes the Director of the Department of Economic Development
(Director) to create the EDF. The EDF is "continuing and non-lapsing" and is comprised of:
101 Monroe Street, Third Floor, Rockville, Maryland 20850
240-777-6700'
(fax)
240-77-6706· clifford.royalty@montgomerycountymd.gov
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Kathleen Boucher
April 5,2012
Page 2
(1) all funds appropriated to it by the County Council;
(2) all payments on any loan from the Fund;
(3) all interest earned on funds in the Fund; and
(4) all funds received from any other public or private entity.
The Bill would require the Director to spend EDF funds "consistent with" an "economic
development strategic plan" approved by the Council under the Bill's proposed
§
20-76. The
Executive would be required to submit the plan
every
2 years, and the Council may amend and
must approve the plan. The Bill would further require the Director to provide the Council ''with
all fiscal analyses and other supporting documents for any proposed offer of assistance to a
private employer valued at more than $100,000." Lastly, the Bill would require Council
approval for "each offer of assistance
to
a private employer valued at more
than
$500,000."
Discussion
Article XI-A of the Maryland Constitution authorizes counties to adopt home rule
charters. As described by the Maryland courts, these charters "function as 'constitutions' for the
. counties adopting them."
Montgomery County
v.
Anchor fnn Seafood Restaurant,
374 Md. 327,
331 (2003) (internal citations omitted). Section 3 of Article XI-A "mandates that a county
adopting a home rule charter must select one of two types of government:
(1)
an elective
legislative body known as the County Council without an elected County Executive or (2) an
elected County Council plus an elected County Executive."
fd.
In 1968, the County created the
latter form of government through the adoption of a new charter. The County's Charter
separates "the county government into legislative and executive branches."
fd.
Charter
§
101
vests "all legislative powers" in the Council; Charter
§
20 I vests the "executive power" of the
County in the County Executive. The 1968
Commentary Upon Proposed Charter
(July 10,
1968) states that Charter
§
201 "is intended by this provision to confer
all
executive power ofthe
County government upon the Executive.... " (Emphasis added)
(Commentary,
p. 18).
The "compartmentalization insured by the Charter between legislation on the one hand
and administration and execution on the other is a distinction that has been acknowledged and
acted upon by legislative bodies and the courts of other States."
Scull
v.
Montgomery Citizens
League,
249
Md.
271,282 (1968).
When tasked with differentiating a legislative act from an
executive one, the Maryland courts have cited to, or applied some variation of, a test articulated
in
Scull.
The
Scull
court described the test as follows:
A recognized test for determining whether a municipal ordinance is legislative
and so subject to referendum, or whether it is executive or administrative and is
not, is whether the ordinance is one making a new law -- an enactment of general
application prescribing a new plan or policy -- or is one which merely looks to or
facilitates the administration, execution or implementation of a law already in
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Kathleen Boucher
April 5, 2012
Page
3
force and effect.
Id.: see also, Eggert
v.
Montgomery County Council,
263 Md. 243 (1971).
The Attorney General has also provided pertinent guidance.
In
2000, the Attorney
General concluded that the General Assembly was not pennitted to require the Stadium
Authority to submit certain construction contracts to a legislative committee for approval.
2000
Md. AGLEXIS
19. The Attorney General wrote:
The distinction [between the right to review and comment and the right to approve or
disapprove a contract negotiated by an executive agency] is critical. A provision that
rendered the Stadium Authority'S individual agreements subject to legislative approval
would establish a legislative veto over executive action. Although this Office once
concluded that a statute reserving to a legislative committee a veto over proposed
regulations was not clearly unconstitutional, 63
Opinions ofthe Attorney General 125,
127-28 and 150-51 (1978), there was little judicial authority on the subject at that time.
Subsequently, most state courts that have considered the issue have held that legislative
veto provisions violate the separation ofpowers provisions of their respective state
constitutions.
See generally
Rossi,
Institutional Design and the Lingering Legacy of
Anti-Federalist Separation ofPowers Ideals in the States,
52 Vand.
L.
Rev. 1167. 12Ql­
04
&
nn.
186-20 (1999) (collecting cases and noting that, with one exception, legislative
vetoes have been found unconstitutional by every state court to consider the question).
Similarly, the United States Supreme Court has held that a provision giving Congress a
legislative veto violated the federal constitution.
INS
v.
Chadha,
462 U.S. 919 (1983).
Id.
at 25-27.
The Bill requires the Executive to create an economic development strategic plan, and
requires that the plan address certain areas such as job creation, growth in tax base, workforce
education,
etc.
But, after commanding the Executive to create an economic development plan,
the Bill provides that the Council may amend the plan and must approve the plan before it may
be implemented. This approach is inconsistent with the Scull test and is tantamount to a
legislative veto. Under the
Scull
test, the Council may create a law that commands the Executive
to implement a policy articulated in the law, but the Council cannot then exercise control over
the way the Executive implements that policy.
The creation of a strategic economic plan certainly carries some elements oflaw or rule
making, because it involves the creation of a policy of general application-and so the economic
development plan is analogous to a regulation. A regulation is a mechanism for an executive
branch agency to fill in the details of a policy adopted by the legislature. Therefore, although not
free from reasonable debate, I believe the Council could require the Executive to adopt
periodically an economic development plan by Executive Regulation. By specifying that the
@
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Kathleen Boucher
April 5,2012
Page 4
regulation be a method (1) or (2) regulation, the Council could retain considerable (although not
complete) control over the details of the plan.
The Charter also lays out the respective roles of the Executive and the Council
in
enacting a budget. Under Charter
§
303, the County Executive submits 'a proposed budget to the
Council. Under Charter
§§
304 and 305, the Council conducts a budget hearing, modifies the
budget if it so chooses, approves the budget, then appropriates the funds needed to support the
budget. The Charter allows the Council to supplement the budget (see
§§
307 and 308), but
contains no provision allowing the Council to reverse an appropriation. For nearly four decades
the Office ofthe County Attorney has consistently advised that the Charter prohibits the Council
from amending an appropriation after it is adopted (except to approve a supplemental or special
appropriation), or conditioning an appropriation on subsequent Council approval.
1
Based'on the foregoing legal analysis, the Bill by authorizing the Council to approve
offers of assistance ofmore than $500,000 violates the Charter in two distinct ways. First, the
provision trenches upon executive authority by allowing the Council a legislative veto over a
discretionary executive decision. Second, the provision permits the Council to
"dis~appropriate"
funds if the Council has appropriated funds of$500,000 or more to the EDF and the executive
choses to expend those funds. The Charter does not authorize the Council to take back monies
that have been appropriated.
The Council, however, may in the annual budget provide that no expenditure
in
excess of
$500,000 (or some other sum certain) may be made from the EDF. This,
in
effect, would require
the Department of Economic Development
to
obtain a supplemental or special appropriation
to
make an EDF loan or grant in excess ofthe ceiling set in the annual budget resolution. Through
this budget process the Council may retain approval authority for EDF loans or grants over a
specified ceiling.
Please contact me if you would like to discuss this opinion.
Cc:
Kathleen Boucher, Assistant Chief Administrative Officer
Robert H. Drummer, Senior Legislative Attorney
Clifford Royalty, Chief, Division of Zoning, Land Use and Economic Development
1
See
attached County Attorney Opinion to Robert Kendal, Director, Office of
Management and Budget (April 7, 1999)
c!i)
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Office of the County Attorney
Montgomery County, Maryland
MEMORANDUM
April 7,1999
TO:
. Robert
K.
Kendal, Director
Office of Management and Budget
Charles W. Thompson,
Jr.
C.h-.,/"",4:'
County Attorney
Marc P. Hansen, Chief
P1t:t--t.c..
Division of General Counsel
w."ff,"-/fJSC-
VIA:
~:::.. ~
FROM:
)
!I~
SUBJECT: Authority of Council to Impose Conditions on Funds Already Appropriated
QUESTION
On May 28, 1998, the County Council adopted Resolution No. 13·1281 which
approved the FY99 Capital Budget for the Montgomery County Government. Resolution No.
13-1281 appropriated $2,202,000 to construct the Wheaton Market Place Parking Facility. This
appropriation was subject to conditions set out in Project Description Form No. 509955
(PDF)---the PDF is part of the six year Capital Improvements Program (CIP), which also was
approved by Resolution No. 13-1281. ·The PDF provided that Grandview Avenue would be
incorporated into the parking facility. On March 23, 1999, the County Council introduced a
resolution to amend the PDF to retain Grandview Avenue. The resolution further provides, "A
construction contract must not be awarded until at least 60 days after the Department of Public
Works and Transportation delivers to the Council a revised conceptual design reflecting the
scope of work in this project description."l
You have asked: What is the legal effect of the resolution amending the PDF on the
authority of the executive branch to enter into a contract to construct the Wheaton Market Place
Parking Facility using the
funds
appropriated by the COll...'1cil in Resolution No. 13-1281.
lT1-ds
resolution would, as a practical matter, prevent the executive branch from entering
into a contract to construct the "It/heaton Parking Facility during FY 99.
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_ _ _ _ ,
~-.
...........,................ W.IL
, ..... ...
' ...., __ . • • •
~_'.~_."-""
Robert K. Kendal
Re: Authority of Council to Impose Conditions on Funds Already Appropriated
April 7, 1999
Page
2
ANS"W'ER
We conclude that the Council
doe~
not have the authority to condition or reduce an
appropriation after the Council has approved the appropriation. The Charter requires the Council
to adopt a budget that sets a fiscal plan for a fiscal year and assigns to the County Executive the
responsibility for carrying out that plan. Amending an appropriation after it has been approved
would be inconsistent with these Charter provisions.
DISCUSSION
The starting point for determining the legality of the proposed budget amendment
lies in an examination of the provisions of the Charter that govern the appropriation process.
2
In
Montgomery County the appropriation process is governed by Article 3 of the County Charter.
Section 303 provides, "The County Executive shall submit to the Council ... proposed capital
and operating budgets. _.
for
the
ensuing
fiscal
year ..•_." (Emphasis added). The County's
fiscal year begins on July I and ends on June 30 in the following calendar year.) Section 305
requires the Council to, "approve each budget ... and appropriate the funds therefor not later
than June 1 ofthe year in which
it
is submitted." The County Executive may disapprove or
reduce any item
in
the budget approved by the CounciL
4
The Council may approve any item
disapproved or reduced by the County Executive by the affirmative vote of 6 Council members
prior to June 30th.5 Not later than June 30th the Council must impose taxes necessary to finance
the budget.
6
Moreover, the Council must not set tax rates at a level that would create a General
Fund surplus that exceeds 5 percent of the General Fund revenue for the preceding year.
1
The
surplus is available to f4nd supplemental or emergency appropriations. Section 307
2See McQuillin,
Municipal Corporations,
Section 39.66 ("Of course, statute or charter
provisions, if any, relating to appropriation ordinances must be complied with or else the
appropriation will be held void.")
. 3Charter Section 301.
4Charter Section 306.
5Charter Section 306.
6Charter Section 305.
7
Charter Section 310.
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Robert K. Kendal
Re: Authority of Council to Impose Conditions on Funds Already Appropriated
April
7. 1999
Page 3
(Supplemental Appropriation) and Section
308
(Emergency Appropriation) authorize the
Council, subject to certain reStrictions, to add appropriation authority to the budget during the
fiscal
year.
The language of the Charter undoubtedly envisions an annual appropriation process
and circumscribes the Council's authority during the fiscal year to.amend the budget-limiting
amendments to additions to appropriation authority. The Charter grants the Council no authority
to delete, reduce, or condition an appropriation after an appropriation becomes [mal.
An
appropriation becomes final after the Council adopts the annual budget on or before June 1st or
after a supplemental or emergency appropriation has been approved.
It is true that Charter Section 302 authorizes the Council to amend 1il.e CIP at any
time. It has been suggested that this Charter provision authorizes the Council to impose new
c'onditions on a capital appropriation that has been previously approved. But the only legal effect
of the CIP is found in Section 303, which requires that tqe County Executive's proposed capital
and operating budgets for the ensuing fiscal year be consistent with the Executive's proposed
CIP.
In
short, the CIP creates a legally non-binding financial plan
the County. The 1968
. Commentary Upon Proposed Charter, Montgomery County, Maryland
is consistent with this
conclusion:
The purpose of this section [302] is to make more orderly and systematic the growth
. of governmental activities and to increase the coordination among programs and
finances. The approval of six-year programs by the Council as the basis for the
County budget should preclude large unanticipated tax increases in future years.
Through long-range planning it wi11J?e possible
to
adjust the
tax
program so that a
great increase should not be necessary in anyone year.
With respect to Section 303, the
Commentary
merely summarizes that the Executive must submit
a proposed budget that is consistent with the six-year programs.
The Charter's prohibition against conditioning or deleting an appropriation after the
appropriation has been approved advances both sound fiscal policy and the Charter's decision to
vest the County's executive power in the County Executive. If an appropriation could be
conditioned---or even deleted in its entirety-after the appropriation becomes final, the ability of
the executive branch to undertake projects-an executive function-would be seriously
undermined. Moreover, the deletion of an appropriation after June 30th would undercut the
intent of the Charter to limit the imposition of taxes to those necessary to fund the budget plus a
surplus not exceeding five percent of the previous year's General Fund·revenue.
,
\
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Robert
K..
Kendal
Re: Authority of Council to Impose Conditions on F1JD.ds Already Appropriated
April 7, 1999
Page 4
The general
rule
appears to be: \Vhere
an
annual budget is required, the budget
cannot subsequently be chariged by the legislature absent charter authority to do
so. See
McQuillin,
Municipal Corporations,
Section 39.66 ("But if
aJ:).
annual appropriation ordinance is
required by statute, or charter, for the ensuing year, such ordinance cannot be changed, after the
beginning of such fiscal year, by an ordinance changing appropriations.
to)
F
or nearly three decades the Office of the County Attorney
haS
maintained that the
Charter prohibits the Council from amending an appropriation after
it
is adopted except to adopt
a
supplemental or emergency appropriation.
As
early
as
1971, the Office of the COlmty Attorney
concluded, "Again, there is clearly no authority for the Council to act on any appropriation item
'later than May 1 of any fiscal year, except
as
stated
in
Section 306, after executive veto, and
further
ex~ept
as
provided in Sections 307 and 308 dealing with supplemental and emergency
appropriatitms."g
In
the 1971 opinion, County Attorney David
L.
Cahoon went on to observe:
The approval of a capital budget item and the making of an
appropriation for a budget item establIshes the fiscal policy
of the legislative body for that fiscal year. The body can
specify with particularity the projects for which such funds
are to be spent. However, leaSes, contracts, land
acquisition, construction plans and all other actions to
implement that fiscal policy are administrative and
executive in nature and, under our Charter, are the
exclusive province of the executive branch.
9
The 1971 opinion finally concluded that the Council may not approve capital appropriations
contingent on later Council approval during the
sam~
fiscal year.
In 1975, County Attorney Richard
S.
McKernon-relying on David Cahoon's 1971
opinion-concluded that "once the County Council has appropriated funds for. a particular fiscal
year, the Council may not, during that same fiscal year restrict the expenditure of appropriated
funds."
.
8In ]
911
the Charter required the Council to adopt a budget by May
1.
~n
reaching
this
conclusion. County Attorney Cahoon relied
on
Harmes
v.
Baltimore
County,
225 Md. 371, 170 k2d 772 (1961); and
Anne Arundel County v. Bowen,
258 Md. 722,
267 A.2d 168
(1970).
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Robert
K.
Kendal
Re: Authority of Council to Impose Conditions on Funds Already Appropriated
April 7, 1999
.
Page
5
In
1982, County Attorney Paul A. McGuckian concluded that the COl.U1cil could not
adopt
a
supplemental appropriation for the solid waste fund contingent on the Council
subsequently appropriating in the capital budget money for the design and construction of a
plastic liner at the
Oaks
Landfill.
opinion concluded with respect to this issue:
A Council-imposed prohibition on the COllilty Executive's
expenditure of these appropriated funds until sub'sequent
Council appropriation of FY 82 or FY 83 funds for the
plastic liner would, the words of the Court of Appeals
in
Anne Arundel County v. Bowen,
258
Md. 713, 267 A,2d
168 (1970), "amount, in the light ofthe language of the
Charter, to an impermissible invasion of the province of the
County Executive."
Bowen
at 722,267 A.2d at 178.
In 1984, CountY Attorney McGuckian was asked for advice concerning a Council
proposal to appropriate only 60 percent ofthe parking budget within the Department of
Transportation and only 6 months of the Cable and Management Systems budgets. The County
Attorney observed, "It is quite clear from the Charter language that the County Council must act
on an annual basis through the budget and appropriation process to express its fiscal policy for
the coming fiscal year." The opinion concluded that the Executive must consider the fimding
approved by the Council in the budget as the funding that is available for the entire fiscal year,
even if it is substantially less than that proposed by the Executive.
The interpretation held by the Office of the County Attorney since 1971 concerru.ng
the County's budget process is consistent with an opinion issued by the New Hampshire Supreme
Court. The Supreme Court ofNew Hampshire rejected the legislative practice of requiring the
Governor to obtain approval from the legislature before appropriated money could be spent.
JO
At .
issue before the New Hampshire Supreme Court were footnotes in the budget bill requiring the
Governor to obtain pdor approval of a legislative committee before the Governor could purchase
certain computer hardware or expend funds to maintain bui1dings and grounds under the
The Court began by noting that the
jurisdiction of the Department of Administrative
New Hampsbire.constitution prov1des for a separation of powers between the legislative,
executive, and judicial branches of government. The court concluded that the New Hampshire
legislature could not, through the appropriation process, exercise executive functions given to the
executive branch of government. The court held that letting contracts to purchase computer
-----
.---~---
lOIn
Re Opinion o/the
Justices,
219 New
714, 532
A.2d
195 (1987).
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Robert K. Kendal
Re: Authority of Council to Impose Conditions on Funds Already Appropriated
April 7, 1999
Page 6
hardware or maintain buildings and grounds of state government were characteristically an
executive function that cannot be exercised by the legislatUre.
Conceptually we see no difference between an appropriation conditioned on
obtaining further legislative approval before the money may be spent
an interpretation of the
Charter which would pennit the Council, on its own initiative during the fiscal year, to add
conditions to the expenditure of funds already appropriated. Both constitute an impermissible
invasion of the power of the Executive as envisioned by t.1j,e Charter and undermine the Charter's
vision of a financial plan that is place for at least one fiscal year.
CONCLUSION
,
The Charter authorizes the Council to set fiscal policy for the County not later than
JUne 30th of each year for the ensuing fiscal year. We certainly agree with our predecessors that
the Council may condition the expenditure of funds before June 1st.
11
But we find
that
the
budget process as established in the Charter and the Charter's provision for a separation of
powers between the legislative and executive branches of County government prevent the
Council from amending or reducing an appropriation after the appropriation
has
been approved.
We wish to be clear that the Council is authorized under Charter Section 302 to adopt the
pending resolution amending the Wheaton PDF, but the amendment will be advisory only.
Accordingly, the money appropriated for the Wheaton parking facility under Resolution No. 13­
1281 may be encumbered during FY 99 to fund a construction contract so long as the
construction design is consistent with the conditions L'TIposed by the Council under Resolution
No.
13-1281.
MPH:plb:wmm
cc: Douglas M. Duncan, County Executive
I)The authority of the Council to
~ondition
an appropriation, however, is not without
some limitation. See
Bayne v. Secretary a/State,
283 Md. 560, 392 A.2d 67 (1978) (legislature
may condition an appropriation if the limitation is "directly related to the expenditure of the sum
appropriated, does not, in essence, amend either
subs~antive
legislation or administrative rules
adopted pursuant to legislative mandate, and is effective only during the fiscal year for wl1ich the
appropriation is made.")
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Ro bert K. Kendal
Re: Authority of Council to Impose Conditions on Funds Already Appropriated
April 7, 1999
Page 7
Isiah Legett, President, County Council
Bruce Romer, Chief Administrative Officer
Timothy Firestine, Director of Finance
Deborah Snead, Assistant Chief Administrative Officer
Michael Faden, Senior Legislative Attorney
1:\GJ\HANSEM\approp=m=Robert Kcnda!.wpd
@
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Staff Amendment 1 (Executive Regulation)
Amend lines
3-6
as follows:
(a)
The Director may spend or allocate funds from this Fund consistent
with the economic development strategic plan approved under Section
20-76 [[and on the basis of criteria defined]] in a Regulation adopted
under method (1), including the following criteria:
Amend lines
64-69
as follows:
(a)
The Executive must submit" by method 1 regulation,
[[§:
proposedll
economic development strategic plan for the County to the Council
for approval on or before July
1
of each even numbered year. [[The
Council may amend the proposed strategic plan and must approve
§:
final strategic plan
.!2.y
resolution.]] The success or progress of the
strategic plan must be measurable and include measures to address:
Amend lines
94-97
as follows:
The County Executive must submit the initial [[proposed]] method 1 regulatiQn
containing an economic development strategic plan to the Council for approval not
later than 180 days after this Act becomes law. In addition to the requirements of
20-76(a), the initial proposed economic development strategic plan must:
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Staff Amendment 2 (Council approval)
Amend lines
48-53
as follows:
[(c)]
@
The [[Council]] Executive must [[approve each]] not provide
~
Hoffer ofl] assistance to
private employer valued at more than
$500,000 unless the grant or loan is approved by the Council in a
special or supplemental appropriation. The amount of any discount
from market value in the sale of County property offered as part of the
assistance must be included in the value of the assistance.
The
Executive must submit an economic development agreement to the
Council within 60 days after all parties to the agreement execute it.
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FARMINGTON'S BUSINESS DEVELOPMENT INCENTIVE POLICY
It is the policy of the Town of Farmington to encourage the development and
expansion of quality businesses, especially those of particular types. In an effort
to attract these select businesses, the Town may offer applicants temporary tax
abatement pursuant to C.G.S. §12-65b or other economic incentives if the
Economic Development Commission and the Town Council deem such action to
be in the best interest of the Town.
It is the policy of the Economic Development Commission to review specific
business development incentives on a case-by-case basis but will base the
decision to grant incentives on the general requirements of this policy. In the
event of unusual or extraordinary circumstances, the Economic Development
Commission may alter or otherwise waive any and all requirements contained
herein so long as the project is consistent with the goals and objectives of the
Town of Farmington Strategic Plan.
TYPES OF BUSINESSES
or
INDUSTRIES TARGETED
The Business Development Incentive Policy Program will be used to target the
following types of quality businesses that generate substantial tax revenue to the
Town of Farmington:
1. Corporate headquarters
2. Corporate satellite offices
3. Campus-style office development
4. Research and development facilities
5. Manufacturing facilities
6. Existing business expansion
The Town is interested in attracting businesses that will:
1. Generate additional tax revenue through real estate and/or personal
property taxes
2. Provide employment opportunities
3. Provide high quality goods and services
4. Improve the aesthetics of the community or a particular area
The following types of enterprises shall receive priority in consideration for
incentives:
1. Those within targeted locations as identified in the current Strategic Plan
2. Those proposing a project that forwards a stated goal or objective that will
bring a positive, substantial impact on the Grand List. For new businesses
a SUbstantial impact will be defined as contributing an additional 3.5 million
dollars in real estate value to the grand list.
3. Those that are expanding and meet the above criteria as defined as
contributing a minimum of $1.75 million in real estate value to the grand
list or 50% of the current real estate value, whichever is greater.
(1)
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BUSINESS DEVELOPMENT INCENTIVE GUIDELINES
Overview and Background: The objective of offering a business development
incentive is to encourage the expansion of specific types of businesses through
the establishment of a public/private partnership, which results in growth
expansion consistent with the Town's Strategic Plan.
The Economic Development Commission, in adopting these incentive guidelines
establishes the following objectives consistent with the Strategic Plan:
1. Creation of high-quality long term tax base growth
2. Stimulation of the local economic conditions for
existing businesses, and the development of future industry groups
3. Accomplishment of community goals as stated in the current Strategic
Plan
As per Town Ordinance Chapter 20 any proposed incentives are subject to
approval by the T own Council upon recommendation by the Economic
Development Commission.
TYPES OF ASSISTANCE AVAILABLE
1)
TAX ASSESSMENT REDUCTION UNDER C.G.S. SECTION 12-65B
The assessment of the real property and all improvements thereon to be
constructed thereon may be reduced for a period of time and under the
conditions set forth in C.G.S. Section 12-65b, as amended. The period of
reduced assessment shall commence with the Grand List immediately
following the issuance of a final certificate of occupancy for the new
construction and the execution of an agreement that will set for the terms
and conditions based upon established guidelines.
2}
WAIVING OR REDUCTION OF ANY TOWN PERMIT FEES
The Town of Farmington may waive any Town permit fees or a portion of
such fee to encourage the development and expansion of quality
businesses, especially those of particular types. The waiving of fees
would be after the Economic Development Commission determines that
such action would be in the best interest of the Town, and meets the
criteria set forth in this Policy. The Town and the applicant shall enter into
an agreement which will set forth the terms and conditions based upon
established guidelines.
(2)
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MINIMUM CRITERIA AND INFORMATION REQUIRED:
1) Applicant must not be in violation of any law. regulation or agreement with town. state or
federal government. notwithstanding any tax lien with governmental forbearance.
2) Applicants must be committed to make a significant investment in new or rehabilitated
real or personal property.
3) Applicant's project must provide new employment or enhance the tax base or encourage
technological innovation investment and address a goal or objective identified in the
Town's Strategic Plan.
4) A statement as to the ownership structure of both the real property and operating
company including information as to the ownership of any applicable subsidiary
companies.
5) The proposed project is located in an appropriate zone as defined in the Town of
Farmington zoning regulations.
6) There is a commitment to remain in the Town beyond the length of the abatement or
other incentive period if applicable.
7) All tax obligations to the Town by the applicant must be current except in the case when
the applipant is seeking approval to purchase existing tax liens.
8) The project must meet goals and objectives identified in the Strategic Plan.
9) If the end user of the proposed facility is a lessee. new construction or addition, then the
tax benefits created by this abatement must be clearly reflected in the lease as accruing
to the Applicant Company and the lease must be at least for the term of the abatement
period.
10) An agreement entered into pursuant to this Policy shall not be subject to assignment,
transfer, or sale without the written consent of the Farmington Town Council.
11) After approval of an application by the Town Council and approval of a site plan by the
Town Planning and Zoning Commission, construction shall commence within six months
and shall be completed within twenty-four months unless otherwise extended by the
Town in its sole discretion.
12) In the event that the applicant, during the period of its participation in this program:
a. relocates its business from Farmington,
b. becomes delinquent in taxes or fees.
c. closes its operation, or
d. declares bankruptcy,
then any tax incentive benefit enjoyed by the applicant under this program shall be
forfeited and the applicant shall be required to pay back all taxes that would have been
assessed had the applicant not participated.
If benefits were obtained fraudulently, the town may pursue any recourse allowed by law
including prosecution and obtaining penalty fees.
(3)
®
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APPLICATION REQUIREMENTS AND PROCEDURES
(1115/08)
STEP 1:
Applicant will submit a written report, application and Economic Development Impact
Statement to the Town Manager/Economic Development Staff, which will request a
Business Development Incentive, based on the overall Business Development Policy.
The request should include at least the following types of information:
1)
Specific Assistance Requested.
a)
Tax assessment reduction
b)
Waiving or reduction of any Town permit fee
Description of the project including an estimate of the number of jobs to be
created and their wages.
Description of the applicant and its products or services, including a listing of its
officers.
An estimate of the value of the proposed improvements.
A construction schedule.
Identification of any other public incentives, financial or otherwise, which are
included in the project financing.
A statement of the benefits to the Town for granting an incentive including an
estimate of local taxes to be paid.
All other information requested per the Minimum Criteriallnformation of this
Policy.
2)
3)
4)
5)
6)
7)
8)
STEP 2:
After review of applicant's submittal by the planning department and other appropriate
staff the Town lVian(;1ger will refer the submittal with comments to the Economic
Development Commission for review and recommendation.
STEP 3:
If endorsed by a 2/3-membership vote* of the Economic Development Commission the
Town Manager will forward the EDC recommendation to the Town Council for initial
review and action.
Step 4:
Upon preliminary approval of the Town Council the Town Manager will work with the
applicant. and the Town Attorney for a legal contract that assures that all proVisions of
the Business Development Incentive program are being met. Contract will be on a case­
by case basis.
STEP 5:
The Economic Development Commission must approve the final business development
incentive in contract form by a 2/3-membership vote and then forward it through the
Town Manager to the Town Council for final approval.
STEP 6:
The Town Council must authorize the Town Manager to sign a contract at a Town
Council meeting. The Town Council, at its sole discretion, shall approve, or deny the
application.
*
NOTE: The 2/3-membership vote is based on the full-commission (7 members), which
means that there need to be five affirmative votes to make a recommendation
to the Town Council.
(4)
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COMCOR 20.73.01 Economic Development Fund
20.73.01.01 Authority
In accordance with the procedures authorized in Section 20-76 of the Montgomery County Code
1994, as amended, the following Executive Regulation establishes an award process and criteria to
administer the provisions of the Economic Development Fund.
20.73.01.02
Definition
Private Employer - A for-profit or nonprofit corporation or firm that is not owned, primarily funded
or controlled by a government agency, including a lessor or supplier of real or personal property or
services to a government agency.
20.73.01.03 Eligibility
(a) Any private employer (including nonprofits) which is located in the County that plans to
substantially expand or retain operations in the County, or an employer that plans to locate in the
County.
(b) Special consideration may be given to high technology and manufacturing companies, businesses
in urban revitalization areas, or other private employers which maximize the spin-off effects for the
public investment.
20.73.01.04 Award Criteria
The Director of Finance may allocate moneys for the Fund based on the following criteria:
(a) Priority will be given to assistance that will materially improve the County's economy and
advance the County's economic development objectives and strategies.
(b) Highest consideration will be given to assistance that brings significant employment growth either
by creating new jobs, expanding an existing operation, or by retaining jobs at an existing operation.
(c) Priority will be given to assistance that causes significant investment by the private employer that
over time will provide significant revenues to the County.
(d) Priority will be given to private employers that are knowledge based or have high value added
products in expanding markets.
(e) In urban revitalization areas, private employers locating in areas with good public transportation
or educational services will be given priority consideration.
(1)
Priority will be given to private employers that either help reverse commercial deterioration or
prevent it from happening.
F:\LAW\BILLS\1214 EDF Amendments\EDF Regulations.doc,
9/6/2012
11:54 AM
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(g) Special consideration will be given to private employers who are renovating existing structures
that will generate directly, or through spin-offs, new revenues for the County.
(h) Special consideration will be given to private employers where the retention or attraction ofjobs
would not be likely to happen without assistance from the Fund.
(i) Special consideration will be given to private employers where the County assistance will enhance
the comprehensiveness and competitiveness of the overall financial package and compliment state
financial incentives.
(j)
Special consideration will be given to private employers where municipal incorporated areas,
when appropriate, provide financial incentives to complement the County's assistance from the Fund.
(k) Special consideration will be given to private employers whose activities, products, research or
services enhance the County's quality of life, or if appropriate, have demonstrated a record of good
corporate citizenship.
20;73.01.05
Award
Process
(a) The Director of the Department of Finance must establish and administer the Economic
Development Fund.
(b) The Fund will consist of (1) funds appropriated to
it
by the County Council; (2) all payments on
any loan from the Fund; (3) all interest earned on moneys in the Fund, and (4) all funds received from
other public or private sources.
(c) The Director of Finance may spend or allocate loans or grants from the Fund on the basis of
criteria defined in the Executive Regulation and the law.
(d) The County Executive must notify the County Council at least two working days (or five working
days during a Council recess) before offering assistance valued at more that $100,000, specifying the
proposed terms of assistance offered including any repayment provisions. The Council President, by
notification to the County Executive, may request an additional two working days (or five working
days during Council recess) for Council comment before the offer of assistance is made to the private
employer.
(e) An economic benefit analysis and/or pro-forma analysis will be completed for all awards above
$100,000, the cost of which will be charged to the Fund. The economic benefit analysis will be used
when the business prospect can clearly demonstrate its ability and commitment to perform on its
proposed project. The pro-forma analysis will be completed for projects which require due diligence
by the County to determine feasibility. This could include analysis of the project's financial
feasibility by examining revenues and costs, appropriate market analysis, profit and loss projections,
current and projected balance sheets and return on investment.
2
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(f) For awards of $1 00,000 or less, a basis cost benefit anal ysis will
be
conducted. The basic cost
benefit assessment (economic analysis of cost and benefits, including public and societal benefits)
will be done in-house.
(g) For each loan or grant, the County Executive will negotiate a Memorandum of Understanding
with the private employer requiring the recipient to meet certain performance criteria specified in the
offer of assistance, including a repayment agreement, unless the Executive describes why repayment
of assistance is not required.
(h) The County Executive must report to the County Council by March 15 of each year on the status
and use of the Fund, including an assessment of the costs and benefits to the County. The report will
also include a briefing on the County Executive's use of tax credits, rebaters or other incentives to
further economic development.
20.73.01.06 Clarification
This confirms that the provisions of Chapter 11 B, Procurement, do not apply to the selection of a
grant or loan recipient or any agreement entered into with a grant or loan recipient pursuant to Article
XIII of Chapter 20 of the Montgomery County Code 1994, as amended.
[;J
20.73.01.07 Effective Date
This Executive Regulation takes effect upon approval by the County Council
(Administrative History: Reg. No. 47-95 (Method 1); Orig. Dept.: Economic Development)
COMCOR 20.73.02 Technology Growth Program
20.73.02.01 Authority
In accordance with the procedures authorized in Section 20-76 of the Montgomery County Code
1994, as amended, the following Executive Regulation establishes an award process and criteria to
administer the Technology Growth Program as a sub-program of the Economic Development Fund.
20.73.02.02 Definition
Private Employer - A for-profit corporation or a non-profit corporation or a firm engaged in a
technology business or a building owner providing laboratory and/or research and development
facility to a technology business.
Assistance - The commitment of money in the form of grant, loan, or loan guarantee to a private
employer for the purpose of assisting the private employer's proposed venture to materialize.
20.73.02.03 Eligibility
(a) Any private employer must be located in the County or plan to locate in the County.
3
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(b) A private employer's business' principal products or services must be sufficiently innovative to
provide a competitive advantage in the marketplace.
(c) A private employer must be able to show strong potential for repayment on the principal and the
required interest on any County loan or loan guarantee.
(d) A private employer must submit a comprehensive business plan that addresses the following:
1) Characteristics and proprietary position of the product or services;
2) Present and future markets for those products or services;
3) Strategy for achieving and maintaining significant market penetration;
4) Financial history (if applicable) and projections, including balance sheets, income statements and
cash flow statements;
5) The background, experience and financial commitment of the principal or principals and key
management;
6) Statement of the amount, timing and projected use of the County's assistance and any co- venture
capital; and
(
7) Statement of the projected growth in employment, or other positive economic impacts that the
County's assistance will facilitate.
(e) A private employer must enter into an agreement with the County providing for the repayment
and/or performance of agreed conditions of any assistance, including interest, loaned, guaranteed, or
granted to the private employer.
20.73.02.04 Funding Criteria
(a) Priority will be given to assistance that will materially improve the County's economy and
advance the County's economic development objectives and strategies.
(b) Priority will be given to cases where the County's assistance will function as a catalyst in private
employer's subsequent capitalization.
(c) Priority will be given to cases where the private employer's expected business will create
significant employment growth by creating new jobs within 3-5 years of funding.
(d) Priority will be given to private employers whose business involves retrofitting biotech tab spaces
that will directly benefit new and/or existing biotech businesses.
4
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(e) Priority may be given to a technology business that locates in the Maryland Technology
Development Center, or receives financial assistance from the Maryland Challenge Investment
Program or the Maryland Equity Investment Program.
20.73.02.05 Program Operations
(a) Accounting
1) The Director of the Department of Finance must establish a separate account in the Economic
Development Fund to track all activities of the Technology Growth Program.
2) The Program account will consist of: (1) funds allocated to it by the County Council; (2) all repaid
principal and interest earned from the Program's funding activities; and (3) all funds received from
other public or private sources.
3) The County Executive must notify the County Council at least two working days (or five working
days during a council recess) before making an offer of assistance valued at more than
$
100,000,
specifying the proposed nature of the assistance including the repayment provisions, The Council
President, by notification to the County Executive, may request an additional two working days (or
five working days during Council recess) for Council comments before the assistance is made to the
private employer.
4) For each transaction, the Director of the Department of Economic Development and the County
Attorney's Office will negotiate appropriate closing and security documents with the private
employer requiring the recipient to repay the Program account along with the agreed rate of interest
payment.
5) The County Executive must report to the County Council by March 15 of each year on the status
and use of the Program, including the rate of return on account usage, employment growth and
private capital leveraged.
(b) Administration
1) The Department of Economic Development is responsible for administering the Program including
the decision to provide assistance to a private employer, determination of eligibility, analysis ofthe
business plan, credit and background check, amount and form of assistance, structuring of the
repayment terms, preparation of the necessary closing documents, and post-assistance monitoring.
2) On a case by case basis, a formal application and an application fee to recover the cost of
analyzing the applicationlbusiness plan will be required to receive assistance from the Program.
However, the presentation of a written business plan is required before an in-depth review of the
proposal can be undertaken by the Department of Economic Development.
3) The Department of Economic Development may, on a case by case basis, utilize the services of
outside consultants in validating the feasibility of the business plan and the proposed technology, the
cost of which may be passed onto the applicant if the request is ultimately funded.
5
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4) The Department of Economic Development will conduct an analysis of potential
economic/financial viability of applicant business.
5) The Director of the Department of Finance must, upon request from the Director of the
Department of Economic Development, fund eligible projects with monies from the Economic
Development Fund designated for the Program.
~
20.73.02.06 Clarification
This confirms that the provisions of Chapter 11 B, Procurement, do not apply to the selection of a
grant or loan recipient or any agreement entered into with a grant or loan recipient pursuant to Article
XIII of Chapter 20 of the Montgomery County Code of 1994, as amended.
20.73.02.07 Effective Date
This Executive Regulation takes effect upon approval by the County Council.
(Administrative History: Reg. No. 23-99 (Method 1); Orig. Dept.: Economic Development)
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A Vision For
Economic Development
In
Montgomery County
Prepared by the
Montgomery County
Department of Economic Development
December, 2008
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I. Montgomery County's Economic
Development Vision
County Executive Leggett's economic dcvclopnH.:nt
vision for Montgomery County is
,1
globally
II. The County1s Economic
Development Mission
Working with its many public and private partners,
the Department of
Economic
Dez
1
elopmelIt
(DED)
will retain, attract and create businesses
that
support a broad array of employment opportunities;
stmtegically grow its knowledge-based economy and
key
industry dusters; and expand the
County's
tax
base.
cornpetitive and highly dil
1
ersified knowledge-based
e£"01l0my
that provides
for
the retention and growth
of existing companies, stimulates new job creation
and enhances entrepreneurial opportunities.
Montgomery County's
large
global corporations and
existing small businesses form the solid economic
base that provides our residents with an ongoing high
qllality
of
life.
Our
high quality oflife, in
turn,
helps
retain, attract and create businesses ofal] sizes in all
sectors.
In order to strengthen our leadership position in
the world economy. we must adapt to continually
changing regional, national and global economic
- - - - - - - - - - - - - - - - - - - conditions,
As the County1s existing sectors
especially during
The
County
will
undertake marketing, business
development, technical assistance, skilled work force
development, advocacy, outreach, partnering, capital
projects, and financing activities in suppOrt
of
this
mission.
new technology
- - - - - - - - - - - - - - - - - - - sectors such as
clean energy/green technology emerge, new business
opportunities will evolve. \X7here
the
goal once was
innovative research or the development of emerging
technologies, the foclls should now broaden
to
the
commercialization and deployment
of
new products,
processes and technologies.
This vision wiII be implemented within the
parameters of a complex regional, national and global
framework.
mature and new technology
sectors-such
as
clean energy/green
h l b '
tee no ogy-emerge, new usmess
opportunities will evolve.
the current national
downturn.
ia..s
the
County's existing
sectors mature and
As
with
large
corporations, MOlltgomCfY County's
small husinesses can no longer look solei v within
the boundaries of our jurisdiction
to
grow, but
must
consider their position in the region and the world.
Montgomery County Government's role
is
to create
an enabling
business
environll1ellt and
to
provide
the
tools with which our companies -- from all sectors
and sizes - can sllcceed in today's marketplace .
~
.
............................................
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"'. Economic Development Goals
lbe following broad economic development goals
ftlrlll
the framework for the County's Economic
Development Strategy:
Goal Three:
Foster creative and strong partnerships with
academia, the federal research community, the private
sector and various levels of government to pursne
innovative projects, policies and best practices that
support business growth and expansion
Goal Four:
Establish global linkages
to
facilitate business
opportunities abtoad, attract international investment
to Montgomery County, and foster trade and joint
ventures for Montgomery County businesses
Coal
One:
Retain and grow existing businesses. strategically
:Htract new ones, and enhance entrepreneurial
opportunities;
work
to ensure that
ali
business sectors
beneht from the knowledge-based economy
Goal
Two:
Adapt to a more competitive business climate by
creating an environment where knowledge-based
indnstries and small businesses thrive
------------------------------------60
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Goal One: Retain and grow
existing businesses, strategically
attract new
ones,
and enhance
entrepreneurial opportunities;
work to
ensure
that all business
sectors benefit from the
knowledge-based economy
Retention of existing businesses, especially during
Hying economic times and heightened competition
from other jurisdictions,
will
be the
top
priority
for OED. In
retention, business
an economy
will remain
a
high
with constant
technological
- - - - - - advances
and
changing market conditions, businesses must have an
environment that allows them to take full advantage
of new opportunities.
County must work
to
create a more positive business climate.
Alongside retention, busim:ss attraction
will
remain
a
high priority. Selected dusters
in
which the
Count)' has a comparative advantage, induding life
sciences, communicltions, professioml services and
"overnment contracting
will
continue
to
be a focus.
o
1:-fowever, strategic opportunities
in
other sectors
~uch
as clean energy and green technology, which
contribute
to
a high quality of life will also be part of
the County's economic devclopmem strategy.
L
Proactively recognize the accomplishments of
existing businesses
Organize networking seminars and
roundtables with targeted
groups
of County
businesses
Facilitate communication and interaction
between Montgomery County companies in
order to promote p,l[tnerships, tech transf<:r
and increased tocaJ to IOGll business or
cOlllmcrce
Facilitate federal contracting forums,
in
partnership with County chambers of
commerce and other business organizations
Create more opportunities for Montgomery
County based firms to compete for County
contracts. and develop procurement strategies
with other governmental agencies and large
private sector firms
Develop and implement a mass marketing
strategy targeted
to
resident businesses.
including broadcast e-mails, newsletters,
business communiques and article placements,
an improved web site, videos, advertising
campaign, and increased participation in
events oflocal business organizarions
Create
a
"Life Sciences Team" and an
"Advanced Technology
(including green
technoiob,)') within DED for more targeted
marketing and. business development
Aggressively recruit firms in targeted industry
sectors, especially bio-pharma, aerospacc,
communications, advanced technology
applications, green technology. profession,}i
services and governmcnt contracting
Grow non-tech dusters including financial
services, non-tech health services, professional
services, and high-end hospitality products and
services
Alongside
attraction
priority.
Action Items for
Goal One
Business Retention find Attraction
Execute an
business visitation
program for major accoulHs and companies
that have high-wage jobs in the target market
segments
Implement a short-term retention strates')'.
induding an economic stimulus package for
local businesses, to help them
through
the
current economic downturn
Re-establish an Economic Advisory Council to
provide ongoing guidance
to
the County and
OED on economic devdopmenr matTers
• Ensure that agricultural businesses can benefit
from existing and emerging technologies
----------------------..--....-------GV
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Create
;1
one-stop
small
business center
«mel online portal) in OED
to
help new
entrepreneurs as well as existing businesses
focllsed on life sciences and rechnology
careers
})
Offer entrepreneurial training through
Montgomery\'Vorks
Organize networks and job
clubs
for
specialized industries in community
locations (e.g., libraries)
Afnrketing
Create a communications and external
relations
team,
and staff
it
with business
development specialists in tech transfer,
busincss communications and marketing
Proactively promote the: County as the 'Smart'
location for busincss in targeted industry
publications, selected media,
and
ill
selected
markets in North America, Europe, Asia, the
Middle East and South America
Upgrade and enhance the OED web site and
collateral materials to improve
marketing
and
recrui.tment efforts
Double the number of participants in the
Mentorship Program
})
Smart Growth and 5J'ustainrlble Design
• Advance the economic development
opportunities
created
by
County's
green
building laws and
recently
enacted climate
change legislation
Emphasiz.e smart-growth
and
sllStainablc
design principles
to
enhance economic vitality
and improve the local quality of life: through
higher density and mixed-usc projects
Support the County's Smart Growth
Initiative, with a
focus
on dense transit­
oriented development; affordable. workforce
and market-rate housing; high-wage jobs in
biosciences and technology; and new higher
education opportunities
Promote the County's agricultural land
preservation efforts through the newly enacted
Building
Lot Termination program
(BLT).
Under the
program,
private developers can buy
BITs in the County's
Agricultural
Reserve in
exchange for greater density in Transit Mixcd­
Usc zones
Finflnce
lncrease the base of financial incentives for
existing businesses, such as the Technology
Growth
Fund,
Small Business
Revolving
Loan
Fund and the Impact Assistance Fund,
and
seek
new incentives
f()\"
bio-pharma,
nanotechnology, green technolot.'Y and other
ind usn"ies
Retool loan and grant fund evaluation criteria
to prioritize financial support for emerging
technology companies, in particular green
technology businesses
Increase the number of micro-loans issued
Central Business District Revitalization
Wheaton:
The
County
is
working
collaborativcly to
foster
the redevelopment
and rcvitalizarion of Wheaton's central
business district. A
market stud),
will
be help
assess Wheaton's competitive advantages.
and provide recommendations for <lttr<lcring
companies and jobs to the
eBD
~%rkj;m'e
SerlJices
Pursue workforce initiatives
that
benefit
workers in targeted industry clusters as well as
workers in non-tech
service
sectors:
}}
Advocate
tor greater
fi.mding
tor Maryland
Business Works
Open a special ized one-stop career center
}}
........................................
-~
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To
date, the
County
has:
Created a new Division of Business
Empowcnm:nt
in
the Department of
Economic Development
Established, in partnership with the Office
of Procurement, the successful Local Small
Business Reserve Program, through which
eligible County-based small businesses can bid
exclusively on selected County contracts
Created a new Micro-enterprise Loan
Program. which to date has funded three loans
totaling $45,000
Closed on seven business assistance projects
during
the first months
of
FY09.
DED
staff
is actively working with an additional
l52
prospects on retention, attraction or expansion
efforts
$1,954,621 in
FY08
and during the first
months of FY09. These County funds have
in turn kveraged an estimated
$25,239,500
in
external investments
Re-established
"Businm Apprecitltion Wieck"
to help understand the current challenges
facing businesses
and
their
plans for
the future.
In April 2008, County staff and partners
visited over 400 companies
to
recognize
their
achievemcnts,
learn
abour
their current
challenges and opportunities
and
provide
information on County
resources
Organized quarterly forums with "C- levcr'
business leaders and the County Execlltive
Hosted six forums with the County Executive
and
small
and minority businesses'
Sponsored a small business conkrellce in
the
spring of 2008
attended
by
over 300
entrepreneurs
Closed on 38 Economic Development
Fund
grant
and
loan
transactions totaling
---------------------------------~
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Goal Two: Adapt
to a
more
competitive business climate by
creating
an
environment where
knowledge-based clusters thrive
Clusters arc geographic concentrations of
interconnected companies, specialized sllppl.iers,
service providers and associated institutions in
a particular industry. Montgomery County's
csrablished dusters include: biosciences, information
technology/advanced technolof:,ry, electronics,
aerospace, satellite and communications, hospitality,
and government contracting. ll1e County's
emerging clusters include: green/dean technology,
nanotechnology, financial services and bio-pharma.
technologies from existing clusters
Foster the growth of the County's emerging
nanotechnology cluster by facilitating links
between industry, research, investor and
rcgulatory communities
Develop a green economy
and nurture
a green/clean technology cluster
Capitrti Projects and In/ymtmcturt'_______________
An
important component of duster development
is
a
ready supply of knowledge-workers. Montgomery
County's workforce development efforts must adjust
to meet its 2] st century demands. This includes
working regionally with our academic and business
partners
to
identify and develop the
talent
needed for
knowledge-based industries.
Montgomery County's
\Vorking with partners
workforce development
in the
pri\Tatc
sector
and
efforts must
meet
21st
government, develop
capital projects that will
century demands.
enhance our quality
of life, have positive spill-over effects and
are responsive to the needs of
key
industry
clusters. Strategic initiatives currently being
pursued include:
})
The
expansion
of the Shady Grove
Sciences Center
»
The development, in partnership with the
Action ltemsfor Goal Two
Industty ClUJtas
Enhance economic development
incentive
programs, and better align attraction and
retention efforts with incentives, tax policies
and regulations that benefit the growth and
Johns Hopkins University, the University
System of Maryland and others, of a
global science center in the Gaithersburg
West planning area where research can be
translated into marketable products
and
ptocesses within the context of a vibrant
live/work community
»
development of c1mters
Culrivate existing
and
emerging industry
c1ustcrs
formillg
taskforcc~
chat
will include
business, academia,
and
federal, state and
regional
government entities.
Each taskforcc
will
identi(v
ways
the County can grow and
strengthen the cluster
'DIe redevelopment
of the 115-acre
Assign a highly-qualified business
development
specialist
to
the County's
bioscience'S
cluster. to
provide greater support and resources to this
critical
industry
sector
Site II property, which neighbors the
consolidated
FDA
campus and the
proposed J\dventist Hospital in East
Coumy,
as a
mixed use science and
technology-focused development and
international center
t()r
the discovery and
manufacture of new drugs and vaccines
»
A science and technology park at the
Germantown
Cat11pll~
ofMomgomery College
chat
will
harness the
synergies
ofacadernia,
government, health care and business
Develop programs to provide technical
and financial assistance to suppOrt spin-off
-------------------------------------GE
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}}
A multi-usc arena and
a
live music!
entettainment venue
to incubator companies through DED's
financial grant and loan programs
• Engage
in
preliminary planning for the
County's sixth incubator, a proposed LEED­
Gold facility
in
the new Site
11
development
in
East County
\'Votk with other kev County
0
a<rencies
-
,
(M-NCPPC, Department ofPermirring
Services, Department of General Services)
to
fast track strategic County economic
development projects
Tech
Tran;,fer alld
Commercialization
• Support
the
commercialization of
new
technology and high-profile pilot programs for
tbe deployment
of
existing technologies that
have multiple industry applications
• Showcase local technoloh'Y
in
pilot projects and
adopt technology which improves the local
government's efficiency, finances or quality of
l
1X
orkforcl' Deul'fopment
Enhance the development and availability
of knowledge workers th rough speciali7.ed
efforts
to
recruit workers
with
the skills needed
for targeted industries and provide tailored
training
community
to
align workforce services with
targeted industry clusters, and actively seck
industry input in the development of training
curricula and course offerings
Work with the academic and business
life
Marketing
• Adequately fund County marketing
campaigns, and align DED advertising
programs with the new knowledge-economy
strategies
Expand DED's successful
"JAm
!¥1ontgomery"
marketing campaign, which showcases
existing
businesses and the reasons they chose
to
locate
in
Montgomery County
Work with private sector pannets to provide
"teacher employment" at technolob'Y and
biosciences companies
provide opportunities for job shadowing and
internships in technology and biosciellces
companies
Increase mentoring
of
young people and
opportunities for
profcssion~lls
from
County technology, bioscienccs, and other
companies
to
give presentations in County
Crean~
• Aggressively market the County regionally,
nationally and globally in selected media
• Selectively participate
ill
regional, national and
global biotech,
IT/A[
aerospace and other
trade shows
• Enhance the marketing features of D ED's wcb
sire
schools and
to
participate in career fdirs
Create a 'reverse science fiti r', in which
Montgomery County tech and biosciences
companies develop experiments/displays about
their work, and visiting middle school and
high school students become the judges
Business
ImlOl'f1fionNetwork
Continue to expand the County's successful
incubator netvmrk and provide seed funding
..........
----
..
------
......
--------...
~
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Accomplishments to date:
• The new
BioscieJlcesTnsk Force
has been
iLmned, and work is under way. Over the
coming year the Task Force will assist the
County in the development of a Bioscienccs
Strategy, which will articulate
a
vision and
recommended actions
to
help Montgomery
County maintain and expand its position
as
a
world leader in life sciences, clinical and
transla tional research
and
product
deli
very
Expanded rhe COllnty'S nationally renowned
Business Innovation Network. lhe County's
newest bioscicllceltechnology incubator
opened in October,
2008
on the Germantown
campus of Montgomery College. The
Network's five facilities comprise
147,000
square feet of office, lab and meeting space,
including
35
wet labs. These facilities
currently hOlLse
125
tenants, providing
400
jobs with an average annual
salary
of
$75,000
The County has begun work
to
develop
a
long-term strategy
to
harness emerging
opportunities in green technology. The
County is forming a green/clean technology
taskf()rce, and is working with a public­
private coalition to offer resources
to
foster
the development of the new Maryland Clean
Energy Center.
A
consulting team
will
work
with the task torce
to
assess the County's
"stanls" in the green technology industry,
identity competitive forces, and recommend
a" 1O-point plan" for the successful growth of
green indusrries in Montgomery COllnry
• The Network has graduated 88 companies,
7l of which are still operating. Graduate
companies have created
1,600
jobs and occupy
over
400,000
square feet of commercial space
in
the County
Montgornery\'Vorks Business Services team has
visited over
500
businesses, posted over
2,000
jobs listings, conducted nearly
200 individual
employer recruiting events, over
20
multiple
employer "forums" and six multiple employer
job flirs
----------------------------------~~
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Goal Three: Foster creative
and strong partnerships with
academia, federal researchers,
the private sector, non-profits
and various levels
of
government
to
pursue innovative projects,
policies and best practices and
support bUsiness growth and
expansion
One of Montgomery County's key competitive
advantages
is
the presence of high quality academic
and federal institurions in the region that train and
attract top researchers and professionals. The transfer
of the rich reservoir of research and intellectual
property
np)
that comes out of these institutions
to the private sector
The
County
will facilitate the
is key
to
the County's
transfer and translation
of
economic success. ll1e
knowledge and IP.
County must facilitate
the transfer of this
knowledge and IP and bring these diverse groups
together. In addition, the County needs
to
focus
special attention on its workforce, which requires
a broad range of skills to meet the needs of local
businesses.
Partnerships/Networks
in public-private projects to revitalize
the County's town centers and provide for
strategic redevelopment opportunities
• Strengthen the Federal Technology Network
and partner with the Federal Laboratory
Consortium forlccilnolos'Y Transfer
to
help
move technologies and research into rhe
marketplace
• Strengthen the County's partnerships with
business organizations and chambers
of
commerce
BRAe
Work with the County Executive's office
to ensure that BRAC consolidations in
Bethesda and other parts of the County create
opportunities for County-based firms and
create the necessary infrastructure to support
that growth
Workforce Delle!oprnent
• Continue
to
organize and sponsor events!
conferences that help retain post-doctorallcvd
scientists i
11
the County
• \\1ork with technology companies to tmin
dislocated workers, 100v-income adults, older
workers, disadvantaged workers and youth
• Work with businesses and educational
instltutiom, especially Montgomery College,
the Universities at
Shady
Grove and Johns
Hopkins University,
to
ensure that skills
needed by emerging industries are identified
and become a part of educational offerings
Action Items for Goa/Three
Policy Framework
Coordinate policies with other governmental
enrities to ensure a supportive environment
for cluster development and small business
development
Work with M-NCPPC to ensure that transit­
oriented development occurs around Ollr
Metro stations, and that businesses have input
in the County's plans for growth
Advance the presence of higher education and
ancillary research flCilities at the Universities
at Shady Grove, Johns Hopi<ins University,
the University
System
ofi\Iaryland
~U1d
Montgomery College
Finance
Rebuild and enhance the Economic
Development Fund so that 0 ED can leverage
its resources with State of Maryland funds.
including DBED. TEDCO, MEDCO,
MARBlDeC) and others,
to
attract, retain and
expand businesses in key indusrry clusters
............
------------------------~~
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Share inf(lfInation about entreprelJeurs with
prospective venture capitalists and angel
investors, and bcilitate new companies' access
to financial resources
• OED
is actively participating in the FLC's
Washington Area Working Group,
as
welJ
as
the FLC Mid-Atlantic Region Working
Group. OED
will host
FLC's
bioinfc)fmatics
conference in January,
2009.
ll1is effort
\vill
focus on the lab opportunities at NIH and
NIST
• The Montgomery County Innovation Institute
is a new pilot program that
wiII
match federal
labs with private sector interests.
It
will
align
the FedTechNet with Montgomery County
businesses, including the Business Innovation
Nerwork and small, minority and women­
owned firms
Accomplisll1nents to date:
TIle
County sponsored
the
NIST/UMBI
October
2008
Conference: "Accelerating
Innovation in 21st Century Bioscience," in
which over
400
scientists from
arollnd
the
globe participated
1he FedlechNet, established
\vith the
assistance of the Federal Laboratory
Consoniulll (FLC),
is a
County supported
network that will assist County based fedetal
labs establish new direct links with local
businesses interested in technology transfer
and commercialization opportunities
........................................
~~
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Goal Four: Establish global
linkages
to
facilitate business
opportunities abroad and
to
attract international investment in
Montgomery County
Globalization has increased the pressure on regions
throughout rhe world, pmhing them to increase
their competitiveness. A cluster's ability
to
develop
a dynamic international network is important
to
its
competitiveness. Companies that have cultivated
strong networks internationally can tap into them
for business intelligence and marketplace trends.
Research shows that high tech companies arc
leveraging international
Business development
markets earlier in their
missions will target
development than in previous
selected U.S. and
years.
Build strong relationships with County­
based international entrepreneurs to leverage
networks in their countries of origin
A1arkctil'lg and
International
Outreac;'
Leverage County companies' international
connections, and undertake selective
marketing campaigns in those markets
Capitalize on the County's unique
demographic profile, which provides local and
international companies with employees
wei
versed in multiple cultures and languages
Focus marketing and promotional activities
in selected media and in selected markets­
globally and locally
Expand the Business Innovation 1\'ctwork's
portfolio of international companies
strategic international
markets.
Business development
missions should target
selected U.S. states as well as
international markets such as Canada, Europe, Israel,
selected Asian nations (including Japan, China, India,
Korea and
l-~liwan)
and South America (Brazil).
These missions should be driven
by
data intelligence.
partnerships and business potential.
Accomplishment to date
• Strategic international business missions: In
2007, the County sent business delegations
to
Europe, Israel and India. In 2008,
business missic)fIs went
to
Korea and
China to strengthen business relationships,
assist County firms in expanding business
opportunities and market the County as a
Smart Locatioll
for international firms and
investments
»
Action Items for Goal Four
PtlrtllershipslNetworkJ
Facilitate international networks for County­
based businesses so that they can beneht from
emerging market trends, business intelligence
and global opportunities
Continw: to be an active member of the World
Trade Center Institute, the Tech Council of
Maryland and other global organizations that
organize regional and international networking
events. Amongst other events, OED will
continue
to
sponsor the annual Embassy Day
in Montgomery County
• Strengthen rclations with international
organizations that have business tics
to
Europe,
Asia and Latin America (such as the KOTRA,
FICC!,
CTI,
CRA,
GAIBr~
erc.)
As a direct result of these business
missions, the County welcomed over
a dozen international companies from
India, the U.K., the Netherlands, Korea
and China in 2007 and 2008. OED has
been invited
to
speak at IndiaSoft 2009.
the largest IT/AT conference ofIndia.
Chungbuk Province (Korea) has pledged
$2 million in investment support for the
incubator facility
to
be built as part of
the County's development of Site II. Tn
addition, the County identified at least
20
Korean prospecrs and over
12
Chinese
prospects that are expected
to
establish a
U.S. presence within the next five years
.........................................
~
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V.
Performance Measuresl
Outcomes
The County
will
use quantifiable measures to assess
the ovemll strength of its economic development
strategy,
as
well as outcomes.
2) Number of jobs created
by
companies
participating in the Network per County
dollar invested
3)
Number of companies graduating fr0111
the Network that occupy commercial
space in Montgomery County
Headline Measure on: DED's Business Attraction,
Retention
&
Expansion Efforts
Outcomes ofBuJiness Attmction. Retention
b:pansion Efforts will
be
measured
k}':
1)
Jobs created:
1.
By existing business
expansion
Sub-Measures
A)
Financing Programs (Eco1lomic
Development Fund)
Outcomes 0fFimmcing Program5
(uill be
measured
by:
Number of
EDF
transactions
completed
2.
By new business attraction
2)
2)
j)
4}
Total new capital investment:
N umber and value of Micro-loans
awarded
Number and value
of Small
Business
loans awarded
Number and value oflmpact
Assistance
grants
provided
Ratio and dollar value of all external
funds lever<lged per County dollar
invested
Number of jobs created or retained
through these programs
I.
By businesses currently
located in the COUnty
2.
By newly attracted
companies and business
start-ups
3)
Office space occupied:
5}
1.
By existing business
expansion
2. By new business attraction
4) Survey results from the businesses that
have participated in County-sponsored
technical assistance programs
5) Number
of
prospects in
DED's
'active'
pipeline that arc successfully closed
6)
B)
Capital
Project inzlestments
Outcomes
of
Capital
Projects
inz)estmentJ
will
be
mea.furul
by:
I)
Ratio
of
private sector and non­
County investment
to
County funds
invested
Jobs created through OED led
development projects
Headline Measures on: Business Innovation
Network
Outcomes o/the
Business
lnnol'fltion Network
will be
measurl'd
b:y:
1) Number of new jobs created by
incubator tenant companies and
graduates
2)
........................................_QD
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C)
Marketing Pmgra11ls
E)
lVm<kforce Services
Outcomes ofMar/<eting Programs
will
be measured by:
1)
2)
Outcomes
afWorkforce
Sm'ias will
be
nmlsurecl
by:
1)
Number
of
companies participating
in
"I
Am Montgomery"
Number of new
contacts
(prospects)
developed
Number
of\X!cb
site hits
Number
of
job-seeking customers
in
the Intensive Service Program that arc
placed
in
jobs
Number
of
employers assisted with
training
and recruitment
2)
3)
D)
Global Linkages
F)
Agricultural Services
Outcomes ofAgricultuml