Agenda Item 5
February 7, 2012
Introduction
MEMORANDUM
February 3, 2012
TO:
County Council
FROM:
SUBJECT:
Robert H. Drummer, Senior Legislative Attorney
~
~
(\
Introduction:
Bill 6-12, Economic Development - Small Business Assistance
Bill 6-12, Economic Development Small Business Assistance, sponsored by Council
Vice President Navarro, Councilmembers Ervin, Floreen, Leventhal and Council President
Berliner, is scheduled to be introduced on February 7, 2012. A public hearing is tentatively
scheduled for February 28 at 1:30 p.m.
Background
Bill 6-12 would establish a program to assist small businesses located in either an
enterprise zone
1
or an urban renewal area
2
of the County who are adversely impacted by a
County redevelopment project or a redevelopment project located on County property. The Bill
would require the Director of the Department of Economic Development (DED Director) to
create and operate the program. Subject to Council appropriation, the Director may award a
grant or loan from the Economic Development Fund (EDF) to an eligible small business and
provide technical assistance and training to a small business receiving financial assistance under
the program. An award that exceeds $100,000 cumulatively must be approved by the Council.
The Bill would also require the Executive to adopt method 2 regulations to implement
this program. The regulations must:
(l)
require the Director to compile and maintain a list of approved technical training
courses on the appropriate website;
(2) specify the application procedures and eligibility criteria for a grant or loan to a
small business under the Program;
(3) specify conditions that the Director may impose on a small business in order to
receive financial assistance from the Fund under the Program;
(4) define what constitutes an adverse impact on a small business;
(5) define what constitutes financial health of a small business; and
(6) identify outreach methods and marketing strategies to inform local small
businesses of the program.
1
2
An enterprise zone must be designated by the Maryland Department of Business and Economic Development.
An urban renewal area must be designated by the CounciL
 PDF to HTML - Convert PDF files to HTML files
The Department of Economic Development operated the Impact Assistance Program
(lAP) as part of the EDF beginning in FY05. The lAP was established by a Council
appropriation of $100,000 to the EDF in FY05 to assist small businesses adversely impacted by
County development or redevelopment projects. Since inception, the lAP has provided
assistance from the EDF to 26 different small businesses. A list of the recipients is included in
the EDF Annual Report dated March 15,2011 at ©7.
The Council did not appropriate funds for the lAP in FYlO, FY11, and FY12. The
Bill
would establish a similar assistance program in the EDF law with a similar, but not identical,
group of potential eligible businesses. The
Bill
would also permit the DED Director to require
an applicant for assistance to complete approved technical training as a condition of receiving
financial assistance from the program.
This packet contains:
Bill
6-12
Legislative Request Report
Excerpt EDF Annual Report dated March 15,2011
F:\LAW\BILLS\1206 ED-Small Business Assistance\Tntro Memo.Doc
Circle
#
1
5
6
2
 PDF to HTML - Convert PDF files to HTML files
Bill No.
6-12
Concerning: Economic Development ­
Small Business Assistance
Revised: January 25. 2012 Draft No.
L
Introduced:
February 7.2012
Expires:
August 7.2013
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _
~
_ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: -!2.No::::,:n.:.::e:...--_,.----_ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council Vice President Navarro and Councilmembers Ervin, Floreen, Leventhal, and Council
President Berliner
AN
ACT to:
(1)
establish a program to assist certain small businesses located in the County who are
adversely impacted by a County redevelopment project or a redevelopment project
located on County property;
provide technical assistance and training to a small business who receives financial
assistance from the Economic Development Fund;
authorize financial assistance to certain small businesses from the Economic
Development Fund; and
generally amend the economic development laws.
(2)
(3)
(4)
By adding
Montgomery County Code
Chapter 20. Finance
Section 20-76B
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:
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
6-12
1
Sec.
1.
Sections 20-76B is added as follows:
20-76B.
Small Business Assistance Program.
Definitions.
As used in this Section:
Adverse impact
means
f!
loss of revenue resulting from
f!
redevelopment
2
3
4
5
ill
project.
Director
means the Director of the Department of Economic
6
7
Development.
Enterprise zone
means an area designated under Maryland Code,
8
9
10
Economic Development Article, Section 5-704 or any successor
prOVlSIOn.
Fund
means the Economic Development Fund established in Section
11
12
20-73.
Program
means the Small Business Assistance Program.
Redevelopment project
means
13
14
15
any
construction,
alteration,
or
improvement in an urban renewal area or enterprise zone where the
existing land use is commercial or industrial and is:
16
17
18
19
ill
ill
located on property owned
Qy
the County; or
financed in whole or part
Qy
the County.
Small business
means
f!
privately owned business that meets the
20
21
requirements of Section I1B-65(a).
Technical assistance
means training directly related to operating
f!
small
22
23
business provided
Qy
an educational institution or
f!
non-profit
organization approved
Qy
the Director.
Urban renewal area
means an area of the County as dermed in Section
24
25
26
56-9(t).
(Q}
Establishment
Q[
Program.
Subject to appropriation, the Director must
27
create and administer
f!
Small Business Assistance Program to assist
o
f:llawlbillsl1206 ed-small business assistance\biIlS.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 6-12
28
29
small businesses who are adversely impacted
Qy
a redevelopment
project.
30
31
W
Eligibility.
The Director, based upon information submitted
Qy
the
applicant for assistance, must find that:
32
33
34
ill
the applicant is the owner of an existing small business located
near an ongoing or future redevelopment project that is planned
to begin construction in less than 24 months after the application;
35
36
m
ill
@
the applicant's small business is currently or is likely to be
adversely impacted
Qy
the redevelopment project; and
the applicant's small business is financially healthy and likely to
continue operating for the foreseeable future.
37
38
39
40
41
42
43
44
45
46
Conditions.
The Director may impose reasonable conditions on
£!
small
business, including the successful completion of approved technical
assistance training, in order to receive financial assistance from the
Fund under the Program.
W
Financial assistance.
The Director may award
£!
W!!!
or loan from the
Fund to an eligible small business under the Program. A loan or grant
to
£!
small business that exceeds $100,000 cumulatively must be
approved
Qy
the Council.
47
48
49
50
51
52
ill
Regulations.
The Executive must adopt method 2 regulations to
implement this Section. The regulations must:
ill
require the Director to compile and maintain
£!
list of approved
technical training courses on the appropriate website;
m
specify the application procedures and eligibility criteria for
£!
grant or loan to
£!
small business under the Program;
®
f:\law\bills\1206 ed-small business assistance\bill5,doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 6-12
53
54
ill
specify conditions that the Director may impose on
~
small
business in order to receive financial assistance from the Fund
under the Program;
55
56
57
58
59
60
ill
ill
®
(g)
define what constitutes an adverse impact on
~
small business;
define what constitutes financial health of
~
small business; and
identify outreach methods and marketing strategies to inform
local small businesses ofthe program.
Reports.
On or before March
II
of each year, the Executive must report
61
62
to the Council on the activities of the Program.
include:
The report must
63
64
65
66
ill
ill
the number of small businesses participating in the Program;
the number and dollar amount of grants and loans made; and
an evaluation of the impact of each grant or loan on the operation
of the small business.
ill
67
68
Approved:
69
Roger Berliner, President, County Council
Date
70
71
Approved:
Isiah Leggett, County Executive
Date
72
This is a correct copy ofCouncil action.
73
Linda M. Lauer, Clerk of the Council
Date
f:\lawlbills\1206 ed-small business assistancelbill5.doc
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Bill 6-12
Economic Development
-
Small Business Assistance
DESCRIPTION:
This bill would establish a program to assist small businesses located
in an enterprise zone or urban renewal area of the County who are
adversely impacted by a County redevelopment project or a
redevelopment project located on County property. The Bill would
permit the DED Director to require a recipient to complete approved
technical training as a condition of receiving financial assistance
from the Economic Development Fund.
A County redevelopment project may adversely affect small
businesses located near the project. With appropriate assistance,
many small businesses may be able to operate successfully during the
project.
To assist small businesses who are adversely impacted by a
redevelopment project.
DED Director, DGS 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.
F:\LAW\BILLS\1206 ED-Small Business Assistance\LRR.Doc
f:\law\bills\1206 ed-small business assistance\lrr.doc
 PDF to HTML - Convert PDF files to HTML files
I!
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Montgomery County
March 15,2011
Economic Development Fund
Annual Report
I
Isiah Leggett
County
Executive
Timothy Firestine
Chief Administrative Officer
Valerie Ervin
Council President
Prepared
by
the
Department of Economic Development
 PDF to HTML - Convert PDF files to HTML files
D.
Impact Assistance Program
In
FY05, the hupact Assistance Program was approved by the County Council and
$100,000 was appropriated for seed funding. The purpose of this Program is to mitigate, as
much as possible, any adverse impact that small businesses might be experiencing due to
County-initiated development, re-development, or renovation projects. The County Council
appropriated a total of $650,000 to support increasing activities under this Program.
Since the inception of the Program, the following businesses have received impact
~~~~~~
totaling $477,521:
E.
Export Montgomery Program
The Export .\1ontgomery Grant Program was established in 2001 under the Economic
Development Fund. The purpose of this Program was to assist .\1ontgomery County exporteers
that contribute to the economic strength and stability of the local economy, and to provide
indirect marketing for the County. This Program operated with a $30,000 set-aside from the
Economic Development Fund and provided grants of up to $5,000 to qualified companies with
export related projects. Receipt of an Export .\1ontgomery grant was contingent upon
participation in the State's Export .\1aryland Program. Due to lack ofactivities, this Program was
20
(j)
1
 PDF to HTML - Convert PDF files to HTML files
Agenda Item 5
February 7, 2012
Introduction
MEMORANDUM
February 3, 2012
TO:
County Council
FROM:
SUBJECT:
Robert H. Drummer, Senior Legislative Attorney
~
~
(\
Introduction:
Bill 6-12, Economic Development - Small Business Assistance
Bill 6-12, Economic Development Small Business Assistance, sponsored by Council
Vice President Navarro, Councilmembers Ervin, Floreen, Leventhal and Council President
Berliner, is scheduled to be introduced on February 7, 2012. A public hearing is tentatively
scheduled for February 28 at 1:30 p.m.
Background
Bill 6-12 would establish a program to assist small businesses located in either an
enterprise zone
1
or an urban renewal area
2
of the County who are adversely impacted by a
County redevelopment project or a redevelopment project located on County property. The Bill
would require the Director of the Department of Economic Development (DED Director) to
create and operate the program. Subject to Council appropriation, the Director may award a
grant or loan from the Economic Development Fund (EDF) to an eligible small business and
provide technical assistance and training to a small business receiving financial assistance under
the program. An award that exceeds $100,000 cumulatively must be approved by the Council.
The Bill would also require the Executive to adopt method 2 regulations to implement
this program. The regulations must:
(l)
require the Director to compile and maintain a list of approved technical training
courses on the appropriate website;
(2) specify the application procedures and eligibility criteria for a grant or loan to a
small business under the Program;
(3) specify conditions that the Director may impose on a small business in order to
receive financial assistance from the Fund under the Program;
(4) define what constitutes an adverse impact on a small business;
(5) define what constitutes financial health of a small business; and
(6) identify outreach methods and marketing strategies to inform local small
businesses of the program.
1
2
An enterprise zone must be designated by the Maryland Department of Business and Economic Development.
An urban renewal area must be designated by the CounciL
 PDF to HTML - Convert PDF files to HTML files
The Department of Economic Development operated the Impact Assistance Program
(lAP) as part of the EDF beginning in FY05. The lAP was established by a Council
appropriation of $100,000 to the EDF in FY05 to assist small businesses adversely impacted by
County development or redevelopment projects. Since inception, the lAP has provided
assistance from the EDF to 26 different small businesses. A list of the recipients is included in
the EDF Annual Report dated March 15,2011 at ©7.
The Council did not appropriate funds for the lAP in FYlO, FY11, and FY12. The
Bill
would establish a similar assistance program in the EDF law with a similar, but not identical,
group of potential eligible businesses. The
Bill
would also permit the DED Director to require
an applicant for assistance to complete approved technical training as a condition of receiving
financial assistance from the program.
This packet contains:
Bill
6-12
Legislative Request Report
Excerpt EDF Annual Report dated March 15,2011
F:\LAW\BILLS\1206 ED-Small Business Assistance\Tntro Memo.Doc
Circle
#
1
5
6
2
 PDF to HTML - Convert PDF files to HTML files
Bill No.
6-12
Concerning: Economic Development ­
Small Business Assistance
Revised: January 25. 2012 Draft No.
L
Introduced:
February 7.2012
Expires:
August 7.2013
Enacted: _ _ _ _ _ _ _ _ __
Executive: _ _ _ _
~
_ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date: -!2.No::::,:n.:.::e:...--_,.----_ _ __
Ch. _ _, Laws of Mont. Co. _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Council Vice President Navarro and Councilmembers Ervin, Floreen, Leventhal, and Council
President Berliner
AN
ACT to:
(1)
establish a program to assist certain small businesses located in the County who are
adversely impacted by a County redevelopment project or a redevelopment project
located on County property;
provide technical assistance and training to a small business who receives financial
assistance from the Economic Development Fund;
authorize financial assistance to certain small businesses from the Economic
Development Fund; and
generally amend the economic development laws.
(2)
(3)
(4)
By adding
Montgomery County Code
Chapter 20. Finance
Section 20-76B
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:
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
6-12
1
Sec.
1.
Sections 20-76B is added as follows:
20-76B.
Small Business Assistance Program.
Definitions.
As used in this Section:
Adverse impact
means
f!
loss of revenue resulting from
f!
redevelopment
2
3
4
5
ill
project.
Director
means the Director of the Department of Economic
6
7
Development.
Enterprise zone
means an area designated under Maryland Code,
8
9
10
Economic Development Article, Section 5-704 or any successor
prOVlSIOn.
Fund
means the Economic Development Fund established in Section
11
12
20-73.
Program
means the Small Business Assistance Program.
Redevelopment project
means
13
14
15
any
construction,
alteration,
or
improvement in an urban renewal area or enterprise zone where the
existing land use is commercial or industrial and is:
16
17
18
19
ill
ill
located on property owned
Qy
the County; or
financed in whole or part
Qy
the County.
Small business
means
f!
privately owned business that meets the
20
21
requirements of Section I1B-65(a).
Technical assistance
means training directly related to operating
f!
small
22
23
business provided
Qy
an educational institution or
f!
non-profit
organization approved
Qy
the Director.
Urban renewal area
means an area of the County as dermed in Section
24
25
26
56-9(t).
(Q}
Establishment
Q[
Program.
Subject to appropriation, the Director must
27
create and administer
f!
Small Business Assistance Program to assist
o
f:llawlbillsl1206 ed-small business assistance\biIlS.doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 6-12
28
29
small businesses who are adversely impacted
Qy
a redevelopment
project.
30
31
W
Eligibility.
The Director, based upon information submitted
Qy
the
applicant for assistance, must find that:
32
33
34
ill
the applicant is the owner of an existing small business located
near an ongoing or future redevelopment project that is planned
to begin construction in less than 24 months after the application;
35
36
m
ill
@
the applicant's small business is currently or is likely to be
adversely impacted
Qy
the redevelopment project; and
the applicant's small business is financially healthy and likely to
continue operating for the foreseeable future.
37
38
39
40
41
42
43
44
45
46
Conditions.
The Director may impose reasonable conditions on
£!
small
business, including the successful completion of approved technical
assistance training, in order to receive financial assistance from the
Fund under the Program.
W
Financial assistance.
The Director may award
£!
W!!!
or loan from the
Fund to an eligible small business under the Program. A loan or grant
to
£!
small business that exceeds $100,000 cumulatively must be
approved
Qy
the Council.
47
48
49
50
51
52
ill
Regulations.
The Executive must adopt method 2 regulations to
implement this Section. The regulations must:
ill
require the Director to compile and maintain
£!
list of approved
technical training courses on the appropriate website;
m
specify the application procedures and eligibility criteria for
£!
grant or loan to
£!
small business under the Program;
®
f:\law\bills\1206 ed-small business assistance\bill5,doc
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 6-12
53
54
ill
specify conditions that the Director may impose on
~
small
business in order to receive financial assistance from the Fund
under the Program;
55
56
57
58
59
60
ill
ill
®
(g)
define what constitutes an adverse impact on
~
small business;
define what constitutes financial health of
~
small business; and
identify outreach methods and marketing strategies to inform
local small businesses ofthe program.
Reports.
On or before March
II
of each year, the Executive must report
61
62
to the Council on the activities of the Program.
include:
The report must
63
64
65
66
ill
ill
the number of small businesses participating in the Program;
the number and dollar amount of grants and loans made; and
an evaluation of the impact of each grant or loan on the operation
of the small business.
ill
67
68
Approved:
69
Roger Berliner, President, County Council
Date
70
71
Approved:
Isiah Leggett, County Executive
Date
72
This is a correct copy ofCouncil action.
73
Linda M. Lauer, Clerk of the Council
Date
f:\lawlbills\1206 ed-small business assistancelbill5.doc
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Bill 6-12
Economic Development
-
Small Business Assistance
DESCRIPTION:
This bill would establish a program to assist small businesses located
in an enterprise zone or urban renewal area of the County who are
adversely impacted by a County redevelopment project or a
redevelopment project located on County property. The Bill would
permit the DED Director to require a recipient to complete approved
technical training as a condition of receiving financial assistance
from the Economic Development Fund.
A County redevelopment project may adversely affect small
businesses located near the project. With appropriate assistance,
many small businesses may be able to operate successfully during the
project.
To assist small businesses who are adversely impacted by a
redevelopment project.
DED Director, DGS 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.
F:\LAW\BILLS\1206 ED-Small Business Assistance\LRR.Doc
f:\law\bills\1206 ed-small business assistance\lrr.doc
 PDF to HTML - Convert PDF files to HTML files
I!
I
I
I
I
I
I
I
I
I
I
I
I
I
I
Montgomery County
March 15,2011
Economic Development Fund
Annual Report
I
Isiah Leggett
County
Executive
Timothy Firestine
Chief Administrative Officer
Valerie Ervin
Council President
Prepared
by
the
Department of Economic Development
 PDF to HTML - Convert PDF files to HTML files
D.
Impact Assistance Program
In
FY05, the hupact Assistance Program was approved by the County Council and
$100,000 was appropriated for seed funding. The purpose of this Program is to mitigate, as
much as possible, any adverse impact that small businesses might be experiencing due to
County-initiated development, re-development, or renovation projects. The County Council
appropriated a total of $650,000 to support increasing activities under this Program.
Since the inception of the Program, the following businesses have received impact
~~~~~~
totaling $477,521:
E.
Export Montgomery Program
The Export .\1ontgomery Grant Program was established in 2001 under the Economic
Development Fund. The purpose of this Program was to assist .\1ontgomery County exporteers
that contribute to the economic strength and stability of the local economy, and to provide
indirect marketing for the County. This Program operated with a $30,000 set-aside from the
Economic Development Fund and provided grants of up to $5,000 to qualified companies with
export related projects. Receipt of an Export .\1ontgomery grant was contingent upon
participation in the State's Export .\1aryland Program. Due to lack ofactivities, this Program was
20
(j)
1