Agenda Item 6
March 20,2012
Introduction
MEMORANDUM
March 16,2012
TO:
County Council
FROM:
SUBJECT:
Robert H. Drummer, Senior Legislative AttomeyrQ
Introduction:
Bill 14-12, Economic Development Fund
Amendments
Bill 14-12, Economic Development Fund - Amendments, sponsored by Council
President Berliner, and Council members Riemer, Ervin, and EIrich, is scheduled to be introduced
on March 20,2012. A public hearing is tentatively scheduled for April 10 at 1:30 p.m.
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 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;
growth 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 of a tentative offer of more than $500,000.
This packet contains:
Bill 14-12
Legislative Request Report
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Bill No.
14 -12
Concerning: Economic
Development
Fund - Amendments
Revised: . March 13, 2012 Draft No. _5_
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~ Ervi~
and EIrich
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 hill.
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.
(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) the proposed assistance will materially improve the County's
economy and advance County economic development objectives
and strategies; or
(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 of jobs at an existing operation
in the County or
(D) respond to other economic development objectives.
(b) The Director must provide the Council with all fiscal analyses and other
supporting documents for any proposed offer of assistance to
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private
employer valued at more than $100,000. The supporting documents
must include:
20
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ill
the name, industry, location, employee compensation profile, and
estimated current and future taxes paid
Qy
the prospective
recipient;
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ill
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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;
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BILL
No.
14-12
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the number of new residents estimated to move into the County
resulting from gains in employment
Qy
the proposed recipient;
the
-
number
- - -
of new students estimated to enroll m
and cost
- ­
County public schools;
an analysis of how the proposed assistance supports the overall
goals of the economic development strategy; and
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®
ill
(£)
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offers, if any, made
Qy
or expected from other competing
jurisdictions.
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The Executive must notify the Council at least [2]
.
before
~
working days
the Executive tentatively offers assistance valued at more than
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$100,000 to a private employer, including all fiscal analyses and other
supporting documents described in subsection
(Q).
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
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]
~
working days
(or [5] 10 working days during a Council recess) before [offering]
making
£!
tentative offer ofassistance to the private employer.
[(
c)]
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The Council must approve each offer of assistance to
£!
private
employer valued at more than $500,000. 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.
o
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BILL No. 14-12
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ill
The notice required under subsection [(b)]
(£l
must also specify the
proposed terms of any assistance offered, including any repayment
provIsIOns.
[(d)]
ill
Unless expressly inconsistent with any other federal,
-
state, or County
58
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.
[(e)]
(g)
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*
*
*
20-76. Economic Development Strategic Plan, Administration.
(a)
The Executive must submit
£!:
proposed economic development strategic
plan for the County to the Council for approval on or before July
each even numbered year.
1
of
The Council may amend the proposed
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strategic plan and must approve
£!:
final strategic plan
Qy
resolution. The
success or progress of the strategic plan must be measurable and include
measures to address:
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ill
ill
ill
ill
ill
(Q)
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;
land use; and
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ill
®
(22
Q..Q}
other actions necessary to promote economic development in the
County.
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BILL No. 14-12
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Oil
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 fmancial assistance in
satisfying the economic development goals supporting the
assistance;
ill
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identify any assistance agreement where the recipient did not
satisfy the performance criteria in the agreement; and
track the progress of the Fund in satisfying the overall goals of
the approved economic development strategic plan.
Sec. 2. Transition.
The County Executive must submit the initial proposed 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
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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 perform each core function of economic
development;
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(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.
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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:
EXPERIEN CE
ELSEWHERE:
SOURCE OF
INFORMATION:
APPLICATION
WITHIN
MUNICIPALITIES:
PENAL TIES:
Not applicable.
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