Agenda Item 23C
May 21,2015
Introduction
MEMORANDUM
May 19,2015
TO:
FROM:
County Council
Robert
H.
Dnunmer, Senior Legislative
Attom~i
.C\
-}
Reorganization ­
SUBJECT:
Introduction:
Bill 25-15, Economic Development -
Montgomery County Economic Development Corporation
Bill 25-15, Economic Development - Reorganization Montgomery County Economic
Development Corporation, sponsored by Lead Sponsor Council President at the request of the
County Executive, is scheduled to be introduced on May 21, 2015. A public hearing is tentatively
scheduled for June 9 at 1:30 p.m.
Bil125-15 would:
(l)
eliminate the Department of Economic Development as a principal department of
the Executive Branch;
(2) create an Office of Agriculture;
(3) transfer certain duties of the Department of Economic Development to other
County agencies;
(4) provide for the designation of a non-profit corporation as the Montgomery County
Economic Development Corporation;
(5) assign certain duties to the Montgomery County Economic Development
Corporation and exempt this assignment from a certain procurement law;
(6)
provide a certain notice under the collective bargaining law;
(7)
(8)
remove the. designation of the County's Business Development Corporation; and
generally amend County laws, regulations, and certain contracts governing
economic development and agricultural preservation.
Background
The Bill would privatize some of the functions currently perfonned by the Department of
Economic Development (DED). These duties would be delegated to a non-profit corporation
designated as the Montgomery County Economic Development Corporation by the Council. Each
of the 11 members of the Board of Directors of the Corporation would be appointed by the
Executive and continned by the Council, but the Corporation would not be an agency of the
County government. Certain duties now perfonned by DED would be transferred to the
Department of Finance and a new Office of Agriculture. The Executive briefly explained why he
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is recommending the privatization of some of the duties now performed by DED in his transmittal
memo at ©31 and the Frequently Asked Questions at ©32-35.
This packet contains:
Bill 25-15
Legislative Request Report
Executive Memo
Frequently Asked Questions
Circle
#
1
29
31
32
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Bill
No.
25-15
Concerning: Economic Development ­
Reorganization
Montgomery
County Economic Development
Corporation
Revised: May
15,2015
Draft No.
...L
Introduced: _ _ _ _ _ _ _ _ __
Expires: _ _ _ _ _ _ _ _ _ __
Enacted: _ _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ _ __
Sunset Date: -.!..!N=o=ne=-_-:::-_ _ __
Ch. _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
By: Lead Sponsor: Council President at the request of the County Executive
AN
ACT to:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
eliminate the Department of Economic Development as a principal department of the
Executive Branch;
create an Office of Agriculture;
transfer certain duties of the Department of Economic Development to other County
agencies;
provide for the designation of a non-profit corporation as the Montgomery County
Economic Development Corporation;
assign certain duties to the Montgomery County Economic Development Corporation and
exempt this assignment from a certain procurement law;
provide a certain notice under the collective bargaining law;
remove the designation of the County's Business Development Corporation; and
generally amend County laws, regulations, and certain contracts governing economic
development and agricultural preservation.
By amending
Montgomery County Code
Chapter lA, Structure of County Government
Sections IA-201 and lA-203
Chapter 2, Administration
Sections 2-27 and 2-64L
Chapter 2B, Agricultural Land Preservation
Sections 2B-l, 2B-3, 2B-7, 2B-I0, 2B-14, 2B-17, 2B-19, 2B-20, and 2B-21
Chapter 20, Finance
Sections 20-76, 20-76B, 20-76C, and 20-76D
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BILL
No. 25-15
Chapter 27, Human Rights and Civil Liberties
Section 27-26B
Chapter 30B, Business Development Corporation
Sections 30B-I, 30B-2, 30B-3, 30B-4, 30B-5, 30B-6, and 30B-7
Chapter 40, Real Property
Section 40-I2B
Chapter 44, Schools and Camps
Section 44-47
By adding
Chapter 2B, Agricultural Land Preservation
Section 2B-l A
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. 25-15
Sec. 1. Section 2B-1A is added and Sections 1A-201, 1A-203, 2-27, 2-64L,
2
2B-1, 2B-3, 2B-7, 2B-10, 2B-14, 2B-17, 2B-19, 2B-20, 2B-21, 20-76, 20-76B, 2­
076C, 20-76D, 27-26B, 30B-1, 30B-2, 30B-3, 30B-4, 30B-5, 30B-6, 30B-7, 40-12B,
and 44-47 are amended as follows:
1A-20t. Establishing departments and principal offices.
(a)
Executive Branch.
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4
5
6
7
(1)
These are the departments and principal offices of the Executive
Branch.
County Executive [Charter,
§
201 et seq.]
Chief Administrative Officer [Charter,
§
210 et seq.]
Consumer Protection (Section 11-2)
Correction and Rehabilitation [Section 2-28]
County Attorney [Charter
§
213]
[Economic Development [Section 2-64L]]
Environmental Protection [Section 2-29]
Finance [Charter
§
214; Section 20-38 et seq.]
Fire and Rescue Services [Section 2-39A]
General Services [Section 2-30]
Health and Human Services [Section 2-42A]
Housing and Community Affairs [Section 2-27 et seq.]
Human Resources [Section 2-641; ch. 33]
Intergovernmental Relations [Section 2-64J]
Liquor Control
Management and Budget [Section 2-64K]
Pennitting Services [Section 2-42B]
Police [Section 2-43; ch. 35]
Public Infonnation
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25
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27
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No. 25-15
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Public Libraries [Section 2-45 et seq.]
Recreation [Section 2-58]
Technology Services [Section 2-58D]
Transportation [Section 2-55 et seq.]
(2)
The County Executive determines whether an entity is a
department or a principal office.
[a]
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Entities that directly
departments.
serve
the
public
are
[b]
lID
Entities that provide internal support to other parts
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of County government are principal offices.
*
lA-203.
Establishing other
offices.
(
a)
*
*
Executive Branch. These are the offices of the Executive Branch that
are not part of a department or principal office:
Office of Agriculture [section 2B-IA]
Office of the Commission for Women [section 27-28 et seq.]
Office of Community Use of Public Facilities [section 44-4]
Office of Emergency Management and Homeland Security [section 2­
640]
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44
45
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47
Office of Human Rights [section 27-4]
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*
2-27.
Functions and organization.
*
*
The Department of Housing and Community Affairs has the following
functions:
(1)
(2)
Affordable housing programs.
Community development programs.
(A)
Urban renewal and community development projects.
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No.
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(B)
(3)
(4)
(5)
(6)
Relocation services for families and businesses displaced
by governmental actions.
Housing standards enforcement, and related activities.
Landlord-tenant relations.
Common ownership community relations.
[Technical assistance to the Department of Economic
Development and the Department of Environmental Protection
in the area of human resources, budget, technology, and
procurement.
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(7)]
Other functions designated by law.
Division 18. [Department of Economic Development] Reserved.
2-64L. [Functions and organization] Reserved.
[(a)
The Department of Economic Development
promoting and supporting:
(1)
IS
responsible for
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industrial and commercial development in the County, including
the technology and hospitality industries;
(2)
agricultural preservation and enhancement m the County,
including programs associated with the Soil Conservation
District and the Cooperative Extension Service;
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(3)
other economic development in the County, including
coordination of employment and work force training; and
(4)
services to resident businesses in the County, including business
retention, counseling, business planning, and other services to
maintain the existing economic base.
(b)
In
addition to the Director, the Department of Economic Development
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has two non-merit system positions for a marketing and business
development manager and minority business affairs manager.]
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No. 25-15
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2B-1. Definitions.
*
meanings indIcated:
*
*
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[(a)] In this Chapter, the following words and phrases shall have the
*
Economic Development.]
*
*
[Department
means, unless otherwise specified, the Department of
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*
*
*
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Landowner
means a fee simple owner of land located in the County on
which a landowner proposes to sell or has sold an agricultural easement
to the State or the County.
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Office
means the Office of Agriculture.
*
*
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*
or
Significant Agricultural Resource
Significant Agricultural
Capability
means land which, if properly agronomically managed and
under normal growing conditions, the [Department] Office, after
consulting local agricultural support agencies, finds can sustain a
profitable farm enterprise.
2B-1A. Office of Agriculture.
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The Office must:
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administer this Chapter and the regulations issued under
it.
foster agricultural preservation;
!hl
{£)
administer programs associated with the Soil Conservation District and
the Cooperative Extension Service; and
@
perform other duties as assigned
Qy
the County Executive.
2B-3. State Easement Application and Purchase.
*
*
*
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(d)
If either the APAB or the Planning Board recommends approval, the
County Council must hold a public hearing on the proposed easement.
The [Department] Office must give adequate notice of the hearing to
the owner of any land adjacent to the proposed agricultural easement.
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III
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*
(i)
*
*
The [Department] Office must work with the State to record each State
agricultural easement
in
the County land records. The recordation of a
State agricultural easement is not subject to any County recordation or
transfer tax.
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2B-7. County Easement Application and Purchase.
(a)
A landowner seeking to place land under an agricultural easement must.
submit an easement sales application to the [Department of Economic
Development] Office. The application must include a completed
property description and specify the landowner's asking price.
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*
(e)
*
*
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Ifany land does not meet all requirements of subsection (d), the County
must not buy a County agricultural easement on that land unless:
(A)
the [Department] Office finds that placing an agricultural
easement on that land is in the public interest; and
(B)
the [Department] Office concludes, after consulting local
agricultural support agencies, that
agricultural resources.
*
*
*
th~
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land has significant
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2B-I0. Termination and repurchase of agricultural easements.
(a)
Process to Terminate and Repurchase an Easement.
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*
*
*
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No. 25-15
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(4) The APAB must determine if profitable farming is feasible on
the land and issue a written recommendation to the [Department]
Office.
In
determining whether farming is profitable, the APAB
must consider:
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*
*
*
(5) After the APAB issues its recommendation, the [Department]
Office must advise the landowner that the [Department] Office
must order an appraisal of the land at the landowner's expense.
The appraisal must consider the current fair market value of land
and the current fair market value of the land encumbered by an
agricultural easement. The difference between these values must
represent the present value ofthe agricultural easement.
(6) The landowner must pay the [Department] Office for the cost of
an appraisal. The [Department] Office must order the appraisal
after receiving the funds from the landowner.
(7) After receiving the
completed appraisal
and AP AB' s
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recommendation, the County Council must hold a public hearing
on the request to terminate the agricultural easement. The
[Department] Office must notify each [owenr] owner of land
adjacent to the land where the easement is located of the public
hearing.
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*
*
*
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(10) The landowner must pay the required payment to the County
within 180 days after the Executive agrees to terminate the
easement.
After
receiving
the
required
payment,
the
[Department] Office must prepare, execute, and deliver to the
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landowner for recording, a Deed of Termination and Release
from Easement.
*
2B-14. Recordation.
*
*
(a)
The County Attorney must record each agricultural easement in the
County land records. The recordation ofan agricultural easement is not
subject to any County transfer or recordation tax.
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(b)
Each agricultural easement must:
(1)
be recorded in the form required by the [Department] Office;
run with the land and bind the landowner and each assignee,
transferee, mortgagee, and any other party who obtains title to
the property; and
(2)
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(3)
be recorded so that the easement is senior in priority to all liens,
including any instrument securing permanent financing.
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*
2B-17. BLT Account.
*
*
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(a)
The [Department] Office must create a separate account under the
Fund, entitled the BLT Account.
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(b)
The BLT Account must contain payments made to comply with
conditions of approval which the Planning Board has imposed for
certain development plans, and may also contain funds received
through donation, appropriation, bond proceeds, or any other source.
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(c)
Funds in the BLT Account must be spent only on BLT easements.
Funds in the BLT Account may be used in conjunction with other funds
to buy BLT easements.
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2B-19. Administration.
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(a)
The costs of any agricultural land preservation program, including the
purchase of any agricultural easement, may be paid from the Fund and
any other appropriated funds.
(b)
[The Department must administer this Chapter and the regulations
issued under it.
(c)]
The [Department] Office must issue an annual report that identifies the:
(1)
(2)
(3)
number and types of agricultural easements bought;
number of acres preserved by those easements; and
price of each easement.
2B-20. Enforcement of State and County Agricultural Easements.
(a)
Any violation of this Chapter or regulations issued under it is a Class A
violation. The Department of Permitting Services may issue a citation
for any violation of this Chapter or the terms of any agricultural
easement.
(b)
The [Director ofEconomic Development] Office may take legal action,
including seeking injunctive or declaratory relief, to prevent any:
(1)
subdivision of land under an agricultural easement that violates
this Chapter or an agricultural easement; or
(2)
transfer of land, including the transfer of lots to or for the
landowner or the landowner's children, that violates this Chapter
or an agricultural easement.
(c)
The [Director] Office may also take legal action to recover any funds
obtained from any subdivision or land transfer that violates this Chapter
or an agricultural easement, plus costs and a reasonable attorney's fee
*
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*
*
*
2B-21. Agricultural Advisory Committee.
*
*
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(e)
Duties.
(1 )
The Committee must:
(A)
after conferring with the Montgomery County Economic
Development Corporation, advise the Executive and
Council on all matters affecting agriculture in the County;
(B)
bring matters of particular importance
to
the attention of
the Executive and Council; and
(C)
comment on matters referred to it by the Executive and
Council.
*
(a)
*
*
20-76. Economic Development Strategic Plan, Administration.
The Executive must submit, by method 1 regulation, an economic
development strategic plan for the County to the Council for approval
on or before [July 1,2015] October
L
2015. The Montgomery County
Economic Development Corporation must adopt an economic
development strategic plan beginning October
L
2019 and each fourth
year thereafter. The success or progress of the strategic plan must be
measurable and the plan must include measures to address:
*
(a)
*
*
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20-76B. Small Business Assistance Program.
Definitions.
As used in this Section:
Adverse impact
means a loss ofrevenue resulting from a redevelopment
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project.
Director
means the Director of the Department of [Economic
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Development] Finance.
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Enterprise zone
means an area designated under Maryland Code,
Economic Development
Article, Section 5-704 or any successor
provIsIon.
Fund
means the Economic Development Fund established in Section
20-73.
Program
means the Small Business Assistance Program.
Redevelopment project
means any construction, alteration, or
improvement in an urban renewal area or enterprise zone where the
existing land use is commercial or industrial and is:
(1)
(2)
located on property owned by the County; or
financed in whole or part by the County.
Small business
means a privately owned business that meets the
requirements of Section IlB-65(a).
Technical assistance
means training directly related to operating a
small business provided by an educational institution or a non-profit
organization approved by the Director.
Urban renewal area
means an area ofthe County as defined in Section
56-9(f).
*
*
*
*
20-76C. Green Investor Incentive Program.
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*
(c)
*
Eligibility standards.
A qualified investor, who need not be a County
resident, is eligible to receive the incentive payment if the qualified
investor[:] invests in a qualified green company that:
(1)
has its headquarters and base of operations in the County; or
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(2)
has signed a lease for at least 5 years to open a qualified green
company with its headquarters and base of operations in the
County; and
(3)
has been in business for less than 10 years and employs less than
50 people and does not have its securities publicly traded on any
exchange.
*
(g)
*
*
In
order to calculate the amount of the incentive payment to be made to
a qualified investor under Subsection (f), the Director' of the
Department of [Economic Development] Finance must, by January 15
of each calendar year, compile a list of each qualified investor making
an investment in a qualified green company and the amount of that
investment during the preceding calendar year. This list must be
determined using the applications and any supporting documents
qualified investors submit. The Director may take any other action
necessary to administer the incentive payment. The Executive may
issue regulations under Method (2) to implement this Section.
(h)
Application required.
The Director of the Department of [Economic
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Development] Finance must require each qualified investor to submit
an application for the incentive payment and may take any other action
necessary to administer the incentive payment. The Executive may
issue regulations under Method (2) to specify an application process
and otherwise implement this Section.
*
*
*
20-76D. Cybersecurity Investment Incentive Tax Credit Supplement.
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(a)
The Director of Finance must pay, subject to appropriation, a
Cybersecurity Investment Incentive Tax Credit Supplement to each
Cybersecurity Company who meets certain eligibility standards.
:ole
:ole
:ole
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(e)
The Director of [Economic Development] Finance must request from
the Comptroller of the Treasury and Department of Business and
Economic Development, by April 30 of each year, a list of each
Cybersecurity Company, headquartered and based in Montgomery
County that was issued a final credit certificate by the State during the
preceding calendar year. The Executive may issue regulations under
Method
(l)
to implement this Section.
:ole
:ole
:ole
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27-26B. Interagency fair housing coordinating group.
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(a)
The County Executive must designate an interagency fair housing
coordinating group. The purpose of the coordinating group is to
facilitate and promote the County's efforts to prevent discrimination in
housing.
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(b)
The County Executive appoints the members ofthe coordinating group,
subject to confirmation by the County Council. The coordinating group
consists of one or more employees of each of the following agencies:
(l)
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Office of Community Outreach in the Office of the Chief
Administrative Officer;
Human Rights Commission;
Housing Opportunities Commission;
[Department of Economic Development;
Department of Housing and Community Affairs;
Community service centers;
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(2)
(3)
(4)
(5)]
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[(6)]
ill
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[(7)]
[(8)]
[(9)]
®
Department of Health and Human Services;
Commission for Women; and
Commission on People with Disabilities.
m
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(c)
The Executive also may designate, subject to confirmation by the
County Council, one or more members of the Executive's staff, and
employees of any other County department or office, to serve on the
coordinating group. The Executive must also invite the County
Council, the Montgomery County public schools:!. the Montgomery
County Economic Development Corporation, and the Maryland­
National Capital Park and Planning Commission to designate one or
more staffmembers to serve as full members ofthe group.
(d)
The Executive must designate a chair ofthe coordinating group, subject
to confirmation by the County Council. The chair or the Executive may
'call meetings. The group may form its own subcommittees.
(e)
Meetings of the coordinating group and its subcommittees are [open]
subject to [the public under] the [State] Maryland
Qrum
Meetings law
[on public meetings]. In order to create a public forum and encourage
diverse participation, the Executive must invite representatives of the
housing industry and active community groups to participate in
meetings. The group [is] must not be governed by Chapter 2 or Chapter
2A.
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(f)
With staffsupport from the Fair Housing Coordinator, the coordinating
group must submit to the County Council and County Executive an
annual report on housing discrimination in the County_ This report
must:
(l)
assess County, State and Federal laws prohibiting discrimination
in housing, and evaluate their enforcement in the County;
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(2)
recommend changes in law, policy, programs or priorities needed
to reduce discrimination in housing;
(3)
include a work program for the coming year;
include a progress report on the previous year's work program;
and
(4)
(5)
include the views of the Fair Housing Coordinator and any
member whose views differ from those of the report.
Chapter 30B [Business] Economic Development Corporation.
30B-I. Policy objectives.
W
[Recognizing that
(1)
the] The future success of Montgomery County
related to education, infrastructure, public safety, public welfare, and
quality of life is:
(1)
(2)
built on a vibrant and growing
economy[,]~
successful businesses [are the key to] creating this
and
economy[,]~
(3)
government [must foster] fostering a legislative and regulatory
environment which encourages business success.:.[, to]
(hl
To achieve these goals", the County Government [must] may designate
a nonprofit corporation as the [County's Business] Montgomery
County Economic Development Corporation (Corporation) to [enhance
and supplement] implement the County's economic development
programs and activities.
[The mission of the Business Development Corporation is to develop the
vision for the County's economic future and to recommend and advocate for
legislative and regulatory changes that move the culture and regulatory
environment so that business success can create that vibrant and growing
economy.
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BILL
No.
25-15
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The Corporation must be able to:
(a)
establish a vision of the economic future of the County founded on
sound financial and economic condition and policies;
(b)
develop and articulate strategies designed to achieve that VISIon,
advocate for legislative and regulatory changes necessary to
accomplish that vision, set measurements, and regularly report on the
County's success in meeting its objectives and goals;
(c)
provide leadership on economic issues at both the County and State
levels;
(d)
engage business leaders and other key stakeholders in developing and
implementing economic development strategies;
(e)
maintain close liaison with government agencies and elected
representatives at both the County and State levels to achieve the goals
of the Corporation; and
(f)
undertake any other activities deemed by the Board of Directors to
support the mission of the Corporation.]
30B-2. Designation.
(a)
[In
this Chapter "Corporation" means the Business Development
Corporation that the County has designated to study, evaluate, enhance,
and supplement the County's economic development programs and
activities.
(b)]
The County Council must designate, by resolution approved by the
County Executive, a single nonprofit corporation which complies with
all requirements and criteria ofthis Chapter as the [County's Business]
Montgomery County Economic Development Corporation. If the
Executive disapproves the resolution within 10 days after receiving it,
the Council may readopt the resolution with at least 6 affirmative votes.
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No. 25-15
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[(c)
(1)
Any designation under this Section expires at the end of the fifth
full fiscal year after the resolution is adopted unless the Council
extends the designation by adopting another resolution under this
Section.
(2)
However, if the Council President does not notify the Chair of
the designated Corporation's Board of Directors, not later than
June 30 of the fourth full fiscal year ofthe designation term, that
the Council may allow the current designation to expire, the
designation is automatically extended for another 5-year term.
403
404
405
406
407
408
409
410
411
412
(d)
The Council at any time may suspend or revoke the designation of a
corporation as the County's Business Development Corporation by
resolution, adopted after at least 15 days public notice, that is approved
by the Executive, or, if the Executive disapproves the resolution within
10 days after receiving it, is readopted by a vote of at least 6
Councilmembers.]
[(e)]
(hl
To continue to qualify as the County's [Business] Economic
413
414
Development Corporation, [a corporation's] the Corporation's articles
of incorporation and bylaws must comply with all requirements of this
Chapter.
30B-3. Board of Directors.
415
416
417
418
(a)
To qualify as the [County's Business] Montgomery County Economic
Development Corporation, [a corporation's] the Corporation's Board
of Directors must have [no more than] 11 voting members appointed
by the County Executive and confirmed
!2y
the County Council. The
County Executive should appoint
£!
member of the Workforce
Development Board as one of the members of the Corporation's Board
of Directors. The Corporation's Board of Directors must also include
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No. 25-15
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one officio non-voting member appointed
Qy
the County Executive;
and one non-voting member appointed
Qy
the County Council; and
should have one non-voting member appointed
Qy
the Secretary of the
Maryland Department of Business and Economic Development. [The
corporation's bylaws should also allow the Director of the Department
of Economic Development, the Superintendent of the County Public
Schools, the President of Montgomery College, and the chair of the
County Planning Board or the Planning Director, to serve as ex-officio
non-voting members along with any other nonvoting members
authorized under the bylaws.]
.Qi}
Each voting member serves
~
3-year term. The individual terms of the
voting members must be staggered. Of the voting members first
appointed, four must be appointed for
appointed for
~
~
I-year term, four must be
~
2-year term, and three must be appointed for
3-year
term. A voting member appointed to fill
~
vacancy serves the rest ofthe
unexpired term. A voting member continues in office until his or her
successor is appointed and confirmed.
[(b)]
W
Each voting member must be either a resident of the County or
[employed in the senior management of a company which]
!!
senior
manager in
~
for-profit or nonprofit entity that has a significant presence
in the County [The voting members of the Board of Directors should
include:
(I)
one volunteer representative of a Chamber of Commerce in the
County who is recommended by the Chamber of Commerce;
(2)
(3)
one owner of a small business in the County;
one owner or officer of the senior management of a medium­
sized business located in the County; and
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BILL
No. 25-15
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452
453
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462
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(4)
up to 8 officers from the senior management ofmajor companies
which have a significant presence in the County].
[(c)]
@
A member must not be paid for service on the Board but may be
reimbursed for necessary travel expenses.
[(d)]
ill
A member is not subject to Chapter 19A because of serving on
the Board. The Corporation's bylaws must include provisions defining
and regulating conflicts of interest by Board members and Corporation
staff.
[(e)]
ill
Notwithstanding any inconsistent provision of County Code
Section 19A-21, a member ofthe Board of Directors or
~
staff member
of the Corporation who engages in legislative.1 [or] administrative.1 or
executive advocacy as part of that [member's] person's duties [on the
Board] is not required to register
,as
a lobbyist under Article V of
Chapter 19A because of that advocacy.
[(
f)]
(g}
The Board must direct the program, management, and finances
of the [corporation] Corporation.
30B-4. Status; incorporation; bylaws.
(a)
To qualify as the County's Economic [Business] Development
Corporation,
[a
corporation's]
the
Corporation's
articles
of
incorporation must provide for the appointment of the members of its
board of directors as set forth in this Chapter. The articles of
incorporation must also provide that the [corporation] Corporation is:
(1)
a [tax-exempt] Maryland nonprofit.1 non-stock corporation the
purposes and activities of which are limited to those that are
permitted to be promoted or performed
Qy
~
473
474
475
476
477
corporation that is
recognized as exempt from federal income tax under 26 U.S.C.
.§.501;
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BILL
No. 25-15
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(2) not an instrumentality of the County; [ and]
(3) incorporated for the [sole] purpose of serving as the County's
[Business]
Economic
Development
Corporation
and
implementing the County's economic development strategic
plan, adopted under Section 20-76, and related programs. These
programs must include:
(A)
attracting and retaining businesses;
facilitating
economIC,
industrial,
and
commercial
an
(Q
development in the County;
enhancing the agricultural economy;
lID
encouraging investment in commerce, industries, and
businesses in the County;
lID
promoting job growth and talent attraction, in coordination
with the Montgomery County Workforce Development
Board;
ill
advising
and informing County officials on economic
development matters;
.em
providing services to resident businesses in the County,
including
business
retention,
counseling,
business
planning, and other services to maintain and grow the
existing economic base;
lID
stimulating and nurturing the development of new
business; and
ill
promoting the development of a vital and balanced
economy.
(i)
organized and operated under the laws ofthe State of Maryland;
and
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No. 25-15
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507
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ill
(b)
headquartered in the County.
The Corporation's bylaws may contain any provision [, not inconsistent
with law or the articles of incorporation,] necessary to govern and
manage the Corporation that does not conflict with this Chapter. The
Corporation may exercise all powers and is subject to all requirements
which apply to non-stock corporations under the Corporations and
Associations Article of the Maryland Code.
512
513
514
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516
517
518
519
520
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522
523
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530
(c)
[The Board must adopt and may amend the Corporation's bylaws,
subject to approval by the Council. The public must be given at least 15
days to comment on the proposed bylaws, or any amendment to the
bylaws, before the Council approves them.
(d)]
The bylaws must require the Corporation to comply with the [state]
Maryland [open meetings] Open Meetings law and [provide that all
meetings of the Board of Directors must be open to the public except
when closed on a recorded vote of the Board for a reason expressly
listed in the state law or the bylaws] the Maryland Public Information
Act.
30B-5. [Work] Economic development program.
(a)
The Board of Directors must [adopt a work] recommend economic
development [program] programs to the Executive and Council each
year to advance the policy objectives and perform the activities listed
in Section 30B-I.
(b)
In its [work] economic development [program] programs, the
Corporation should collaborate with [complement the strategic
economic development activities of] the [Department of Economic
Development] Montgomery County Workforce Development Board to
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Bill
No. 25-15
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557
advance the County's economic development strategic plan adopted
under Section 20-76.
(c)
The Corporation's [work] economic development [program] programs
may include a plan for sponsorship of private investment, marketing,
and advocacy initiatives.
(d)
The Board must meet with the Executive and the Council at least [semi­
]
annually.
[The Board must advise the Executive and Council on
economic development and related matters.]
30B-6. Staff; support from County Government.
(
a)
[The Department of Economic Development should, if the Board of
Directors requests, provide administrative support for the Corporation,
including contracts, grants, or services in kind, subject to appropriation.
(b)]
The Office ofManagement and Budget, the Department ofFinance, and
other departments of County government and County-funded agencies,
if the Board of Directors requests, should provide relevant economic
data to the Corporation. The research division of the Planning Board
must provide research support to the Corporation to the extent assigned
by the Planning Board's work program, as approved by the Council.
[(c)]
(hl
The Corporation may also raise public and private funds and may
accept services from any source consistent with its purposes.
30B-7. Report.
The Board of Directors must report annually on the activities of the
Corporation and [finances] provide an audited fmancial statement ofthe Corporation
to the Executive and Council
Qy
November
1
of each year.
40-12B. Real property sold in Agricultural Zones.
(a)
If any real property is located in, adjoins, or confronts an area zoned
agricultural, as defined in Section 59-C-9.1, the seller must disclose to
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No. 25-15
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each prospective buyer, before the buyer signs a contract for the sale of
the property, that existing County and State law is intended to
discourage owners of real property adjacent to agricultural-zoned land
from filing certain lawsuits against an owner or operator of an
agricultural use in those areas. The following text must be substantially
included in the disclosure:
As required under Montgomery County Code
§
40-12B, you are hereby
notified that the state of Maryland and Montgomery County have
enacted laws that establish agriculture as the preferred use on land
zoned Rural Density Transfer and as a permitted use in other
agricultural zones, as defined in Section 59-C-9.1 of the County Code.
The property subject to this contract is located in, adjoins, or confronts
an area zoned agricultural. Residents and other occupants of property
near land in agricultural zones should be prepared to accept effects of
usual and customary agricultural operations, facilities, and practices,
including noise, odors, dust, smoke, insects, operation of machinery,
storage and disposal of manure, unusual hours of operation, and other
agricultural activities.
Under Maryland law, an agricultural operation is not a nuisance, and a
lawsuit may not be successful alleging that an agricultural operation
interferes with the use or enj oyment ofother property, ifthe agricultural
operation:
(1 )
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583
has continued for at least 1 year;
complies with applicable health, environmental, zomng, and
permit requirements; and
(2)
(3)
is not conducted negligently.
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No. 25-15
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County law may provide additional protections for agricultural uses on
agricultural-zoned land. For further information, contact the
Montgomery County [Department of Economic Development] Office
of Agriculture.
(b)
A prospective buyer must indicate, by signing an addendum to the
contract or a separate section of the contract printed in boldface type in
a clearly demarcated box, that:
(1)
the seller has provided the information required by subsection
(a); and
(2)
the buyer understands that:
(A)
adjacent property may be the source ofagricultural-related
nuisances; and
(B)
the buyer may obtain more information about these
nuisances from the Montgomery County [Department of
Economic Development] Office of Agriculture.
*
(a)
Definitions.
*
*
44-47. Workforce Investment Scholarship Program.
601
602
603
604
Board
means the Workforce Investment Scholarship Board created in
Section 44-48.
Director
means the Director of the Department of [Economic
605
606
607
Development] Finance or the Director's designee.
*
*
*
Sec. 2. Applicability of Chapter
lIB,
Article XVI ("Service Contracts").
608
609
Any service contract, grant, or other agreement between the County and
another person that encompasses any function that was performed by the Department
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BILL
No. 25-15
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635
of Economic Development is exempt from Chapter liB, Article XVI ("Service
Contracts") under Section IIB-72(d)( I ).
Sec. 3. Collective bargaining notice.
This Act serves as any notice required under Section 33-107(c)(17).
Sec. 4. 2003 L.M.C., ch. 12,
§
3 is repealed.
The following law (2003 L.M.C., ch. 12, § 3) is repealed: "Marketing
Assistance. The Department of Economic Development must establish and
administer a fund, subject to appropriation, to provide marketing assistance to
County restaurants affected by the provisions of this law. The Department must
develop criteria for use of these funds and report to the Council quarterly on
expenditures from the fund."
Sec. 5. Montgomery Business Development Corporation.
This Act revokes the designation of the Montgomery Business Development
Corporation as the County's business development corporation.
Sec. 6. References to the Department of Economic Development in
regulation.
Reference to the Department of Economic Development in COMCOR
02.64L.Ol (Silver Spring Enterprise Zone), COMCOR 02.64L.02 (Wheaton
Enterprise Zone), and COMCOR 02.64L.03 (Long Branch/Takoma Park Enterprise
Zone) is a reference to the Department of Finance.
Reference to the Department of Economic Development in COMCOR
02B.OO.Ol (Agricultural Land Preservation Districts and Easement Purchases) is a
reference to the Office ofAgriculture.
Reference to the Department of Economic Development in COMCOR
15.12.01 (Fee Schedule for Food Service Facilities) is a reference to the Office of
Agriculture.
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BILL
No. 25-15
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65]
652
653
654
655
656
657
658
659
660
661
662
Reference to the Department of Economic Development in COMCOR
20.73.01.05(g) (Economic Development Fund - Award Process) is a reference to the
Montgomery County Economic Development Corporation and reference to the
Department of Economic Development in COMCOR 20.73.01.05(k) (Economic
Development Fund - Award Process) is a reference to the Department of Finance.
Reference to the Department of Economic Development in COMCOR
20.73.02 (Technology Growth Program) is a reference to the Department ofFinance.
Section 20.73.02.05.b.5 (Program Operations) is amended as follows: "The Director
of the Department of Finance [must, upon request from the Director of the
Department of Economic Development,] may fund eligible projects with monies
from the Economic Development Fund designated for the Program."
Reference to the Department of Economic Development in COMCOR
20.76.01 (Strategic Plan) is a reference to the Montgomery County Economic
Development Corporation except the reference to the small business navigator
position in the Department of Economic Development in Section 20.76.01.02
(Definitions - Small Business Navigator) is a reference to the small business
navigator position in the Office of Procurement.
Reference to the Department of Economic Development
In
COMCOR
52.14.01 (Fuel Energy Tax for Agricultural Producers) is a reference to the
Department of Finance except that reference to the Department of Economic
Development in Section 52.14.01.05.A (Verification that Agricultural Producers
Meet the Eligibility Criteria) is a reference to the Office of Agriculture.
Reference to the Department of Economic Development in COMCOR
56.0 1A.O1 (Financial Assistance to Demolish Commercial Properties) is deleted.
Reference to the Department of Economic Development
in
COMCOR Misc.
02 (Administration of the Glenmont Enterprise Zone) and COMCOR Misc. 03
(Burtonsville Enterprise Zone) is a reference to the Department of Finance.
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BILL NO. 25-15
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Sec.7. References to the Department of Economic Development in
contracts.
All references to the Department of Economic Development in contracts,
deeds, licenses, easements, and leases are references to an agent of the County as
designated by the Chief Administrative Officer.
Sec. 8. Transition; effective dates.
Amendments to Chapter 30B made under Section 1 of this Act take effect as
provided in Charter Section 112.
Section 5 of this act takes effect when the Montgomery County Economic
Development Corporation is designated under Section 30B-2.
All other provision of this Act take effect 90 days after the Montgomery
County Economic Development Corporation is designated under Section 30B-2.
673
674
675
676
Approved:
677
George Leventhal, President, County Council
678
Date
Approved:
679
Isiah Leggett, County Executive
680
Date
This is a correct copy ofCouncil action.
681
Linda M. Lauer, Clerk of the Council
Date
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LEGISLATIVE REQUEST REPORT
Bill 25-15
Economic Development
-
Reorganization ­
Montgomery County Economic Development Corporation
DESCRIPTION:
This Bill privatizes the County's economic development functions by
(1)
removing the designation of the County's Business Development
Corporation and providing for the designation of a new non-profit
corporation as the Montgomery County Economic Development
Corporation; (2) eliminating the Department of Economic Development;
and (3) transferring its functions to a newly created Office of Agriculture,
the Department of Finance, and the Economic Development Corporation.
. There is a need to ensure greater alignment of resources with community
needs and improve the County's competitiveness.
PROBLEM:
GOALS AND
OBJECTIVES:
Ensure greater alignment of resources with community needs and improve
the County's competitiveness.
COORDINATION:
Office of the County Executive, County Attorney.
FISCAL IMPACT:
Requested.
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
Requested.
Subject to the general oversight of the County Executive and the County
Council.
In the national capital region, there are many examples of privatized
economic development organizations acting as their jurisdictions' lead or
primary point of contact for businesses, including Fairfax County,
Washington, DC, Prince George's, Baltimore City, Howard County, and
Anne Arundel County.
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SOURCES OF
INFORMATION:
Edward
B.
Lattner, Chief
Division ofGovernment Operations
Office of the County Attorney
LilyQi
Special Projects Director
Office of the County Executive
APPLICATION
nla
WITIDN
MUNICIPALITIES:
PENALTIES:
nla
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OFFICE OF THE COUNTY EXECUTIVE
ROCKVILLE. MARYLAND
208~O
Isiah Leggett
County Executive
MEMORANDUM
May 15,2015
MOHTGOMEnY COUNTY
COtJHCIL
RECEIVED
TO:
George Leventhal, President
County Council
Isiah Leggett, County Executive
FROM:
SUBJECT:
-_':J
Economic Development Reorganization-Montgomery County Economic
Development Corpomtion
I am attaching for Council introduction legislation to replace the Department of
Economic Development (DED) and the Montgomery Business Development Corporation with a
new nonprofit corpomtion, the Montgomery County Economic Development Corporation. The
legislation would also transfer certain duties of DED to other County agencies, including a new
Office of Agriculture within the Executive branch.
I made a decision to privatize the Department of Economic Development based
on business community input, the neighboring jurisdictions' economic development
organizational models, and most importantly, the profound changes in our economy. This is part
of a larger effort to improve Montgomery County's economic competitiveness and better align
our resources with the market dynamics
and
community needs for job growth. Other efforts
underway include completion of a comprehensive economic strategy as a blueprint for future
economic success and restructuring workforce development to create a central coordinating
organization for all workforce strategies and progmms for both employers and employees.
My staff stands ready to work with the Council on this important legislation,
which I urge the Council to enact
in
the near future.
Attachments
c:
Timothy L. Firestine, Chief Administmtive Officer
Jennifer Hughes, Director, Office of Management and Budget
Bonnie Kirkland, Assistant Chief Administmtive Officer
Lily Qi, Special Projects Director, Office of the County Executive
Sally Sternbach, Acting Director, Department of Economic Development
Marc Hansen, County Attorney
®
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FAQs on OED
Restructuring,
May
2015
Frequently Asked Questions on Restructuring
Economic Development in Montgomery County
County Executive Ike Leggett has decided to privatize the core functions of the Department of
Economic Development by establishing a nonprofit public-private partnership as Montgomery
County's lead economic development organization. Below are the most frequently asked
questions about this move.
1.
Why does Montgomery County want to privatize economic development functions?
The County Executive made a decision to privatize the Department of Economic Development
based on community input, the neighboring jurisdictions' models, and most importantly, the
profound changes in the region's economy and the competitive landscape. This is part of a
larger effort to increase Montgomery County's economic competitiveness. Other similar
moves include completion of a comprehensive economic strategy as a blueprint for future
economic success and restructuring workforce development to create a central coordinating
organization for all workforce strategies and programs for both employers and employees.
2. What does it mean to have a "private economic development organization?"
A new nonprofit SOlc3 will be established as a public-private partnership to replace both the
Department of Economic Development and the Montgomery Business Development
Corporation (MBDC) as the lead economic development organization (EDO) for Montgomery
County. The organization will have its own board and is not part of the Montgomery County
government structure.
3. What are other examples of privatized economic development organizations?
In the National Capital Region, there are many examples of privatized economic development
organizations acting as their jurisdictions' lead or primary point of contact for businesses,
including the Fairfax County Economic Development Authority, the Washington, DC Economic
Partnership, the Prince George's County Economic Development Corporation, the Baltimore
Development Corporation, the Howard County Economic Development Authority, and the
Anne Arundel Economic Development Corporation.
1
@
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FAQs on OED Restructuring,
May 2015
4. What does Montgomery County hope to achieve through this new economic development
organization that it cannot achieve with the current structure?
By restructuring economic development functions, Montgomery County seeks to strengthen
private-sector involvement in economic development, to be more nimble and adaptive to
market changes and community needs, and to improve operational efficiency and
effectiveness. Business operates at a much faster pace than most government services and, in
order to be effective, the new organization needs to be responsive to businesses in their
timeframe.
5. What is the estimated timeline?
It is the goal of Montgomery County government to have the new nonprofit incorporated and
board members appointed and approved by January 2016. The organization is expected to be
operational by late spring of 2016.
6. Would Montgomery County fund this new organization?
Yes. The Montgomery County government intends to fund the core functions of the new EDO.
However, being a nonprofit corporation also enables the organization to raise or receive funds
through grants, gifts, donations, fee for services, and other revenue sources.
7. How much does the County intend to fund the organization?
The new organization will be funded according to its scope of responsibility and at a level
competitive to other comparable jurisdictions.
8. Would the new economic development organization have the exact same portfolio of
responsibilities of the Department of Economic Development?
A majority of the current OED responsibilities will be transferred to the new EOO, especially
those related to marketing, business attraction, business retention and growth,
entrepreneurship and innovation programs. The functions that will be kept within the County
government include Finance, Special Projects, Small Business Navigation, marketing of the
Local Small Business Reserve Program, and Agricultural Services.
9. What would happen to the employees of the Department of Economic Development?
DED employees have years or even decades of excellent service to Montgomery County and
the business community. We hope the new organization's leadership will recognize their value
so those who wish to work with the new organization will find employment there. However, it
will be a decision by the leadership of the new organization. As the transition unfolds, it is
2
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FAQs on
OED
Restructuring,
May 2015
anticipated that many OED employees will continue their services within the County
governme·nt in different capacities, either because their functions will remain in the
government, or because they choose to stay on as a County employee. Montgomery County
government will make every effort to make the transition as smooth as possible.
10. What kind of board will this organization have and who appoints the board members?
An ll-member board will be appointed by the County Executive and approved by the County
Council. In addition, there will be non-voting ex-officio members representing the County
Executive, the County Council and the State's Office of the Secretary of Commerce. The board
will be made of primarily private sector representatives with consideration for various
industry sectors, geographical regions, company size, etc. Members will serve staggered terms
with a combination of 1-year, 2-year and 3-year terms appointments to the initial board.
11. How can the County government ensure accountability of a private-sector-Ied economic
development organization?
Montgomery County government provides budgetary oversight through contractual
agreements with performance metrics with the EDO.
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12. Who would manage the County's contractual relationship with this new organization?
There will be a designated senior staff person or function within the Office of the County
Executive that will oversee the County's contractual relationship with this new EDO and
facilitate its interaction with the rest of County government functions.
13. Who makes personnel and compensation decisions in the new organization?
The board of directors makes hiring and firing decisions of the Chief Executive Officer, who
has the authority on all other personnel matters.
14. Does the County still have an active role in economic development with a privatized
economic developmentorgan ization?
Yes, economic development takes a village and there are many functions related to economic
development that a local government performs, including land use, community development,
transportation, etc. So creating this new EDO does not take away the County government's
need to be actively engaged in economic development or provide overall leadership and
vision on economic development.
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FAQs on
OED
Restructuring, May
2015
15. Is the new organization subject to open meeting laws?
Yes, the new EDO is subject to the Open Meeting Act and Maryland Public Information Act
similar to other County boards, committees and commissions. However, there are times when
the board and its committees may need to have closed-door sessions for sensitive discussions
related to certain businesses and prospects during negotiations, as is the case today.
16. Would this new organization be the first point of contact for businesses about doing
business In Montgomery County?
Yes, as Montgomery County's lead economic development organization, the new EDO will be
the first point of contact for start-ups as well as resident and prospective businesses about
moving to, starting or growing a business in Montgomery County.
17. Would the new organization be responsible for implementing the comprehensive economic
strategy that is under development?
The new EDO will playa major role in implementing the recommendations, but will not be
solely responsible for implementing the strategic plan, which is much broader in scope than
the new EDO's functions and will require active participation of both non-governmental and
governmental agencies. The Office ofthe County Executive, which has been leading the
development of the Comprehensive Economic Strategy, will continue to oversee the overall
implementation and reporting of the strategic plan. The new EDO will assume leadership
responsibility in developing a strategic plan beginning 2018 as required by County law.
18. How will this new EDO work with other economic development organizations?
As the County's lead EDO, the new organization is expected to take a leadership role in
coordinating and facilitating marketing and business development functions, and for
collaborating with partner organizations such as BioHealth Innovation, the new workforce
development organization, etc.
19. What do you call this new organization?
For the purpose of incorporation, the new organization is called the Montgomery County
Economic Development Corporation. The board of directors can decide on a new name later if
it so chooses.
20. Who is the point of contact if we have more questions or want to provide input?
Please contact Lily Qi, Office of the County Executive, at lily.gi@montgomerycountymd.gov or
240-777 -2524.
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