Agenda Item 8
April 4, 2017
Public Hearing
MEMORANDUM
March 31,2017
TO:
FROM:
County Council
Robert
H.
Drwnmer, Senior Legislative Attorney
00
C\
SUBJECT:
Public Hearing:
Bill 4-17, Economic Development Fund - Small Business
Assistance Program - Amendments
Bill 4-17, Economic Development Fund - Small Business Assistance Program ­
Amendments, sponsored by Lead Sponsor Councilmember EIrich and Co-Sponsors,
Councilmembers Floreen, Katz, Rice, and Council President Berliner was introduced on March 7.
A Planning, Housing and Economic Development Committee worksession is tentatively scheduled
for April 26 at 9:30 a.m.
Bill 4-17 would expand the eligibility for grants or loans under the small business
assistance program.
Background
Bill 6-12, enacted on April 17,2012 and signed into law on April 26, 2012, established a
program to assist small businesses located in either an enterprise zone! 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 required the Director ofthe Department of Economic
Development to create and operate the program. The operation of the program was transferred to
the Director of Finance as part of the law· creating the Montgomery County Economic
Development Corporation and eliminating the Department of Economic Development. 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.
The construction of a new office building for the Maryland-National Capital Park and
Planning Commission and several County Departments in Wheaton
3
was the County project that
inspired Bill 6-12. Although the Wheaton redevelopment project construction has not yet begun,
the Council added $360,000 to the FY17 operating budget for the technical assistance portion of
the Program for Wheaton and added undesignated funds into the EDF that can be used for grants
and loans under this Program.
An enterprise zone must be designated by the Maryland Department of Business and Economic Development.
2
An urban renewal area must be designated by the Council.
3
The 3 current enterprise zones in the County are Long Branchffakoma Park, Wheaton, and Old Towne
Gaithersburg.
1
 PDF to HTML - Convert PDF files to HTML files
Bill 4-17 would expand this program to a business adversely impacted by a County
redevelopment project located in a Parking Lot District. Section 60-1 established parking lot
districts in Bethesda, Wheaton, Silver Spring, and Montgomery Hills. The Bill would also expand
the definition of a County redevelopment project to include a project constructed by a private entity
for use, in whole or in part, by the County as a public facility.
This packet contains:
Bi1l4-17
Legislative Request Report
F:\LAw\BILLS\I704 EDF - Small Business Assistance Program - Amendments\PH Memo.Docx
Circle
#
1
5
2
 PDF to HTML - Convert PDF files to HTML files
Bill No.
4-17
Concerning: Economic
Development
Fund - Small Business Assistance
Program - Amendments
Revised: 3/2/2017
Draft No.
~
Introduced:
March 7, 2017
Expires:
September 7, 2018
Enacted; _ _ _ _ _ _ _ _ __
Executive: _ _ _ _ _ _ _ _ __
Effective: _ _ _ _ _ _ _ _ __
Sunset Date:
~==~------
None
ChI _ _, Laws of Mont. Co. _ _ __
COUNTY COUNCIL
FOR MONTGOMERY COUNTY, MARYLAND
Lead Sponsor: Councilmember EIrich
Co-Sponsors: Councilmembers Floreen, Katz, Rice, and Council President Berliner
AN
ACT to:
(1)
(2)
expand the eligibility for grants or loans under the small business assistance
program; and
amend the laws governing the small business assistance program.
By amending
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. 4-17
1
Sec.
1.
Section 20-76B is amended as follows:
20-76B. Small Business Assistance Program.
(a)
2
3
Definitions.
As used in this Section:
Adverse impact
means a loss of revenue resulting from a redevelopment
project.
4
5
6
Director
means the Director of the Department of Finance.
Enterprise zone
means an area designated under Maryland Code,
Economic Development Article, Section 5-704 or any successor
proVIsIon.
7
8
9
10
11
12
Fund
means the Economic Development Fund established in Section 20­
73.
Parking lot district
means
£!
geographical area of the County established
as
£!
parking lot district in Section 60-1.
13
14
15
16
17
18
19
20
21
Program
means the Small Business Assistance Program.
Redevelopment project
means
any
construction,
alteration,
or
improvement in an urban renewal area", [or] an enterprise zone", or
£!
parking lot district 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 in part by the
County~
or
ill
£!
project constructed by
£!
private entity for use, in whole or in part,
22
23
by
the County as
£!
public facility.
Small business
means a privately owned business that meets the
requirements of Section IlB-65(a).
24
25
26
27
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.
f:\law\bills~df
- small business assistance program - amendments\bill4.docx
Q
 PDF to HTML - Convert PDF files to HTML files
BILL
No. 4-17
28
Urban renewal area
means an area of the County as defmed in Section
56-9(t).
(b)
Establishment of Program.
Subject to appropriation, the Director must
create and administer a Small Business Assistance Program to assist
small businesses who are adversely impacted by a redevelopment project.
(c)
Eligibility.
The Director, based upon information submitted by the
applicant for assistance, must find that:
(1)
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 12 months after the application;
(2)
the applicant's small business is currently or is likely to be
adversely impacted by the redevelopment project; and
(3)
the applicant's small business is financially healthy and likely to
continue operating for the foreseeable future.
(d)
Conditions.
The Director may impose reasonable conditions on a small
business, including the successful completion of approved technical
assistance training, in order to receive financial assistance from the Fund
under the Program.
(e)
Financial assistance.
The Director may award a grant or loan from the
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
Fund to an eligible small business under the Program.
(t)
Regulations.
The Executive must adopt method 2 regulations to
implement this Section. The regulations must:
(1)
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;
51
52
53
f:\IawlbillS\~
dt -
small business assistance program - amendmentslbill 4.docx
e
~
 PDF to HTML - Convert PDF files to HTML files
BILL
No.
4-17
54
55
(3)
specify conditions that the Director may impose on a small
business in order to receive fmancial assistance from the Fund
under the Program;
56
57
(4)
(5)
(6)
define what constitutes an adverse impact on a small business;
define what constitutes financial health of a small business; and
identify outreach methods and marketing strategies to inform local
small businesses of the program.
58
59
60
61
62
63
(g)
Reports.
On or before March 31 of each year, the Executive must report
to the Council on the activities ofthe Program. The report must include:
(1)
(2)
(3)
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.
64
65
66
67
68
Approved:
Roger Berliner, President, County Council
Date
69
70
Approved:
Isiah Leggett, County Executive
Date
71
72
This is a correct copy o/Council action.
Linda M. Lauer, Clerk of the Council
Date
f:\law\bills\~df
- small business assistance program - amendments\bill 4.docx
t4:J
 PDF to HTML - Convert PDF files to HTML files
LEGISLATIVE REQUEST REPORT
Bill 4-17
Economic Development Fund
-
Small Business Assistance Program
-
Amendments
DESCRIPTION:
Bill 4-17 would expand the existing small business assistance
program to a business adversely impacted by a County redevelopment
project located in a Parking Lot District. Section 60-1 established
parking lot districts in Bethesda, Wheaton, Silver Spring, and
Montgomery Hills. The Bill would also expand the definition of a
County redevelopment project to include a project constructed by a
private entity for use, in whole or in part, by the County as a public
facility.
PROBLEM:
The existing small business assistance program is limited to County
redevelopment projects located in an enterprise zone or an urban
renewal area. There are County redevelopment projects located
outside of these areas that also adversely affect small businesses.
The goal is to expand the program to other areas ofthe County where
small businesses are similarly affected.
GOALS AND
OBJECTIVES:
COORDINATION:
Finance,OMB
FISCAL IMPACT:
Office of Management and Budget
ECONOMIC
IMPACT:
EVALUATION:
EXPERIENCE
ELSEWHERE:
To be researched.
N/A
To be researched.
SOURCE OF
INFORMATION:
Robert H. Drummer, Senior Legislative Attorney
APPLICATION
WITHIN
MUNICIP ALITIES:
Applicable.
PENALTIES:
None
F:\LAw\BILLS\1704 EDF - Small Business Assistance Program - Amendments\LRR.Docx
(s)