Agenda Package 10-21-13 Reg. Meeting

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042 LEE COUNTY Committed Today for a Better Tomorrow LEE COUNTY BOARD OF COMMISSIONERS ITEM ABSTRACT ITEM NO. VI. D. Information Meeting Date: October 21, 2013 XX Action Item Consent Agenda SUBJECT: Loan to EDC for Private Fund Raising Development DEPARTMENT Administration /Economic Development CONTACT PERSON John Crumpton RE_: Request from LCEDC to borrow $150,000 from the County, with $30,000 to be disbursed immediately upon contract approval for the cost of the fundraising assessment. SUMMARY The Economic Development Task Force has been meeting monthly do begin the merger efforts of the EDC and Chamber into one Economic Development group for the Town, City and County. Part of the plan is to gain private investment into the new group. The attached Task Force recommendations explains the need for the loan very well. The EDC will contract with a firm to assess the possibility of success in the fundraising efforts. The loan will pay for that assessment and then the campaign. The EDC /Chamber will pay back the loan through the fundraising efforts. The group asked the County to consider a "forgiveness" of the loan, but the County cannot do that with use of the Frontier Spinning /Golden Leaf funds. The loan will have to be repaid. BUDGET IMPACT $150,000 Loan to EDC. Funds to come from the Frontier Spinning /Golden Leaf Loan Fund. ATTACHMENT(S) 1) Letter of Request from EDC requesting Loan 2) Loan Documents 3) Task Force Planning Document/Recommendations PUBLIC HEARING No PRIOR BOARD ACTION: The Board has discussed this Loan at previous meetings and voted to support the New EDC /Chamber effort to privatize Economic Development. RECOMMENDATION Approve Loan to the EDC — and their Successors for $150,000. Authorize the County Manager to disburse funds to the EDC when requested. County Manager will report all disbursements to the Board of Commissioners via email /fax and then make a formal report at the following Commissioners Meeting.