Agenda Package 11-4-13 Reg. Meeting

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ono LEE COUNTY Committed Today for a Better Tomorrow LEE COUNTY BOARD OF COMMISSIONERS ITEM ABSTRACT Meeting Date: November 4, 2013 ITEM NO. IV. A. _ Information XX Action Item & Public Hearing Consent Agenda SUBJECT Loan to EDC for Private Fund Raising Development DEPARTMENT Administration /Economic Development CONTACT PERSON John Crumpton REQUEST 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 to begin the merger efforts of the EDC and Chamber into one Economic Development group for the Community. 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 to raise funds for the new organization. The EDC /Chamber will pay back the loan through the fundraising efforts. The Board reviewed the agreement at the October 21, 2013 meeting and voted to table any action until the next meeting. 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 Based on recommendation by the School of Government, we will hold the Public Hearing at this meeting for comments on the Loan. 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. At the Commissioners October 21, 2013 meeting the Board voted to table the agreement until the County Attorney could work on language that would better protect the County from any possibility of a loan default. The agreement presented contains those changes. RECOMMENDATION Approve Loan agreement with the EDC with the changes suggested by County Attorney Neil Yarborough. Authorize the County Manager and Finance Officer 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 Commissioner's meeting.