Agenda - 5-23-16 Budget Work Session

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BK:00025 PG:0554 4. County loan up to $150,000 to the EDC to cover the cost of planning. and private sector fundraising. An additional $15,000 will be raised from the private sector for the efforts. 's Program of Work ing Assessment Total Budget $1 $165,000 ($150,000 County loan + $15.000 nrivate seem • The Commissioner's strategic planning process is already underway. The Board committed funding. It is expected to be completed by June 30. • The program of work for the new organization is expected to cost $20,000, see attached scope of work that shows cost estimate. • A fundraising assessment is expected to cost $30,000. • The organizational costs to create the new proposed combined corporation will cost approximately $15,000. • The Task Force recommends that Lee County loan the EDC up to $150,000 to cover Part of the cost of planning and fundraising. This will be seed funding for planning and to get the fundraising process started until pledges start to be fulfilled. An annual, five Year repayment schedule is recommended. The loan agreement will include a clause that allows for a future request that the loan, or part of the loan, be forgiven but the County is under no obligation to forgive the loan. 5. Commit funding ongoing Economic Development Operations • The Task Force feels that it will take a minimum of 9 months to get the Program of Work completed, form the New Corporation and start the fundraising estimated to be completed and approved by March 1, 2014, assuminthe cess. This is June 1, 2013. This will g process starts by require all of the 5 Boards to have passed the Memorandum of Understanding by a supermajority before that date, but no later than May 15m. Any changes in these dates will result in a different timeline. • The Task Force recommends that continuity must be maintained for the near future and that to insure stability that the County, City, and Town agree to current levels of funding of economic development at the same level for the next two years. This period of time will allow the Program of Work to be completed fundraisingcompleted, funding for the new organization as it launches its first operations. p Th and seed year of expects that more funding will be r Y Aerations. The Task Force scopes economic required in the future for Lee County to expand its growth activity and for the county to become competitive in the region. The public sector may have to increase funding by as much as 25%, contingent upon the organization's demonstrated success in executing required functions and growing the economic base of Lee County, for the program of work to be carried out. The private sector will be required to fund the new organization and grow its contribution over time 013