Division 16. Economic Development Incentive Fund

assist in the retention of existing industry and commerce in the County and in the attraction of new industry and commerce to the County;

create new jobs and retain existing jobs for County residents;

broaden the local tax base, particularly the commercial tax base;

promote economic development and the growth of the Prince George's County economy, with a special strategic focus on the developed tier and gateway communities that have suffered from a lack of investment and economic development and those areas where market dynamics do not create sufficient economic incentives to sustain private sector development;

promote local, minority, and small businesses in the County; and

encourage:

assist County residents who own businesses that are located in the County in the creation, sustenance and expansion of such businesses.

The Fund may provide financial assistance in the form of loans, loan loss reserves, guarantees, conditional loans and grants for the benefit of existing and potential industrial and commercial businesses in Prince George's County to finance:

The County's financial assistance under this Division may supplement other federal and State financial assistance programs.

the County's strategy for economic development, as established by the County Executive: prioritizing Transit-Oriented Development, revitalization of established communities, and major corridors;

established policy and goals previously identified through the General Plan approved by the District Council.

Projects that maximize Local Minority Business Enterprise ("LMBE") participation; and

Projects that expand and significantly strengthen employment opportunities for County residents.

A goal of ten (10) percent of the annual appropriation to the Economic Development Incentive Fund is established for financial assistance to expand entrepreneurship opportunities for County residents who own businesses based in the County (herein called "Special Assistance for Local Entrepreneurship"), subject to the availability of funding and applicants, in order to:

Except for legal residency as prescribed in subparagraph (4), below, criteria for approval of an award for Special Assistance for Local Entrepreneurship are the same as the criteria specified in 10-287(d) of this subtitle.

In administering Special Assistance for Local Entrepreneurship, every effort shall be made to maximize the award of Special Assistance for Local Entrepreneurship to local minority business enterprises ("LMBEs") to the extent practicable.

Eligibility. To be eligible to apply for and receive an award for Special Assistance for Local Entrepreneurship, an applicant shall demonstrate the following:

current expense funds;

any contributions, donations, or appropriations by the United States, the State of Maryland, any other political jurisdiction, or any private entity;

interest income;

fees or other charges levied on loan or grant recipients; and

any other funds designated and provided by the County.

The FAC shall be composed of seven independent financial services professionals who are residents of the County and are experienced and skilled in banking, finance, real estate, commercial development, accounting, or business.

The County Council shall provide the names of five nominees to the County Executive, from which the Chief Administrative Officer shall select not less than three members of the FAC.

The Chief Administrative Officer shall accept nominations for the remaining membership on the FAC from the business community and the general public.

Members of the FAC:

financial assistance from the Fund; and

payments by or charges against the Fund.

collect repayments on accounts, subject to the terms and conditions contained in the financial assistance documents; and

maintain records in accordance with generally accepted accounting principles.

The Office of Management and Budget shall regularly review the performance of financial assistance awards from the Fund for compliance with the terms and conditions negotiated by the Chief Administrative Officer.

If LMBE goals or requirements are part of an award of financial assistance from the Fund, in collaboration with the Office of Management and Budget, the County's Minority Business Enterprise ("MBE") Compliance Officer may review the performance of financial assistance awards for compliance with those goals or requirements.

need;

financial ability of the applicant;

sources of repayment;

proposed project costs and expenditures for which assistance is sought;

fair value of completed projects;

normal or useful life of equipment or buildings;

security for the transaction;

contribution to the economy of the County;

legal residency; and

any other information that may be appropriate or useful in evaluating the application.

shall review financial assistance applications for need and financial ability of the applicant;

shall receive guidance from the FAC in making the determination of whether the application contains sound financial projections, proper collateralization/securitization, and proper protections of the County's financial interests; and

may approve a financial assistance application up to the amount requested, if sufficient monies exist in the Fund.

the expected benefit to, or impact on, the County's commercial tax base;

the estimated number of County residents expected to be hired as a result of the financial assistance from the Fund, and the percentage of the overall hiring consisting of County residents; and

the ability of the prospective applicant to leverage financial assistance with other funds.

The Chief Administrative Officer or his designee shall notify the County Council in writing of the intent to award financial assistance from the Fund by filing the terms of the proposed agreement with the Clerk of the County Council.

If the Chief Administrative Officer, or his designee, grants an award of financial assistance from the Fund pursuant to Sections 10-288(a)(6) ("other uses") or 10-288(b)(2) (loans in excess of 10 years) of this Division, the Chief Administrative Officer, or his designee, shall provide written notice to the County Council consistent with the provisions of Paragraph (3) of this Subsection.

the acquisition of land and buildings;

the construction, reconstruction, rehabilitation, repair, and improvement of buildings;

the cost of acquisition of machinery and equipment;

working capital;

equity investments; and

other uses as determined to be appropriate by the Chief Administrative Officer or his designee.

The term of a loan or guarantee made under this Division may not exceed 10 years.

Exception. The 10-year term limitation under Subsection (b) (1) of this Section may be waived and not apply to funding for special projects that are a significant economic opportunity consistent with the Fund's purpose.

Appropriate notes;

Security agreements;

Financing statements;

Equity pledges;

Mortgages or deeds of trust; or

Any other documents or instruments.

The Chief Administrative Officer, or his designee, may require the recipient of financial assistance under this Division to have an annual audit of its books, accounts, and records by a certified public accountant.

The recipient shall deliver copies of the audit to the Chief Administrative Officer, or his designee, and to the County Auditor.

If the recipient fails to arrange the audit, the Chief Administrative Officer, or his designee, may examine, at the expense of the recipient, the accounts and books of the recipient, including its receipts, disbursements, contracts, leases, investments, and any other matters relating to its finances, operation, and affairs.

The Chief Administrative Officer, or his designee, shall provide each member of the County Council with a quarterly report that outlines the financial assistance that has been provided and the overall performance of the Fund.

The report prepared by the Chief Administrative Officer shall include information about the compliance of the award recipient with the terms and conditions of the award and the provisions of this Title, including compliance with the provisions of Sec. 10-284 (Purposes and Priorities of the Fund) of this Title.