§ 10-7. Economic development infrastructure grant (EDIG) ordinance.

(a)

Short title. This section shall be entitled "Marion County Economic Development Infrastructure Grant (EDIG) Ordinance."

(b)

Definitions.

(1)

Public purpose: The Florida legislature provides guidelines for county governments to expend public funds to attract and retain business enterprises. This authorization is found in F.S. § 125.045. For the purposes of this section, it constitutes a public purpose to expend public funds for economic development activities, including, but not limited to, developing or improving local infrastructure.

(2)

Public infrastructure . Projects providing a significant and material public benefit, including, but not limited to: water and wastewater utilities, road improvements located in a public right-of-way; stormwater retention; sidewalks and related improvements such as road deceleration and left-turn lanes, curbing, and egress and access improvements required as part of the development and permitting process.

(3)

Value-added: Improved values to real estate and tangible personal property that is generated by private sector investment of capital toward development and construction of new business related facilities or the acquisition of business related equipment and machinery.

(4)

Utility charges or fees: Utility capital charges or connection fees are assessed by formula and required by all properties connecting to Marion County's water or wastewater utility service. These charges and fees are dedicated sources of revenue used to either construct or bond the construction of both water and wastewater improvements.

(5)

Commercial customers: Those businesses that benefit from the presence of Marion County's public utilities and participate in the overall cost sharing of municipal services as part of a larger pool of commercial and residential customers.

(6)

Unincorporated areas: Those areas of Marion County that are not incorporated within the cities of Ocala, Belleview, Dunnellon, McIntosh or Reddick.

(7)

Community redevelopment area: An area that has been designated by the Marion County Board of Commissioners as a targeted area for redevelopment due to identified conditions of community blight.

(c)

Purpose and intent.

(1)

Alternative declaration of authority and guidelines. The board acknowledges that F.S. § 125.045, affords a stand-alone basis of authority for the board to enter into contracts with business entities providing for grant funding and other measures in support of economic development within the county; and

(2)

Purpose and intent. The purpose of this section is to create guidelines for the eligibility and award of public resources to encourage private sector capital investments and construction or rehabilitation of new business related facilities capable of supporting job creation and within both unincorporated and incorporated areas of Marion County in furtherance of the legislative findings in F.S. § 125.045(1), for the specific types of eligible uses, activities and industries, and in compliance with the guidelines, described herein.

(3)

It is further the intent of this section to make available, from time to time, public funding in support of targeted public infrastructure and related expenses in cases where a proposed activity supports a positive return on investment (ROI) for the community as a result of such funding.

(d)

Findings . The board declares its intent to annually invest and dedicate monies from Marion County's general revenue fund to Industry Development Account No. 1020-582182 for the sole purpose of supporting small scale public infrastructure needs for eligible economic development projects. Additional findings include:

(1)

That it is hereby determined by the board, that the EDIG fund be used to invest, co-invest or assist in the construction of small scale public infrastructure to encourage business development and job growth objectives; and

(2)

That public infrastructure for the purpose of this section shall include new small scale roadway segments, the improvement of existing roadways, transportation related turn lanes, deceleration lanes, traffic lights, taxiways, stormwater drainage, public sidewalks, curb cuts or other means of public egress or access to a project applicant's facility; and

(3)

That public infrastructure will also include the construction of public water and wastewater infrastructure or the acquisition of existing private water and wastewater infrastructure beneficial to the efficiency of the Marion County Utilities Department. Payment of mandated utility capital charges or connection fees shall also be considered eligible for funding under this section.

(4)

While the primary focus of this section is to support economic development in the unincorporated areas of the county, the board shall have the discretion to approve funding for business activities within incorporated areas if the board specifically finds that such funding will provide a public benefit to Marion County at large.

(e)

Fund administration.

(1)

General program management. The EDIG grant program shall be managed by the county administrator or by his/her designee, subject to the overall policy direction, general oversight and final approval of grant awards by the board.

(2)

The county administrator or his/her designee shall be responsible for accepting and reviewing all applications for eligibility for funding and for directing all due diligence related to any or all proposals received for EDIG grant consideration. The county administrator or his/her designee will evaluate the applications and provide written recommendations to the board for final review, consideration, approval or denial. The board may approve the EDFIG grant request in whole, or in part, or reject the recommendations as presented.

(3)

The county administrator or his/her designee shall monitor the performance of all EDIG agreements approved under this section. This monitoring shall cover all terms and conditions outlined in the scope of work and performance measures of each of the agreements issued between Marion County Government and an EDIG grant recipient.

(4)

After EDIG funding has been awarded, the county administrator or his/her designee shall be responsible for:

a.

Collecting required documents from the grantee to determine the grantee's compliance with applicable agreement terms;

b.

Reviewing and analyzing the documents collected;

c.

Determining the grantee's compliance status; and

d.

Approving payments when applicable.

(5)

The clerk of the circuit court and comptroller internal audit division (clerk's office) will provide assurance that the county administrator's determination of the grantee's compliance status is reasonable and supported by sufficient documentation. The clerk's office shall have the right to audit, to examine and make copies or extracts from all records pertaining to EDFIG funding, without limit, including confidential information, to provide such assurance. The clerk's office shall have the right to contact the grantee directly to request documents and to perform on-site audits when necessary. The timing of any audit shall be determined by the clerk's office.

(f)

Eligible considerations and activities . The economic development infrastructure grant (EDIG) program is designed to encourage private sector investment in business development activities by funding or co-funding small scale public infrastructure projects. Not all proposed projects will be eligible. Construction of any applicant owned on-site infrastructure improvement is not eligible for EDIG funding.

For example, water and wastewater installation to the applicant's property line is eligible. Construction of water or wastewater improvements from the applicant's property line to the business facility are not eligible under the EDIG program and will be the responsibility of the applicant.

Likewise, an applicant's parking lot is not considered public infrastructure for the purposes of this grant program. However, the need for a curb cut, deceleration or turning lane to access the property will be considered eligible.

The following is a series of guidelines that shall be followed in determining eligibility of all proposed projects seeking EDIG funding consideration by Marion County:

(1)

EDIG funding shall not be used to provide funding for the construction of infrastructure used for "speculative" development until such time that the board finds a need for the development of speculative space.

(2)

Funding requests for an EDIG grant for applicants moving from one location within Marion County to another location within the county is not eligible unless the applicant can demonstrate a hardship requiring the relocation. Consideration will be provided for the following causes:

a.

Damage of the original location due to a natural or manmade disaster.

b.

Relocation due to public taking or acquisition of the original location.

c.

Original location does not allow for expansion due to site or space restrictions.

d.

Original location is unable to accommodate increase in new jobs.

(3)

Economic development infrastructure grant (EDIG) funding may be awarded for any of the following types of uses, activities, or businesses expanding or proposing a location within Marion County:

a.

Employers engaged in manufacturing, logistics, warehousing, distribution, and research activities.

b.

Employers engaged in aviation engine or airframe maintenance, aviation parts distribution at the Marion County airport complex.

c.

Employers engaged in operational or communication centers related to healthcare, assisted living, insurance, banking, communications, logistics, technical support services, customer support services, and/or other services approved in the grant agreement.

d.

Employers qualifying as eligible applicants as a "targeted industry" by the State of Florida or eligible under the State's "Qualified Target Industry Tax Refund Program" or the "Qualified Defense Contractor Tax Refund Program."

e.

Any or all businesses located in or relocating into an authorized community redevelopment area located in the unincorporated areas of Marion County.

(4)

EDIG funding may also be awarded to departments of county government to support public infrastructure needs related to new and existing businesses or for enhancing the viability of the county's utility systems as directed by the board for one or more of the following types of proposed uses or activities:

a.

The construction of new public water or wastewater infrastructure to support the expansion or construction of any new business or for commercial utility customers located in the unincorporated areas seeking to connect to the county's utility system.

b.

A payment toward the acquisition of existing private water or wastewater infrastructure by the county's utility department that will enhance the department's ability to add new commercial or residential customers to the county's utility system.

c.

The payment of utility capital charges or connection fees for any new commercial business.

d.

A payment in whole or in part toward the acquisition of a private utility system located within or adjacent to the county's utility service area that is operating at full capacity or is in a state of disrepair that could cause an undue economic burden on those businesses or individuals that are reliant on the system for service.

e.

The construction of public transportation infrastructure that enhances the ability of the county's engineer to provide access or egress to any eligible applicant outlined in subsection (f)(3) above.

f.

A payment toward any public infrastructure, as defined in subsections (d)(2) and (d)(3) above, or related capital charges or connection fees for any commercial applicant located in an authorized community redevelopment area in Marion County.

g.

Statement of benefit. For applications submitted under the guidelines of this subsection (f)(4) , any department of county government requesting funding under the EDIG program must demonstrate, in writing, benefit or enhancement to the county's utility system, transportation, stormwater or related improvement as part of the application process.

(g)

EDIG program guidelines. For those applicants applying for eligibility under the definitions outlined in subsection (f) above, the following guidelines provide for the minimum qualifications and standards for participation in Marion County's "Economic Development Infrastructure Grant (EDIG) Program:

(1)

How to apply. A qualifying applicant must submit a written project profile describing the basis for the request for EDIG grant consideration. The applicant shall arrange to present the proposed request to the county administrator and/or his/her designee by contacting:

Office of the County Administrator
Marion County Board of County Commissioners
601 SE 25 ^th Avenue
Ocala, FL 34471
Telephone: [phone]

The project profile shall include at minimum the following information:

a.

A brief description of the business project, the proposed location of the proposed project, and the type of business activity to be conducted.

b.

A description of the public infrastructure being requested as part of this proposed project along with a cost estimate for the proposed work.

For example—A need for two thousand (2,000) lineal feet of four-inch water line to connect to the county's water utility. Estimated cost at fifty dollars ($50.00) a lineal foot is one hundred thousand dollars ($100,000.00).

c.

The applicant shall provide a detailed estimate of the cost of any proposed public infrastructure for which a grant is sought. The applicant's estimated cost shall be prepared by a licensed engineer outlining the proposed costs of construction, engineering, design and anticipated permitting fees. This estimate will be verified by the county's engineer for determining final eligibility of estimated construction costs related to the proposed public infrastructure. Include with the estimate any applicant funding that is being proposed as a financial match to be used to apply against the funds being requested from the county's EDIG grant program.

For example—The applicant requires up to two thousand (2,000) lineal feet of four-inch water line to connect to the county's water utility at an estimated cost of one hundred thousand dollars ($100,000.00) of which the applicant proposes to cover up to fifty (50) percent of the total anticipated cost.

d.

Provide a description of any new employment that will be created as a result of the proposed project along with the average annual wage proposed for those jobs.

e.

The applicant's presentation will be instrumental in presenting the overall need for the county's assistance through the economic development infrastructure grant (EDIG) program. Based on the applicant's written and oral presentation, additional information may be requested before a final written recommendation is forwarded to the Marion County Board of County Commissioners for consideration.

(2)

Employment considerations. EDIG grant funding is limited. While the award of an EDIG grant is not conditional on the creation of new employment, due to the competitive nature of the grant program, the county will use job creation as one of several criteria in evaluating the applicant's overall application and request for funding.

For example—Most EDIG grants average about two thousand dollars ($2,000.00) per full-time or full-time equivalent for each new to Marion County job created by the applicant within the first twelve (12) months from the date of occupancy.

(3)

EDIG grant agreement. A written staff recommendation shall be prepared as part of the final presentation to the board. This presentation shall include a formal resolution and agreement outlining the applicant's request, the information submitted by the applicant, the outcome of any due-diligence review and the applicant's ability to perform. The agreement shall include a "scope of work" describing the applicant's project as well as "performance measures" required by the county.

(4)

Payment of EDIG grant proceeds . All payments of EDIG grant awards will be made on a performance-based reimbursement to the applicant. The county's engineer or his/her designee will be responsible to inspect all construction performance related to the EDIG grant. Upon review and acceptance by the county engineer, a "certification of satisfactory completion" will be issued acknowledging completion of the project. The applicant shall be responsible for submitting all related invoices and cancelled checks for the work performed and approved by the county engineer. Invoice amounts may be adjusted for any expenses determined to be outside the parameters of the agreement. Reimbursement by the county will be based on the specific terms of the agreement between the county and the applicant. Payment by the county will be made within fifteen (15) days of the county's approval of all invoices and required documentation by the applicant.

(5)

Grant performance and audit . Each EDIG grant recipient will be subject to grant performance measures and an audit review during the term of the contract agreement between the applicant and Marion County. Failure to achieve or maintain performance measures outlined in the EDIG agreement may result in the cancellation or repeal of the EDIG grant by the county.

(h)

Sunset provision. The Marion County Economic Development Infrastructure Grant (EDIG) Ordinance shall be authorized upon the approval of this section by the board and shall sunset effective September 30, 2018.

(i)

Non-exclusivity . This section shall not be the exclusive means of implementing F.S. § 125.045, and nothing in this section shall be deemed to prohibit the board from exercising the authority provided for in F.S. § 125.045 to provide incentives to attract and retain business enterprises based solely on the authority, and terms, of that statute. Every grant agreement shall clearly specify whether it was adopted pursuant to the provisions of this section, or the statute.

(Ord. No. 13-25, §§ 1—7, 12, 9-3-2013; Ord. No. 16-20, § 1, 6-7-2016; Ord. No. 16-33, § 1, 10-4-2016)

Editor's note

Ord. No, 13-25, §§ 1—7, 12, adopted Sept. 3, 2013, did not specify manner of inclusion; hence, codification as § 10-7 was at the discretion of the editor.