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HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 08/18/2015 - RESOLUTION 2015-079 ADOPTING AN UPDATED ECONOMIC HAgenda Item 21 Item # 21 Page 1 AGENDA ITEM SUMMARY August 18, 2015 City Council STAFF John Voss, Controller/Assistant Financial Officer Josh Birks, Economic Health Director SUBJECT Resolution 2015-079 Adopting an Updated Economic Health Policy. EXECUTIVE SUMMARY The purpose of this item is to approve an update to the Economic Health Policy. The Fort Collins City Council has adopted Financial Management Policies pursuant to the provisions of Article V, Section 12 of the City Charter, to guide the administration, management, deposit and investment of City funds. In addition, City Council and staff have committed to regularly review and update these Financial Management Policies. The current Economic Development financial policy was last updated in 1999. Staff presented revisions to Council Finance Committee on May 18 who approved the changes and recommended bringing the policy to the City Council. The bulk of the new policy comes from documents previously approved by City Council in recent years. The new financial policy will replace the existing policy in its entirety. STAFF RECOMMENDATION Staff recommends adoption of the Resolution. BACKGROUND / DISCUSSION The City of Fort Collins adopted an Economic Development Policy in 1999 (Attachment 2) that outlined the City’s general approach to Economic Development. In 1999, the City did not have a dedicated Economic Health Office and no staff directly tasked with preserving and enhancing the economic health of the community. In 2005, the City created an Economic Health Office (EHO) and tasked staff with preserving and enhancing the economic health of the community. Since 2005, the Economic Health Office has grown by absorbing the Urban Renewal Authority oversight and adding additional staff. In addition, a number of documents were approved by City Council to guide the actions of the EHO. These documents include:  2006 - Economic Health Action Plan (Resolution 2006-097);  2010 - Target Industry Development (Resolution 2010-055);  2012 - Economic Health Strategic Plan (Resolution 2012-044); and  2013 - Policy for Developing Primary Employer Business Assistance Packages (Resolution 2013-025). The proposed policy revisions (Attachment 3) are aligned with the Economic Health Strategic Plan (EHSP) that was updated in June 2015. The update to the EHSP responded to City Council requests, alignment with the objectives of the Sustainability Service Area and introduced five themes around which to organize the City’s economic health activities:  Community Prosperity  Grow Our Own  Place Matters  The Climate Economy Agenda Item 21 Item # 21 Page 2  Think Regionally The proposed update to the Economic Health Financial Policy addresses several key aspects of the City’s evolving Economic Health approach:  Section 9.1: Policy Statement - This section of the policy reiterates the City’s position on Economic Health, as stated in the City’s Strategic Plan (2014). Most importantly, it provides the City’s approved Economic Health Mission Statement: Fort Collins promotes a healthy, sustainable economy reflecting community values.  Section 9.2: Role of the City - This section of the policy relates a high-level overview of the evolving role of the City in Economic Health. The bulleted role statements come directly from the draft revisions to the Economic Health Strategic Plan, which will be considered by City Council on June 2, 2015.  Section 9.3: Role of the Private Sector - This section provides a brief statement about the importance and role of the private sector in preserving and enhancing the community’s economic health.  Section 9.4: Role of Outside Entities - This section provides a brief statement about the importance and role of outside entities in preserving and enhancing the community’s economic health.  Section 9.5: Primary Employer Business Assistance Package Development - This section reiterates the essential portions of the Primary Employer Business Assistance Package Development framework approved by City Council on March, 19, 2013 (Resolution 2013-025).  Section 9.6: Industry Cluster Grants - The EHO staff has developed a process for reviewing competitive applications for available Industry Cluster support funds. These funds are provided annually through the process outlined in this section. The section covers eligibility, evaluation criteria, selection process, and other aspects of the program.  Section 9.7: Use Tax and Business Personal Property Tax Rebate Process - This section of the policy covers the process by which use tax and business personal property tax rebates are managed if provided through a Primary Employer Assistance Package. The process provides significant refinement to early rebates and makes the verification of eligibility and performance easier to manage. As additional programs are developed by EHO that require financial oversight this proposed policy will be updated accordingly. CITY FINANCIAL IMPACTS None. BOARD / COMMISSION RECOMMENDATION Revisions to the policy were reviewed and approved by the City Council Finance Committee on May 18, 2015. (Attachment 1) ATTACHMENTS 1. Council Finance Committee minutes, May 18, 2015 (PDF) 2. Current Economic Development Policy (PDF) ATTACHMENT 1 Financial Management Policies ECONOMIC DEVELOPMENT POLICY (Authorized by Resolution 1999-023) 9.1. POLICY STATEMENT The City of Fort Collins has chosen a partnership model for economic development. The partnership is between the public and private sector, and the citizens of Fort Collins. The City provides many services to existing and prospective business. The City facilitates the processes and procedures required for site development, provides data and demographic information, invests in municipal infrastructure, and considers other initiatives on a case-by- case basis. The private sector shares responsibility with the public sector for the retention and expansion of business or industry with the City. This may include marketing and promotion of the community, outreach to existing business, and assistance in project financing and small business counseling. 9.2. ROLE OF THE CITY OF FORT COLLINS Businesses considering expansion or relocation are most concerned and interested in the overall quality of life. Some measures of quality of life include: the quality of primary and secondary schools, the skill of the work force, the quality of municipal services, and the state of the natural environment. The City's primary role in economic development focuses on those areas which directly involve City process and procedure. The City's goal is to encourage and support economic development and economic opportunities which provide primary employment, increase private investment within the community and improve the quality of life for its residents. The City strives to achieve this goal through the following policies: 1. Promotion of the City as a good place to live and work. 2. Emphasis on comprehensive, quality municipal services as the City's primary contribution to the community's economic development effort. 3. Create a positive climate for both local and new business. 4. Assist small business retention and expansion as appropriate. 5. Encourage and promote workforce training, retraining, education, and employee support services to assist in the creation and expansion of meaningful employment opportunities. 6. The City=s role in dealing with prospective expansion or relocations focuses on planning and the provision of municipal services and facilities such as streets and utilities. 7. Encourage the development of a wide variety of business activities rather than focusing solely on one sector. 8. Awareness of the community=s role in the global and domestic marketplace, and the importance of welcoming and assisting visitors from other nations, foreign firms, and tourists. ATTACHMENT 2 Financial Management Policies The City has identified several action steps to be used to implement the policies above: 1. Work with other public and private entities to promote policies and programs which encourage education, training, workforce development, and basic, advanced, and technological skills enhancement. 2. Provide prospective businesses with information regarding municipal services, schools, recreational opportunities, health care, and other services available within the community. 3. Notify existing and prospective businesses of the opportunities available through Colorado State University and the private sector in the areas of product and process development. 4. Consider partnerships with other public and private entities such as the Fort Collins Virtual Business Incubator and Small Business Development Center to encourage entrepreneurial activity within a one-stop environment. 5. Maintain and enhance utility and technological infrastructure and strive to provide consistently reliable and efficient service. 6. Maintain a reasonable and equitable tax structure. 7. Provide assistance to business and industry about City process and procedure. 8. Afford new and existing business and industry the opportunity to seek financial incentives from City, state, and federal sources. 9. Monitor economic, community and environmental indicators on a periodic basis and consider actions that address a change in the local economy. 10. Evaluate all programs and policies that are suggested for Council consideration to determine if there are unintended impacts on the business community. 9.3. ROLE OF THE PRIVATE SECTOR The private sector plays a significant role in the success of the overall economic development strategy. The private sector mission is to work with the City and other public organizations to retain and expand basic industry within the city and county. This effort requires the support of the Northern Colorado Economic Development Corporation, the Chamber of Commerce and other entities referenced below, as well as local banks, financial institutions, and existing business and industry. The private sector role is characterized by its ability to work with new and existing business in a confidential manner. Real estate values, business climate, financing options, and site options are most appropriately discussed by the private sector. 9.4. ROLE OF OUTSIDE ENTITIES The efforts of the City and private sector to enhance the economic prosperity of the community are directly and indirectly supported by several organizations and entities including: Colorado State University Downtown Development Authority Larimer County Convention & Visitor's Bureau Financial Management Policies Poudre R-1 School District Private Industry Council Employment and Training Service Though each has an independent focus, their work contributes to the overall quality of life and prosperity enjoyed with the community. In this way, the network required to conduct an effective community-based economic development is provided. - 1 - RESOLUTION 2015-079 OF THE COUNCIL OF THE CITY OF FORT COLLINS ADOPTING AMENDMENTS TO THE FINANCIAL MANAGEMENT POLICIES CONCERNING THE CITY’S ECONOMIC HEALTH FINANCIAL POLICY WHEREAS, City Council has adopted Financial Management Policies for the City pursuant to Resolution 1994-174 (the “Financial Policies”); and WHEREAS, Resolution 1994-174 provides that City Council may adopt amendments to the Financial Policies, which the Council has done several times over the years; and WHEREAS, the City’s Chief Financial Officer and City Manager have recommended new amendments to the Financial Policies related to the current section of the Financial Policies that addresses financial policies related to economic health; and WHEREAS, the City is committed to sound and efficient financial planning and management consistent with the best practices as established by the Government Financial Officers Association (“GFOA”); and WHEREAS, the new “Economic Health Financial Policy” is attached hereto and incorporated by reference as Exhibit “A” (the “Economic Health Policy”); and WHEREAS, the Council Finance Committee has reviewed the Economic Health Policy and voted to recommend that the Council approve it; and WHEREAS, the City Council wishes to amend the Financial Polices, as most recently updated on May 19, 2015, with the adoption of Resolution 2015-055, by adopting the Economic Health Policy in pursuit of its objective of sound and efficient financial planning and management consistent with GFOA’s best practices. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS, as follows: Section 1. That the City Council hereby approves and adopts the Economic Health Policy. Section 2. That the Economic Health Policy shall be included as a new section to the Financial Policies, and the Financial Policies, as previously amended and as amended herein, shall hereafter remain in effect until the same are amended or repealed by subsequent action of the City Council. - 2 - Passed and adopted at a regular meeting of the Council of the City of Fort Collins this 18th day of August, A.D. 2015. __________________________________ Mayor ATTEST: _____________________________ City Clerk Economic Health Policy 9 Economic Health Financial Policy Issue Date: August18, 2015 Version: 4 Issued by: Josh Birks Financial Policy 9 – Economic Health 1 9.1 Policy Statement Fort Collins promotes a healthy, sustainable economy reflecting community values. The City plays a critical role in shaping quality of life, creating a sense of place, and providing fiscal stability for the community. Defining sense of place requires identifying the various perspectives across the spectrum of the Fort Collins community. Sustainable economic health, maintaining the City’s role as a regional economic center, continuing collaboration with Colorado State University and other regional participants, and supporting cultural amenities are important priorities. A sustainable economy means that residents can find employment and afford to live in the community; that businesses are able and encouraged to start, remain and expand in the community; and that everyone can expect quality City services and sustainable, attractive infrastructure. Economic Health depends on a safe community. Rather than “deal-making,” the City’s approach to Economic Health is one of “place- making” (a decision-making approach intended to preserve and enhance a vibrant community by optimizing its economy, environment and social values). The City creates an atmosphere where businesses that align with community values thrive, and focuses Objective: The objective of Economic Health within Fort Collins is a sustainable economy. A sustainable economy means that residents can find employment and afford to live in the community; that businesses are able and encouraged to start, remain, and expand in the community; and that everyone can expect quality City services and sustainable, attractive infrastructure. In addition, this Policy provides specific direction on:  Primary Employer Business Assistance Package Development;  Industry Cluster Grants; and  Use Tax and Business Personal Property Tax Rebate Process Applicability: This policy applies to the City’s actions related to Economic Health. Authorized by: City Council Resolutions 87-09, 91-15, 99-23, 2015-XXX EXHIBIT A Financial Policy 9 – Economic Health 2 on retaining, expanding, incubating and, lastly, attracting businesses. Economic development efforts focus on established Targeted Industry Clusters including clean energy, water innovation, bioscience and technology. In addition, the City supports those businesses that exemplify the overall character of the community. Creating a skilled workforce that meets the needs of local employers and creating partnerships with other economic development organizations are important to the City’s efforts. New opportunities and challenges exist related to adequate technological infrastructure to support a knowledge-based economy and employment competition. Numerous prospects are emerging for redevelopment and infill. Priorities include efforts to foster entrepreneurship, grow and attract primary employers, remain a retirement and tourism destination, and support and strengthen existing businesses. The relationship of economic health to environmental stewardship and a well-planned community is recognized in the decisions made and programs proposed. A healthy and resilient economy includes:  Diverse jobs that enable citizens and businesses to thrive.  A reflection of our unique community in a changing world.  An innovative and entrepreneurial atmosphere that builds new and creative industries.  Strong partnership and collaboration with the private sector, educational institutions, and other organizations.  A quality and comprehensive infrastructure that supports business.  Balancing the built and natural environment. In order to achieve the above outcomes the City of Fort Collins has adopted numerous documents, policies, and resolutions:  2006 – Economic Health Action Plan (Resolution 2006-097);  2010 – Target Industry Development (Resolution 2010-055);  2012 – Economic Health Strategic Plan (Resolution 2012-044); and  2013 – Policy for Developing Primary Employer Business Assistance Packages (Resolution 2013-025). Financial Policy 9 – Economic Health 3 9.2 Role of the City of Fort Collins The City’s primary role in economic health focuses on business retention, expansion, incubation and attraction, in that order. The City’s goal is to support and encourage economic opportunities which provide primary employment, increased private investment within the community and improved quality of life for its residents. Activities include:  Support workforce development and community amenity initiatives that meet the needs of Fort Collins employers  Catalyze industry sectors and clusters to increase economic diversification  Ensure alignment of resources such as reliable, ultra-high speed internet services across the community to incubate new businesses and support entrepreneurs  Identify barriers to spin-out, new business formation, and conversion of intellectual property to economic activity and develop new approaches to address the identified barriers  Work with business community to ensure an adequate supply of employment land (office and industrial) to meet the need of new business formation and expansion  Ensure the infrastructure provided by the City is high-quality and supports business  Preserve the City's sense of place by encouraging strategic public and private investment  Help businesses navigate City processes (e.g., development review, licensing, etc.)  Aid businesses in leveraging the challenges of climate change and carbon reduction into economic opportunities  Develop strong relationships with our counterparts in the region, including Larimer County  Convener of economic recovery entities during natural disasters  Support and develop regional sector initiatives  Identify and market supply chain opportunities for the region The City engages in these activities in one of three ways, as:  Leader— City takes on the lead role in implementing specific goals;  Partner—City partners with other agencies and organizations to implement specific goals including providing funds to achieve these collective goals;  Collaborator— City partners with other agencies and organizations to implement specific goals without providing funds. Financial Policy 9 – Economic Health 4 9.3 Role of the Private Sector The City of Fort Collins follows the triple helix approach (university, private sector and government) to economic health. The private sector plays a significant role in the success of the overall economic health strategy. The private sector mission is to work with the City and other public organizations to retain and support the basic industries within the city and county. This effort requires the support of partners such as the Chamber of Commerce, Metro Denver Economic Development Corporation and other entities referenced below, as well as local banks, financial institutions, developers and existing business and industry. The private sector role is characterized by its ability to work with new and existing business in a confidential manner. Real estate values, business climate, financing options and site options are most appropriately discussed by the private sector. 9.4 Role of Outside Entities The efforts of the City and private sector to enhance the economic prosperity of the community are directly and indirectly supported by several organizations and entities including: Colorado State University Front Range Community College Downtown Development Authority Larimer County Visit Fort Collins Poudre R-1 School District Private Industry Councils Employment and Training Services Various Nonprofit Organizations Though each has an independent focus, their work contributes to the overall quality of life and prosperity enjoyed within the community. In this way, the network required to conduct an effective community-driven economic health is provided. Financial Policy 9 – Economic Health 5 9.5 Primary Employer Business Assistance Package Development The following sections outline the refined process for developing primary employer business assistance packages. 9.5.1 Applicability This policy will apply to all requests for direct assistance, as defined in the available assistance tools section below (e.g., tax rebates, specialized financing, etc.), from primary employers looking to remain or expand their operations in the City, as well as, any primary employer evaluating relocation to the City. For the purpose of this document, a “Primary Employer” or “Primary Job” will be defined as any business or job located within the City that derives a minimum of 50 percent of its income from the sales of goods or services outside the Fort Collins Growth Management Area (“GMA”). 9.5.2 Organization and Management The City’s Economic Health Office (EHO) will have the responsibility of managing and developing all business assistance packages subject to this policy. EHO staff will work collaboratively with other City departments throughout the development process. In addition, EHO staff will work with the applicable City departments to ensure compliance with all terms and conditions of the final business assistance package(s) as approved by City Council. 9.5.3 Available Assistance Tools The City has historically provided a variety of direct assistance to primary employers to encourage the creation and retention of primary jobs. The following provides a list and brief description of the type of assistance commonly used by the City:  Private Activity Bond Financing – A Federal program allowing private corporations to access tax exempt financing for qualified business development investments, such as property acquisition, building construction, building renovation, and equipment procurement.  Manufacturing Equipment Use Tax Rebate – A rebate of the applicable use tax due for the purchase of qualified manufacturing equipment by a business. The maximum allowed rebate will not exceed the City’s general fund tax rate, which at time of adoption of this policy is 2.25 percent.  Business Personal Property Tax Rebate – A rebate of the applicable personal property tax due on qualified manufacturing equipment owned by a business. The maximum allowed rebate will not exceed 50 percent of the City’s portion of the personal property tax rate. In addition, the maximum term of the rebate will not exceed 10 years. The above list does not constitute a complete list of the tools available. In the spirit of continuous improvement, the EHO staff will evaluate additional tools for their applicability to primary employers and job creation and retention. In addition, all new tools will be vetted with the Economic Advisory Commission (EAC), Council Finance Committee, and City Council before use in a business assistance package. Emphasis will be placed on tools that maximize public benefit at minimal cost to the community. Financial Policy 9 – Economic Health 6 9.5.4 Application Requirements A request for direct assistance, as described above, from the City by a primary employer must include a complete application. The EHO will develop an application to be approved and modified from time to time as necessary by the City Manager. At a minimum the application will address the following:  Company Information  Project Information  Capital Investment  Jobs Categories and Wage Distribution  Public Benefit  Natural Resource Stewardship  Community Well-Being The EHO will use existing applications, such as the Community Development Block Grant funding request and Urban Renewal Assistance applications as a model for the initial application. The intent of the application is to collect the necessary data to perform a holistic evaluation of the project and assistance request. 9.5.5 Evaluation Criteria After receipt of a complete application, the EHO office will screen all request using a set of evaluation criteria designed to provide a holistic evaluation of the proposed project. The evaluation criteria will be approved and modified from time to time by the City Manager as proposed by the EHO. The evaluation criteria will address the following key areas with example criteria:  Economic Impact – Overall impact (e.g., Gross Revenues, percent of City employment), employment impact (e.g., number of jobs, wages, benefits), and capital investment (e.g., equipment purchases, facility investment, infrastructure impact).  Contribution to Quality of Place – Added community value through their product/service, has a positive history and/or longevity in the community, and/or meets a community need.  Alignment with City Objectives – The project aligns with clearly stated City objectives from the EHSP, City Plan, or other relevant strategy (such as a target industry cluster) or planning document.  Natural Resource Stewardship – Impact of electricity and water consumption, hazardous waste management, ClimateWise Partner, participation in Utility’s Integrated Design Assistance Program (IDAP) or similar conservation program.  Community Well-Being – Contribution to a diverse job base, corporate outreach/volunteerism, impact to community infrastructure, proximity to public transportation, provision of other benefits (e.g., childcare). Financial Policy 9 – Economic Health 7 9.5.6 Business Assistance Inputs All business assistance packages will be performance-based agreements. The program is designed to support and encourage new business development, business expansion and relocations that either retain or generate net new primary jobs. The EHO will use a list of scalable inputs to determine the amount and type of assistance to include in each package:  Annual average wages – It is the intent of this policy to encourage a diverse base of jobs. Therefore annual average wage will be one of several inputs in determining the amount and type of direct assistance for an eligible project. The computed annual average wage of all jobs included in a project will be considered against the Larimer County annual average wage. Projects that achieve an annual average wage higher than the Larimer County annual average will qualify for additional assistance.  Number of retain or net new jobs – The total number of jobs retained or created by a project will figure into the ultimate level of assistance received by a project from the City. Projects with larger number of retained or created jobs with a significant economic impact will receive additional assistance.  Health care premium assistance – Projects that provide greater than a 50 percent contribution by the employer to an employee’s health care insurance premium will qualify for additional assistance. These inputs will be approved and from time to time as necessary modified by the City Manager. 9.5.7 Economic and Other Analyses The EHO will use a Triple Bottom Line (TBL) approach to evaluating all applications for assistance to primary employers. Therefore, the approach will require a holistic set of analyses that address the economic, environmental, and human aspects of a project. This systematic approach will avoid evaluating a project in isolation. The following analyses will be included for every application:  Economic Impact Analysis – The EHO will use an outside consultant with expertise in economic impact analysis for this aspect of the evaluation. The analysis will include both costs and revenues to the community allowing for a true fiscal impact analysis of the project. At time of adoption, EHO has contracted with TIP Strategies and Impact DataSource for these services. All economic impact analyses will evaluate a minimum of a 10 year period.  Sustainability Assessment – The EHO will identify and use a tool(s) that address a holistic analysis of a project including natural resource impacts and community well- being impacts. Examples of these tools include: Fort Collins Sustainability Assessment Tool (“SAT”) or a tool developed by Portland State University (tbltool.org) for the US Economic Development Administration. The results of these analyses will be summarized and presented to City Council for their consideration of a business assistance package for primary employers. Financial Policy 9 – Economic Health 8 9.5.8 Minimum Company Commitments Any applicant for direct assistance from the City for the purpose of creating or retaining primary jobs will commit to the following:  Pledge to Annual Reporting – All recipients of direct assistance through a business assistance package will pledge to provide annually all information stipulated in the final agreement to comply with the performance requirements of that agreement. At a minimum, this reporting requirement will include: the number of jobs created or retained, the wage distribution for those jobs, and the capital investment and timing of investment.  Separate Use Tax Schedule – This requirement applies only to recipients of a Manufacturing Use Tax Rebate (“MUTR”). The applicant must submit a separate schedule at the time the use tax submission for eligible equipment that accurately designates and identifies the eligible equipment for which a rebate will be requested by the company.  Timeline for Confidentiality – The applicant will commit to a timeline for releasing claims of confidentiality regarding the proposed project. At ther latest, confidentiality will be maintained up to a term of 30 days prior to consideration of a business assistance package by City Council. These 30 days will provide an opportunity for the Economic Advisory Commission and the general public to comment on the package ahead of City Council action.  Assurance of Existing Workforce Retention – This requirement applies only to retention and expansion projects. The applicant will commit to all reasonable efforts to maintain their existing workforce in the City for the duration of the business assistance package. Individual agreements will specify the amount of existing employment and the exact duration. 9.5.9 Compliance Monitoring The EHO will monitor each project and business assistance package annually for compliance to the terms of the final agreement approved by City Council. In addition, the EHO will develop a template checklist, to be customized to each project, to ensure compliance with initial aspects of the agreement, such as submission of use tax on a separate schedule, construction of facilities on the proposed timeline, and purchase of equipment on the proposed timeline. Each agreement will stipulate the terms of compliance that the EHO will monitor. 9.5.10 Annual Reporting The EHO will provide City Council a written annual report outlining the compliance of each approved applicant with the terms of their business assistance package. In addition, this annual report will include an assessment of the economic impact of the active projects. Financial Policy 9 – Economic Health 9 9.6 Industry Cluster Grants The City of Fort Collins aims to support the growth of key industries and sectors. 9.6.1 Grant Objectives This support will facilitate companies’ access to: 1. Peer networks: opportunities to interact with peers. Examples include CEO roundtables, occupation-specific professional development workshops, and industry-specific, topical symposia. 2. Suppliers and inputs: better access to supplies or suppliers to reduce costs. Examples include recruitment of suppliers, purchasing cooperatives, and shared storage facilities. 3. Talent: increased access to qualified workers. Examples include customized training programs for key occupations, marketing to build Fort Collins brand in industry, informative relocation-oriented website geared at specific talent segments, collaborative recruitment. 4. Markets: increased visibility in market segments and improved market penetration. Examples include export/trade assistance, co-marketing opportunities at trade shows, trade delegation trips, and general marketing activities that promote a Fort Collins brand for the industry. 5. Capital: improved access to capital networks – local and beyond. Examples include local angel investor network, local revolving loan fund, networking opportunities with venture capitalists, events to raise awareness of Fort Collins entrepreneurs. 6. Industry intelligence: access to data and market research to inform business planning and strategic decision-making. Examples include shared access to industry databases and new sources, research assistance, industry conferences. 9.6.2 Eligibility Eligible applicants must meet the following eligibility requirements. Priority will be given to proposals that include a collaboration of triple helix partners to leverage resources and expertise. The City acknowledges the importance of maintaining a well-rounded diverse portfolio of partners.1  Applicants must have their operations based in Fort Collins, or be partnered with a Fort Collins based entity.  Applicants must be a group of businesses or a non-profit umbrella organization; applications that benefit a sole entity will be disqualified.  Applicants must have matching funds that establish a 1:1 public-to-private funding ratio. Third-party investors may include such entities as another company or companies, a venture capital firm, angel investors, and federal, state or local government grants. 1 The City does not provide funding for capital expenditures, and reserves the right to not fund overhead expenses. Financial Policy 9 – Economic Health 10 9.6.3 Grant Awards Funds available for eligible companies vary by fiscal year depending on the outcomes of the City’s budgeting process. The City retains the right to withhold funding regardless of the number and amount of requests. Payments Payments will be disbursed in accordance with the specific terms and conditions of the project as outlined in the Grant Agreement, either on a quarterly, bi-annual, or annual basis. Payments may be contingent on project/program progress. Budget Adjustments & Return of Unused Grant Money Upon completion or early-termination of a project, any unused grant money shall be returned to the City of Fort Collins which will be de-obligated and returned to the Economic Health Cluster Support Fund. 9.6.4 Application Review Staff Review & Selection Process  EHO Staff will screen each application for compliance with the rules and statutory requirements outlined in this document. Only those applications that meet rules and requirements will move forward for committee review.  EHO will convene a Selection Committee (“Committee”) to review and evaluate eligible applicants.  Applicants that move forward will be required to participate in a mandatory interview prior to award notification.  The City reserves the right to award partial funding, which will be discussed at the interview.  The City intends for the process to last no more than two months, from application submission to award disbursement. Committee Members will not discuss deliberations with applicants mid process; however, the Committee may provide professional feedback before the application submittal, and after the awards have been announced. 9.6.5 Evaluation Criteria All applications are competitively evaluated by the Committee with a focus on: 1. Growth in the targeted industries and sectors in terms of employees, wages, sales, talent, private investment, and establishments. 2. Continued innovation, which may be measured by patents, start-ups funded, business support, collaborative efforts, and research funded. 3. Greater visibility of Fort Collins and Northern Colorado, through local successes, and coordinated promotion/marketing. 4. Support of the Cluster Program goals (Section I), the Economic Health Office Strategic Plan, and the City of Fort Collins Strategic Plan. Financial Policy 9 – Economic Health 11 9.6.6 Reporting Requirements Annual Progress Report & Award Responsibilities Each applicant that successfully receives funding from EHO must submit an annual report documenting accomplishments, results achieved, community impact, and monetary and other returns if applicable including jobs created. Applicants may be required to provide monthly/quarterly updates to EHO staff, as outlined in the Grant Agreement. A report outline will be available from EHO on September 1, and the report must be electronically submitted December 1st, or as specified in the Grant Agreement. Additionally, successful applicants may be required to participate in an annual EHO conference, EHO/Cluster marketing materials, and serve as a cluster ambassador. 9.7 Use Tax and Business Personal Property Tax Rebate Process When Council approves rebates as part of a Business Assistance package as described in Section 9.5.3, the City, in an effort to better manage the inflow and outflow of funds, will use the following process to manage use tax and business personal property tax rebates awarded through a Primary Employer Assistance Package:  The Company receiving the use or personal property tax rebates will provide a separate schedule of payments to the City, such that staff has a clear understanding of what portion of the company’s remittance are applicable to the business assistance package. Two submissions from the company may be required – one for the remittance of payments eligible for rebates and one for the remittance of payment not eligible for rebates.  As the recipient company remits either use tax or business personal property tax, the City’s finance department will assign these funds within the General Fund in a special account to record the future liability associated with the rebate.  A recipient company will make an application to receive a rebate consistent with the terms of the business assistance package. Upon receipt of this application the Economic Health Office will review the company’s eligibility and verify performance, as required by the Assistance Package;  After verification of eligibility and performance, EHO will initiate an Appropriation request to Council using the funds previously assigned to fund rebates as described above. After the Appropriation has been approved, the finance department will make payment on the rebate according to the terms of the Assistance Package. Financial Policy 9 – Economic Health 12 Getting Help Please contact the Economic Health Director with any questions at 970.221.6324. Related Policies/References Economic Health Action Plan (Resolution 2006-097); Target Industry Development (Resolution 2010-055); Economic Health Strategic Plan (Resolution 2012-044); Policy for Developing Primary Employer Business Assistance Packages (Resolution 2013-025) and URA Financial Management Policy 20 – Tax Increment Financing (URA Resolution 071, September 30, 2014)