Praising the county team for their cooperation and the potential of the EDIF, Roundtable President & CEO M.H. Jim Estepp said this:
“So many small and large businesses today are looking for the kind of incentives that this comprehensive fund will provide to impact their decision to move their businesses to our county or expand their existing operations; all of which will create jobs, add to our tax base and keep county commuters here, not leaving in droves everyday for other parts of the region.
I’m really excited by the creation of this fund. I feel as if the county is a company which is moving from an over-the-counter stock on the NASDAQ, to Blue Chip status on the big boards of the NYSE.”
The two EDIF photographs on the front page are courtesy of Prince George’s County
THE PRINCE GEORGE’S COUNTY GOVERNMENT
OFFICE OF THE COUNTY EXECUTIVE
For Immediate Release: November 18, 2011
Contact: Scott L. Peterson, Deputy Manager of Communications/Press Secretary
County Executive Baker’s release
Upper Marlboro, MD— Yesterday, Prince George’s County Executive Rushern L. Baker, III and the Prince George’s County Council signed CB-4-2011, the Economic Development Incentive (EDI) Fund proposed by County Executive Rushern L. Baker, III. This bill establishes an Economic Development Incentive Fund, specifies the purpose and uses of the Fund, and provides for the financing and administration of the Fund. An appropriation of $50 million over the next five fiscal years has been designated for the EDI Fund. This includes $7 million that has been proposed for the Fund in FY 2012.
With the theme of “Employ. Develop. Invest,” CB-4-2011 was signed at Hunter Mill AME Church in Suitland. Located on Silver Hill Road across from the Suitland Federal Center and near the Suitland Metro station, this church bought the surrounding retail development space over 10 years ago and replaced a pawn shop with Rite Aid. It is this type of economic development progression that the EDI Fund was created to stimulate and accelerate.
“Together, united as One County, working together as the Executive and Legislative Branches, we have made a bold declaration to the State, region, nation, and the world that, ‘Prince George’s County means business!” said Baker. “With the EDI Fund, we are going to Employ by creating new jobs and retaining current jobs in the County. We are going to Develop new business opportunities, incubator companies, and small and minority owned businesses that will lead to new industries in the County. And we will Invest in those projects and companies that will help to growth and expand our tax base, so we can increase our investment in education, healthcare, public safety and the environment.”
The EDI Fund is intended to elevate the county’s economic development profile and signal to the development community that Prince George’s has turned a significant corner. The EDI Fund’s potential return on investment will not be measured solely by financial returns to the fund itself – rather, it will be measured primarily by tangible measures like job creation, increased commercial tax revenue, and the achievement of key development goals. Under CB-4, special priority will be given to projects that maximize Local Minority Business Enterprise (LMBE) participation and hiring opportunities for County residents.
“I am proud of the Council’s work with County Executive Baker to establish this Economic Development Incentive Fund in Prince George’s County,” said Council Chair Ingrid M. Turner. “We are confident that our work together to enhance economic development in the County will support the kind of development both the Council and County Executive agree needs to happen. This is a plan that sets a clear vision for development opportunities and policies that will strengthen our communities with redevelopment and revitalization initiatives.”
Gauging from the experience in other jurisdictions with similar funds, it is predicted the EDI Fund will be able to leverage private funds by 5:1, 10:1, or even higher ratios. The EDI Fund will also allow Prince George’s County to leverage State programs where County participation is required.
Administration of the Fund will be coordinated by the Chief Administrative Officer (CAO), with many County agencies and entities involved in reviewing and processing applications for financial assistance from the EDI Fund. An internal County team has been drafting administrative procedures for several months in anticipation of the Council’s vote today, and many agencies will participate in supporting the Fund’s goals. The Economic Development Corporation will serve as the primary intake source for applications for EDI Funds, with the Financial Services Corporation providing underwriting services.
“The EDI Fund will provide much needed revenue to level the playing field for Prince George’s County,” said Gwen S. McCall, President and CEO of the Prince George’s County Economic Development Corporation. “For years, surrounding jurisdictions were able to offer financial incentives to attract and/or retain businesses for their counties. We were limited. We could offer tax abatements, tax credits and land use, but we never had the stimulus funds to encourage businesses to stay or choose us over some other area.”
The Office of Management and Budget, and the Office of Finance, will work together to provide the necessary financial analysis, monitoring, tracking, and adherence to standard accounting and reporting procedures. Working with the Prince George’s Economic Development Corporation (EDC) and Financial Services Corporation (FSC), the CAO will be responsible for determining the rates and terms for the financial assistance provided by the EDI Fund. In order to measure the success of the EDI Fund over time, appropriate accountability metrics will be developed including job retention and attraction, leveraged public and private sector dollars, small business, Local and Minority Business Enterprise participation, and other necessary standards.
“The EDI Fund is exactly what is needed to help create more of the business opportunities that local small and minority businesses have long been awaiting for in this county,” said Roland Jones, Executive Director of the County’s Minority Business Development Division. “With this fund in place, it will help facilitate a mechanism by which diverse suppliers can become more competitive in the marketplace, while sending a strong message that Prince George’s County is committed to the diverse business community.”
To protect the county’s interests and ensure the highest degree of financial integrity, an independent and objective panel known as the Financial Advisory Council (FAC) will be appointed to provide advice and guidance on the financial viability of applicants for EDI Funds. The FAC will be comprised of financial services professionals, with four members appointed by the CAO and three by the Council. These individuals will be held to high standards to avoid any conflicts of interest. Individuals interested in serving on the FAC should submit resumes to the CAO.
Under CB-4 as enacted, the County Council will receive 7 days advance written notice of all loans or grants from the EDI Fund. Any grant over $250,000 is subject to Council approval.
Before a loan closing, the applicant will be required to offer proof of “clean hands,” in which all financial obligations (e.g., taxes, fees, etc.) to the Federal, County and State governments are met, and that the individual or corporation is in good standing with the State authority responsible for corporate filings.
The EDI Fund was originally submitted as part of the FY2012 Proposed Budget presented to the Prince George’s County Council. The Prince George’s County Council will deliver this bill to the County Executive within 10 business days. After delivery, the County Executive has 10 days to sign this bill.
Administrative details of the EDI Fund and will be finalized over the next couple of months. Applications will be accepted and implementation will begin in the first quarter of the 2012 calendar year.
