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HomeMy WebLinkAbout30. 12-616 DECEMBER 11, 2012 12-616 RESOLUTION (CARRIED___6-0___ LOST _______ LAID OVER _______ WITHDRAWN _______) PURPOSE: ACCEPT WINNEBAGO COUNTY PER CAPITA FUNDING FOR ECONOMIC DEVELOPMENT AND AUTHORIZE PAYMENT OF FUNDS TO CHAMCO TO SUPPORT ITS ECONOMIC DEVELOPMENT EFFORTS ON BEHALF OF THE CITY INITIATED BY: CITY ADMINISTRATION WHEREAS, Winnebago County has established the Winnebago County Per Capita Funding Program to provide annual allocations to local units of government for economic development programs and projects; and WHEREAS, funds under this program may be used for economic development promotion/marketing efforts and/or financing local economic development projects; and WHEREAS, the City of Oshkosh has previously designated its funds under this program to CHAMCO; and WHEREAS, Winnebago County recently increased its per capita funding for economic development to municipalities in the County; and WHEREAS, the City’s Agreement with CHAMCO for the marketing and development of industrial land within the City of Oshkosh expires on January 31, 2013; and WHEREAS, the City has previously allocated $37,500 annually to CHAMCO for ongoing economic development support on behalf of the City of Oshkosh; and WHEREAS, the City of Oshkosh contracted with the Prager Team to complete an Organizational Analysis and Direction pertaining to Economic Development within the City of Oshkosh; and WHEREAS, the Prager Study recommends changes be made to the current structure of economic development organizations and to the manner in which economic development is currently undertaken; and WHEREAS, the City is currently working with various stakeholders in economic development to review and implement the suggestions of the Prager Study; and DECEMBER 11, 2012 12-616 RESOLUTION CONT'D WHEREAS, it is appropriate at this time to designate funds to CHAMCO to continue their economic development efforts on behalf of the City and to accept the increased portion of the county economic development allocation at this time for implementation of the recommendations of the Prager Study. NOW, THEREFORE, BE IT RESOLVED by the Common Council for the City of Oshkosh that the City of Oshkosh accepts the Winnebago County Per Capita Funds. BE IT FURTHER RESOLVED, that the City of Oshkosh allocate $28,387.10 of the County Per Capita Allocation to Chamco for 2013; and BE IT FURTHER RESOLVED that the City Council also authorizes the payment of $37,500 to CHAMCO for its ongoing support of economic development activities on behalf of the City of Oshkosh for 2013; and BE IT FURTHER RESOLVED that should a successor public-private agency be created during calendar year 2013, CHAMCO shall refund to the City both the Per Capita Allocation and the ongoing economic development support funds to the City on a pro rata basis for the remaining portion of calendar year 2013. BE IT FURTHER RESOLVED that the appropriate city staff are hereby authorized and directed to take any and all steps required to apply for, accept, receive and transfer the County Per Capita Economic Development Allocation as contemplated by this resolution, to make payment of $37,500 to CHAMCO for the ongoing support of economic development activities on behalf of the City of Oshkosh and to enter into appropriate agreements to ensure that the intent of this resolution is met. TO: Honorable Mayor and Members of the Common Council FROM: Allen Davis, Community Development Director DATE: December 6, 2012 SUBJECT: The City's financial support for Chamco's economic development efforts on behalf of the City in 2013 BACKGROUND Chamco provides the City with economic development services. In addition, Chamco administers the restrictive covenants in all the industrial parks. The recently completed Prager Study recommends creating a new public-private organization and it is expected the City will be taking a lead role in establishing this new organization. The new organization may take on some or all of Chamco's responsibilities. However, until the new organization is created, Chamco is requesting that the City provide interim funding in 2013. In 2012, the City provided Chamco support in the form of the Winnebago County per capita allocation of$28,818 and City funds of $37,500 for a total of $66,318. It is recognized that the funds that Chamco requests could also be used by the new organization. Therefore, a rebating mechanism must be established so that the City can re-allocate these funds when the new organization is established. This funding should be based on a pro-rata basis in 2013 so that the remaining balance can be refunded to the City. ANALYSIS Chamco has provided economic development services to the City for many years. The City will still need these services until a new organization can provide those services. In the meantime, Winnebago County increased the per capita allocation for the City of Oshkosh from $28,818 to $54,585 in 2013. Chamco is requesting that the County funding continue at about the 2012 allocation of $28,387.10. The City will be making the request to the County for the total $54,585. Chamco is also asking that the City support remain at $37,500. Chamco's total City/County support would be $65,887.10. The City has budgeted the $37,500 for economic development in the 2013 Budget, but has not designated the use to Chamco or any other organization. Winnebago County has budgeted the $54,585 as part of the IDB program. The timing for creating the new economic development agency is not certain. The City is in the process of gathering the thoughts and comments on the Prager Study from our economic development partners, the business community, and the public. Since the date of creation is uncertain, it is critical for the City to be refunded any dollars that are provided to Chamco that would be needed by the new economic development agency. As an example, if the new agency is created on July 1, 2013, 50% of the year would remain, and then 50% of the City funding of $65,887.10 must be refunded to the City. ($65,887.10 x 50% = $32,943.55.) FISCAL IMPACT The City 2013 Budget contains the $37,500 and Chamco is requesting that amount. The Winnebago County per capita allocation is $54,585 and Chamco is requesting $28,387.10 of that total. These are all budgeted funds. The proposed rebate formula would refund the economic development funds on a pro-rata basis, to the City, when the new economic development agency is created. RECOMMENDATION The City Council approves the Resolution as presented. Approved, � ity`'M"ai�fag