AGENDA ITEM REPORT
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A RESOLUTION AMENDING THE ECONOMIC DEVELOPMENT INCENTIVE PROGRAM GUIDELINES FOR INCENTIVE STRATEGIES.
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BACKGROUND:
The City of Coconut Creek has provided incentives for priority economic development projects and coordinates incentive packages with county, state, and federal agencies. Some of the programs that the City has participated in include the Job Growth Incentive Program in coordination with the State of Florida and Broward County, and the issuance of Industrial Revenue Bonds. In addition, the City of Coconut Creek budgets $250,000 annually in the General Fund for economic development purposes that include items such as:
1) Retaining and strengthening existing businesses.
2) Attracting targeted industries for the purpose of diversifying the employment base and strengthening the tax base.
3) Other economic development activities as approved by the City Commission such as the City’s participation in the Junior Achievement Program facility.
4) Other economic development activities as approved by the City Manager in accordance with the City’s existing purchasing policy.
These priorities require very different approaches and often are operating at different scales. For the purpose of retaining and strengthening existing businesses, the City Commission created two specific strategies, the Rent Subsidy Program and the Commercial Rehabilitation Program, adopted as the Economic Development Incentive Program in April of 2012, both serving a need for our local business community.
The Economic Development Division funds have also provided for other economic development opportunities, such as the City Hall storefront at the Junior Achievement facility, which have allowed the City to stay competitive and involved in the local, state, and regional economic development community.
DISCUSSION:
The Economic Development Incentive Program currently authorizes the administrative approval of economic development grants that fall under these specific headings of Rent Subsidy or Commercial Rehabilitation and that comply with the criteria established by the City Commission. Because of the nature of the projects and to ensure transparency in the process, staff is proposing amendments to the guidelines to articulate the public notice process related to these meetings. Further, given the competitive nature of economic development and the need to be responsive to various opportunities and demands, staff is recommending additional changes to the program guidelines to address these factors.
The updated program guidelines clarify the local grant incentives as well as the Economic Development Review Committee’s (EDRC) responsibilities. As part of this amendment process, staff is also proposing to discontinue the Rent Subsidy Program in that it has essentially served its intended purpose. Staff is proposing to maintain the Commercial Rehabilitation Program in an effort to maintain an incentive that encourages business and property owners to invest matching dollars as partners with the City that will serve to enhance our commercial properties.
Staff is committed to this strategy and plans to undertake an aggressive outreach effort to ensure that it is reaching all businesses interested in investing in their business and the City of Coconut Creek. Plans for outreach include one-on-one meetings with plaza/property owners and managers to highlight the benefits of the program. Staff is also exploring other incentive programs for the Hillsboro Boulevard Redevelopment Area and the MainStreet Project Area, as both have become priorities for the City in recent months.
Staff will be seeking a date for a Commission workshop to discuss potential programs, receive feedback, and establish a clear direction for such programs.
RECOMMENDATION:
Staff recommends approval of this Resolution.
FISCAL IMPACT: Funding for this Program will come from the $250,000 budgeted annually in the General Fund - Economic Development Division.