To: Board of Supervisors
From: County Administrative Office
Agenda Section: Consent
Vote Requirement: Majority
SUBJECT:
title
Authorize the County Administrative Officer (CAO) to Execute Agreement Releasing the Federal Interest in the Economic Development Administration Revolving Loan Fund
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Authorize the County Administrative Officer to execute the Agreement to Release the Economic Development Administration (EDA) Federal Interest in the Revolving Loan Fund Award on behalf of the County of Humboldt; and
2. Direct the County Administrative Officer to execute any subsequent administrative documents necessary to implement the agreement, provided such documents do not materially alter the terms approved by the Board.
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STRATEGIC PLAN:
This action supports the following areas of your Board’s Strategic Plan.
Area of Focus: A Diverse, Equitable & Robust Economy
Strategic Plan Category: 2001 - Promote strong economic resiliency and growth
DISCUSSION:
The County of Humboldt and the Redwood Region Economic Development Commission (RREDC) were co-recipients of Economic Development Administration (EDA) Revolving Loan Fund (RLF) Award No. 07-79-07332. The RLF was established to provide financing opportunities that promote economic development and job creation within Humboldt County.
Pursuant to the Reinvigorating Lending for the Future Act, RREDC requested that the EDA release its federal interest in the Revolving Loan Fund. EDA has determined that all statutory requirements have been met, including that more than seven years have elapsed since the final disbursement of federal funds, the recipients have complied with the terms of the award, and the Revolving Loan Fund will continue to be used for economic development purposes consistent with the Public Works and Economic Development Act (PWEDA).
The agreement establishes that the current Revolving Loan Fund capital base is $3,775,052.66, with a federal investment rate of 50%, resulting in a federal share of $1,887,526.33. The funds will remain with RREDC and will not be transferred to, held by, or administered as county funds. Upon execution of the agreement, EDA's reversionary interest in the award will terminate, eliminating ongoing federal reporting and administrative requirements associated with the original grant.
Although the federal interest is released, the agreement requires that the RLF continue to support economic development activities authorized under PWEDA. Funds may not be used for general governmental purposes or activities outside the scope of federal economic development objectives.
Execution of this agreement will reduce the administrative burden while allowing RREDC to continue administering the RLF, serving local businesses and economic development initiatives.
SOURCE OF FUNDING:
Economic Development Administration Revolving Loan Fund
FINANCIAL IMPACT:
Narrative Explanation of Financial Impact:
There is no financial impact associated with approval of the recommended action. Execution of the agreement does not provide additional funding to the county. Rather, it releases EDA's federal interest in the Revolving Loan Fund while requiring the funds to continue to be used for eligible economic development purposes. The agreement also eliminates ongoing federal reporting and compliance requirements associated with the original award.
STAFFING IMPACT:
Narrative Explanation of Staffing Impact:
None
OTHER AGENCY INVOLVEMENT:
• Redwood Region Economic Development Commission
• U.S. Department of Commerce, Economic Development Administration
ALTERNATIVES TO STAFF RECOMMENDATIONS:
The Board may choose not to authorize execution of the agreement. However, this alternative is not recommended as it would leave the Revolving Loan Fund subject to ongoing federal administrative and reporting requirements without providing a corresponding public benefit.
ATTACHMENTS:
Agreement to Release the EDA Federal Interest in Revolving Loan Fund Award No. 07-79-07332
PREVIOUS ACTION/REFERRAL:
Meeting of: N/A
File No.: N/A