Title
Resolution Appropriating $27,500.00 from the Fund Balance of the Economic Development Fund to the Economic Development Authority of the City of Hampton, Virginia for the Manufacturing and Innovation Grant Program
Purpose
Purpose/Background:
On November 7, 2007, the Hampton City Council appropriated $100,000 from the General Fund to the Economic Development Authority of the City of Hampton, Virginia (the “Authority”) for the express purpose of creating a Manufacturing Assistance Program in the City of Hampton in conjunction with the Virginia Philpott Manufacturing Extension Partnership (the “VPMEP”). The Authority accepted the funds on November 20, 2007, and approved a grant agreement with VPMEP on March 3, 2008, to provide discounted services to eligible Hampton manufacturers. The contract with VPMEP expired and the organization has changed its name to the GenEdge Alliance.
At the request of the Authority, staff examined the program and submitted modifications for its consideration at its May 15, 2012 regular meeting. The Authority requested staff examine the guidelines for further revisions and to consider the potential demand for the grant. Staff modified the guidelines to further simplify the process, as follows:
1) Allowing manufacturers to engage the services of any legitimate provider to perform services.
2) Increase the maximum employment threshold from 49 employees to 90.
3) Provide a maximum grant amount of up to $7,000 per company.
These modified guidelines were approved by the Authority on June 19, 2012.
The Authority would like to have funds readily available to continue to assist manufacturers. The Authority is working with only one company right now (who is interested in the program but has not applied). Further potential demand is not readily determinable.
Discussion:
This program is targeted to small manufacturers to assist them with advanced industry certifications, development of new prototypes, training for the operations of new production equipment and other initiatives to enable them to grow and remain competitive in the global marketplace. Funds have been appropriated by the City Council to fulfill the requirements of the program.
Impact:
The total amount requested for appropriation is $27,500.00 from the Economic Development Fund. These funds are being appropriated to complete the implementation of a program started in previous fiscal years and not yet completed.
Recommendation:
Rec
Approve the Resolution
Body
WHEREAS, the Economic Development Authority of the City of Hampton, Virginia (the “Authority”) established the Manufacturing and Innovation Grant Program (the “M & I Grant Program”) to assist small manufacturers with advanced industry certifications, development of new prototypes, training for the operations of new production equipment, and other initiatives to enable them to grow and remain competitive in the global marketplace;
WHEREAS, the M & I Program was first implemented in Fiscal Year 2008, and has been active since that date;
WHEREAS, in order to continue the M & I Program in Fiscal Year 2017, the Authority is requesting that $27,500.00 be transferred from the Economic Development Fund Balance to the Authority; and
WHEREAS, the overall objectives of the M & I Program are consistent with the purposes of the Authority.
NOW, THEREFORE, BE IT RESOLVED by the City Council of Hampton, Virginia, that the sum of $27,500.00 is hereby appropriated from the Fund Balance of the Economic Development Fund to the Economic Development Authority of the City of Hampton, Virginia for the purpose of fulfilling obligations pursuant to the Manufacturing and Innovation Grant Program.