Title
Re-Appropriation of Economic Development Fund (B)
Explanation
The CRA is well-positioned to carry out economic development initiatives in the city's core, particularly in the area of economic development finance. Over the last year, the CRA has contracted with the National Development Council to launch several economic development loan programs, including the Grow Gainesville Fund and the Capital Access Program to supplement the SBA's 504 Loan program. Also, in FY11 the Small and Minority Business Development Coordinator position and management responsibilities associated with GTEC were transferred from General Government to the CRA. This shift in the City's economic development posture, presents an opportunity to reexamine the tools available in Gainesville to grow local businesses, specifically in the technology sector.
To that end, CRA Staff and other community stakeholders have identified early-stage funding as a key component of attracting and growing local companies, and a critical gap in Gainesville's funding continuum. The CRA is currently working to develop the framework for the creation and implementation of a community-based Seed Fund program. Once complete, the program model will be presented to the CRA Board for feedback and subsequent approval.
CRA Staff has also identified a potential funding source in the Economic Development Fund (ED Fund) to capitalize a portion of the future Seed Fund program. Accordingly, CRA Staff is asking the CRA Board to endorse the Seed Fund concept and request the City Commission to re-appropriate funds in the ED Fund.
The ED Fund is a multi-year General Government account, set up to fund citywide economic development initiatives. Over the years, several appropriations have been to the made in the ED Fund to reflect varying programmatic objectives. The fund was initially capitalized with Occupational License revenue and has had periodic injections from the General Fund and GRU, the most recent...
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