Agenda

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County Administrator's Report 13. 4.

BCC Regular Meeting

Meeting Date:	04/23/2015
Issue: Line of Credit with Pensacola-Escambia Promotion and Development Commission (PEDC) to Cashflow
From:	Amy Lovoy
Department:	County Administrator's Office
CAO Approval:

RECOMMENDATION:

Recommendation Concerning a Memorandum of Agreement with the Pensacola Escambia County Promotion and Development Commission for a Line of Credit Associated with Project Foil - Amy Lovoy, Interim Assistant County Administrator

That the Board consider the following:

A. Approving the Memorandum of Agreement between the Escambia County Board of County Commissioners and the Pensacola Escambia County Promotion and Development Commission (PEDC) to establish an interest-free Line of Credit (LOC) with the County, in an amount not to exceed $750,000, in order to cashflow a Grant received from the State's Department of Economic Opportunity and used for activities associated with Project Foil;

B. Allocating $750,000, from reserves in Local Option Sales Tax (LOST), for the LOC; and

C. Setting the total maximum amount of draws that can be against this LOC, at an amount not to exceed $3,000,000.

[Funding Source: Fund 352, LOST III, Cost Center 110267]

BACKGROUND:

In 2014 PEDC was awarded a $3,000,000 Grant from the State's Department of Economic Opportunity to finance activities associated with Project Foil. Funds for this Grant may only be drawn on a reimbursement basis; meaning cash must be expended first and reimbursed later. PEDC does not have the cash on hand to finance these activities.

This line of credit would allow PEDC to draw funds from the County as needed to pay for the work that has been done on Project Foil. PEDC could then seek reimbursement from their Grant and use these funds to repay the County. The total Grant that would need to be financed is $3,000,000; however, the maximum amount that can be outstanding at any one time is $750,000.

This line of credit would remain open for a period of 2 years.

BUDGETARY IMPACT:

A total of $750,000 would be allocated from the LOST reserves reducing the total available reserves to about $1,600,000. At the end of the life of the LOC (2 years) these funds would then become available again. Although not included in the Agreement, this Board action sets the maximum amount of draws under this agreement at $3,000,000.

LEGAL CONSIDERATIONS/SIGN-OFF:

N/A

PERSONNEL:

N/A

POLICY/REQUIREMENT FOR BOARD ACTION:

N/A

IMPLEMENTATION/COORDINATION:

N/A

Attachments
PEDC Agreement for LOC