Subject
title
Approval and Authorization of the Acting City Manager to execute the REDI Funding Agreement for Fiscal Years 2025-2027.
end
Department
City Manager's Office (CMO)
Recommendation
Staff recommends that the Mayor and Council approve the REDI Funding Agreement for Fiscal Years 2025-2027, and authorize the Acting City Manager to execute the Agreement on behalf of the Mayor and Council, subject to approval as to legal form by the City Attorney.
Discussion
On May 6, 2024, the Mayor and Council approved its FY25 City of Rockville Operating Budget and Capital Improvements Program. The approved budget included a budgeted allocation of $1,418,960 for REDI to fund and implement REDI’s economic development programs and activities and administrative operating expenses pursuant to a funding agreement. The FY25 REDI budget consists of the following:
|
Budget Item |
Amount |
|
Operating Expenses |
$937, 460 |
|
Economic Development Program and Activities |
$ 481,500 |
|
Total |
$1,418, 960 |
Mayor and Council History
On June 6, 1997, the Mayor and Council established REDI’s predecessor, Greater Rockville Partnership, Inc. (GRPI), and approved its Articles of Incorporation, which organized GRPI as a nonstock charitable “supporting organization” to be operated for the following purposes:
• To support and assist the Mayor and Council by conducting and performing the functions previously conducted by the Economic Development Division of the Department of Community Development;
• To establish the City of Rockville as a leading center for economic development while sustaining and equitable balance between the commercial and residential segments of the City of Rockville;
• To promote the retention and expansion of resident businesses in the City of Rockville;
• To encourage the formation of new business enterprises in the City of Rockville and to attract new businesses to the City of Rockville;
• To create, retain, and attract jobs within the City;
• To foster education and communication between the City of Rockville’s business community and the general public;
• To assemble, maintain, and disseminate information on the City’s business community, workforce and economic climate; and
• To promote workforce development and a positive business climate within the City of Rockville.
On November 19, 2003, GRPI, with the consent and authorization of the Mayor and Council amended its Articles of Incorporation and changed its name to “Rockville Economic Development, Inc.” On January 1, 2021, the Mayor and Council and REDI entered into a funding agreement from FY21-FY24 in an amount totaling $5,622,900. The agreement will expire on June 30, 2024.
The REDI Funding Agreement for FY25-27 is currently under review. The final Agreement will be attached to this staff report no later than June 10, 2024.
Fiscal Impact
Funding in the approved amount of $1,418,960 will be available at the start of FY25 (July 1, 2024) in the REDI cost center in the City Manager’s Office operating budget.
Next Steps
Upon Mayor and Council approval of the proposed Agreement, the Acting City Manager and the Chair of REDI’s Board of Directors will execute the Agreement, subject to approval as to legal form by the City Attorney.