Subject
title
Discussion and Instructions on the Rockville Economic Development, Inc. Agreement
end
Department
City Manager's Office (CMO)
Recommendation
Staff recommends the Mayor and Council discuss the Rockville Economic Development, Inc. Agreement and provide direction to staff on what to include in the agreement for the period beginning July 1, 2024.
Discussion
The Mayor and Council directed that staff to bring this agenda item back to the Mayor and Council after a closed session is scheduled. The current agreement between Rockville Economic Development, Inc. (REDI) and the City of Rockville was approved by the Mayor and Council on November 9, 2020, for the period January 1, 2020, through June 30, 2024 (Attachment A). Since the agreement is set to expire, a new agreement is needed. Therefore, staff seeks the Mayor and Council’s direction on what to include in the new agreement.
Mayor and Council History
The Mayor and Council approved the current REDI agreement on November 9, 2020, for the period January 1, 2021, through June 30, 2024. There were no amendments to the current agreement. The previous REDI agreement was approved by the Mayor and Council on June 13, 2016, for the period July 1, 2016, through June 30, 2019. The Mayor and Council subsequently approved five amendments to the agreement. The First Amendment which was approved on August 1, 2018, provided City funds for REDI to conduct a recruitment process for its new Executive Director. The Second Amendment, which was approved on November 13, 2018, provided funds for REDI to launch the new Rockville Small Business Impact Fund. The Third Amendment, which was approved on May 20, 2019, extended the agreement until September 30, 2019. The Fourth Amendment, which was approved on July 15, 2019, extended the agreement through June 30, 2020. The Fifth Amendment, which was approved on June 1, 2020, extended the agreement to December 31, 2020.
Fiscal Impact
The fiscal impact to the City for the REDI agreement changes each year and is approved as part of the City’s annual Operating Budget. The REDI budget for the remainder of this fiscal year (through June 30, 2024) and the budget for FY 2025 is shown below. Future fiscal impacts will be determined by future Mayor and Council budget allocations.
Next Steps
After direction is provided by the Mayor and Council, the Acting City Manager will negotiate the agreement with REDI. The City Attorney will draft the agreement consistent with the Mayor and Council’s direction and negotiations with REDI. Staff will then return with the agreement for the Mayor and Council to approve.
If this cannot be achieved by June 10, 2024, then staff will negotiate and bring to the Mayor and Council for approval an extension to the agreement by June 10, 2024.