|Enables participating jurisdictions to apply for grants each year (ED) and provides each participating jurisdiction with the opportunity to profit from economic growth in the county regardless of where the growth occurs (GE).
In order to spur economic growth, as well as create regional cooperation between its jurisdictions, the Montgomery County Commissioners set aside dollars every year from sales tax revenue for economic development projects within the county.
The ED/GE Program is composed of two separate, but interrelated, funds. The Economic Development (ED) Fund distributes dollars each year in grants to finance economic development projects. Grants are awarded twice a year by the county commissioners through a competitive review process, based on the recommendations of an advisory committee comprised of representatives from participating jurisdictions and the business community.
Annually, through the Government Equity (GE) Fund, a portion of increased property and income tax revenues collected as a result of the economic growth of program members is shared with fellow program participants. Participants either contribute to or receive money from the GE Fund based on their relative growth for the previous year.
The program also contains a settle-up provision by which, over the life of the program, no jurisdiction contributes more to the GE Fund than it receives in grants from the ED Fund. Settle-up occurs every three years throughout the life of the program.
The ED Fund contains two subfunds:
Primary ED Fund: Participating jurisdictions have the opportunity twice a year to apply for economic development grants for projects in Montgomery County. Policy guidelines for this subfund focus priority on projects that:
- retain/create jobs or otherwise enhance/expand local tax base
- have committed business as end user
- have a major economic impact
- are collaborative efforts involving two or more communities
- support economic sectors that have high growth potential in the county
- provide infill growth in areas already served by basic public infrastructure
Additionally, selection criteria focus on projects that:
- leverage other public/private resources
- discourage intracounty relocations of existing businesses
- meet existing local government policies and regulations
- avoid substituting an ED fund grant for other funding
- are ready to be implemented
The GE Fund
The overall purpose of the Government Equity (GE) Fund is to share some of the economic benefits (i.e. increased revenue) resulting from new economic development among the jurisdictions in Montgomery County.
Specifically, the goal of the GE Fund is to:
- foster productive interlocal competition in pursuing economic development opportunities
- strengthen the fiscal capacity of local governments to promote regional economic growth
- share the costs and benefits of economic growth to promote economic health in all communities
- promote reasonable and environmentally sound development practices
Sample ED/GE Projects
Dayton Dragons - Dayton
This project brought minor league baseball to Dayton, Ohio. The Dayton market was one of the largest markets in the nation without a minor league team. A joint effort of the team, the Montgomery County ED/GE Program, the City of Dayton and the Miami Valley Regional Transit Authority, the project purchased a Class A minor league team, named it the Dayton Dragons and built an 8,000 fixed seat and 2,000 lawn seat stadium in Downtown Dayton. Attendance for the Dragons' first season reached over 600,000 a minor league record.
Center Point 70 Commerce Park Huber Heights
Huber Heights is the third largest community in Montgomery County and, having evolved as a bedroom community, had experienced little commercial and industrial development. In 1982, the City began purchasing land along Interstate 70 and State Route 235. By 1992, the City owned 297 acres of mostly undeveloped agricultural land along Interstate 70. A Strategic Plan for Economic Development was developed at this time to focus on the development of the 297 acres purchased by the City the Center Point 70 Commerce Park. The Commerce Park has dramatically changed the physical and economic characteristics, as well as the perception, of Huber Heights. Through assistance from the Montgomery County ED/GE Program and the Ohio Department of Development, the City began infrastructure improvements that would create the new industrial park. With the construction of Center Point 70 Boulevard, Technology Boulevard, Progress Court and Expansion Way, along with necessary utilities, the Commerce Park now houses 23 businesses. These businesses have invested over $52 million in the cost of construction and have created 1,760 jobs. The North American headquarters of Beta LaserMike, AIDA and Fukuvi are located here, as well as the United States Headquarters for Paxar Graphics Group.
DMAX, Inc. - Moraine
In early 1996 the GM Truck Group launched an initiative to seek alternatives for the 6.5L diesel engine produced in Moraine, Ohio. GM currently has a 49% ownership in Isuzu Motors. Isuzu has been a world leader in diesel technology for many years and proposed becoming the center of diesel technology for all of GM with GM becoming the center of gas engine technology for Isuzu. In this way both companies leverage the strengths of each other with the opportunity to greatly enhance product offerings in the market place. It was agreed and Isuzu was given the responsibility of designing a new V8 diesel engine to replace the current GM 6.5L diesel for use in GM light and medium duty trucks. In September 1997 a study group from both Isuzu and GM recommended forming a joint venture to produce the newly designed diesel engine in Mexico. Mexico offered lower construction and operating cost. This would have resulted in loss of employment for approximately 300 Moraine Engine plant employees who were not eligible for retirement when the facility closed at the end of 2000. At this time GM reviewed options related to the Moraine, Ohio manufacturing campus. The State of Ohio Department of Development along with the City of Moraine and Montgomery County proposed a comprehensive incentive program including business development grants, job creation and investment tax credits, personal and real estate property tax abatements, industrial training and the opportunity for direct loan participation. Dayton Power and Light offered its partners in business program, which allows for capital equipment investment credits to offset utility expenses. The International Union of Electrical Workers agreed to a modern and competitive labor contract. All of these actions reduced the cost differential between Moraine and Mexico. The decision was made to build a new manufacturing facility on GM land within the City of Moraine.